Export & Import Regulations in Vietnam/media/IE Singapore/Files/Events... · Vu Duc Thinh National...

Vu Duc Thinh

National Gateway Manager, DHL Express Vietnam

Singapore, September 19th, 2013

IE Singapore iAdvisory Seminar 2013

Export & Import Regulations in Vietnam

iAdvisory Seminar: Doing business in Vietnam | Singapore | September 2013

Contents

1. Vietnam Introduction

2. DHL Express Vietnam

4. Q&A

3. Vietnam Customs Clearance

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4. Q&A


3

Contents


Vietnam Overview

General information:

Official Name: The Socialist Republic of Vietnam

Political system: Communist State

Capital name: Hanoi

Time zone: UTC + 7 hours

Area 331,210 sq. km

Population 89 million

Major cities: Hanoi, Ho Chi Minh City (Saigon),

Haiphong, Da Nang

Principal rivers: Mekong, Red

Principal industries: Food processing, garments, shoes,

machine-building; mining, coal, steel;

cement, chemical fertilizer, glass, tires,

oil, mobile phones

4


Economy Overview (2012):

GDP total: $325.9 billion

GDP per capita: $1,600

GDP growth rate (%): 5.0%

Inflation 9.21% (2012)

7-7.5% (2013 forecast)

Total exports: $114.6 billion

Total imports: $114.3 billion

FDI Inflow: $13 billion

Forex reserves: $23.88 billion

Currency: 1 USD= 21,036 VND

Economic Status World 42nd largest Economy

5

Vietnam at a Glance


Hanoi

Hai Phong

Bac Ninh

Da Nang

Quang Nam

Quang Ngai

Ho Chi Minh City

Binh Duong

Dong Nai

Vung Tau

Ind

ustr

ial A

reas T

ran

sp

orta

tion

6 Int’l seaports

7 Int’l airports

14 DOM airports

Vietnam Overview

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Vietnam trade (US$ billion)

62

63

.4

Vietnam Trade: Import & Export

EU USA ASEAN Japan China Others

2012 top 5 export market

China ASEAN Korea Japan EU Others

2012 top 5 import market

Source: Vietnam General Statistics office/ General customs

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Vietnam Trade: Exported Commodities (2012)


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Vietnam Trade: Imported Commodities (2012)


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Vietnam–Singapore Trade

Viet-Sin trade 2008 - 2012 (US$ billion)

40 years official

relationship: 1973-2013

#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

Relationship Facts


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Vietnam–Singapore Trade: Exported Commodities (2012)

Export commodities 2012


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Vietnam–Singapore Trade: Imported Commodities (2012)


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Import commodities 2012


Contents



4. Q&A


13


DHL Express in Vietnam

DHL VN Country Key Facts

- Gateway

- Service Center / Depot

- Dedicated Aircraft

Hong Kong

1st 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

320 dedicate Operations

employees

1 DHL dedicated aircraft (45 tons)

CTPAT & TAPA A Certificate

HAN gateway

SGN gateway

SGN South SC

- HCMC

SGN North SC

– Dong Nai

Depot - Vung Tau

Ha Noi SC

Depot – Hai Phong

Depot – Da Nang

Depot – Long An

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http://www.terragalleria.com/vietnam/vietnam-region.north-east.html

Facilities – Service Centers

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Facilities – Gateway

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High Value Cage Customs Bonded Warehouse

Security Features

Security Control Center

E-Card Access System

Surveillance System

CCTV Surveillance System at all facilities to enable both local

and remote monitoring

In-House Customs

Security-trained Guards on duty 24x7

Independent access gate into the General Area

Facilities equipped with intrusion and motion detection alarm

system

The only TAPA (Technology Asset Protection Association)

certified Express Company in the Country

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Quality Control Center

1. Dynamic Shipment Movement Management

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

Improved Customer Satisfaction

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DHL Express: Transit Time – Ho Chi Minh to Major Cities

Manila 1 Day

New York 2 Days

Los Angels 1 Day

Singapore 1 Day

Hongkong 1 Day

Seoul 1 Day

Shanghai 1 Day

Taipei 1 Day

Bangkok 1 Day

London 2 Days

Paris 2 Days

Jakarta 1 Day

Dubai 2 Days

Amsterdam 2 Days

Tokyo 1 Day

Kuala Lumpur 1 Day

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Contents



4. Q&A


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Clearance documentation

PACKING LIST

- Import licence

- Business licence

- Inspection licence

- Processing contract

- Commitment letter

- Others (if any)

- Certificate of origin

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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.

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Import modes

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Types of Import Entry

Formal Entry

Machinery for Fixed Assets

Processing for Export

Manufacturing for Export

Temporary Import

Re-direction for immediate re-export

Normal Formal Import

Common Informal Entry

Temporary Import

Normal Informal Import

Express Informal Entry

Document

Deminimus import

Low value duty import

High-value import


Entry Type: Formal Import Entry

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Type of

Goods

Reason for

ImportFor local use

Duty

incurredVAT Other requirement Payment Terms

Machinery for

Fixed AssetsLocal Use Yes No

Yes (if it can be manufactured locally)

No (if it cannot be manufactured locally)

1. Import License

2. Approval for Tax ExemptionNIL

All Processing NoFor Eventual Re-Export

No No

1. Processing Contract

2. Raw Material Monitoring

Sheet

NIL

All ManufacturingNo

For Eventual Re-ExportYes Yes Export Contract within 275 days

AllImport for

immediate re-exportNo

For immediate Re-ExportYes Yes Export Contract within 275 days

Specified

CommoditiesTemporary Import

NoFor Eventual Re-Export

Yes Yes Bank WarrantyBefore Release of

Goods

All Commercial Uses Yes Yes Yes Bank WarrantyBefore Release of

Goods


Entry Type: Common Informal Import Entry

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Type of

Goods

Reason for

ImportFor local use

Duty

incurredVAT Other requirement Payment Terms

Specified

CommoditiesTemporary Import

NoFor Eventual Re-Export

Yes Yes

1. Bank Warranty

2. Import License

3. Others (if necessary)

Before Release of

Goods

AllNon-Commercial

UsesYes Yes Yes

1. Bank Warranty

2. Import License

3. Others (if necessary)

NIL


Entry Type: Express Informal Import Entry

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Note: DHL Express acts as a liaison party between customs and importer

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

High Value Duty Entry

Category 3 (L3)

a. General Cargo with value >VND 20 Million

(USD950)

b. Cargo requiring import licences/permits from

appropriate authorities

c. Cargo with restricted contents

d. Cargo with controlled commodities

a. > VND 20 Million (USD950)

b-d. VND 20 Million (USD950)

Yes Yes


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).

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Overview of Import Process

Receives images of

shipment paperwork.

Classifies by Category

(1, 2, 3)

Prints Manifest & submits

to Customs.

Translates description &

classifies

Processes with Customs by

categories (informal clearance)

Delivery

Reviews & approves

manifest

Containers brought to

DHL facility direct from

aircraft

Release ?

Contacts customer to

have information

supplement.

Holds.

Prepares all document &

paperwork, processes

Customs clearance

Applies formal

import mode.

Supports DHL to have

information supplement.

Flight

arrival

Customs DHL Customer

YES NO

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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

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Contents

1. Vietnam introduction


4. Q&A


30

iAdvisory Seminar: Doing business in Vietnam | Singapore | September 2013 31

Export & Import Regulations in Vietnam/media/IE Singapore/Files/Events... · Vu Duc Thinh National...

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