TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS
ADMINISTRATION INTERNATIONAL BUSINESS
---□&□---

FINAL REPORT

TOPIC:

CUSTOM PROCEDURE OF PVC FILM

Lecturer: Nong Thi Nhu Mai

Group: 6
Major: International Business Administration
Academic year: 2024 - 2025

HO CHI MINH CITY, 2024

1
MEMBER LIST

Evaluate the
No. Name Student ID Completion Level

100%
1 Đỗ Khả Như 721D0016

100%
2 Vắn Mỹ Ngọc 721D0042

100%
3 Nguyễn Xuân Thanh Ngân 721D0057

2
 ACKNOWLEDGEMENT
Foreword, with deep gratitude our team would like to send our most sincere thanks to
Ms. Nong Thi Nhu Mai – Lecturer in the Customs Procedure Course. Along with her
passionate commitment to education combined with her new and creative ways of
learning through teaching. That brought a breath of fresh air and made this topic
something special. Helps us deepen our existing knowledge and quickly absorb many
new lessons and extremely useful practical experiences. Therefore, Ms. Mai has become
a great source of motivation to help us develop more learning spirit and desire to gain
more knowledge.
The methods and tools she introduced and guided us in using were highly relevant and
effective in supporting research and reporting. Through this subject, I have gained
numerous practical and valuable skills, especially in the field of economics. However,
due to our limited experience in writing research reports and gaps in our knowledge, the
work we’ve done so far may still have certain shortcomings. I sincerely hope to receive
feedback from you and others. I will continue to improve and develop in the future.
Words of gratitude cannot fully express our deep gratitude to Ms. Mai. Finally, my team
wishes you and your friends a good educational path and more success for the future.

3
 COMMENTS FROM THE LECTURE
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------

4
Table of Contents
ACKNOWLEDGEMENT ............................................................................................................................ 3
COMMENTS FROM THE LECTURE ................................................................................................ 4
Table of Contents ...................................................................................................................................... 5
Table of Figure:........................................................................................................................................ 7
Table of Table: ......................................................................................................................................... 7
INTRODUCTION ....................................................................................................................................... 8
CHAPTER 1: GENERAL INTRODUCTION TO THE COMPANY AND IMPORTED
SHRINK FILM PRODUCTS.................................................................................................................. 9
1.1. OVERVIEW OF LAP TIN PACKAGING IMPORT EXPORT TRADING
MANUFACTURE COMPANY LIMITED AND PLASTIC SHRINK FILM ...................................... 9
1.1.1. Introduction to LAP TIN PACKAGING IMPORT EXPORT TRADING MANUFACTURE
COMPANY LIMITED ..........................................................................................................................................................................9
1.1.2. Introduction to Plastic Shrink Film ................................................................................................................................. 10
1.1.3. Overview of the Printed Shrink Film Market in Vietnam ................................................................................... 10

1.2. Document Analysis .................................................................................................................................... 10

1.2.1. Sales Contract ............................................................................................................................................................................. 10
1.2.2. Commercial Invoice ................................................................................................................................................................. 13
1.2.3. Packing list ................................................................................................................................................................................... 13
1.2.4. Bill of Lading............................................................................................................................................................................... 15
1.2.5. CO (Certificate of Origin) .................................................................................................................................................... 17

CHAPTER 2. STATE MANAGEMENT POLICIES ON GOODS IN BUYING AND

SELLING ACTIVITIES. ....................................................................................................................... 18
2.1. The state's policies regarding the import of PVC Plastic Film ...................................................... 18
2.2. State Management Regulation ................................................................................................................ 18
2.3. Import Tax Policy ...................................................................................................................................... 18
2.4. Policy on the Origin of Goods ................................................................................................................. 19
2.4.1. Regulations on the Origin of Goods ................................................................................................................................. 19
2.4.2. Notes ................................................................................................................................................................................................ 21

2.5. Customs Documentation .......................................................................................................................... 21

CHAPTER 3. THE PROCEDURE FOR IMPORTING PVC PLASTIC FILM AND HOW TO
DETERMINE THE HS CODE OF THE IMPORTED PVC FILM PRODUCT ....................... 22
3.1. PVC Import Procedures ........................................................................................................................... 22
3.2. Determining the HS Code for Imported Goods ................................................................................. 26
3.2.1. Determining the HS Code according to the General Interpretative Rules (GIRs) .................................. 26
3.2.2. Lookup HS Codes using the General Department of Customs website. ....................................................... 27

5
CHAPTER 4: CUSTOMS PROCEDURE PROCESS ..................................................................... 30
4.1. Determining Customs Value and Calculating Import Tax ............................................................. 30
4.1.1. Determining Customs Value................................................................................................................................................ 30
4.1.2. Calculation of Import Tax .................................................................................................................................................... 35
4.1.3 Value-Added Tax (VAT) ........................................................................................................................................................ 35

4.2. Customs Operations Procedures ............................................................................................................ 37

4.2.1. Customs Declaration Procedure using VNACCS/VCIS System ....................................................................... 37
4.2.2. Customs Clearance Process at the Port ......................................................................................................................... 49

CHAP 5: RELATED RISK AND RECOMMENDATIONS .................................................................... 67

5.1. Risks .............................................................................................................................................................. 67
5.2. Recommendations ...................................................................................................................................... 68
CONCLUSION ........................................................................................................................................... 69
BẢNG XÁC NHẬN NỘI DUNG TỜ KHAI HÀNG HOÁ NHẬP KHẨU ............................................... 71
< IN THỬ > ............................................................................................................................................... 71

6
Table of Figure:
Figure 1: Company Logo ...................................................................................................10
Figure 2:T/T Payment Process ...........................................................................................24
Figure 3: General Department of Customs website. ..........................................................28
Figure 4: How to Look Up an HS Code ............................................................................28
Figure 5: Commercial Invoice of Lap Tin Packaging Co., Ltd. ........................................33
Figure 6: Arrival Notice of Lap Tin Packaging Co., Ltd. ..................................................37
Figure 7: Customs Declaration Process .............................................................................38
Figure 8: ECUS5-VNACCS Software Interface ...............................................................39
Figure 9: Information of Business Registration .................................................................40
Figure 10: Section 1: Setting VNACCS Declaration Parameters ......................................41
Figure 11: Information on Setting VNACCS Declaration Parameters ..............................42
Figure 12: Section 3: Business Information ......................................................................43
Figure 13: Information on Business Information ..............................................................44
Figure 14: Section: Register a New Import Declaration (IDA) .........................................45
Figure 15: Information on General Information ................................................................46
Figure 16: Information of Export-Import Unit ..................................................................47
Figure 17: Information of Bill of Lading ...........................................................................48
Figure 18: Information of Sale Contract ............................................................................48
Figure 19: Information of Commercial Invoice .................................................................49
Figure 20: Information of Valuation Declaration ..............................................................50
Figure 21: Information of Tax and Guarantee ...................................................................50
Figure 22: Section: Register Attached File (HYS) ............................................................51
Figure 23: Declare Attached Documents HYS ..................................................................52
Figure 24: Information of Other Information ....................................................................52
Figure 25: Information Dialog Box for Goods Declaration 1 ...........................................54
Figure 26: Information Dialog Box for Goods Declaration 2 ...........................................55
Figure 27: Information Dialog Box for Goods Declaration 3 ...........................................56
Figure 28: Information Dialog Box for Goods Declaration 4 ...........................................58
Figure 29: Information Dialog Box for Goods Declaration 5 ...........................................59
Figure 30: Information Dialog Box for Goods Declaration 6 ...........................................60
Figure 31: Information Dialog Box for Goods Declaration 7 ...........................................62
Figure 32: Section 2: Pre-declare Declaration Information (IDA) ....................................63
Figure 33: Password ..........................................................................................................63

Table of Table:
Table 1: Sale Contract of Lap Tin Packaging Co., Ltd......................................................11
Table 2: Check the Conditions for Applying the Transaction Value Method. ..................32
Table 3: Customs Valuation ..............................................................................................34
Table 4: Import Tax Calculation ........................................................................................36

7
 INTRODUCTION
Trade, cooperation, and strong links between countries and economies are expanding in
the context of globalization, which is a shared tendency across all countries around the
world. From there, the Vietnamese economy has an opportunity to expand and develop in
neighboring and global countries.

One of the critical necessities for helping Vietnam quickly bring about change and connect
to the global flow is the expansion of import-export activity. Import-export business is one
of the most essential sectors for developing countries to engage in the worldwide division
of labor, build their economies, and enrich themselves. At the same time, the advancement
of science and technology, developments in international law, the elimination of customs
barriers, participation in the World Trade Organisation (WTO), and the signing of bilateral,
multilateral, or, more recently, accession to the ASEAN Economic Community (AEC)...
Vietnam provides various benefits to import-export companies to gain access to a huge
number of potential customers worldwide. Import and export are gradually becoming a
national economic resource, a factor that encourages the country's development.

To ensure the efficiency and stability of import and export activities, each country, or
each import-export corporation in particular, must develop and establish its own
international goods forwarding process. This process will have a direct impact on the
country's and firms' import-export activities. Understanding this, I choose the topic
"Analysis of LAP TIN PACKAGING CO., LTD's PVC Shrink Film Import Process."
The report is divided into five chapters:

8
CHAPTER 1: GENERAL INTRODUCTION TO THE COMPANY AND
IMPORTED SHRINK FILM PRODUCTS

1.1. OVERVIEW OF LAP TIN PACKAGING IMPORT EXPORT TRADING

MANUFACTURE COMPANY LIMITED AND PLASTIC SHRINK FILM

1.1.1. Introduction to LAP TIN PACKAGING IMPORT EXPORT TRADING

MANUFACTURE COMPANY LIMITED
Lap Tin Packaging Co., Ltd, established in 2004 with business registration number
1101929544, is a private enterprise with legal status. It operates with its seal and
maintains financial independence.
Some Information About the Company
- Vietnamese Trade Name: Công ty TNHH Sản Xuất Thương Mại Xuất
Nhập Khẩu Bao Bì Lập Tín
- International Trade Name: LAP TIN PACKAGING IMPORT EXPORT
TRADING MANUFACTURE COMPANY LIMITED
- Abbreviated Name: Lap Tin Packaging Co., Ltd
- Head Office: Village 5, Duc Hoa Dong Commune, Duc Hoa District, Long
An Province, Vietnam
- Telephone: 02723777655
- Fax: 02723777655
- Email: [email protected]
- Website: https://laptin.vn/
- Tax Identification Number: 1101929544
- Charter Capital: 30,000,000,000 VND
- General Director: Mr. Do Tri Cao

Figure 1: Company Logo

9
1.1.2. Introduction to Plastic Shrink Film
PVC shrink film, also known as PVC heat shrink film, is produced from virgin PVC resin
(abbreviation for Polyvinyl-chloride), a thermoplastic made from the polymerization
reaction of vinyl chloride (CH2=CHCl).
PVC shrink film is most widely used for many different applications, it is suitable for
making soft drink and mineral water bottle labels or for packaging canned products, pet
food, stationery, or other consumer goods, ...
PVC heat shrink film also works very well when used in combination with automatic heat
shrink film machines. The product when covered with PVC shrink film will be covered
by a durable, waterproof, protective sealing layer, with a shiny appearance and absolutely
no wrinkles. That's why PVC shrink film is one of the most effective packaging solutions
for your products, you can also print on PVC shrink film if you need

1.1.3. Overview of the Printed Shrink Film Market in Vietnam

In all areas of packaging production and supply, plastic packaging is considered the
fastest growing and has the largest position in the Vietnamese market, especially when
our country participates in a globally integrated economy of WTO demand.
Originally, people could only use natural materials or rudimentary packaging to store
solid products. It wasn't until ceramics and terracotta were invented that people could
absorb and store liquids. Glass packaging appeared next.

Little by little, expensive packaging made of wood or glass also revealed many
disadvantages. For example, it is difficult to recover and decompose in the environment,
affecting crop areas.

Later, when people began to extract oil and use finished products made from oil, it was
also the time when they invented plastic packaging - a type of packaging that meets most
of the product packaging needs of people. The previous type of packaging was not
possible.

Since then, plastic packaging has become an integral part of people's everyday lives. Not
only does it play an important role in the movement of goods, but it is also becoming an
important sector of the economy that supports socio-economic development. No matter
where in the world or Vietnam.

1.2. Document Analysis

1.2.1. Sales Contract

The international goods sales contract includes basic information about trading activities
such as the seller, the buyer, the type of goods, the quantity of goods, the price, and the
payment method. Additionally, to avoid disputes related to the interests of the parties, the
international goods sales contract also clearly stipulates the delivery method, the form of

10
ensuring the contract's validity, the dispute resolution authority, the language of the
contract, and cases of force majeure, etc.

The content of the goods sales contract between LAP TIN PACKAGING CO., LTD and
ZHONGSHAN CITY KUAIDA TRADE CO., LTD includes the following specific
terms:

The seller, ZHONGSHAN CITY KUAIDA TRADE CO., LTD, is responsible for
supplying the goods, transferring related documents, and the ownership of the goods to
the buyer, LAP TIN PACKAGING CO., LTD, so that the buyer can receive the goods
and make the payment.

Goods information:

Items Quantity (kgs) Unit price (USD) Total amount

(USD)
PVC FILM 4,200.90 1.45 6,091.305
480MM*40MIC

PVC FILM 1,137.40 1.45 1,649.230

415MM*40MIC

PVC FILM 5,120.70 1.45 7,425.015

465MM*40MIC

PVC FILM 3,086.80 1.45 4,475.860

455MM*40MIC

PVC FILM 1,070.90 1.45 1,552.805

390MM*40MIC

PVC FILM 1,786.00 1.45 2,589.700

440MM*40MIC

PVC FILM 10,120.00 1.85 18,722.000

1200MM*40MIC
Total 26,522.7 42,505.915
Table 1: Sale Contract of Lap Tin Packaging Co., Ltd.

Term of delivery: Cat Lai Port, Vietnam. The latest delivery date is April 30, 2024.

Payment terms: After receiving the goods, 100% of the total contract value will be paid
via T/T (Telegraphic Transfer).

11
Requirements for the set of documents:

- Commercial Invoice
- Packing list
- Bill of Lading
- CO (Certificate of Origin) form E

Figure 2:Sales Contract

12
1.2.2. Commercial Invoice

A commercial invoice is an important document in foreign trade and when carrying out
customs procedures. It is used to prove that the seller has fulfilled its delivery obligation
and to claim money from the buyer. The international commercial invoice is a document
provided by the exporter to the importer and is used as a customs declaration to
determine the customs value of goods to calculate import tax. It is an indispensable
document in a set of delivery documents.

Analyzed:

● The seller: ZHONGSHAN CITY KUAIDA TRADE CO., LTD

● Address: 4th FLOOR, NO. 18, JITOU ROAD, XIAOLAN, ZHONGSHAN
GUANGDONG, CHINA
● Consignee: CONG TY TNHH SAN XUAT THUONG MAI XUAT NHAP
KHAU BAO BI LAP TIN
● Address: AP 5, XA DUC HOA DONG, HUYEN DUC HOA, TINH LONG AN,
VIET NAM
● Invoice date: 03/04/2024
● Term of payment: CIF HCM (Incoterms 2010)

The total value of the goods, amounting to USD 38,457.91, differs from the initial agreed
price as per the Sales Contract, which was USD 42,505.915. This discrepancy is due to a
discount granted on the unit price from USD 1.85 to USD 1.45, resulting in a total value
of USD 38,457.91 for the goods.

1.2.3. Packing list

A Packing List details the goods delivered, allowing the buyer to verify them against the
invoice. It includes information on dimensions, package quantities, packing
specifications, and weights, serving as a guide for packing, inspection, shipping,
insurance, payment, and customs clearance. The Packing List of this shipment reflects the
information detailed in the Detailed Packing List.

13
Figure 3:Packing List

14
1.2.4. Bill of Lading
A Bill of Lading (B/L) is a crucial document in international trade serving as a contract
between the shipper and carrier, a receipt acknowledging receipt of goods for shipment
and responsibility for their delivery, and a proof of ownership, allowing it to be used for
financial transactions like securing loans or selling the goods before they arrive at their
destination
Analyze:
● Type of B/L: Ocean bill of lading
● Shipper: ZHONGSHAN CITY KUAIDA TRADE CO., LTD
● Address: 4th FLOOR, NO. 18, JITOU ROAD, XIAOLAN, ZHONGSHAN
GUANGDONG, CHINA
● Consignee: CONG TY TNHH SAN XUAT THUONG MAI XUAT NHAP
KHUA BAO BI LAP TIN
● Address: AP 5, XA DUC HOA DONG, HUYEN DUC HOA, TINH LONG AN,
VIET NAM
Ocean Vessel Voy No.: WAN HAI 366
● The day of loading the goods onto the ship: 14/4/2024
● Port of loading: SHEKOU, CHINA
● Port of Recept: ZHONGSHAN, CHINA
● Port of discharge: CAT LAI PORT HOCHIMINH, VIET NAM
● B/L NO: 029E507281

15
Figure 4: Bill of Lading

16
1.2.5. CO (Certificate of Origin)

According to Decree 31/2018/ND-CP, a Certificate of Origin (CO) is a legal document or

equivalent form issued by the authorities of a country, group of countries, or territory to
confirm that the goods are entirely produced or that the final processing or assembly took
place in that country.

The Certificate of Origin (C/O) for the PVC film products of the exporting company
contains information about the shipper and the consignee, packaging details, net weight,
place of loading, and place of discharge. The C/O for the PVC film exported to Vietnam
was issued on April 15, 2024.

17
CHAPTER 2. STATE MANAGEMENT POLICIES ON GOODS IN BUYING AND
SELLING ACTIVITIES.

2.1. The state's policies regarding the import of PVC Plastic Film

Policy on the import of PVC plastic film (HS Code 3920.49)

A. List of prohibited imported goods

According to Annex I – List of Prohibited Imported Goods issued with Decree No.
69/2018/ND-CP dated May 15, 2018, by the Government, PVC plastic film (HS Code
3920.49) is not included in the list of prohibited imports. Therefore, this product is
allowed for import.

B. List of goods imported under a license or specific conditions

According to Annex II – List of Goods Imported Under a License or Specific Conditions
issued with Decree No. 69/2018/ND-CP, PVC plastic film (HS Code 3920.49) is not
included in the list of goods that require a license or must meet special conditions for
import.

C. Conclusion on Import
Since PVC plastic film (HS Code 3920.49) is not listed as a prohibited or conditionally
restricted item, businesses do not need to apply for an import license. The import
process only needs to follow the current customs procedures as per the regulations.

2.2. State Management Regulation

Some specific policies for this product include:

● Quality inspection: If the product is used in construction, it must comply with the
technical standards related to building materials issued by the Ministry of
Construction.
● Environmental inspection: In some cases, if the PVC product poses an
environmental risk (e.g., containing harmful chemicals), it may need to comply
with environmental protection regulations.
● Conformity and compliance certification: Imported products used for
manufacturing or consumption may need to register for conformity certification
with the relevant authorities.

2.3. Import Tax Policy

Preferential Import Tax (MFN): Depending on the origin of the goods, Vietnam applies
different tax rates:

18
 - MFN Preference: Applied to countries with trade relations with Vietnam (typically
ranging from 0% to 15%).
- Special Preferential: If importing from countries that are part of free trade
agreements (FTA) in which Vietnam participates (e.g., ATIGA, EVFTA,
ACFTA), a 0% tax rate may apply, provided a valid Certificate of Origin (C/O) is
available.
- Value Added Tax (VAT): 10%.

The import tax rate depends on whether the company uses a valid C/O Form E (under the
ACFTA agreement):

- With a valid C/O Form E: Special preferential import tax: 0% (refer to the ACFTA
tariff schedule for confirmation).
- Without a C/O Form E: Preferential import tax (MFN): Approximately 5%-15%,
depending on the specific HS code.
- Value Added Tax (VAT): 10%.

2.4. Policy on the Origin of Goods

2.4.1. Regulations on the Origin of Goods

When importing PVC plastic film from China to receive tariff preferences, the following
conditions must be met:

- Certificate of Origin Form E:

The C/O must be valid and issued by the competent authority in China.
- Compliance with the origin rules of the ACFTA:
The domestic value-added from China must be ≥ 40% or the HS code must
change (CTC).
- Customs inspection:
Vietnamese customs will check and verify the validity of the C/O Form E.

19
Figure 5: C/O

20
2.4.2. Notes

- HS Code Check: Ensure that the HS code on the C/O Form E matches the HS code
declared to customs.
- Goods Standards Check: If the PVC plastic film is used as a manufacturing
material, it may need to meet the technical or environmental standards as required
by Vietnam.
- C/O Validity: The C/O Form E must be issued within one year and submitted to
customs within the specified time frame.

2.5. Customs Documentation

To carry out the import customs process, the importing company of PVC plastic film
from China to Vietnam needs to prepare the following import customs documentation:

- Import customs declaration:

The company must declare fully and accurately on the VNACCS customs system
for customs authorities to check and process.
- Sales Contract:
The agreement between the Vietnamese company and the Chinese exporter.
- Commercial Invoice:
A document showing the value and trading terms of the shipment.
- Packing List:
Details about the quantity, packaging method, and description of the goods.
- Bill of Lading:
Issued by the shipping company, showing the delivery information.
- Incoming goods documents:
Invoice or purchase list from the Chinese exporter.
- Certificate of Origin (C/O):
C/O Form E if the company wants to benefit from special import tax preferences
under the ACFTA.

In the case where the Vietnamese company and the Chinese exporter agree to provide a
C/O Form E (under the ACFTA agreement) to benefit from preferential import taxes, the
responsibility for preparing this document lies with the exporter. The Vietnamese
company needs to verify the validity of the C/O before submitting it to the Vietnamese
customs authorities.

21
CHAPTER 3. THE PROCEDURE FOR IMPORTING PVC PLASTIC FILM AND
HOW TO DETERMINE THE HS CODE OF THE IMPORTED PVC FILM
PRODUCT

3.1. PVC Import Procedures

About the location for PVC Plastic Film Import Customs Procedures:

According to Article 17 of the Customs Law, the location for import customs procedures
is:

- The headquarters of the Border Customs Department or the Out-of-Border

Customs Department.
- In the case of electronic customs procedures, the company can submit the
declaration at the provincial, inter-provincial, or centrally-administered city
customs offices

In necessary cases, physical inspection of the goods may be conducted at another location
as decided by the Director General of the General Department of Customs. Therefore,
Lap Tin Company, headquartered in Ho Chi Minh City, the company chooses the Ho Chi
Minh City Customs Department to submit the import customs declaration for PVC plastic
film.

Step 1: Prepare Import Customs Documentation

The company needs to prepare a complete set of import documentation, including:

● Import customs declaration (declared on the VNACCS system).

● Sales contract.
● Commercial invoice.
● Packing list.
● Bill of lading.
● Certificate of origin (C/O Form E) if the company wants to benefit from import
tax preferences under the ACFTA.

Step 2: Declare Information on the VNACCS System

The company will declare the import shipment information and submit the electronic
documents through the VNACCS system.

Step 3: Customs Declaration Review

The import declaration will be received by the customs authorities, who will check the
completeness and validity of the documents following legal regulations.

Step 4: Customs Declaration Channeling

The time for notification of the customs declaration channelling result is specified in

22
Clause 8, Article 1 of Circular 39/2018/TT-BTC, which amends Circular 38/2015/TT-
BTC on customs procedures; customs inspection and supervision; export and import
taxes; and tax management for exported and imported goods issued by the Minister of
Finance. According to this regulation, the result of the customs declaration channelling
will be notified by the Customs Department immediately after the electronic data
processing system receives, checks, and registers the information on the customs
declaration. The customs channelling result will also be available once the system
processes the information on the declaration.

Lap Tin's documents were placed in the green channel, meaning they are exempt from
physical inspection of the goods and detailed customs documents.

Step 5: Clearance of Goods

Once the customs declaration is cleared, the company can proceed to receive the goods
and either use or sell them.

● If there is a valid C/O Form E (applicable under the ACFTA agreement), the PVC
plastic film will benefit from a 0% preferential import tax, helping the company
save on import costs.

According to Circular 219/2013/TT-BTC and other related regulations on VAT:

● PVC plastic film (HS Code 3920.49) is subject to VAT at a rate of 10% in
Vietnam. This VAT applies to all imported goods and is calculated on the CIF
(Cost, Insurance, Freight) price, plus any import tax (if applicable).
● Therefore, the PVC plastic film imported by Lap Tin from China into Vietnam
enjoys a 0% preferential import tax and is subject to VAT at a rate of 10%.

Step 6: Receiving goods and payment

After completing customs procedures, the importer collects the delivery order (D/O) from
the shipping line and proceeds with receiving the goods. The importer will then make the
payment using deferred T/T.

23
 Figure 6: T/T Payment Process
(1) Shipment of Goods and Documents: The Exporter ships the goods along with
related documents (e.g., invoices, certificates of origin, etc.) to the Importer.
(2) Remittance Order: After receiving the goods and documents, the Importer sends a
remittance order to their bank (Bank of Importer) to initiate payment to the exporter.
(3) Remittance Transfer: The Bank of Importer executes the remittance order through a
corresponding bank (Correspondent Bank) or directly to the Bank of Exporter,
transferring the payment.
(3’) Correspondent Bank: If required, the Correspondent Bank acts as an intermediary
to facilitate the transfer between the Bank of Importer and the Bank of Exporter.
(4) Debit Transaction: The Bank of Importer debits the Importer's account for the
payment amount.
(5) Credit Transaction: The Bank of Exporter, after receiving the remittance, credits
the amount to the Exporter's account, completing the payment process.

24
Figure. Bank deposit slip

Step 7: Contact Liquidation

After completing customs procedures, paying and receiving the goods, Lap Tin Company
proceed with the liquidation of the customs declaration to finalize the import process. By
completing the liquidation, we confirm that all obligations, including the payment of
taxes such as the 10% VAT, have been fulfilled. Additionally, we take advantage of the
0% import duty under the ACFTA agreement, ensuring cost efficiency and avoiding any
outstanding liabilities or risks of penalties that could hinder future transactions.

Once the declaration is liquidated, it provides legal certainty and formally concludes the
import process. To maintain compliance with Vietnamese regulations, Lap Tin retains all
relevant records for at least five years for protecting our operations and ensuring full
transparency in the event of future audits.

25
3.2. Determining the HS Code for Imported Goods

3.2.1. Determining the HS Code according to the General Interpretative Rules

(GIRs)
To determine the HS code for imported and exported goods, the rules outlined in Annex
II on the Six General Rules for classifying goods, based on the Harmonized System (HS)
of the World Customs Organization, should be applied sequentially. These rules are
specified in the Export-Import Goods List of Vietnam, as per Circular No. 65/2017/TT-
BTC issued by the Minister of Finance on June 27, 2017.

Step 1: Apply GIR 1 (Terms of the Heading and Chapter Notes)

According to GIR 1, the classification must follow the terms of the headings and any
relevant Section or Chapter Notes
Considering the content of GIR 1, which includes: The titles of Sections, Chapters, or
Sub-Chapters are provided solely for ease of reference. To ensure legal accuracy, the
classification of goods must be determined according to the terms of the headings and
any relative Section or Chapter Notes, and by the following rules, provided such headings
or Notes do not specify otherwise.
GIR 1. Requires determining the HS code based on the descriptions listed in the
Harmonized System. According to the description, PVC Film falls under:

● Chapter 39: Plastics and articles thereof.

● Subheading 39.20: Plates, sheets, film, foil, and strips of plastics, non-foamed, not
reinforced, not combined with other materials.

Step 2: Apply GIR 2: Incomplete or unfinished or mixtures.

Following the order, we will not apply this RIG 2. Because this rule applies to products
that are incomplete or in a mixed form. Since PVC Film is a finished product and not in
an incomplete or mixed form.

Step 3: Apply GIR 3: Goods that can be classified into multiple groups.

In cases where a product can be classified into multiple groups, Rules 3(a), 3(b), or 3(c)
should be applied. However, since PVC Film has specific characteristics that fall under
39.20, there are no competing groups. Therefore, RIG 3 is not necessary.

26
Step 4: Apply GIR 4: Most akin

Rule 4 applies if there is no specific description in the list. However, since HS Code
39.20 already provides a specific description for PVC Film, Rule 4 is not applicable.

Step 5: Apply GIR 5: Special containers, packing materials or container

This rule does not apply because it pertains to packaging, which is not related to the
nature of PVC Film.

Step 6: Apply GIR 6: Subheading Rule

After determining that Heading 39.20 is appropriate for the product, we proceed to apply
Rule 6. For legal purposes, the classification of goods within the subheadings of a
heading shall be determined according to the terms of those subheadings and any related
Subheading Notes, and, mutatis mutandis, to the above rules, on the understanding that
only subheadings at the same level are comparable. For this rule, the relevant Section and
Chapter Notes also apply unless the context otherwise requires as described in the
subheadings.

This rule is used to classify the product into each subheading within Heading 39.20. From
there, the appropriate 6-digit HS code subheading is determined.

● 39.20: Plates, sheets, film, foil, and strips, non-foamed, not reinforced.
● 39.20.4X: Products made from Polyvinyl Chloride (PVC).
● 39.20.49: Other products made from PVC, are not described elsewhere.

The item is fully described under 3920.49 as PVC Film, and there are no conflicting
details with this group. In conclusion: HS Code 3920.49 is determined based on the
following rules:

● RIG 1: Term of the Heading, Section/Chapter Notes

● RIG 6: Subheading rule

3.2.2. Lookup HS Codes using the General Department of Customs website.

Step 1: Access the website of the Vietnam General Department of Customs via the
following link:

https://www.customs.gov.vn/

Step 2: On the "Homepage" of the website, select the "Tariff Lookup - HS Code" section.

27
 Figure 7: General Department of Customs website.

Step 3: Select the "Import" category. In the search bar, enter the HS Code "3920" to
search by code. Check the "Special Preferential Import" option, enter the Captcha code,
and click "Search."

Figure 8: How to Look Up an HS Code

The results display three columns: HS Code, Product Description, and Import Tax Rate,
as shown in the image below.

28
Based on the search results, PVC Film is classified as follows:

● Chapter 39: Plastics and articles made of plastics.

29
 ● Main group (4-digit): 39.20 - Other plates, sheets, films, foil, and strips, of
plastics, non-cellular and not reinforced, laminated, supported, or similarly
combined with other materials.
● Subgroup (6-digit): 3920.49 - Other articles made of Polyvinyl Chloride (PVC).
● Subgroup (8-digit): 3920.49.00 - "Other" products.

CHAPTER 4: CUSTOMS PROCEDURE PROCESS

4.1. Determining Customs Value and Calculating Import Tax

4.1.1. Determining Customs Value

In international trade, determining customs value is a crucial step in the customs

clearance process. It serves as the basis for calculating import duties and ensures
compliance with international trade regulations. To promote transparency, fairness, and
alignment with global standards, the World Trade Organization (WTO) has established
six methods for determining customs value, widely adopted by many countries, including
Vietnam.

1. Transaction Value Method (Article 86, Clause 2)

- This is the primary method of valuation.
- The customs value is determined based on the actual price paid or payable
for the imported goods as specified in the contract (FOB or CIF), plus any
applicable additions (e.g., transportation, insurance, and loading costs if not
already included).
2. Transaction Value Method for Identical Goods (Article 86, Clause 3)
- This method is applied when the transaction value cannot be determined.
- Identical goods must meet the following criteria:
● They must be identical in terms of physical characteristics, quality, and
properties.
● They must be produced in the same country and by the same or a similar
manufacturer.
3. Transaction Value Method for Similar Goods (Article 86, Clause 4)
- This method is applied if the transaction value cannot be determined based
on identical goods.
- Similar goods must meet the following criteria:
● They must be similar in terms of physical characteristics, properties,
function, and quality.
● They must be interchangeable and suitable for replacement in commercial
transactions.
4. Deductive Method (Article 86, Clause 5)
- This method is applied when the first three methods cannot be used.
- The customs value is determined based on the selling price of the imported

30
 goods in the domestic market, after deducting the following costs: Taxes, fees,
profits of the domestic distributor, and domestic transportation costs
5. Computed Value Method (Article 86, Clause 6)
The customs value is calculated based on:
- The cost of producing the goods, including materials and labour
- Profit and international transportation costs
- This method is primarily applied to goods produced by suppliers who can
provide complete data.
6. Fallback Method (Article 86, Clause 7)
- This is the final method applied when none of the above methods can be used.
- It is based on reasonable principles and data, by the GATT Agreement, but not
conflicting with customs law regulations.

Step 1: Choosing the method

The customs value for imported goods is determined based on the six methods stipulated
in Article 86 of the 2014 Customs Law (No. 54/2014/QH13) and in line with the 1994
GATT Agreement. The order of application for these methods is sequential, starting
with the transaction value method. If this method cannot be applied, the next methods
are considered in the prescribed sequence.

We go to the first method is the transaction value method.

According to Clause 3, Article 6 of Circular 39/2015, to apply the transaction value

method, four specific conditions must be satisfied as follows:

31
Condition Content Satisfaction Explanation

First No restrictions as to the disposition or YES Goods are new,

use of the goods by the buyer with no limits on
the place of
consumption.

Second The sale or price is not subject to some YES

condition or consideration
Third No part of the proceeds of any YES According to the
subsequent resale, disposal or use of sales invoice, the
the goods by the buyer customs
declaration, and
other documents,
no additional
expenses have
been incurred.

Fourth The buyer and seller are not related YES The buyer and
seller are traders
normally

Table 2: Check the Conditions for Applying the Transaction Value Method.

Step 2: Determining the Total Invoice Value

Based on the commercial invoice and the sales contract, the customs value in the original
currency is $ 38,457.915

32
Figure 9: Commercial Invoice of Lap Tin Packaging Co., Ltd.

33
 Step 3: Calculate Customs Value.

Goods PVC PVC PVC PVC PVC PVC PVC Total

FILM FILM FILM FILM FILM FILM FILM
480M 415M 465MM*4 455MM* 390MM*4 440MM 1200M
M*40 M*40 0MIC 40MIC 0MIC *40MIC M*40M
MIC MIC IC

1. Invoice value 6,091.3 1,649.2 7,425.015 4,475.86 1,552.805 2,589.7 14,674 38,457.915
(USD) 05 3

2. Exchange rate 24.830 24.830 24.830 24.830 24.830 24.830 24.830 24.830

3. Invoice value 151.24 40.952. 184.363.1 111.135. 38.556.14 64.320.2 364.355 954.910.029
(VND) (1) * (2) 7.103,1 615,6 22,45 603,8 6,15 51 .420 ,45
5
4. Compulsory . . . . . . . .
Additions (VND)

5. Deductions . . . . . . . .
(VND)

Custom Value 151.24 40.952. 184.363.1 111.135. 38.556.14 64.320.2 364.355 954.910.029
(VND) (3) + (4)- (5) 7.103,1 615,6 22,45 603,8 6,15 51 .420 ,45
5
Table 3: Customs Valuation

34
4.1.2. Calculation of Import Tax
This import documentation includes the Certificate of Origin (C/O Form E) under the
ASEAN-China Free Trade Agreement (ACFTA), and the imported product (HS code:
3920.49) is listed in the schedule of goods subject to special preferential import tariffs, as
promulgated under Decree No. 125/2022/ND-CP by the Government on Vietnam's
special preferential import tariff to implement ACFTA for the 2022–2027 period.
Therefore, the imported PVC plastic sheet product qualifies for a special preferential
import tax rate of 0%.

Calculation of Import Tax:

Import Tax = Customs Value (Taxable Import Value) x Import Tax Rate.

4.1.3 Value-Added Tax (VAT)

For PVC plastic sheet products imported from China (HS code: 3920.49), the value-
added tax (VAT) is applied following the current legal regulations.
According to Decree No. 15/2022/ND-CP, the VAT rate for this product group was
reduced to 8% during the period from February 1, 2022, to December 31, 2022. After
this period, the VAT rate reverted to 10% as stipulated. Therefore, as of now, the
applicable VAT rate for this product is 10%.

35
 ● Calculation of Import Tax

Items PVC PVC PVC PVC PVC PVC PVC Total

FILM FILM FILM FILM FILM FILM FILM
480MM* 415MM* 465MM 455MM 390MM* 440MM 1200MM*
40MIC 40MIC *40MIC *40MI 40MIC *40MIC 40MIC
C

Import Taxable 151.247.1 40.952.61 184.363. 111.135 38.556.1 64.320.2 364.355.4 954.910.02
Tax Value 03,15 5,6 122,45 .603,8 46,15 51 20 9,45
(VND)
Tax Rate 0% 0% 0% 0% 0% 0% 0% 0%

Import 0 0 0 0 0 0 0 0
Tax

VAT Taxable 151.247.1 40.952.61 184.363. 111.135 38.556.1 64.320.2 364.355.4 954.910.02
Tax Value 03,15 5,6 122,45 .603,8 46,15 51 20 9,45
(VND)
Tax Rate 10% 10% 10% 10% 10% 10% 10% 10%

VAT 15.124.71 4.095.261 18.436.3 11.113. 3.855.61 6.432.02 36.435.54 95.491.002

Tax 2,3 ,56 12,2 560,4 4,62 5,1 2 ,9

Table 4: Import Tax Calculation

Total Tax Payable = Import Tax + VAT = 0 + 95.491.002,9 (VND)= 95.491.002,9 VND

36
4.2. Customs Operations Procedures

4.2.1. Customs Declaration Procedure using VNACCS/VCIS System

After the carrier and the goods are transferred to the Arrival Notice.

Figure 10: Arrival Notice of Lap Tin Packaging Co., Ltd.

37
The company needs to proceed with the customs declaration. To file and submit the
declaration, the company must have a digital signature and register the digital signature
with the General Department of Customs of Vietnam. In the past, the company's
representative would need to go to the customs office to handle the declaration. However,
now everything has been digitized, and the customs declaration process takes place
directly on the VNACCS system of the General Department of Customs.

Figure 11: Customs Declaration Process

Transaction 1: Create an electronic declaration

Step 1: Open the ECUS5 - VNACCS software and register the company's
information in the software.

On the screen, the Ecus login table will appear, asking for a username and access code.
The username and access code were created during the installation process, so you just
need to click "Đăng nhập," and the interface will appear as shown below.

38
 Figure 12: ECUS5-VNACCS Software Interface

Step 2: Setting VNACCS Declaration Parameters

To use the system, businesses need to register the required company information. The
"Thông tin doanh nghiệp" section should include the following details:

● Company Code (Tax ID): 1101929544

● Company Name: CÔNG TY TNHH SẢN XUẤT THƯƠNG MẠI XUẤT NHẬP
KHẨU BAO BÌ LẬP TÍN
● Postal Code: +84
● Address: Ấp 5, Đức Hòa Đông Commune, Đức Hòa District, Long An Province,
Vietnam
● Phone/Fax: 02723777662
● Contact Person: Đỗ Trí Cao
● Contact Person's Phone: 0913131368

39
 Figure 13: Information of Business Registration
After successfully registering business information, access the “Hệ thống” function “1.
Thiết lập thông số khai báo VNACCS” to set up the necessary parameters to connect to
the Customs system.

40
 Figure 14: Section 1: Setting VNACCS Declaration Parameters

Next, in the “Thông tin Hải quan tiếp nhận khai báo” section, enter the following details:

● Customs Office for Declaration: For imported goods at Cat Lai Port, select “Chi
cục HQ CK Cảng Sài Gòn KV I” with code “02CI.”
● Import Declaration Processing Unit: Import Goods Procedure Team - code “01.”
● Export Declaration Processing Unit: Export Goods Procedure Team - code “02.”
● To perform a trial declaration, check the box for Simulated Declaration.

41
 Figure 15: Information on Setting VNACCS Declaration Parameters

To review the company information you just set up, go to the "Hệ thống" menu and
select function "3". The company information will appear in the interface as shown in
the image below.

42
Figure 16: Section 3: Business Information

43
 Figure 17: Information on Business Information

Step 3: Register Import Declaration (IDA)

On the toolbar, select "Tờ khai hải quan" and then choose "Đăng ký mới tờ khai nhập
khẩu (IDA)."

44
 Figure 18: Section: Register a New Import Declaration (IDA)

Fields marked with a red asterisk (*) are mandatory, while the gray fields are
automatically populated by the system.

Fill in all the required information in the "Thông tin chung" section.
The information in the "Nhóm loại hình" section should be filled out as follows:

45
 ● Business Type Group: Business, Investment
● Business Type Code: Select “Nhập kinh doanh tiêu dùng”, code “A11”.
● Customs Agency: Select “Chi cục HQ CK Cảng Sài Gòn KV I”, code “02CI”.
● Classification (Individual/Organization): Select “4. Hàng hóa từ tổ chức đến tổ
chức”.
● Declaration Processing Unit Code: Select “01. Đội thủ tục hàng hóa Nhập
khẩu”.
● Transport Method Code: Select “2. Đường biển (container)”.

Figure 19: Information on General Information

The information in the "Đơn vị xuất nhập khẩu" section should be filled out as follows:

● Importer: The system will auto-fill this information.

● Importer’s Agent: Do not enter any information for the agent.
● Exporter:
○ Name: ZHONGSHAN CITY KUAIDA TRADE CO., LTD.
○ Address: 4TH FLOOR, NO.18, JITOU ROAD, XIAOLAN,
ZHONGSHAN, GUANGDONG, CHINA
● Country Code: Select “CN - CHINA”.
● Tax Code and Postal Code fields: Leave these fields blank as it is an import
shipment and will be accepted.

46
 Figure 20: Information of Export-Import Unit

The information in the "Bill of Lading" section should be filled out as follows:

● Bill of Lading Number: 029E507281

● Bill of Lading Date: 14/04/2024
● Number of Packages: Enter “19 PP” (19 Pallet & Package)
● Gross Weight: 27,741.7 KGM
● Warehousing Location Code for Goods Pending Customs Clearance: Select
“TONG CTY TAN CANG SG”, code “02CIS01”
● Mode of Transport: Enter the call sign in case of sea/river transport. If the basic
ship information has not been registered in the system, enter “9999” and then enter
the vehicle name as “WANHAI 366 V.S010”
● Arrival Date: 16/04/2024 (according to the Arrival Notice)
● Unloading Location: Select “CANG CAT LAI (HCM)”, code “VNCLI”
● Loading Location: Select “ZHONGSHAN”, code “CNZSN”
● Number of Containers: Select 1

47
 Figure 21: Information of Bill of Lading

Fill in all the required information in the "Thông tin chung 2" tab.
The information for the "Hợp đồng" section should be filled out as follows:

● Contract Number: KTC20240403

● Contract Date: 03/04/2024

Figure 22: Information of Sale Contract

The information in the "Thông tin văn bản và giấy phép" section should be filled out
as follows:

● Other Legal Document Code: Enter the legal document code related to import
management, and specialized inspection, such as import permits, quarantine, food
safety, or quality control.

48
 ● Import Permit: Enter the import permit classification code if the goods require an
import permit, enter the inspection result code for specialized inspection before
customs clearance, or use the code from the "Negative List" (if applicable).
● Leave this field blank as the item "PVC Film" does not require an import permit
from the Ministry of Industry and Trade or other specialized authorities.

The information in the "Commercial Invoice" section should be filled out as follows:

● Invoice Type: Select “Commercial Invoice.”

● Invoice Number: A - KTC20240403
● Issue Date: 03/04/2024
● Payment Method: Select “KC - Other (including TT payment method).”
● Invoice Price Classification Code: Select “A. Invoice price for goods requiring
payment.”
● Invoice Terms: Select “CIF - Cost, Insurance, and Freight.”
● Total Invoice Value: 38,457.915
● Invoice Currency Code: Select “USD.”

Figure 23: Information of Commercial Invoice

4.2.2. Customs Clearance Process at the Port

The information in the " Tờ khai trị giá " section should be filled out as follows:

● Value Classification Code: Select “6. Áp dụng phương pháp trị giá giao dịch.”
● The customs declarant determines the customs value based on the method for
determining the value of exported or imported goods or submits the application to
the General Department of Customs for prior valuation. However, suppose the
goods qualify for the transaction value method (6) and the customs value has been
declared in the Import Goods Declaration, with the system automatically
calculating the tax value. In that case, the declarant must not submit a separate
value declaration.
● Adjustment Items:
○ Freight Charges: Leave blank because the CIF method is used.
○ Insurance Fees: Select code “D. Không bảo hiểm”
● Taxpayer: Select “1. Người xuất khẩu(Nhập khẩu).”

49
 Figure 24: Information of Valuation Declaration

The information in the "Thuế và bảo lãnh" section should be filled out as follows:

● Only enter the necessary information (if applicable) regarding the reason code for
BP (Customs bond request), the tax payment bank code, and the tax payment
deadline code.
● Tax Payment Deadline Code: Select “D. Trường hợp nộp thuế ngay.”

Figure 25: Information of Tax and Guarantee

The information in the " Thông tin đính kèm " section should be as follows:

● The company uses the HYS function to register attached files with customs,
including data files for the contract, commercial invoice, bill of lading, and
container list.
● To attach files, select " Nghiệp vụ khác " and then choose " Đăng ký file đính
kèm (HYS)" as shown below.

50
 Figure 26: Section: Register Attached File (HYS)

Here, the company selects " Phân loại thủ tục khai báo " with code "A02. Danh sách
container", then clicks "Thêm file" to attach the container list (bill of lading number,
container number, seal number) to the system. Click "Ghi" to attach the file.

51
 Figure 27: Declare Attached Documents HYS

The information in the "Thông tin vận chuyển" section applies to enterprises involved
in processing, manufacturing for export, or other priority companies that bring goods into
bonded warehouses for customs declaration with attached shipping information. Since the
company does not fall under these categories, this section will be left blank.

The information in the "Thông tin khác" section should be filled out as follows:
Notes: "DATE 03/04/2024. CO FORM: E2466820680X0047 DATE 15/04/2024."

Figure 28: Information of Other Information

Step 4: Enter Information in the "Danh sách hàng" Tab

The company enters the "Danh sách hàng" tab and fills in the information. Lập Tín
Packaging Import-Export Trading Co., Ltd. has imported 7 types of PVC shrink
films, and the details for each item are filled in as follows:

52
Item 1:

● Serial No: 1
● Description of Goods: PVC film without printed patterns, made of vinyl chloride
polymer with a plasticizer content of 4-5%, non-foam, unreinforced, in roll form,
size: 480MM*40MIC. 100% new goods.
● HS Code: 39204900
● Country of Origin Code: CHINA
● Import Tax Code: B05 (0% import duty according to Vietnam's Special
Preferential Import Tariff for ASEAN-China Free Trade Area)
● Quantity: 4,200.9 KGM (Kilograms)
● Quantity (2): 4,200.9 KGM (Kilograms)
● Invoice Value: 6,091.305
● Unit Price on Invoice: 1.45 USD/KGM (P/L)
● Taxes and Other Charges:
○ The customs value and import/export tax values will typically be auto-
filled by the customs system.
○ Tax rate and amounts for each tax category, including: Excise Tax Rate
(%), Excise Tax Amount, Environmental Tax Rate, Environmental
Tax Amount, VAT Rate (%), VAT Amount: These fields will also be
auto-filled by the customs system, and only the corresponding tax code for
each category needs to be entered.
○ Excise Tax Code: Leave blank (this item is not subject to excise tax).
○ Environmental Tax Code: Leave blank (this item is not subject to
environmental tax).
○ VAT Code: Apply tax rate/amount: VB901
○ Goods are subject to VAT with a rate of 10%.

53
 Figure 29: Information Dialog Box for Goods Declaration 1

Item 2:

● Serial No: 2
● Description of Goods: PVC film without printed patterns, made of vinyl chloride
polymer with a plasticizer content of 4-5%, non-foam, unreinforced, in roll form,
size: 415MM*40MIC. 100% new goods.
● HS Code: 39204900
● Country of Origin Code: CHINA
● Import Tax Code: B05 (0% import duty according to Vietnam's Special
Preferential Import Tariff for ASEAN-China Free Trade Area)
● Quantity: 1,137.4 KGM (Kilograms)
● Quantity (2): 1,137.4 KGM (Kilograms)
● Invoice Value: 1,649.23
● Unit Price on Invoice: 1.45 USD/KGM (P/L)
● Taxes and Other Charges:
○ The customs value and import/export tax values will typically be auto-
filled by the customs system.
○ Tax rate and amounts for each tax category, including Excise Tax Rate
(%), Excise Tax Amount, Environmental Tax Rate, Environmental
Tax Amount, VAT Rate (%), and VAT Amount: These fields will also

54
 be auto-filled by the customs system, and only the corresponding tax code
for each category needs to be entered.
○ Excise Tax Code: Leave blank (this item is not subject to excise tax).
○ Environmental Tax Code: Leave blank (this item is not subject to
environmental tax).
○ VAT Code: Apply tax rate/amount: VB901
○ Goods are subject to VAT with a rate of 10%.

Figure 30: Information Dialog Box for Goods Declaration 2

Item 3:

● Serial No: 3
● Description of Goods: PVC film without printed patterns, made of vinyl chloride
polymer with a plasticizer content of 4-5%, non-foam, unreinforced, in roll form,
size: 465MM*40MIC. 100% new goods.
● HS Code: 39204900
● Country of Origin Code: CHINA
● Import Tax Code: B05 (0% import duty according to Vietnam's Special
Preferential Import Tariff for ASEAN-China Free Trade Area)
● Quantity: 5,120.7 KGM (Kilograms)
● Quantity (2): 5,120.7 KGM (Kilograms)

55
 ● Invoice Value: 7,425.015
● Unit Price on Invoice: 1.45 USD/KGM (P/L)
● Taxes and Other Charges:
○ The customs value and import/export tax values will typically be auto-
filled by the customs system.
○ Tax rate and amounts for each tax category, including Excise Tax Rate
(%), Excise Tax Amount, Environmental Tax Rate, Environmental
Tax Amount, VAT Rate (%), and VAT Amount: These fields will also
be auto-filled by the customs system, and only the corresponding tax code
for each category needs to be entered.
○ Excise Tax Code: Leave blank (this item is not subject to excise tax).
○ Environmental Tax Code: Leave blank (this item is not subject to
environmental tax).
○ VAT Code: Apply tax rate/amount: VB901
○ Goods are subject to VAT with a rate of 10%.

Figure 31: Information Dialog Box for Goods Declaration 3

Item 4:

● Serial No: 4

56
● Description of Goods: PVC film without printed patterns, made of vinyl chloride
polymer with a plasticizer content of 4-5%, non-foam, unreinforced, in roll form,
size: 455MM*40MIC. 100% new goods.
● HS Code: 39204900
● Country of Origin Code: CHINA
● Import Tax Code: B05 (0% import duty according to Vietnam's Special
Preferential Import Tariff for ASEAN-China Free Trade Area)
● Quantity: 3,086.8 KGM (Kilograms)
● Quantity (2): 3,086.8 KGM (Kilograms)
● Invoice Value: 4,475.86
● Unit Price on Invoice: 1.45 USD/KGM (P/L)
● Taxes and Other Charges:
○ The customs value and import/export tax values will typically be auto-
filled by the customs system.
○ Tax rate and amounts for each tax category, including: Excise Tax Rate
(%), Excise Tax Amount, Environmental Tax Rate, Environmental
Tax Amount, VAT Rate (%), VAT Amount: These fields will also be
auto-filled by the customs system, and only the corresponding tax code for
each category needs to be entered.
○ Excise Tax Code: Leave blank (this item is not subject to excise tax).
○ Environmental Tax Code: Leave blank (this item is not subject to
environmental tax).
○ VAT Code: Apply tax rate/amount: VB901
○ Goods are subject to VAT with a rate of 10%.

57
 Figure 32: Information Dialog Box for Goods Declaration 4

Item 5:

● Serial No: 5
● Description of Goods: PVC film without printed patterns, made of vinyl chloride
polymer with a plasticizer content of 4-5%, non-foam, unreinforced, in roll form,
size: 390MM*40MIC. 100% new goods.
● HS Code: 39204900
● Country of Origin Code: CHINA
● Import Tax Code: B05 (0% import duty according to Vietnam's Special
Preferential Import Tariff for ASEAN-China Free Trade Area)
● Quantity: 1,070.9 KGM (Kilograms)
● Quantity (2): 1,070.9 KGM (Kilograms)
● Invoice Value: 1,552.805
● Unit Price on Invoice: 1.45 USD/KGM (P/L)
● Taxes and Other Charges:
○ The customs value and import/export tax values will typically be auto-
filled by the customs system.
○ Tax rate and amounts for each tax category, including: Excise Tax Rate
(%), Excise Tax Amount, Environmental Tax Rate, Environmental
Tax Amount, VAT Rate (%), VAT Amount: These fields will also be

58
 auto-filled by the customs system, and only the corresponding tax code for
each category needs to be entered.
○ Excise Tax Code: Leave blank (this item is not subject to excise tax).
○ Environmental Tax Code: Leave blank (this item is not subject to
environmental tax).
○ VAT Code: Apply tax rate/amount: VB901
○ Goods are subject to VAT with a rate of 10%.

Figure 33: Information Dialog Box for Goods Declaration 5

Item 6:

● Serial No: 6
● Description of Goods: PVC film without printed patterns, made of vinyl chloride
polymer with a plasticizer content of 4-5%, non-foam, unreinforced, in roll form,
size: 440MM*40MIC. 100% new goods.
● HS Code: 39204900
● Country of Origin Code: CHINA
● Import Tax Code: B05 (0% import duty according to Vietnam's Special
Preferential Import Tariff for ASEAN-China Free Trade Area)
● Quantity: 1,786 KGM (Kilograms)
● Quantity (2): 1,786 KGM (Kilograms)

59
 ● Invoice Value: 2,589.7
● Unit Price on Invoice: 1.45 USD/KGM (P/L)
● Taxes and Other Charges:
○ The customs value and import/export tax values will typically be auto-
filled by the customs system.
○ Tax rate and amounts for each tax category, including: Excise Tax Rate
(%), Excise Tax Amount, Environmental Tax Rate, Environmental
Tax Amount, VAT Rate (%), VAT Amount: These fields will also be
auto-filled by the customs system, and only the corresponding tax code for
each category needs to be entered.
○ Excise Tax Code: Leave blank (this item is not subject to excise tax).
○ Environmental Tax Code: Leave blank (this item is not subject to
environmental tax).
○ VAT Code: Apply tax rate/amount: VB901
○ Goods are subject to VAT with a rate of 10%.

Figure 34: Information Dialog Box for Goods Declaration 6

Item 7:

● Serial No: 7

60
● Description of Goods: PVC film without printed patterns, made of vinyl chloride
polymer with a plasticizer content of 4-5%, non-foam, unreinforced, in roll form,
size: 1200MM*40MIC. 100% new goods.
● HS Code: 39204900
● Country of Origin Code: CHINA
● Import Tax Code: B05 (0% import duty according to Vietnam's Special
Preferential Import Tariff for ASEAN-China Free Trade Area)
● Quantity: 10,120 KGM (Kilograms)
● Quantity (2): 10,120 KGM (Kilograms)
● Invoice Value: 14,674
● Unit Price on Invoice: 1.45 USD/KGM (P/L)
● Taxes and Other Charges:
○ The customs value and import/export tax values will typically be auto-
filled by the customs system.
○ Tax rate and amounts for each tax category, including: Excise Tax Rate
(%), Excise Tax Amount, Environmental Tax Rate, Environmental
Tax Amount, VAT Rate (%), VAT Amount: These fields will also be
auto-filled by the customs system, and only the corresponding tax code for
each category needs to be entered.
○ Excise Tax Code: Leave blank (this item is not subject to excise tax).
○ Environmental Tax Code: Leave blank (this item is not subject to
environmental tax).
○ VAT Code: Apply tax rate/amount: VB901
○ Goods are subject to VAT with a rate of 10%.

61
 Figure 35: Information Dialog Box for Goods Declaration 7

After entering the product data, click the "Ghi" button to save the product list
information.

Step 5: Submit the Customs Declaration Form (IDA)

After entering and saving the declaration information, select the operation code “2. Khai
trước thông tin tờ khai (IDA)” to send the information.

62
 Figure 36: Section 2: Pre-declare Declaration Information (IDA)

Then select the digital signature from the list and enter the PIN code for the digital
signature.

Figure 37: Password

When successful, the system will return the declaration number and a copy of the
declaration, including tax information automatically calculated by the system and other
details such as “Tên, địa chỉ doanh nghiệp khai báo.” The returned copy screen will
display the declared information of the declaration, with the summarized tax calculation
shown in the upper-left corner of the screen.

63
After verifying that the information returned by the system is accurate, select the
operation code “3. Khai chính thức tờ khai (IDC)” to officially register this declaration
with the customs authorities. Once successful, this declaration will proceed to the
customs clearance procedures.

Step 6: Retrieve Channeling Results and Clearance

After the declaration is submitted, the system will evaluate its content to determine the
channelling for the goods. Specifically, this may result in a Green Channel, Yellow
Channel, or Red Channel. Depending on the channel, the company must carry out the
corresponding procedures.

To check the results, go to section “4. Lấy kết quả phân luồng, thông quan” to receive
the channelling results, customs fees, tax notifications, print the declaration, and confirm
clearance for the declaration.

Lập Tín Packaging Import-Export Trading Co., Ltd received a Green Channel result.
The company completed all customs procedures without any legal or tax issues regarding
its shipment. This result confirms that the company’s goods were cleared quickly and
deemed safe.

Transaction 2: Print Declaration Information for Customs Clearance and Tax

Payment

For Green Channel goods, the company only needs to prepare basic documents and
perform electronic customs declaration without requiring physical inspection of the
goods. The company gathers the necessary documents for customs inspection, including:

● Commercial Invoice No. A - KTC20240403, dated April 3, 2024

● Packing List
● Bill of Lading No. 029E507281
● Certificate of Origin (C/O Form E)
● Sales Contract
● Business License (if required)

To avoid delays in customs clearance, Lap Tin Packaging Co., Ltd must carefully
verify the quantity and content of the documents to ensure consistency before submitting
them to the Customs Office at Saigon Port Area 1. An employee will bring the complete
set of documents to the customs registration office to process the procedures.

The customs registration officer is responsible for checking the validity of the documents
based on Vietnam Customs Law. Customs will input the information on the customs
declaration and other related details into the computer system and issue a “Customs

64
Inspection and Control Instruction” using the customs risk management program if the
documents are valid.

In case customs authorities require additional information, the company must cooperate
and provide the requested details. The documents will be forwarded to the department
responsible for detailed verification of the documents, taxes, and prices to confirm
whether Lap Tin Packaging Co., Ltd has declared correctly, calculated the tax value
according to the Vietnam Import-Export Tariff, and applied the correct HS code.

If there are no further concerns, the customs officer will enter the information into the
system, approve the customs clearance of the declaration, and proceed with clearing the
goods. Customs will record the inspection results and print the “Document Indicating
Payable Tax Amount” as per the Ministry of Finance's regulations.

The company staff will pay the customs duties and fees via bank transfer. The tax officer
will record the inspection results, and sign, and stamp the “Paper Document Verification
Record” with the officer’s ID number to conclude the inspection process. The shipment
will then be cleared.

Once the company staff receives the “Paper Document Verification Record,” they must
bring it along with the original delivery order to the port’s commercial office to pay the
fee and print the EIR (Equipment Interchange Receipt) in case the container is handed
over by the port to the owner. The company staff must fill out all mandatory fields in the
EIR accurately and in detail.

Transaction 3: Finalizing the Declaration and Clearing Goods

Once the customs declaration has been cleared, the next step is to finalize the declaration
and complete the necessary procedures to transport the goods to the warehouse. Field
staff from Lap Tin Packaging Co., Ltd carry out the finalization process at the customs
supervision gate, ensuring all required documents are prepared, including:

● Cleared customs declaration

● EIR (Equipment Interchange Receipt)
● Original delivery order

The customs supervisor at the gate will inspect, sign, and stamp the EIR, then return it to
the company staff. The staff member hands the EIR to the truck driver for presentation at
the gate. When the container is loaded onto the truck, the driver presents the EIR to the
gate security. The customs supervisor at the gate verifies the information on the EIR
against the actual container details before authorizing the truck to exit the gate.

After completing the gate clearance, the field staff prepares a “Handover Report” and
provides the truck driver with documents, including the EIR, the empty container return

65
request, and the handover report. The truck driver uses these documents to transport the
container out of the port and deliver it to the company warehouse.

To avoid penalties for keeping containers beyond the allowed time, the company must
return the empty container to the shipping line at the designated location and within the
specified timeframe, as stated on the container loan document. Once the empty container
is returned, the company receives a confirmation of the return. This confirmation, along
with the container loan document, is submitted to the shipping line to reclaim the deposit.

Transaction 4: Storing Company Records

According to Clause 5, Article 3 of Circular No. 38/2015/TT-BTC, customs declarations

are required to store all documents related to exported and imported goods for a period of
5 years.

66
 CHAP 5: RELATED RISK AND RECOMMENDATIONS

5.1. Risks

1. Documentation Challenges

Managing a large volume of paperwork, such as invoices, contracts, and certificates of

origin, can lead to errors and delays. Relying on suppliers for timely submission of
documents, especially C/O Form E, can hinder preferential tax benefits.

2. Regulatory Compliance Risks

Failure to comply with constantly evolving customs regulations and increasingly

stringent environmental standards for Plastic Products can result in penalties, shipment
delays, and increased costs.

3. System and Inspection Delays

Issues with the VNACCS/VCIS system can cause delays in customs declarations.
Shipments flagged for yellow or red channels will undergo further scrutiny, extending
clearance times.

4. Valuation and Financial Risks

Inaccurate or incomplete documentation can lead to errors in customs value

determination, resulting in higher import taxes and penalties. Exchange rate fluctuations
can significantly impact import costs, especially when payments are made in foreign
currencies.

5. Cost Overruns

Unforeseen expenses, such as storage fees, late penalties, and container adjustment fees,
can escalate costs if the import process is not carefully planned and executed.

67
5.2. Recommendations

1. Streamlining Paperwork:

To minimize the risks associated with managing paperwork, businesses should

implement a robust document management system. This involves utilizing specialized
software, standardizing document classification and naming conventions, assigning clear
responsibilities to individuals or departments, and fostering strong partnerships with
suppliers. Additionally, conducting regular training sessions to enhance employees'
proficiency in document management procedures and software usage is crucial.

2. Strict Adherence to Regulations:

Given the dynamic nature of the market and constant regulatory changes, businesses must
proactively monitor legal and regulatory updates related to imports.

Establishing a dedicated team to track these changes and creating a comprehensive

database of relevant regulations will ensure compliance. Furthermore, participating in
industry events and seeking expert advice can provide valuable insights and support.

3. Optimizing Customs Clearance:

To expedite customs clearance and reduce costs, businesses should leverage electronic
customs declaration services, prepare complete documentation, and cultivate strong
relationships with customs authorities. Partnering with reputable logistics providers can
also streamline the transportation and clearance process.

4. Managing Price and Financial Risks:

Conducting a comprehensive cost analysis to identify potential cost-saving areas is

essential. Diversifying suppliers can mitigate risks associated with price fluctuations and
supply disruptions. Utilizing forecasting tools to predict exchange rate fluctuations and
adjusting business plans accordingly is also beneficial. Negotiating favorable payment
terms with suppliers can further enhance financial flexibility.

5. Detailed Cost Planning:

Developing a detailed budget for each stage of the import process, from order placement
to inventory arrival, is crucial. Closely monitoring actual expenses and comparing them
to the budget can help identify discrepancies and make necessary adjustments.

68
 CONCLUSION

The import process for plastic shrink film underscores both the opportunities and
challenges faced by businesses operating in Vietnam's dynamic trade environment. While
the strengths lie in a clear understanding of customs procedures, compliance strategies,
and cost-saving opportunities provided by FTAs like the ACFTA, weaknesses such as
document management complexities and reliance on external suppliers require immediate
attention.

Opportunities abound in the form of digital transformation and favorable government

policies, which can help businesses streamline operations and reduce errors. However,
challenges like evolving customs regulations, environmental standards, and competitive
pressures demand vigilance, adaptability, and strategic planning.

To thrive, businesses must invest in advanced digital tools, strengthen supplier

collaboration, and stay proactive in meeting regulatory requirements. By leveraging these
strategies, companies can not only enhance operational efficiency but also position
themselves competitively in the market, ensuring long-term sustainability and
profitability in the import of plastic shrink film.

69
 PREFERENCES
List of prohibited imported goods https://khanhanlaw.com/danh-muc-hang-hoa-cam-
xuat-nhap-khau-theo-nghi-dinh-692018ndcp.html
List of goods imported under a license or specific conditions

https://thuvienphapluat.vn/van-ban/Thuong-mai/Nghi-dinh-69-2018-ND-CP-huong-dan-
Luat-Quan-ly-ngoai-thuong-382305.aspx

Specific policies for Plastic Shrink Film

https://luatvietnam.vn/xay-dung/quy-chuan-viet-nam-qcvn-16-2014-bxd-bo-xay-dung-
157347-d3.html

Preferential Import Tax (MFN)

https://mof.gov.vn/webcenter/portal/vclvcstc/pages_r/l/chi-tiet-
tin?dDocName=MOFUCM277828

https://moit.gov.vn/tin-tuc/bao-chi-voi-nguoi-dan/chinh-phu-ban-hanh-nghi-dinh-moi-ve-
thue-xuat-khau-thue-nhap-khau-uu-dai.html

Process for Receiving C/O Form E (2024)

https://thutucxuatnhapkhau.com/quy-trinh-xin-co-form-e-hang-xuat-khau/
https://dichvuhaiquan.com.vn/van-ban/thong-tu-12-2019-tt-bct/
Import Procedures

https://thuvienphapluat.vn/van-ban/Thuong-mai/Luat-Hai-quan-2014-238637.aspx

https://thuvienphapluat.vn/hoi-dap-phap-luat/839E339-hd-thu-tuc-hai-quan-la-gi-quy-
trinh-lam-thu-tuc-hai-quan-hang-nhap-khau-nam-2023-nhu-the-nao.html

70
BẢNG XÁC NHẬN NỘI DUNG TỜ KHAI HÀNG HOÁ NHẬP KHẨU

< IN THỬ >

71
72
73
74
75
76
77
78
79