POLYESTER YARN IMPORT PROCEDURES – POLICIES AND HS CODE GUIDELINES

Polyester yarn is a key raw material used in various industries, including textiles and garments, furniture, automotive manufacturing, and light industrial production. As demand for polyester yarn imports into Vietnam continues to rise, businesses must clearly understand the applicable regulations, HS codes, tax rates, and customs procedures in order to avoid potential risks and unexpected costs.

In this article, we provide a comprehensive guide to polyester yarn import procedures, enabling enterprises to proactively prepare documentation, optimize costs, and ensure smooth customs clearance.

1. Import Policies for Polyester Yarn in Vietnam

The import procedures for polyester yarn are governed by several legal documents, including:

Circular 38/2015/TT-BTC and Circular 39/2018/TT-BTC (amendments and supplements)
Decree 69/2018/ND-CP
Decision 18/2019/QD-TTg
Circular 21/2017/TT-BCT
Decree 43/2017/ND-CP on goods labeling
Decree 128/2020/ND-CP on penalties for customs violations

Under current regulations, polyester yarn is not included in the list of prohibited imports. However, businesses must note the following:

Mandatory goods labeling in accordance with Decree 43/2017/ND-CP
Accurate determination of the HS code to apply the correct tax rate and avoid penalties

A thorough understanding of import policies forms the foundation for successfully managing the entire customs clearance process.

2. Labeling Requirements for Imported Polyester Yarn

2.1 Mandatory Label Information

Labels for imported polyester yarn must clearly display the following basic information:

Name and address of the exporter
Name and address of the importer
Product name and description
Country of origin

During customs clearance, particularly in cases of red-channel inspection, customs authorities carefully review labeling compliance. Incomplete or inaccurate labeling may result in cargo being held for violation handling.

Import Policies for Polyester Yarn in Vietnam

2.2 Label Placement

Labels must be affixed in visible locations, such as:

On cartons
On wooden pallets or crates
Directly on product packaging

For retail goods, labels must clearly state the manufacturer, weight, technical specifications, and other required information.

2.3 Risks of Non-Compliance

Failure to comply with labeling regulations may result in:

Administrative penalties under Decree 128/2020/ND-CP
Denial of preferential import tax treatment if the Certificate of Origin is rejected
Increased risk of cargo damage during transportation due to lack of proper warnings

3. HS Code and Import Duties for Polyester Yarn

3.1 HS Code Classification

The HS code serves as the basis for determining applicable tax rates and specialized management policies. Polyester yarn generally falls under Chapter 54 of the Import–Export Tariff Schedule. Depending on its characteristics, specifications, and level of processing, the HS code may vary.

Businesses must consider:

Whether the yarn is filament yarn or spun yarn
Whether it is packaged for retail sale
Fineness and twist level
Processing status

Incorrect HS code classification may lead to customs delays, tax reassessment, and administrative penalties.

3.2 Risks of Incorrect HS Code Declaration

Misdeclaration of the HS code can cause serious consequences, including:

Extended customs clearance time
Penalties under Decree 128/2020/ND-CP
Additional storage and demurrage costs
Retroactive tax collection and late payment penalties

In some cases, penalties may amount to several times the payable tax.

3.3 Applicable Import Taxes

The following taxes apply to polyester yarn imports:

Value Added Tax (VAT): 10%
Preferential import duty: approximately 3%–12%, depending on the HS code

Additionally, under Decision 2302/QD-BCT dated October 13, 2021, certain polyester yarn products imported from India, Malaysia, Indonesia, and China may be subject to anti-dumping duties.

3.4 Import Duty Calculation

The formula for calculating import duty is:

Import Duty = CIF Value × Import Duty Rate

The CIF value includes the cost of goods, insurance, and freight to the port of entry.

4. Required Documentation and Import Procedures

4.1 Import Dossier

The import dossier for polyester yarn typically includes:

Customs declaration
Bill of lading
Commercial invoice
Sales contract
Packing list
Product catalog (if applicable)
Certificate of Origin (C/O) and other required documents

4.2 Import Process

The standard import process consists of the following steps:

Step 1: Submit the customs declaration electronically through the system
Step 2: Register the declaration and submit the dossier at the customs office
Step 3: Complete customs clearance and fulfill tax obligations
Step 4: Arrange cargo release and transport goods to the warehouse

Timely and accurate declaration is essential to avoid administrative penalties.

4.3 Common Mistakes

Frequent errors in polyester yarn import procedures include:

Incorrect HS code declaration
Incomplete documentation
Late submission or registration of the customs declaration

5. Important Notes When Importing Polyester Yarn

During the import process, businesses should pay special attention to the following:

Used polyester yarn is prohibited from importation
The Certificate of Origin directly affects the applicable tax rate
All tax obligations must be fulfilled before customs clearance
Product labeling must comply with legal requirements
HS codes must be accurately determined from the outset

Conclusion

Although polyester yarn import procedures are not overly complex, they require a clear understanding of applicable regulations, HS codes, tax rates, and customs processes. Careful preparation of documentation, accurate declaration, and strict compliance with legal requirements will ensure smooth import operations, minimize risks, and optimize overall costs.

If you’re looking for the best import-export solutions, feel free to contact us for detailed consultation. If you need legal support or assistance with customs procedures in import-export activities, please contact Smart Link Logistics for fast and efficient consultation. With over 15 years of experience in the transportation field, we are proud to accompany you throughout your journey.

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If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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