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Question and Answer

Exporting Handbags and Vitamines from USA

Name/Company name: Thuy Meyer
Categories: Tax
Date: 14-06-2016 10:18
Question:
Hi,

I want to export handbags such as Michael Kors, Coach,... and some vitamines for pregnant woman and children to Vietnam from United States. I would like to know how/where can I look for HS codes? What kinds of taxes/fees do I need to pay and they are calculated? What are the restriction rules? What documents do I need to submit enable for custom clearance?
Answer at 14-06-2016 10:18:

Note: Our suggestion is for your reference only, not legally obligated.

For your questions, we would like to have below answer:

1.  HS and Import tax rate:

In order to determine the tax rate for a commodity, its HS code must be specified first. The identification of HS codes and tax rates of some particular items must be based on actual goods.

Pursuant to List of import-export goods enclosed with the Circular No. 103/2015/TT-BTC dated 01/07/2015 by Ministry of Finance:

- About vitamin, you can refer to Chapter 29: Organic chemicals, sub- Chapter XI: Provitamins, vitamins and hormones.

And HS 30.04: “ Medicaments (excluding goods of heading 30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylatic uses, put up in measured doses (including those in the form of transdermal administration system) or in forms or packings for retail sale.”

- About handbags, you can refer to Chapter 42, HS 42.02: “Trunks, suit-cases, vanity-cases, executive-cases, brief-cases, school satchels, …, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper.”

Your information is not enough for us to determine the HS code for your item, we suggest you to study below documents:

- Circular 14/2015 / TT-BTC dated 01/30/2015 of the Ministry of Finance  providing guidance on classification of goods, and analysis for classification of goods; analysis for quality inspection, food safety inspection for food for exported and imported products.

- Circular No. 182/2015/TT-BTC dated 16/11/2015 by the Ministry of Finance, promulgating the Export Tariff and Preferential Import Tariff according to the list of dutiable items.

- Annex II: 06 general regulation explaining classification of goods according to List of Vietnamese import and export items basing on harmonized description system and code system of WCO ( promulgated with Circular 103/2015/TT-BTC).

You can find tarriff code at our portal as following link:

http://www.customs.gov.vn/SitePages/Tariff-Search.aspx?language=en-US

 

2. Methods for import duty:

- About the tax calculation methods: is performed as Article 37 of Circular No. 38/2015/TT-BTC dated 25/3/2015 by Ministry of Finance, providing guidance on customs procedures; customs inspection and supervision; import duty, export duty and tax administration applicable to imports and exports.

Export duty or import duty amounts payable for goods subject to pro rata duty rates shall be determined based on the quantity of units of each goods item actually exported or imported as indicated in a customs declaration, dutiable value and duty rate for each goods item according to the following formula:

 

                                          Quanlity of

                                         units of each

          Payable                 good item                 Dutiable                 Duty

           import                     actually                     value                  rate of

           duty       =             imported as         x       of a          x         each

           amount                   indicated in                unit of                 goods

                                         a customs                   goods                    item

                                         declaration 

                                           declaration                                     

- About dutiable value of a unit of goods: is performed as Article 5, Article 6 Circular 39/2015/TT-BTC dated March 25, 2015, on customs value of imported goods and exported goods.

- For duty rate: applied tax rate under the Tariff issued together with Circular No. 182/2015/TT-BTC dated 16/11/2015 by the Ministry of Finance, promulgating the Export Tariff and Preferential Import Tariff according to the list of dutiable items.

3. For VAT: is performed as Circular No. 83/2014/TT-BTC dated June 26, 2014 of the Ministry of Finance guiding the application of value-added tax according to Vietnam’s list of imports.

4. For customs procedures: is performed as Circular 38/2015/TT-BTC of March 25, 2015 by Ministry of Finance, providing guidance on customs procedures; customs inspection and supervision; import duty, export duty and tax administration applicable to imports and exports, for more information.

The import record is performed as Item 2, Article 16 of Circular No. 38/2015/TT-BTC dated 25/3/2015 by Ministry of Finance.

5. About imported goods required to be examined hygiene and food safety:
 Vitamin is one of products which are subject to inspection of food hygiene and safety.

According to Law on Food Safety dated June 17, 2010; Decree no. 38/2012/NĐ-CP detailing the implemention of the number of articles of the Law on Food Safety, please contact with authorized  units in The Ministry of Health for more support. Furthermore, you should contact with Customs Branches where you plan to declare customs for further help.

Best regards.