Unicorn Global Vietnam presents key information on steel import procedures, HS codes, alloy steel, and import policies. Steel, a crucial construction material, is sourced globally, with imports encompassing various forms such as coils, bars, pipes, and sheets.
Unicorn Global Vietnam focuses on new and used steel import procedures, detailing legal foundations and highlighting the importance of quality checks and varying import duties.
However, when it comes to steel import procedures, they are divided into two types:
- Import procedures for new steel
- Import procedures for used steel
Below, Unicorn Global Vietnam will share information about the import procedures for various types of steel, steel HS codes for sheets, square steel, round steel, coiled steel, I, H, V, L-shaped steel, import duties, VAT, and import policies for various types of steel.
1. Steel import policies
1.1. Legal basis Steel is a product that is heavily imported into Vietnam, primarily for construction purposes. The procedures for importing various types of steel are regulated in the following legal documents:
- Circular 58/2015/TTLT-BCT-BKHCN dated December 31, 2015
- Circular 18/2017/TT-BCT dated September 21, 2017
- Circular 38/2015/TT-BTC dated March 25, 2015; amended and supplemented by Circular 39/2018/TT-BTC dated April 20, 2018
- Decree 69/2018/NĐ-CP dated May 15, 2018
- Decree 15/2018/NĐ-CP dated February 2, 2018
- Decision 583/QD-TCHQ dated March 22, 2019
- Decision 3390/QD-BCT dated December 21, 2020
- Decision 920/QD-BCT dated March 20, 2020
- Official Letter 638/TCHQ-TXNK dated February 22, 2022
According to these legal documents, it can be seen that new steel items are not included in the list of prohibited imported goods. For used steel items, they must be imported as scrap, and an import license is required. There are various types of steel, and each type may have different regulations for import procedures. The most important aspect of steel import is quality inspection of the imported goods. In addition, import duties on steel vary, and some types may be subject to anti-dumping duties.
1.2. Import policies for various types of steel When importing steel into Vietnam, the following points should be noted:
- Accurately determine the HS code for the imported steel type.
- Quality inspection is required for some types of imported steel.
- Some types of steel may be subject to anti-dumping duties or safeguard duties.
- The steel product must have clear markings indicating information about the brand.
The list of steel products subject to quality inspection is specified in Appendix II, III of Circular 58/2015/TTLT-BCT-BKHCN. Steel products subject to quality inspection include the following types:
HS Code Description
Appendix II
7206 Non-alloy steel or iron in ingots or other primary forms (excluding products containing iron in Group 72.03)
7207 Non-alloy steel or iron in semi-finished forms
7208 Flat-rolled products of iron or non-alloy steel, width 600 mm or more, hot-rolled, not clad, plated, or coated
7209 Flat-rolled products of iron or non-alloy steel, width 600mm or more, cold-rolled, not clad, plated, or coated
7210 Flat-rolled products of iron or non-alloy steel, width 600 mm or more, clad, plated, or coated
7212 Flat-rolled products of iron or non-alloy steel, width less than 600 mm, clad, plated, or coated
7213 Iron or non-alloy steel, in bars and rods, irregularly wound coils, hot-rolled
7214 Iron or non-alloy steel in bars and rods, other than forged, hot-rolled, drawn, or extruded, including twisted after rolling
7215 Iron or non-alloy steel in bars and rods, other than specified
7216 Angle, shapes, and sections of iron or non-alloy steel
7217 Wire of iron or non-alloy steel
7219 Flat-rolled products of stainless steel, width 600 mm or more
7220 Flat-rolled products of stainless steel, width less than 600 mm
7224 Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel
7225 Flat-rolled products of other alloy steel, width 600 mm or more
7226 Flat-rolled products of other alloy steel, width less than 600 mm
7227 Bars and rods, hot-rolled, irregularly wound coils, of other alloy steel
7228 Other bars and rods of other alloy steel; angles, shapes, and sections, of other alloy steel; hollow bars and rods, of alloy or non-alloy steel
7229 Other alloy steel wire
7306 Other tubes, pipes, and hollow profiles, seamless, of iron or steel
Appendix III
7207 Non-alloy steel or iron in semi-finished forms
7210 Flat-rolled products of iron or non-alloy steel, width 600 mm or more, clad, plated, or coated
7224 Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel
7225 Flat-rolled products of other alloy steel, width less than 600 mm
7306 Other tubes, pipes, and hollow profiles, seamless, of iron or steel (e.g., open seam or welded, riveted, or similarly closed)
Above is the complete list of steel types that must undergo quality inspection upon import, as per Circular 58/2015/TTLT-BCT-BKHCN.
2. Labeling of Imported Goods
Labeling imported goods is not a new regulation. However, since the issuance of Decree 128/2020/ND-CP, the supervision of labeling on imported goods has become more stringent. Labeling goods serves the purpose of helping administrative authorities manage the goods, identify their origin, and determine the responsible unit for the goods. Therefore, labeling goods is an essential step when completing the steel import procedures from different countries.
2.1. Label Content
In addition to the requirement of labeling, the content of the label is also crucial. The content of labels for various items is specified in Decree No. 43/2017/ND-CP. For shelving units, the content of a complete label includes the following information:
Information about the exporter (address, company name)
Information about the importer (address, company name)
Name and information of the goods
Origin of the goods
These are the basic contents that must be labeled on the goods. The information displayed must be in English or other languages and must have translations. When going through steel import procedures and facing any red tape, customs clearance will pay close attention to the label content mentioned above.
2.2. Label Placement on Goods
Labeling goods is necessary, but placing the label in the correct position is even more important. When importing, labels must be affixed to surfaces of the shipment, such as on carton boxes, wooden crates, or product packaging. It can be placed anywhere as long as it is convenient for inspection and easily visible. Correctly placing labels will save time during customs inspection when completing the import procedures for various types of steel.
For retail goods on the market, additional information is required, such as the manufacturer, quantity, technical specifications, production date, and safety warnings.
2.3. Risks of Not Labeling
Labeling goods is a legal requirement. If goods are not labeled upon import or if the content of the label is incorrect, the importer may face the following risks:
Fines as stipulated in Article 22 of Decree 128/2020/ND-CP
Loss of eligibility for special import tax incentives as the origin certification will be denied
Increased risk of loss or damage to goods during handling and transportation due to the absence of warning labels
3. Determining HS Codes for Imported Iron and Steel
Looking up the Harmonized System (HS) codes is the most crucial task before proceeding with iron and steel import procedures. To accurately determine the HS code, one needs to understand the characteristics, composition, function, and raw materials used in the production of the goods.
3.1. HS Codes for Various Types of Steel
The Harmonized System (HS) is a set of standardized codes used globally for all goods. The last few digits may differ between different countries. Therefore, the first six digits of the HS code worldwide for a specific item are the same. The HS codes for iron and steel are divided into two chapters in the import-export tax schedule as follows:
Chapter 72: Iron and steel
Chapter 73: Products of iron or steel
To determine the correct HS code, one needs to study the characteristics and description of the product in the import-export tax schedule. For iron and steel items, it is essential to consider factors such as size, whether it is stainless steel or regular steel, cold-rolled or hot-rolled, alloy or non-alloy. There are many factors that can lead to incorrectly identifying the HS codes for various types of steel and steel products.
3.2. Risks of Applying Incorrect HS Codes
Correctly identifying the HS code is crucial when dealing with steel import procedures. Applying the wrong HS code can pose certain risks, such as:
Customs procedure delays: Incorrectly declaring the HS code may lead to delays in customs procedures as time is needed to verify and confirm accurate information about the type of goods.
Delivery delays: If the goods are found to have an incorrect HS code, customs authorities may request corrections or clarification. This could result in delays in the delivery process, impacting the production and business cycles of the enterprise.
Fines for misdeclaring HS codes under Decree 128/2020/ND-CP
In case of import duties, facing a minimum fine of 2,000,000 VND and a maximum fine of three times the tax amount.
To accurately determine the HS code for specific types of iron and steel, please contact the hotline or email for advice.
4. Import Duties for Various Types of Steel
Import duties are obligations that importers must fulfill when importing goods into Vietnam. The import duties for steel products include two main types: import duties and value-added tax (VAT) on imports. Additionally, some HS codes may have anti-dumping duties and safeguard duties.
5. Documentation for Steel Import Procedures
The documentation required for steel import procedures includes the following set of certificates:
1 Customs declaration form
2 Commercial contract (Sale contract)
3 Packing list
4 Commercial invoice
5 Bill of lading
6 Certificate of origin (if available)
7 Quality inspection of imported goods
8 Catalog (if available), and other documents as required by customs.
The above documents encompass all the paperwork needed for customs clearance of various types of steel, including structural steel, steel wire, and other types of steel. The most crucial documents are the customs declaration form, commercial invoice, bill of lading, and certificate of origin. Additional documents may be required by customs as per their specific requests.
6. Quality Inspection Procedure for Imported Steel
The majority of raw steel materials undergo quality inspection upon import. The quality inspection of imported steel falls under the management of the Ministry of Science and Technology, as regulated by Circular 58/2015/TTLT-BCT-BKHCN. The following is the quality inspection procedure for imported steel into Vietnam.
Step 1: Register Information on the National Single Window System
To register for the quality inspection of imported goods, one must first have an account on the national single window system at vnsw.gov.vn. Once an account is obtained, importers can proceed to input data and register for quality inspection.
The registration dossier will be managed by the local Standards, Measurement, and Quality Control Department. Each locality will have its own department for convenient import procedures for steel.
Step 2: Sample Collection and Quality Testing
After the registration dossier is accepted on the national single window system, the importer can contact the quality testing unit to collect samples and conduct tests. The choice of the testing unit depends on the business, but it must be within the list approved by the Ministry of Science and Technology.
Step 3: Receive Results and Upload to the National Single Window
Once the quality testing results are obtained, they can be uploaded to the national single window system to complete the import procedures for various types of steel. The results can be uploaded by the testing center or by the business using its account.
7. Import Procedure for Steel
The import procedure for steel and related products is specified in Circular 38/2015/TT-BTC dated March 25, 2015, amended and supplemented by Circular 39/2018/TT-BTC dated April 20, 2018. We summarize the steps briefly for you to have an overview. The import procedure for various types of steel, including shaped steel, I-beams, H-beams, T-sections, V-sections, L-sections, Y-sections, pipes, alloy steel, and round steel, involves the following steps:
Step 1: Customs Declaration
After obtaining complete import-export documents such as contracts, commercial invoices, packing lists, bills of lading, certificates of origin, and notifications of cargo arrival, and determining the HS code for steel, you can input the declaration information into the customs system through the software. After declaring, you can register the quality inspection dossier on the national single window system. Depending on the type of steel, some may not require quality inspection.
Filling out the customs declaration on the customs software requires knowledge of data entry. It is not recommended to independently fill out the customs declaration if you are not familiar with this task. Incorrect entries can lead to issues that are difficult to rectify. The customs declaration must be made within 30 days from the arrival of the goods at the port, or penalties from customs may apply.
Step 2: Customs Declaration Verification
After completing the customs declaration, the customs system will provide the results for customs declaration classification. If the declaration is classified, print out the customs declaration and bring the import dossier to the customs office to open the customs declaration. Depending on the classification (green, yellow, red), proceed with the import procedures for I-beams, H-beams, L-sections, V-sections, Y-sections, pipes, and round steel.
Opening the customs declaration must be done as soon as possible, within 15 days from the declaration date. If delayed, the declaration may be canceled, and you may face penalties from customs.
Step 3: Customs Clearance
After inspecting the dossier, if there are no issues, customs officers will accept the customs declaration. At this point, you can pay the import taxes and clear the customs declaration for the goods.
In some cases, the customs declaration may be released for the goods to be taken to the warehouse first. After providing all necessary documents, customs will proceed to clear the customs declaration. If the customs declaration has not been cleared, procedures must be carried out to facilitate the clearance. Failure to meet deadlines may result in penalties and significant delays.
Step 4: Receiving and Using the Goods
Once the customs declaration is cleared, proceed to liquidate the customs declaration and carry out the necessary procedures to bring the goods to the warehouse. Preparation includes advance orders, cargo pickup slips from the port, and arranging transportation. This helps avoid situations where the customs declaration is complete, but the shipping line requires additional steps to release the goods from the port.
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