Procedures for importing generators, HS codes of generator sets running on diesel engines, generators running on gasoline engines, natural gas generators, water generators, single-phase generators, 3-phase generators phase, DC generator, AC generator, import policy, VAT, import tax on generators. These are the main contents that Anlita wants to share with you in these articles.A generator is a device that converts mechanical energy into electrical energy. Usually uses the principle of electromagnetic induction. Generators are imported from many different countries around the world such as Europe, Japan, America, Korea, China, Thailand. However, when carrying out import procedures for different types of generators, they are relatively similar.

Next, Anlita will share procedures for importing generators, HS codes for diesel generators, gasoline generators, water generators, AC generators, DC generators, generators 1 phase, 3 phase, import policy, import tax and VAT on generators of all types.

1. Generator import policy

Procedures for importing generators of all types are specified in the following legal documents:

Circular 38/2015/TT-BTC dated March 25, 2015; Amended and supplemented 39/2018/TT-BTC dated April 20, 2018.Decree 69/2018/ND-CP dated May 15, 2018;

1. Decree No. 15/2018/ND-CP dated February 2, 2018;
2. Decision No. 583/QD-TCHQ dated March 22, 2019;
3. Decision 18/2019/QD-TTg dated April 19, 2019;
4. Decree No. 43/2017/ND-CP dated April 14, 2017;
5. Decree 128/2020/ND-CP dated October 19, 2020.

According to the above legal documents, generators do not belong to the list of goods banned from import. Procedures for importing generators will be carried out like other normal goods. When importing generators, it is necessary to note the following points:

1. Used generators are less than 10 years old;
2. When importing generators, goods must be labeled according to 43/2017/ND-CP;
3. Determine the correct HS code to determine the correct tax and avoid penalties.

Above are all legal regulations related to procedures for importing generators. If you do not fully understand the above processes, please contact the hotline or hotmail for advice.

2. Label imported generators

Labeling imported goods is not a new regulation. However, since Decree 128/2020/ND-CP was issued, the labeling of imported goods has been more closely monitored. Labeling goods is intended to help administrative agencies manage goods, determine the origin and unit responsible for the goods. Therefore, labeling goods is one of the indispensable steps when carrying out procedures to import generators from different countries. Label contentIn addition to labeling, label content is also very important. Label content of goods is regulated in Decree No. 43/2017/ND-CP. For generator products, the content of a full label includes the following information:

1. Information of the exporter (address, company name);
2. Information of the importer (address, company name);
3. Product name and product information;
4. Origin of goods.

Those are the basic label contents that need to be affixed to the goods. Information presented must be in English or other languages must be translated. When carrying out import procedures for generators, if you encounter a red channel, customs inspection will pay close attention to the label content above. Label position on goods, Sticking labels on goods is necessary, but sticking them in the right location is more important. When importing, product labels need to be affixed to the surfaces of the package such as: On cartons, on wooden packages, on product packaging. Or anywhere as long as it’s convenient to check and easy to see. Labeling in the correct location will help save inspection time when carrying out import procedures for generators of all types.

For retail goods on the market, more information needs to be shown. Such as the manufacturer, quantity of goods, technical specifications, date of manufacture, safety warnings. Risks encountered when not labelingLabeling goods is illegal according to the law.

If the goods were not labeled when imported or the content of the label is incorrect. Importers must face the following risks:

1. Being fined according to regulations, the penalty level is specified in Article 22 of Decree 128/2020/ND-CP;
2. Not entitled to special preferential import tax because the certificate of origin will be rejected;
3. Goods are easily lost or damaged because there are no warning labels for loading, unloading and transportation.

With the above risks, we recommend that you put labels on the goods when carrying out procedures to import generators. If you do not fully understand the regulations on product labels. Please contact hotline or hotmail for advice.

3. HS codes of generators of all types

To determine the HS code, it must be based on material, structure, size, and function. For generators, it is only necessary to determine the operating principles and uses can identify the generator HS code.
Here, Anlita has compiled the HS codes of generators of all types according to the table below: 

According to the HS code table above, the import tax on generators and VAT on generators is 10%. In addition to the above preferential tax rates, there are many other special preferential tax rates.

If you have not determined the HS code of the generator you are importing. Please contact our hotline or hotmail for advice.

4. Import tax on generators

Import tax is an obligation that importers must fulfill when importing goods to Vietnam. There are two types of import tax for generators: Value added tax and import tax. To calculate import tax, please refer to the calculations below.

Tax calculation when carrying out import procedures for generators of all types is as follows:

• Import tax is determined according to HS code. Import tax is calculated according to the formula:

Import tax = CIF value x % tax rate

• Import VAT is determined according to the formula:

Value added tax = (CIF value + Import tax) x % VAT rate.

According to the above formula, it can be seen that the import tax on generators of all types depends on the tax rate according to the HS code. To get the lowest and most accurate tax rate, you must determine the correct HS code for generators of all types. Besides, it also depends on whether the shipment has a certificate of origin or not, to enjoy special preferential tax rates.

For goods imported from countries such as Europe, India, Australia, Chile, China, Korea, Japan, Asean countries. Importers should ask sellers to provide them with a certificate of origin to enjoy the lowest import tax rate for generators of all types.

5. Dossier set for importing generators of all types

The dossier set for importing generators of all types includes the following documents:

1. Customs declaration
2. Sales contract
3. Packing list
4. Commercial invoice
5. Bill of lading
6. Certificate of origin (if any)
7. Catalog (if any), and other documents if required by customs.

Above are all documents used to complete customs clearance procedures for DC, AC, single-phase, three-phase generators and other types. The most important are customs declarations, commercial invoices, bills of lading, and certificates of origin. Other documents will be added if requested by the Customs authorities.

If you do not understand the above documents, please contact our hotline or hotmail for advice.

6. Procedures for importing generator sets

The procedure for importing generators of all types includes the following steps:

Step 1. Fill out the customs declaration

After having all import and export documents: Contract, commercial invoice, packing list, bill of lading, certificate of origin, arrival notice and determining HS codes of generators of all types. You can then enter declaration information into the customs system via software.

Step 2. Open the customs declaration

After completing the customs declaration, the customs system will return the declaration classification results. If there is a declaration flow, print out the declaration and bring the import dossier to the customs department to open the declaration. Depending on the green, yellow, and red channel, follow the steps to carry out import procedures for generators of all types.

Step 3. Customs clearance of goods

After checking the documents, if there are no questions, the customs officer will accept customs clearance of the declaration. You can now pay import tax for the customs declaration to clear the goods.

Step 4. Bring the goods back for storage and use

Upon customs clearance, proceed with the liquidation of the declaration and carry out the necessary procedures to bring the goods to the warehouse.

Above are four basic steps to carry out procedures to import generators of all types. If you do not understand the process, please contact the hotline or hotmail for advice.

7. Notes when completing procedures to import generators

In the process of carrying out procedures to import generators of all kinds for customers. Anlita has drawn experiences that she wants to share with you. When carrying out procedures to import generators, you need to note the following points:

1. Import tax is an obligation to be fulfilled by the state;
2. Correctly determining the generator HS code is very important to determine tax and avoid penalties for applying the wrong HS code;
3. You should prepare documents before importing goods. Avoid warehousing and storage that incur costs;
4. When importing generators, goods must be labeled;
5. Used generators are allowed to be imported provided that the equipment age is not more than 10 years old;
6. Goods can only be sold on the market once the customs declaration has been cleared.

Above, procedures for importing generators, HS codes for generators running on diesel engines, generators running on gasoline engines, natural gas generators, water generators, single-phase generators, generators 3-phase, DC generator, AC generator, import tax on generators, VAT and import policy on generators of all types. Hopefully this article will bring the information you are looking for.

Any questions, requests for advice, requests for quotes for import procedures for generating sets of all types. Please contact the hotline for advice!