Machines, equipment, lines are tangible assets, used to produce and create certain products for the owner. Machinery and equipment is a complete structure, including details, assemblies, and parts that are linked together to operate and move according to the intended use.
Line is a system of machines, equipment, tools, and vehicles arranged, installed, connected continuously at a certain location according to the designed diagram, technological process, ensuring uniform operation. sets for production. To serve production needs, your business needs to import some machinery and equipment from abroad.
In order to properly determine import policies and procedures, it is necessary to first determine the HS code of the item.
HS CODE OF MACHINERY, LINE, EQUIPMENT
Machinery, lines and equipment with HS code of Chapter 84
IMPORT TAX OF MACHINERY, LINE, EQUIPMENT
When importing machinery, lines and equipment, enterprises need to pay taxes as follows:
VAT 10%
Normal import tax 5%
Preferential import tax rate 0-3%
PROCEDURES FOR IMPORTING USED MACHINERY AND EQUIPMENT
IMPORT CONDITIONS
Equipment life should not exceed 10 years. The age of imported second-hand equipment is clearly specified in Appendix I of Decision 18/2018/QD-TTg. Accordingly:
Equipment age = Year of import – Year of manufacture.
In case the age of the machinery has exceeded the number of years specified in the regulations, but the working efficiency is still at least 85% compared to the original efficiency and the enterprise is conducting domestic production activities, it is still allowed to import. .
The machines are manufactured according to the following standards
+ Meet national technical regulations on safety and energy consumption and environmental protection.
+ If there is no technical standard related to machinery, equipment must be manufactured according to the technical specifications of the national standard or meet the standards of the countries that are members of the G7 bloc.
+ Consumption of raw materials, materials and energy does not exceed 15% of the design.
+ Technology of the technological line that is not on the List of technologies banned from transfer, the List of technologies restricted from transfer as prescribed in the Government’s Decree No. 76/2018/ND-CP dated May 15, 2018 stipulating detailing and guiding the implementation of a number of articles of the Law on Technology Transfer.
DOCUMENTS REQUIRED FOR IMPORTING USED MACHINERY, EQUIPMENT, LINE
+ Import dossiers according to the provisions of the Customs Law.
+ Certificate of business registration, stamped by the enterprise.
+ Certificate of machine manufacturer, clearly stating the year of manufacture and standards of equipment and machinery.
+ If the machinery is older than the prescribed level but still has an efficiency of over 85%, the enterprise needs to submit an additional document approving the import of old machinery from the Ministry of Science and Technology.
CERTIFICATE OF INSPECTION OF USED MACHINERY, EQUIPMENT, TECHNOLOGY LINE
The certificate of inspection of used machinery, equipment and technological lines specified in this Decision must show the following contents:
a) Name, year of manufacture, brand, number, type (model), country of manufacture and manufacturer’s name of used machinery and equipment;
b) Time and place of assessment;
c) Condition of machinery, equipment and technological lines upon assessment (in operation or not);
VALIDITY OF ASSESSMENT CERTIFICATE IS ACCEPTED CONSIDERATION IN IMPLEMENTATION OF THE PROVISIONS IN THIS DECISION:
a) For the inspection of used technological lines, it shall not exceed 18 months from the time of issuance of certificates to the time when the technological lines arrive at Vietnam’s border gates;
b) For the inspection of used machinery and equipment, no more than 06 months from the time of issuance of the certificate to the time the machinery and equipment arrive at the Vietnamese border gate.
Dossier, order and procedures for appointing an inspection organization for used machinery, equipment and technological lines
The application for registration and the order and procedures for appointing a domestic assessment organization shall comply with the provisions of Articles 18b and 18d of Decree No. 132/2008/ND-CP
Application for registration of appointment of a foreign inspection organization
Implementation organization:
Science and technology
PROCEDURES FOR IMPORTING UNUSED MACHINERY AND EQUIPMENT:
Unused machinery, equipment and lines are machines, equipment and lines that have not been put into operation or exploitation; has full tags, has never been used and has a manufacturing year not too long.
QUALITY INSPECTION FOR IMPORT OF MACHINERY, EQUIPMENT, LINE
Not all machines, equipment and lines are required to be checked for quality before being imported. However, businesses need to closely monitor information and decrees to know exactly whether the imported goods are on the list of quality inspection.
The set of documents to perform quality control usually includes:
+ Sales Contract (Sales Contract);
+ List of goods, packing (Packing List);
+ Commercial Invoice (Invoice);
+ Bill of Lading (B/L);
+ Quality certificates;
+ Introduction, explanation, technical documents as required by the test standards;
+ Registration for quality inspection;
+ A certified copy of the quality certificate and other relevant technical documents.
EQUIPMENT COMPATIBILITY ASSESSMENT PROCESS
PROCESS OF CONFORMITY EVALUATION OF MACHINERY AND EQUIPMENT WILL EXPERIENCE 6 STEPS:
Step 1: Register for product conformity certification at an authorized conformity certification organization;
Step 2: The organization will send certification experts down to the enterprise’s registration facility to conduct an initial assessment of the conditions;
Step 3: After sampling, experts will conduct analysis and evaluation of test results;
Step 4: Report on equipment and product evaluation;
Step 5: Issuance of certificate: Based on the test and evaluation results, if the product meets the corresponding technical regulations, that product will be granted a certificate of conformity with the regulation conformity mark.
Step 6: Evaluate and monitor products on an annual basis (once every 9-12 months).
Inspection of machines, equipment, lines
FIRST INSPECTION
Before being released from the factory and put into operation, all equipment and materials must be inspected after being manufactured, which is called the first inspection. Through the verification phase, we will assess whether these objects are qualified to work safely or not.
The steps to conduct the inspection depend on each type of equipment, for which we use specific machines and support tools and apply a specific test order.
REGULAR INSPECTION
After the first test expires, the next tests are called periodic tests, normally the extension period of the periodic verification will be less than that of the first test.
INCREDIBLE INSPECTION
The erratic test is the case when the first test or the periodic test is still valid but we have to conduct the test again, it is called an outlier test.
DOCUMENTS NEEDED TO PREPARATION WHEN IMPLEMENTING EQUIPMENT INSPECTION
The composition of the dossier is specified for each specific object in the corresponding technical inspection process of occupational safety; include the following types:
– For the first inspection: Equipment background; Factory profile; The reports of calibration results of measuring equipment; inspection record of grounding, lightning protection, protective equipment (if any); Installation profile; Calculation of strength of bearing parts (if any); Instructions for safe installation and operation; The certificate of conformity is issued by the designated organization according to regulations.
– For periodic inspection: Curriculum Vitae; the inspection record and the certificate of the previous inspection results; Records on management, use, operation and maintenance; inspection and examination minutes (if any);
– Unusual technical inspection of safety: Documents as in the case of periodic safety technical inspection and additional inspection of other documents specified in the following cases:
+ In case of repair, renovation or upgrade: Dossier of repair, renovation or upgrade; minutes of acceptance after repair, renovation and upgrading.
+ In case of changing the installation location: Installation records
DURATION FOR IMPLEMENTATION OF MACHINERY AND EQUIPMENT
The inspection period of machinery and equipment depends on each object and state during use, maintenance and repair.
The inspection period of the equipment will be different, for some equipment, it is every 3 years. Some equipment is once every 2 years and some equipment is once a year.
CUSTOMS DECLARATION PROCEDURES WHEN IMPORTING MACHINERY, LINE, EQUIPMENT:
+ Application for guardianship of the age of imported equipment and machinery,
+ Commercial Invoice
+ Packing list
+ Bill of lading
+ Customs declaration of imported goods
+ Sea freight bill
+ Certificate of equipment has not been used for 10 years, if required by customs
+ To enjoy preferential import tax, a certificate of origin is required.
Enterprises must supplement 01 set of documents in addition to the import dossier in accordance with the Law on Customs, including:
+ For used equipment purchased by a project under Clause 2, Article 6 of this Circular: Importing into the project register, 01 original used equipment and 01 copy must be imported. Valid Investment Policy Decision or Investment Registration Certificate.
+ In such cases, used machinery may be imported (for example, in cases where investment is permitted under a decision on investment policies or an investment registration certificate is issued under the provisions of the Law on Investment). ).
After preparing a complete set of import customs documents, you proceed to submit documents and declarations to the customs office. Next, the customs office will receive, process, check and return the results of the classification of declarations. Usually there will be 3 threads:
Green channel declaration: Valid documents and goods, can be cleared.
Golden channel declaration: Goods have not been cleared and must be checked for actual records.
Red channel declaration: Goods have not been cleared for customs and must be checked for documents and actual goods.
TRADE INSPECTION
In commercial activities, machinery, lines, and equipment from production to delivery to the buyer/consumer must go through many stages (transportation, delivery, storage, etc.), inevitable risks, errors, losses… leading to disputes between the parties involved in the purchase/sale contract.
Some common disputes are:
Errors in quantity, volume, quality, packaging, value of goods, origin, type of goods, condition, safety, hygiene standards, and other content as required of cutomer. (inspection under commercial contract)
Loss and causes leading to loss, division of responsibility, compensation level of related parties when goods are lost; (insurance loss assessment)
Time, place of delivery, transfer of ownership, risks to the goods … To directly prevent and have a legal basis to resolve disputes that occur quickly when goods are damaged or missing. , loss, damage, etc., the contracting parties often include in the commercial contract a clause to designate an independent, neutral, competent/reputable inspection organization to conduct the inspection and issue the results of the inspection. conformity of goods quality, quantity and volume with the signed contract.