Are you planning to import dental chairs to serve your business or supply to the Vietnamese market? The procedure for importing dental chairs can include many stages and certain requirements for documents and documents. Don’t worry! This article will be a reliable companion that provides a clear and easy-to-understand roadmap to help you navigate the entire process from A to Z.
Legal policies and legal grounds for procedures for importing dental chairs
When carrying out procedures for importing dental chairs, businesses need to understand the current legal regulations of Vietnam. Full compliance with relevant circulars, decrees and legal documents will help the import process take place smoothly, avoid legal risks and incur unnecessary costs.
- Circular 38/2015/TT-BTC dated 25/3/2015; amending and supplementing 39/2018/TT-BTC dated 20/04/2018: Regulations on customs procedures; customs inspection and supervision; export duty, import tax and tax administration for exports and imports.
- Decree No. 69/2018/ND-CP dated 15/05/2018: Detailing a number of articles of the Law on Foreign Trade Management.
- Circulars, decrees and other legal documents related to the import of medical equipment issued by the Ministry of Health. (Example: Circular on registration of medical devices).
- Legal documents are subject to change. Businesses need to proactively update the latest information from the authorities or professional consultants about the procedure for importing dental chairs.
HS code and import tax rate for dental chairs
HS code for dental chairs
HS (Harmonized System) code is an internationally standardized code system used to classify goods in international trade. It is extremely important to accurately determine the HS code for dental chairs, as it directly affects the calculation of import duties, VAT and commodity management policies.
940210 | – Dental chairs, barber chairs or similar chairs and their parts: | ||||
94021010 | – – Dental chairs and their parts | single | 5 | 0 | 8 |
HS codes may change or have more detailed HS codes depending on the structure, function and accompanying parts of the dental chair (e.g. chairs with built-in endoscopic cameras, X-ray systems, etc.). Businesses need to refer to the latest import and export tariff schedule to ensure that the HS code of dental chairs is determined correctly.
Import tax rate for dental chairs
Import tax rate is the percentage (%) calculated on the value of goods used to calculate the tax amount payable by the importer. The import tax rate of dental chairs depends on the HS code and the origin of the goods.
- Preferential import tax rate: 0%
- Normal import tax rate: 5%
- VAT: 8%
- Special preferential tax rates:
- If dental chairs are imported from countries that have signed free trade agreements (FTAs) with Vietnam (for example, ASEAN countries, China, Japan, South Korea, Australia, Chile, EU, etc.), businesses can enjoy special preferential import tax rates, usually 0% or very low.
- To enjoy this special preferential tax rate, the shipment needs a valid Certificate of Origin (C/O). Businesses should ask suppliers to provide C/O before the goods arrive.
Risks of entering the wrong HS code for dental chairs
The incorrect identification of the HS code for dental chairs can lead to serious risks for businesses, affecting both finances and reputation:
- Customs clearance delays: Customs authorities may hold goods for inspection and verification of information, especially when there is doubt about the declared HS code. This prolongs the time to import dental chairs and affects the delivery and installation plan.
- Fine: Enterprises may be fined for incorrectly declaring HS codes in accordance with the customs law. The fine can be very high, depending on the severity of the violation.
- Tax arrears: If the HS code is incorrectly declared leading to underpayment of tax, the enterprise will be subject to arrears of the missing tax amount. In addition, businesses may also be fined for late tax payment.
- Affecting the certificate of origin: Declaring the wrong HS code can invalidate the Certificate of Origin (C/O), making the enterprise not entitled to special preferential tax rates. This causes financial losses and can affect signed contracts.
Types of taxes and how to calculate import tax on dental chairs
Taxes to be paid when importing dental chairs
When carrying out procedures for importing dental chairs, businesses usually have to pay two main taxes:
- Import tax: is a tax calculated on the value of goods, in order to protect domestic production (if any) and create revenue sources for the state budget. The tax rate depends on the HS code and the origin of the goods.
- Value Added Tax (VAT): It is an indirect tax, calculated on the added value of goods and services in the process of production and circulation to consumers. The current VAT rate is 10%.
How to calculate import tax on dental chairs
- Import Tax:
- Formula: Import Tax = CIF Value x Import Tax Rate
- In which:
- CIF Value: The value of the goods as of the first port of import, including:
- Ex-factory price (EXW)
- Domestic shipping costs
- International transportation costs (ship fees, airfares, etc.)
- Insurance premiums
- Other costs to bring goods to the first port of import
- Import tax rate: It is a percentage (%) applied to dental chairs, depending on the HS code and origin.
- CIF Value: The value of the goods as of the first port of import, including:
- In which:
- Formula: Import Tax = CIF Value x Import Tax Rate
- VAT:
- Formula: VAT = (CIF Value + Import Tax) x VAT Rate
- In which:
- The current VAT rate is 10%.
- In which:
- Formula: VAT = (CIF Value + Import Tax) x VAT Rate
Risks of not paying taxes in full
Failure to pay taxes in full and on time when importing dental chairs can lead to serious risks, affecting business activities and the reputation of businesses:
- Fines: Customs authorities will apply penalties for administrative violations in accordance with the tax law. The penalty can be very high, depending on the amount of tax shortfall and the delay in payment.
- Customs Clearance Delays: Goods may be held at ports or border gates until the tax obligation is fulfilled. This incurs storage and storage costs, affecting delivery schedules and business projects.
- Criminal liability prosecution: In case of tax evasion with large amounts of money or tax fraud, related businesses and individuals may be prosecuted for criminal liability in accordance with the law. This can have serious legal consequences and affect the long-term business of the business
Regulations on labeling of goods when importing dental chairs
Regulations on labeling of goods
Labeling of goods is a mandatory requirement for goods imported into Vietnam, including dental chairs. The purpose of labeling is to provide information to consumers, help state management agencies control the quality and origin of products, and protect the interests of consumers.
- Decree No. 43/2017/ND-CP detailing goods labels. Accordingly, the label of the imported dental chair needs to contain the following information:
- Name of the goods;
- Name and address of the organization or individual responsible for the goods (importer);
- Origin of goods;
- Number of production lots;
- Date of manufacture;
- Specifications;
- Safety warnings (if any);
- Instructions for use (if any);
The information on the label must be expressed in Vietnamese. If a foreign language is used, there must be a sub-label in Vietnamese.
Labeling position of imported dental chair
The label should be placed in a conspicuous position on the product and packaging, ensuring that it is not obscured or easily peeled off during transportation and use.
- Example:
- Stick on the body of the dental chair.
- Stick on the carton containing the dental chair.
- Stick on the included parts (if applicable).
Risks of mislabeling or not labeling
Mislabeling, lack of information, or non-labeling of goods when importing dental chairs can lead to the following risks:
- Fine: The market surveillance agency may sanction administrative violations on goods labels. The fine level depends on the value of the infringing goods and the severity of the violation.
- Temporarily seized goods: Authorities can temporarily seize goods to request businesses to fix labeling errors. This causes delays in customs clearance and delivery.
- Recalled goods: In case of serious violations of labels, goods may be required to be recalled from the market. This causes great economic damage and affects the reputation of the business.
- Loss of credibility with customers: Products without clear labels make it difficult to provide information to customers and can reduce their trust in the business.
Detailed dental chair import process and procedures
Steps in the process of importing dental chairs
The procedure process for importing dental chairs basically follows the usual commodity import process, which includes the following key steps:
Step 1: Prepare import documents
This is the most important step, determining the convenience of the whole process. Enterprises need to fully and accurately prepare the following documents:
- Customs declaration
- Sales Contract
- Commercial Invoice
- Packing List
- Copy of packing slip, showing details of
- Bill of Lading
- Certificate of Origin (C/O)
- Import License
- Product Catalog
- Other documents on request
Step 2: Declare customs declaration
After preparing a complete set of documents, the enterprise declares information on the customs declaration on the e-customs software (currently VNACCS/VCIS software). The declaration of customs declaration requires the person to have knowledge and experience in data entry, understand the regulations on HS codes, customs value, tax rate, etc.
- Declare accurate and complete information.
- Thoroughly check before submitting the declaration.
- If you have any questions, you should seek advice from customs professionals.
Step 3: Submit and open a customs declaration
After successfully declaring the declaration, the e-customs system will respond to the results of the declaration channeling. There are three main flow of declarations:
- Green Channel: Goods are cleared immediately without checking records or physical inspection.
- Gold Channel: Customs authorities only check paper records.
- Red channel: Customs authorities check both paper records and physical inspection of goods.
Enterprises need to print the declaration and bring a set of documents to the customs sub-department to submit and carry out procedures for opening the declaration according to the guidance of the customs officer.
Step 4: Customs clearance of goods
For green channel goods, after paying taxes in full, the goods will be cleared from customs.
For yellow or red channel goods, the customs authority will conduct a dossier inspection and/or physical inspection of the goods.
If there is no problem, the customs office will accept the customs clearance of the goods.
The enterprise shall pay taxes (if any) and receive the decision on customs clearance of goods.
Step 5: Transporting goods to the warehouse
After the goods are cleared, the enterprise carries out procedures for receiving the goods at the port or border gate. Hire suitable means of transportation to bring goods to the warehouse. Prepare all necessary documents to receive goods (delivery orders, delivery notes, etc.). Plan your shipment carefully to ensure the safety of your cargo.
- Detailed dossier for dental chair import procedure
To carry out the procedures for importing dental chairs, enterprises need to prepare all the following documents:
- Customs declaration: Original (02 copies).
- Sales Contract: Copy (01 copy).
- Commercial Invoice: Copy (01 copy).
- Packing List: Copy (01 copy).
- Bill of Lading: Copy (01 copy).
- Certificate of origin (C/O): Original (01 copy) (if any).
- Import license: Original (01 copy) (if any).
- Product catalog: Copy (01 copy) (if any).
- Certificate of quality (COA): Copy (01 copy) (if any).
- Other documents at the request of the customs office.
Dental chairs are medical equipment, therefore, the import may be subject to the specialized management of the Ministry of Health.
Some types of dental chairs may need an import license or a certificate of registration before they can be cleared through customs.
Dental chairs may have to meet technical standards for electrical safety, electromagnetic compatibility (EMC) and other standards.
Important notes when carrying out procedures for importing dental chairs
In order for the process of importing dental chairs to take place smoothly and effectively, businesses need to pay attention to some of the following issues:
- Accurate identification of HS codes:
- HS code is a key factor in determining tax rates, goods management policies and related regulations.
- Enterprises need to carefully look up the import and export tariff schedule and consult experts (if necessary) to ensure the most accurate identification of HS codes.
- Double-check the documents:
- The import dossier needs to be fully prepared, accurate and valid.
- The information on the documents (contracts, invoices, packing lists, etc.) must match.
- Avoid mistakes such as wrong company name, wrong address, wrong quantity, wrong value…
- Compliance with labeling regulations:
- Label in the right place and with full content as prescribed in Decree 43/2017/ND-CP.
- Use the Vietnamese language on the label.
- If there is an original label in a foreign language, there must be a secondary label in Vietnamese.
- Understand the customs process:
- Understand the steps in the import process, regulations on time and place of procedures, etc.
- Be proactive in declaring, submitting dossiers and working with customs authorities.
- Choosing a reputable logistics unit:
- An experienced and professional logistics unit will help businesses:
- Consulting on import procedures
- Prepare your application
- Customs declaration
- Freight Forwarding
- Solving arising problems
- Businesses should carefully learn about the capacity and reputation of logistics units before deciding to cooperate.
- An experienced and professional logistics unit will help businesses:
Q: Is an import license required for all types of dental chairs?
Answer: Not all. Whether or not a license is required depends on the classification of the dental chair according to the regulations of the Ministry of Health. (It is necessary to add detailed information about classification and specific regulations).
Question: How long does it take to import dental chairs?
A: Check-in time can vary depending on many factors, including:
- Completeness and accuracy of records
- Channeling of declarations (green, yellow, red)
- Time to inspect the goods (if any)
- Working capacity of the logistics unit (if any)
Question: What does the cost of importing dental chairs include?
Answer: The import cost includes:
- Import tax
- VAT
- Shipping costs
- Customs clearance costs
- Storage and storage costs (if any)
- Other expenses (if any)
The procedure for importing dental chairs is a complex process that requires thorough preparation, professional knowledge, and practical experience. However, with a clear understanding of legal regulations, customs procedures and important notes, businesses can completely successfully import this item. This article has provided an overview and details of the dental chair import procedure, hopefully it will be a useful resource for you in the process of doing business and looking for information about logistics services.
Note
- The information in this article is for reference only. To ensure accuracy and up-to-dateness, businesses should directly refer to current legal documents or seek advice from experts in the field of import-export and logistics.
It is necessary to regularly update information on legal regulations, import and export tariffs and policies related to the import of goods to ensure full and effective compliance.