Wristwatches, pocketwatches, and other personal watches, including chronographs, with cases of precious metal or metal clad with precious metal, refer to headings 9101 – 9114. Based on properties Quality, characteristics, and reality of goods to be able to apply HS code for wristwatches accordingly… So how much is the import tax on wristwatches? Today, LSX Lawfirm will give you an article about “Import tax on wristwatches to Vietnam“, as follows:
Legal grounds
Circular 274/2016/TT-BTC
Circular 219/2013/TT-BTC
What is a wristwatch?
Wristwatches evolved from the 17th century, starting with the spring-powered clock, which appeared as early as the 14th century.
A wristwatch is a watch designed to be worn or worn by a person. It is designed to continue to function despite movements caused by the person’s activities. Watches are designed to be worn around the wrist, attached by a watch strap or other type of bracelet.
Today, most of the wristwatches on the market that are inexpensive and mid-priced, used primarily for timekeeping, have quartz movements. However, the more expensive collectibles wristwatches, are prized for their fine craftsmanship, aesthetics, and captivating designs than simple chronographs, which are often based on mechanical movements. traditional, although they are less accurate and more expensive than electronic watches. As of 2018, the most expensive watch ever sold at auction is the Patek Philippe Henry Graves Supercomplication, which was the world’s most complicated mechanical watch until 1989, reaching a final price of US$24 million ( 23,237,000 CHF) in Geneva on 11 November 2014.
Import tax on wristwatches
Importing wristwatches is no longer a strange activity for all of us. However, the most interesting thing in this regard is that the import tax on wristwatches is not well known. Please follow the next content to know how much is the import tax on wristwatches?
How much is the import tax on wristwatches?
With taxes on imported wristwatches from abroad, readers need to comply with the State’s general regulations on imports. Accordingly, for watch items, it is necessary to use HS code 9101, only the face is mechanically displayed: This item is subject to a preferential import tax of 15%, Value-added tax of 10 %.
+ HS: 91021200 has an optical display with a normal import tax of 20%.
+ VAT: 10%.
Due to the relatively high import tax on watches, readers should ask the seller to provide C/O when making a contract. When having C/O, readers will enjoy a preferential import tax rate of 0% for some markets.
Import tax on wristwatches 2019
Depending on the type of watch you buy, there is an HS code of 9101 or 9102. Your question does not specify the type of watch, so we cannot advise clearly on import duties and tax rates. Or are you entitle to a preferential tax rate or not? You can find out the list of import and export goods of Vietnam issued by the Minister of Finance then.
About value-added tax is a type of import tax on wristwatches
Value-added tax has a tax rate of 10% for watches. You can find out more in Article 11 of Circular 219/2013/TT-BTC. Accordingly, value-added tax will calculated according to the following formula:
Value-added tax (VAT) on imported goods = (Taxable value of imported goods + import tax) x value-added tax rate.
→ In addition, you also have to pay customs fees. Accordingly, you will pay the customs fees specified in Circular 274/2016/TT-BTC of the Ministry of Finance guiding the collection rates, collection, payment, management, and use of fees in the field of customs. customs and fees for goods and means of transit promulgated by the Ministry of Finance. For import and export goods, this fee is 20,000 VND/declaration.
→ Suppose you receive a gift from abroad to Vietnam. Before receiving the goods, you must also pay import taxes, value-added taxes, and customs fees. The fee depends on the type of watch you receive.
How to import wristwatches?
– Smart contract certification, required:
+ Application for certification of conformity according to the form of the Department of Telecommunications then.
– Ministry of Information and Communications.
+ A copy of the business license of the enterprise applying for certification, and technical documents of the equipment.
+ Specialized measurement results of equipment at designated measurement rooms of the Ministry of Information and Communications then.
– Dossier to apply for an import license:
+ Customs declaration.
+ Packing list: A declaration of what buy and sold between the parties.
+ Commercial invoice (commercial invoice): this is the basic document of payment drawn up by the seller to ask the buyer to pay the number of goods stated on the invoice. A commercial invoice clearly states the characteristics of the goods, the unit price, the total value of the goods, and the delivery conditions then.
+ C/O if any: This form is quite important because it will decide the import tax rate of your watch shipment.
+ Bill of lading: Contract of carriage between the two parties buying and selling.
+ Packing list: A declaration of what buy and sold between the parties.
+ Other documents (if any).
Procedures for importing wristwatches
Certification of smartwatch conformity includes:
– Application form for certificate of conformity according to the form of the Department of Telecommunication then.
– Ministry of Information and Communications
– Results of specialized testing of equipment at designated measurement rooms of the Ministry of Information and Communications then.
– A copy of the business license of the enterprise applying for certification.
– Technical documents of the equipment.
After receiving the application, the Testing and Certification centers of the Department of Telecommunication will evaluate and return the results within 10 working days.
Dossier of application for an import license
– Import customs declaration
A commercial Invoice is a basic document of payment drawn up by the seller to ask the buyer to pay the number of goods stated on the invoice. A commercial invoice clearly states the characteristics of the goods, the unit price, the total value of the goods, and the delivery conditions.
– Packing List: is a declaration of what bought and sold between the parties.
– Bill of Lading: contract of carriage between the two parties buying and selling.
– CO if any: This form is quite important because it will determine the import tax rate of your watch shipment.
– Other documents (if any).
Consulting service of LSX Lawfirm
Above is LSX Lawfirm’s advice on the content of the problem “Import tax on wristwatches to Vietnam“. And all the above knowledge to use in work and life. If you have any questions and need more advice and help, please contact the hotline for the reception. Lawyer X is a place that provides reputable and fast business services at reasonable prices. Customers will be extremely satisfied when using our services.
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Related questions
Accordingly, to the 2016 Import and Export Tax Law, import and export goods that are subject to the tax must pay tax before customs clearance or goods released according to the provisions of the Customs Law, unless otherwise specified. If the payable tax amount is guaranteed by a credit institution, the goods may be granted customs clearance or released but must pay a late payment interest in accordance with the Tax Administration Law from the date of customs clearance or release to the date of payment. tax. The maximum guarantee period is 30 days from the date of customs declaration registration. In case the taxpayer has been guaranteed by a credit institution but the guarantee period expires but the taxpayer has not yet paid tax and late payment interest, the guarantor is responsible for fully paying tax and late payment interest on behalf of the taxpayer.
Accordingly, the 2016 Import and Export Tax Law stipulates: The amount of export tax and import tax is determined based on the dutiable value and the tax rate as a percentage (%) of each item at the time of import and export tax.
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