Procedures for importing auto parts

Want to trade imported auto parts in Vietnam and need information about the current import tax for this type of goods? Are you interested in the import tax incentives that may apply to auto parts? What are the processes and procedures for importing auto parts into Vietnam?

Auto parts are parts of a car that are manufactured individually, used to replace or upgrade parts or components that are damaged, broken or too old, can no longer be used. The structural details in the cars are basically the same, only a few different details such as logos and labels,…

Current regulations and policies on import of auto parts

• VAT Law No. 13/2008/QH12 dated 03/06/2008;
• Decision 04/2017/QD-TTg dated 09/03/2017;
• Circular 41/2018/TT-BGTVT dated 30/07/2018
• Circular 38/2015/TT-BTC dated 25/3/2015 amending and supplementing 39/2018/TT-BTC dated 20/04/2018;
• Decision No. 3810/QD-BKHCN dated 18/12/2019;
• Decree 69/2018/ND-CP dated 15/05/2018;
• Circular No. 09/2019/TT-BKHCN dated 30/09/2019.

According to current law, 100% new auto parts are not on the list of goods prohibited from export or import. Therefore, businesses can import these items in accordance with regulations.

However, for used auto parts, it is necessary to consider each type of item to know whether they can be imported into Vietnam or not. According to Decree 187/2013/ND-CP, used auto parts are on the list of goods banned from import.

Labeling of imported goods

The labeling of imported goods not only helps to trace the origin and responsible units but also supports stricter management of goods. In particular, this process is mandatory for auto parts imported from abroad.

Label content

Decree No. 43/2017/ND-CP has clearly stipulated the content of labels for items. For auto parts, labels should include exporter/importer information, product details, origin, and other information in English or language with translation. Customs will thoroughly check the contents of the label during the import process.

Label Placement

The location of the label is equally important. Labels need to be affixed in a conspicuous position on the package such as cartons, wooden bales, product packaging. This helps save inspection time when importing auto parts and other items.

For retail goods, the label needs to add manufacturer information, quantity, specifications, date of manufacture, and safety warnings.

Risks when labels are not in accordance with regulations

Failure to label or mislabel can lead to serious consequences such as fines under Article 22 of Decree 128/2020/ND-CP, loss of import tax incentives due to invalid certificate of origin, and the risk of loss and damage to goods due to lack of warning during transportation.

See more:  Detailed instructions for energy labeling procedures in 2024 HDG Logistics

HS codes and import tax rates for auto parts

Auto Parts HS Code

According to the 2024 Import and Export Tariff, HS codes for auto parts are divided into many different types. Here are some HS codes for auto parts that HDG has compiled:

• Engine: 8407, 8408
• Engine Parts (Valves, Cams, Body, Cylinders, Carburetors): 8409
• Versatile lighting (taillights, headlights): 8512
• Water Pumps, Air Compressors, Blowers: 8413, 8414
• Camshaft, Gear: 8483
• Motorized chassis assembled: 8706
• Body Parts: 8707
• Parts and accessories for motor vehicles: 8708

Import tax on auto parts

When importing auto parts, businesses need to pay attention to two main taxes: Import tax and import Value Added Tax (VAT). VAT is calculated based on the CIF value of the order plus import taxes. For auto parts, the VAT rate needs to be specifically determined.

During the import procedure, it is very important to carefully check the HS code to accurately determine the applicable import tax rate.

To know the exact tax payable for each type of auto parts, please contact us to receive a free consultation.

Procedures for importing auto parts

The dossier of import of auto parts includes necessary documents as prescribed in Circular 38/2015/TT-BTC dated 25/3/2015 and amended and supplemented according to 39/2018/TT-BTC dated 20/04/2018. The documents include:

• Customs declaration
• Bill of lading
• Packing list
• Commercial invoice
• Sale contract
• Certificate of origin, if applicable
• Certificate of conformity, depending on the type of spare parts

Normally, the import dossier of auto parts only requires a customs declaration, bill of lading, invoice and certificate of origin (if any) to carry out import procedures. However, depending on the specific case or the requirements of the customs office, additional documents may be required.

Procedures for importing auto parts

The process of importing auto parts depends on whether the part needs specialized inspection or not. HDG Logistics would like to notify the import procedures for auto parts that need specialized inspection. For spare parts that do not need specialized inspection, only the specialized inspection steps need to be eliminated. The steps to import auto parts include:

Customs declaration procedures

Once you have prepared all the import and export documents such as contracts, commercial invoices, packing lists, bills of lading, certificates of origin, and arrival notices, as well as HS codes for auto parts, you can enter information into the customs system through the software.

E-customs declaration requires importers to be knowledgeable about how to enter data into the software. It is not recommended to declare on your own if you are not clear about this process, as there may be errors that cannot be corrected and are costly and time-consuming to resolve.

The customs declarant needs to complete the declaration within 30 days from the arrival of the goods at the port. If it is overdue, the importer will be subject to a fine from the customs office.

Note: After receiving the official declaration, it is necessary to immediately contact the Customs Sub-Department to carry out procedures for importing auto parts and components. Do not hesitate, wait a long time before importing.

Registration for quality inspection of imported goods

According to Circular No. 41/2018/TT-BGTVT dated 30/07/2018, auto parts need to have a certificate of standard and regulation conformity after customs clearance and before being sold on the market. To import, a quality inspection registration certificate is required. Types of spare parts that need specialized inspection include:

• Car rearview mirror, HS code: 7009.10.00
• Automotive interior materials, HS code: 8708.99.80
• Automotive Safety Glasses, HS Code: 70.07
• Automobile tires, HS code: 4011.10.00; 4011.20
• Automotive alloy rims, HS code: 8708.70
• Automotive Fuel Tank, HS Code: 8708.99

You can apply for online quality inspection at the national one-stop shop site https://vnsw.gov.vn/ or submit a paper dossier. Goods are only cleared after completing the registration for quality inspection. For spare parts not on the above list of HS codes, specialized inspection is not required when importing.

See more: The  process of carrying out the latest import quality inspection procedures 2024 HDG Logistics

Opening an import declaration

When the import dossier is complete, it is necessary to go to the customs sub-department to open a declaration and clear the goods. The customs clearance process will take place as usual. If there is no problem, the customs officer will clear the customs and you can proceed to pay import tax on auto parts.

The opening of the declaration should be done immediately, and not later than 15 days from the date of declaration. The declarant needs to bring the dossier to the sub-department of customs to open the declaration. If it is more than 15 days, the declaration will be canceled and you will be subject to a penalty fee from customs.

Bring goods to the warehouse

After the declaration is cleared, you need to liquidate the declaration and complete the necessary procedures to bring the goods to the warehouse. You need to prepare delivery orders, pick-up slips at the port, and arrange transportation to avoid the case where the declaration is completed but there is no order from the shipping line to pick up the goods.

Above is a detailed article about the Procedures for importing auto parts that hdglog.vn shared. If you have any questions, please contact us directly for answers