Smartwatches are becoming increasingly popular thanks to their unique features and internet connectivity. However, the import of this product requires the importer to have knowledge of foreign trade and knowledge of customs law. The article below hdglog.vn will provide you with the process of importing smartwatches, including HS smartwatch codes, import taxes, VAT, and related watch import policies.
What is a smartwatch?
A smartwatch (also known as a Smartwatch) is a wearable device that has all the features of a traditional watch such as viewing, timers, etc. Besides, it is also integrated with many modern features such as network access, replying to messages, listening to music, health care, heart rate measurement, weather monitoring,…
The smartwatch is designed as a tool to support smartphones, so it allows users to connect to the phone to receive messages, synchronize contacts or make bluetooth calls, transfer data,… quickly.
Smart watch import policy in Vietnam 2024
Pursuant to Circular No. 12/2018/TT-BCT dated 15/06/2018 of the Ministry of Industry and Trade and Decision No. 3950/QD-TCHQ dated 30/11/2015 of the General Department of Customs, smartwatches are not on the list of prohibited imports. Therefore, businesses can import smartwatches like other common items. However, used watches are prohibited from being imported.
Note that smartwatches imported into Vietnam must undergo quality inspection and declaration of conformity according to the regulations of the Ministry of Information and Communications. In addition, the labeling of goods must comply with Decree 43/2017/ND-CP.
HS code and smart watch import tax rate
What is the HS code of a smartwatch? What taxes must businesses pay without procedures for importing smartwatches?
HS code smartwatch
The accurate identification of the HS (Harmonized System) code is very important because it directly affects the calculation of the payable import duty rate and the entire import document dossier. For smart meters, the HS code belongs to chapter 91, namely 91021200:Optical display only
Import tax rate on smart meters.
This import tariff provides information on the tax rates applicable to the import of smart meters.
Specifically, there are three types of tax rates: preferential import tax, value-added tax and special preferential import tax.
In which, special preferential import taxes are divided into two types: Form D applied to Southeast Asian countries and Form E applied to China. Both of these special preferential taxes have a tax rate of 0%.
We need to clarify these taxes.
Based on the import and export tariffs, we can see the following tax rates applied when importing smartwatches:
- Preferential import tax: 20%
- Value Added Tax: 10%
- Special Preferential Import Tax (Form D): 0%
- Special Preferential Import Tax (Form E): 0%
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 batteries imported from abroad.
Label content
Decree No. 43/2017/ND-CP has clearly stipulated the content of labels for items. For batteries, the label 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 saves time for inspection when importing batteries 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.
Smartwatch import process
Based on Circular 38/2015/TT-BTC dated 25/3/2015 and Circular amending and supplementing 39/2018/TT-BTC dated 20/04/2018, the smart watch import dossier includes the following documents:
- Customs declaration: A mandatory document to declare information about the import shipment to the customs authority.
- Commercial contract (Contract): A purchase and sale contract between the buyer and seller, clearly stating the terms of the product, price, delivery conditions, payment, etc.
- Packing list: List in detail the quantity, weight, and size of each product in the shipment.
- Commercial Invoice: A payment document made by the seller, clearly stating the value of the shipment.
- Certificate of origin (C/O): Proof of the origin of the goods (if any).
- Bill of lading: A transport document issued by the carrier, confirming the receipt of the goods and committing to deliver the goods to the destination.
- Other documents (if any): Other documents related to the shipment such as quality certificates, import licenses, etc.
Note: In addition to the above documents, you need to prepare other documents at the request of the customs office such as certificates of conformity, quality inspection certificates, etc.
Step 1: Customs declaration
First, fully prepare import and export documents such as contracts, commercial invoices, packing lists, sea waybills, certificates of origin, arrival notices and HS codes of smartwatches. Then, enter the declaration information into the customs system via the customs declaration software. Care should be taken when entering data to avoid errors, as this can be time-consuming and costly.
Step 2: Open a customs declaration
After the declaration is completed, the customs system will return the result of the channeling of the declaration. Print the declaration form and bring the dossier to the customs sub-department to open the declaration. Do this within 15 days of the declaration date to avoid penalties.
Step 3: Customs clearance of goods
Customs officers will check the dossier and accept customs clearance if there are no questions. After that, import taxes are paid so that the goods are cleared. In some cases, the goods may be released to be taken back to the storage warehouse.
Step 4: Transport and use the goods
Finally, proceed to liquidate the declaration and carry out procedures to bring the goods to the warehouse. Prepare delivery orders and pick-up slips at the port, and arrange vehicles to pick up goods. Note to avoid the situation that the declaration has been completed but there is still an order from the shipping line, so that the process can be completed smoothly and avoid loss of time and costs.
Understanding the procedures for importing smartwatches not only helps businesses save time and costs but also ensures legal compliance. Through this article, we hope you have gained a comprehensive view of the process and steps required to perform smartwatch import effectively.
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