Export & Import Regulations in Vietnam
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1 IE Singapore iadvisory Seminar 2013 Export & Import Regulations in Vietnam Vu Duc Thinh National Gateway Manager, DHL Express Vietnam Singapore, September 19 th, 2013
2 Contents 1. Vietnam Introduction 2. DHL Express Vietnam 3. Vietnam Customs Clearance 4. Q&A 2
3 Contents 1. Vietnam Introduction 2. DHL Express Vietnam 3. Vietnam Customs Clearance 4. Q&A 3
4 Vietnam Overview General information: Official Name: The Socialist Republic of Vietnam Political system: Capital name: Time zone: Area Population Major cities: Principal rivers: Principal industries: Communist State Hanoi UTC + 7 hours 331,210 sq. km 89 million Hanoi, Ho Chi Minh City (Saigon), Haiphong, Da Nang Mekong, Red Food processing, garments, shoes, machine-building; mining, coal, steel; cement, chemical fertilizer, glass, tires, oil, mobile phones 4
5 Vietnam at a Glance Economy Overview (2012): GDP total: $325.9 billion GDP per capita: $1,600 GDP growth rate (%): 5.0% Inflation Total exports: Total imports: FDI Inflow: Forex reserves: Currency: Economic Status 9.21% (2012) 7-7.5% (2013 forecast) $114.6 billion $114.3 billion $13 billion $23.88 billion 1 USD= 21,036 VND World 42 nd largest Economy 5
6 Industrial Areas Vietnam Overview Hanoi Hai Phong Bac Ninh Da Nang Quang Nam Quang Ngai Ho Chi Minh City Binh Duong Dong Nai Vung Tau 6 Int l seaports 14 DOM airports 7 Int l airports Transportation 6
7 Vietnam Trade: Import & Export Vietnam trade (US$ billion) 2012 top 5 export market EU USA ASEAN Japan China Others 2012 top 5 import market Source: Vietnam General Statistics office/ General customs China ASEAN Korea Japan EU Others 7
8 Vietnam Trade: Exported Commodities (2012) Source: Vietnam General Statistics office/ General customs 8
9 Vietnam Trade: Imported Commodities (2012) Source: Vietnam General Statistics office/ General customs 9
10 Vietnam Singapore Trade Relationship Facts Viet-Sin trade (US$ billion) 40 years official relationship: #2 FDI country; USD 28 billion; 1,100 projects; 13% total FDI to Vietnam US$ 9.06 billion in 2012 trade; #6 market after CN, JP, US, KR, TW; #1 in ASEAN 20 daily flights Source: Vietnam General Statistics office/ General customs 10
11 Vietnam Singapore Trade: Exported Commodities (2012) Export commodities 2012 Source: Vietnam General Statistics office/ General customs 11
12 Vietnam Singapore Trade: Imported Commodities (2012) Import commodities 2012 Source: Vietnam General Statistics office/ General customs 12
13 Contents 1. Vietnam Introduction 2. DHL Express Vietnam 3. Vietnam Customs Clearance 4. Q&A 13
14 DHL Express in Vietnam DHL VN Country Key Facts HAN gateway 1 st Int l Express company in VN #1 in market share 9 Facilities and 41 outlets 2 Gateways 82 Vans, 6 Trucks, 46 Motorbikes 77 DOM Flights, 64 INT Flights per week Ha Noi SC - Service Center / Depot - Gateway Depot Hai Phong Depot Da Nang 320 dedicate Operations employees 1 DHL dedicated aircraft (45 tons) SGN gateway - Dedicated Aircraft Hong Kong CTPAT & TAPA A Certificate Depot Long An SGN South SC - HCMC SGN North SC Dong Nai Depot - Vung Tau 14
15 Facilities Service Centers 15
16 Facilities Gateway 16
17 Security Features High Value Cage Customs Bonded Warehouse Security Control Center The only TAPA (Technology Asset Protection Association) certified Express Company in the Country CCTV Surveillance System at all facilities to enable both local and remote monitoring Facilities equipped with intrusion and motion detection alarm system E-Card Access System Security-trained Guards on duty 24x7 Independent access gate into the General Area Surveillance System In-House Customs 17
18 Quality Control Center 1. Dynamic Shipment Movement Management Improved Customer Satisfaction Real time management from pickup to delivery Real time responses to offload, technical delays Implement recovery and contingency plans 2. Crisis Management Centre Act as a Country Crisis Center Facilitate Country Crisis Drills 3. Security Centre Remote online monitoring of all facilities via country CCTV networks 4. Daily/ Weekly/ Monthly Reporting Effective, timely and accurate reporting of incidents, performance reports and project results 18
19 DHL Express: Transit Time Ho Chi Minh to Major Cities Manila 1 Day Bangkok 1 Day New York 2 Days London 2 Days Los Angels 1 Day Paris 2 Days Singapore 1 Day Jakarta 1 Day Hongkong Seoul 1 Day 1 Day Dubai Amsterdam 2 Days 2 Days Shanghai 1 Day Tokyo 1 Day Taipei 1 Day Kuala Lumpur 1 Day 19
20 Contents 1. Vietnam Introduction 2. DHL Express Vietnam 3. Vietnam Customs Clearance 4. Q&A 20
21 Clearance documentation PACKING LIST - Import licence - Business licence - Inspection licence - Processing contract - Commitment letter - Certificate of origin - Others (if any) 21
22 Export - Vietnam Customs Regulations No duty / tax for exported shipments (except for minerals). Based on destinations regulations, attached to physical shipments. quarantined shipments need to be passed to quarantine department and have certificates Wooden items, made from wood in grade 1 and 2 ( precious / rare wood) are prohibited to be exported. Repair / return items should have serial numbers shown on customs paperwork for re-checking when shipments re-enter VN. Chemicals are required to have MSDS attached for verification. Items concerning the VN war ( Zippo lighters, prints, uniform etc) are prohibited and will be seized by customs. 22
23 Import modes Types of Import Entry Formal Entry Common Informal Entry Express Informal Entry Machinery for Fixed Assets Processing for Export Manufacturing for Export Temporary Import Normal Informal Import Document Deminimus import Low value duty import Temporary Import High-value import Re-direction for immediate re-export Normal Formal Import 23
24 Entry Type: Formal Import Entry Type of Goods Reason for Import For local use Duty incurred VAT Other requirement Payment Terms Machinery for Fixed Assets Local Use Yes No Yes (if it can be manufactured locally) No (if it cannot be manufactured locally) 1. Import License 2. Approval for Tax Exemption NIL All Processing No For Eventual Re-Export No No 1. Processing Contract 2. Raw Material Monitoring Sheet NIL All Manufacturing No For Eventual Re-Export Yes Yes Export Contract within 275 days All Import for immediate re-export No For immediate Re-Export Yes Yes Export Contract within 275 days Specified Commodities Temporary Import No For Eventual Re-Export Yes Yes Bank Warranty Before Release of Goods All Commercial Uses Yes Yes Yes Bank Warranty Before Release of Goods 24
25 Entry Type: Common Informal Import Entry Type of Goods Reason for Import For local use Duty incurred VAT Other requirement Payment Terms Specified Commodities Temporary Import No For Eventual Re-Export Yes Yes 1. Bank Warranty 2. Import License 3. Others (if necessary) Before Release of Goods All Non-Commercial Uses Yes Yes Yes 1. Bank Warranty 2. Import License 3. Others (if necessary) NIL 25
26 Entry Type: Express Informal Import Entry Import Category Type of Goods Value Limit Duties & Taxes Incurred Rate Document Document No limit No NA Deminimus Entry Category 1 (L1) a. Commercial Documents b. General Cargo VND 1 Million (USD48) No NA Low Value Duty Entry Category 2 (L2) General Cargo VND 1 Million (USD48) to VND 20 Million (USD950) Yes As per HS Code a. General Cargo with value >VND 20 Million (USD950) High Value Duty Entry Category 3 (L3) b. Cargo requiring import licences/permits from appropriate authorities c. Cargo with restricted contents a. > VND 20 Million (USD950) b-d. VND 20 Million (USD950) Yes Yes d. Cargo with controlled commodities Note: DHL Express acts as a liaison party between customs and importer 26
27 Customs Clearance Practice in DHL Express Vietnam Customs Clearance 6 days a week, ( 0800 to 1700 Mon - Fri & Sunday) Approximately 40% of dutiable inbound shipments are physically inspected. Document shipments are randomly inspected if required. X-ray machines are used for shipment screening, both Import & Export. Inbound shipments can be cleared on a Formal or Informal basis depending on Import licenses, business license & customer s request 45 dedicated Customs Officers are assigned to work in DHL premises (SGN and HAN). 27
28 Overview of Import Process Customs DHL Customer Receives images of shipment paperwork. Reviews & approves manifest Prints Manifest & submits to Customs. Flight arrival Containers brought to DHL facility direct from aircraft Classifies by Category (1, 2, 3) Applies formal import mode. Translates description & classifies Release? Processes with Customs by categories (informal clearance) Prepares all document & paperwork, processes Customs clearance NO YES Delivery Holds. Contacts customer to have information supplement. Supports DHL to have information supplement. 28
29 Prohibited commodities (Import) All used or second-hand goods. Any advertising material for cigarettes or alcohol Antiques Asbestos Firearms or parts of Furs Gambling devices Ivory Military equipment Playing cards Pornography 29
30 Contents 1. Vietnam introduction 2. DHL Express Vietnam 3. Vietnam Customs Clearance 4. Q&A 30
31 31
32
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