• Procedures for importing used machinery, equipment, and used technological lines, including used components, spare parts, replacement parts, used machinery import tax, inspection and the import process of used machinery imported from China, Korea, Japan, Europe, America and many other countries. Used machinery is all types of used machinery that fall under chapter 84 or 85 of the import and export tariff.

Procedures for importing used machinery are divided into two types:

• Procedures for importing used machinery
• Procedures for importing old machinery and production lines

Next, Anlita will clarify for you. Import procedures, import policies as well as import taxes for used machinery.

1. Used machinery import policy

1. Procedures for importing used machinery, equipment, and technological lines. Regulated in the following legal documents:
2. Circular 23/2015/TT-BKHCN dated November 13, 2015
3. Circular 103/2015/TT-BTC dated July 1, 2015
4. Circular 38/2015/TT-BTC dated March 25, 2015; Amended and supplemented 39/2018/TT-BTC dated April 20, 2018.
5. Decree No. 69/2018/ND-CP dated May 15, 2018Decision 18/2019/QD-TTg dated April 19, 2019

According to the above documents, used machinery, equipment, and technological lines are not on the list of prohibited imports. However, when carrying out procedures to import used machinery, it is necessary to note the following points:

1. Used machinery must be no more than 10 years old;
2. Imports are only allowed for production purposes;
3. When importing agricultural machinery, goods must be labeled according to 43/2017/ND-CP;
4. Electrical components and used machine parts are banned from import;
5. Determine the correct HS code to determine the correct tax and avoid penalties.

2. Label imported goods

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 used machinery.

2.1. Label content

In addition to labeling, label content is also very important. Label content of goods is regulated in Decree No. 43/2017/ND-CP. For used machinery, 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. Capacity, year of manufacture;
5. 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 procedures to import used machinery, if you encounter a red channel, customs inspection will pay close attention to the label content above.

2.2. Label position on goods

Sticking labels on goods is necessary, but sticking them in the right position 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 procedures to import used machinery of all kinds.

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.

2.3. Risks encountered when not labeling

Labeling 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 used machinery. If you do not fully understand the regulations on product labels. Please contact hotline or hot mail for advice.

3. Determine the HS code of the machine

Determining the HS code is the most important step when carrying out import procedures for any type of goods. Determining the HS code will determine import tax, VAT and import policy.

To determine the correct HS code of machinery, you need to understand the characteristics of the goods: Materials, components and characteristics of the product.

3.1. HS codes of all types of machinery

HS code (Harmonized System) is a series of codes used for all goods worldwide. Between different countries in the world, only the ending numbers differ. Therefore, the first 6 numbers of the HS code worldwide for an item are the same. Machinery is a common noun, to determine the HS code of each type of machine. Please check each type below: 

• Industrial machine hs code;
• Sports exercise machine hs code;

•  HS code of machines serving agriculture;

3.2. Risks when applying the wrong HS code

Determining the correct HS code is very important when carrying out procedures to import used machinery. Misidentifying the HS code will bring certain risks to you such as:

1. Delaying customs procedures: Declaring the wrong HS code can lead to delays in customs procedures, because it takes time to check and verify accurate information about the type of goods.
2. Penalties for declaring incorrect HS codes according to Decree 128/2020/ND-CP;
3. Delayed delivery: If the goods are found to have an incorrect HS code declared, the customs authority may request correction or clarification of the information. This can lead to delays in delivery and affect the production and business cycle of the business.
4. In case of import tax, you will face a penalty of at least 2,000,000 VND and a maximum penalty of 3 times the tax amount.

To accurately determine the HS code for a specific type of machinery. Please contact hotline or hotmail for advice.

4. Tax on import of used machinery

Machinery, equipment, and technological lines are outdated when they meet the above conditions. Normal import is allowed, import tax on used machinery and equipment is calculated as new goods. Import tax depends on the HS code of that machinery. Machinery, equipment, and production lines are classified in chapters 84 and 85 of the import-export tariff. Because there are many types of machinery and equipment, we cannot list the HS codes here. Please contact us for advice on HS codes for machinery and equipment.

Import tax on used machinery, equipment, and technology lines depends on the HS code selected above. Each HS code has a different specific tax rate for machinery and equipment. You can refer to the import tax calculation below:

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.

CIF value is determined by the ex-factory value of the goods plus all costs to bring the goods to the first border gate of the importing country.

5. Documents for import of used machinery and equipment

Set of documents for import procedures for used machinery and production lines in particular, and procedures for import of other goods in general. Regulated in Circular 38/2015/TT-BTC dated March 25, 2015; Amended and supplemented 39/2018/TT-BTC dated April 20, 2018.

1. Customs declaration;
2. Commercial contract (Sale contract);
3. Commercial invoice;
4. Packing list;
5. Bill of lading;
6. Catalog (if any)… and other documents if required by customs.
7. Copy of Business Registration Certificate with the company’s stamp.
8. An inspection certificate is issued by an inspection organization
9. In case there is no QCVN, there must be a certificate confirming the factory year of manufacture in the exporting country and confirmation from the Vietnamese consulate in that country.

Above are all documents used to carry out customs clearance procedures for old machinery and equipment. The most important are customs declarations, inspection certificates, commercial invoices, and bills of lading. Other documents will be added if requested by the Customs authorities.

Among the above documents, the customs declaration and inspection certificate are documents made after the goods have arrived at the port. Other documents are available from the beginning, so importers should prepare them in advance to avoid the situation where the goods have arrived at the port before preparing them. Procedures for importing used machinery, equipment and technology will be extended.

6. Procedures for importing old machinery and equipment

Procedures for importing used machinery, lines as well as many other items. Very specifically stipulated in Circular 38/2015/TT-BTC dated March 25, 2015, amended and supplemented 39/2018/TT-BTC dated April 20, 2018. We summarize the steps in a short description so you can get an overall picture. Below are the main steps to carry out procedures for importing used machinery and production lines.

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, notification of goods arrival and determining the HS code of machinery, equipment and technology passed. use. You can then enter declaration information into the customs system via software.

Declaring customs declarations on customs software. Requires importers to have an understanding of data entry into the software. Do not arbitrarily declare customs declarations when you do not clearly understand this work. Arbitrary declaration can easily lead to irreparable points on the customs declaration. Then it will take a lot of money and time to fix.

Within 30 days from the date the goods arrive at the port, the customs declarant must declare the customs declaration. If this deadline is exceeded, the importer must face fines from customs.

Step 2. Open the customs declaration

After completing the customs declaration, the customs system will notify the results of declaration classification. If there is a declaration flow, print out the declaration and bring the import dossier to the customs department to open the declaration. Depends on stool n green, yellow, and red streams to carry out the steps to open the declaration. For old equipment, machinery, and technology, at this step an additional five-year-old appraisal is required. The assessment procedure depends on the assessment center.

The opening of the declaration must be carried out as soon as possible, at the latest within 15 days from the date of declaration. The declarant must bring documents to the Customs Branch to open the customs declaration. If the declaration exceeds 15 days, the declaration will be canceled and you will have to face customs fines.

Step 3. Clear customs declaration

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. In some cases, the declaration will be released to bring the goods to the warehouse for preservation first. After completing all documents, customs will proceed to clear the customs declaration. When the declaration has not yet been cleared, procedures must be carried out to clear the declaration. If it is overdue, you will have to face penalty fees and it will take a lot of time.

Step 4. Bring the goods to the warehouse for preservation 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. To be able to pick up goods conveniently, you need to fully prepare the goods release order, means of transport, and goods approved for passing through the supervision area. Above are the four basic steps to clear old machinery. Used equipment and lines.

7. Notes when importing used machinery and equipment

In the process of importing used machines for customers. Anlita has learned the following experiences and would like to share them for your reference. When carrying out import procedures for used machinery, equipment and used technology, you should note the following points:

1. Used machinery, equipment and technology must not exceed 10 years old.
2. For machines over 10 years old, they must be imported as scrap, according to the scrap import license.
3. Import tax on used machinery and equipment is the same as on new machinery.
4. When importing printers, goods must be labeled according to 43/2017/ND-CP.
5. Determine the correct HS code to determine the correct tax and avoid penalties.
6. Old machinery and equipment are not included in QCVN. There must be confirmation from the seller and confirmation from the Vietnamese consulate in the exporting country.

Those are the notes that we want to send to you for your reference. If you find it useful, you can share it with your friends for reference. If there are any inappropriate points, please give us feedback so we can improve the article.

8. Conclusion

Above is the entire procedure for importing used machinery, equipment and used technology, documents, sequence of import steps and import tax on used machinery and equipment. Hopefully this article will bring you the useful information you are looking for.

Any questions, requests for advice, requests for quotes for import procedures for used machinery and equipment or transportation. Please contact our hotline or hotline for advice.