The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (hereinafter referred to as the CPTPP Agreement) is currently setting out regulations related to the import of refurbished goods. Accordingly, to guide businesses, on November 2, 2023, the Government issued Decree 77/2023/ND-CP on the management of refurbished goods under the CPTPP Agreement. The decree currently applies only to specific subjects such as refurbishing businesses, refurbishing establishments, trademark owners, traders importing refurbished goods, and agencies, organizations, and individuals related to the activity of importing refurbished goods under the CPTPP Agreement. To understand more, in the following article, we will inform businesses about the things to note in the process of carrying out the import of these goods.
- What are refurbished goods, and which businesses do they apply to?
Refurbished goods are understood as items that meet all of the following conditions:
- Includes item codes listed in Appendices I, II, III, IV, and V attached to Decree 77/2023/ND-CP; and
- Are wholly or partially composed of restored materials; and
- Have a lifespan similar to that of the same type of goods when unused; and
- Can perform all functions as the function of the same type of goods when unused, with unchanged or similar quality and performance; and
- Have a warranty policy similar to the warranty policy applied to the same type of goods when unused.
In this context, a refurbishing business is a business established and registered overseas, playing a key role in organizing the production of refurbished goods and carrying out procedures to circulate refurbished goods.
- Conditions that businesses need to meet to import refurbished goods into Vietnam
To import refurbished goods into Vietnam, importing businesses need to meet the following conditions fully:
- Have an Import License as prescribed in this Decree.
- Comply with the regulations on the rules of origin of goods according to the CPTPP Agreement.
- Comply with the relevant regulations of Vietnamese law and specialized law currently applied to newly imported goods of the same type, in which, depending on the specific case, there are regulations on: product labels, product quality, standards, technical regulations, energy efficiency, radiation safety, network information safety, measurement, environmental protection, intellectual property rights protection, other regulations.
When circulating on the market, on the original label or additional label of refurbished goods, the phrase "Refurbished Goods" must be displayed in Vietnamese at a position and size that can be seen and read with the naked eye.
- Procedure to apply for a License to import refurbished goods into Vietnam
According to regulations, refurbished goods imported into Vietnam must obtain an Import License. Currently, there are two types of licenses corresponding to each import case, including: (i) Import License per batch of goods and (ii) Import License with a term.
The Import License per batch of goods is granted for refurbished goods the first time that these goods are imported into Vietnam. The Import License with a term will be applied when refurbished goods with the same name, same type, same item code, and belonging to the same business granted the Refurbishing Code, after 03 times of being granted the Import License per batch of goods (for the same importer or for different importers), will be switched to the mode of Import License with a term. The Import License with a term does not limit the quantity of refurbished goods imported under the license during the validity period of the license.
To obtain a License to import refurbished goods, the importing business will need to prepare the following documents:
- Application for a License to import refurbished goods.
- Investment Certificate, Business Registration Certificate, or Enterprise Registration Certificate.
- Document from the business granted the Refurbishing Code confirming that the refurbished goods imported according to the trader's Application are goods that this business has registered when requesting the issuance of the Refurbishing Code (01 original copy accompanied by a Vietnamese translation if the language used in the original is not Vietnamese, authenticated by the authorized representative of the business granted the Refurbishing Code).
- Report on the situation of importing refurbished goods according to the license that has been granted previously according to the form.
In the case where new imported goods of the same type as the refurbished goods are being managed by import under the form of a license or other forms that require the approval or recognition of the management agency before importation, the trader must submit additional documents and papers as prescribed by that management regime, if any.
In the case where the application is not complete and correct, within 07 working days from the date of receipt of the application, the licensing agency will notify in writing to the trader to supplement and complete. Within 15 working days from the date of receipt of the complete application as prescribed, the licensing agency will consider granting the Import License for refurbished goods to the trader. In case of non-granting, the licensing agency will have a written response and clearly state the reason.
- What to note about customs procedures when importing refurbished goods
In addition to the prescribed customs procedures, traders importing refurbished goods must submit or present the following documents to the Customs authority:
- Documents certifying the origin of goods according to the CPTPP Agreement (submit or present as prescribed by law).
- Import License for refurbished goods or document permitting the import of refurbished goods when the Refurbishing Code is suspended or revoked (present the original).
- Other necessary documents and papers that Vietnamese law and specialized law prescribe to apply to new goods of the same type when carrying out import customs procedures (submit or present as prescribed by law).
The government also issues a list of refurbished goods under the management of specialized management agencies, specifically as follows:
- List of refurbished goods under the management of the Ministry of Information and Communications: Printers using printing parts such as printing molds (typefaces), printing tubes, and other printing parts of group 84.42; other printers, copying machines and fax machines, whether combined or not; computers and recording machines; headphones, microdevices; electronic lights...
- List of refurbished goods under the management of the Ministry of Health: equipment and tools used for medicine, surgery, dentistry or veterinary, including flashing chart recording equipment, other medical electrical equipment and vision testing equipment; mechanical therapy equipment; massage machines...
- List of refurbished goods under the management of the Ministry of Transport: Internal combustion engines of the type of piston moving translationally or the type of piston rotating burning by electric spark; Lighting equipment or signal devices operating by electricity (except types belonging to group 85.39), windshield wipers, fog and snow prevention on windshields, types used for bicycles or motor vehicles...
- List of refurbished goods under the management of the Ministry of Industry and Trade: air conditioners, including a fan running by a motor and parts that change temperature and humidity, including types of machines that do not adjust humidity separately; household washing machines or in laundries, including washing machines with drying function; video recording or reproducing equipment, with or without a video signal receiving part...
- List of refurbished goods under the management of the Ministry of Agriculture and Rural Development: fishing vessels; processing ships and other types of ships used for processing or preserving caught seafood.
Businesses importing refurbished goods need to comply with the regulations of Vietnamese law as applied to new imported goods of the same type, including, depending on the specific case, regulations on product labels; business conditions; product quality; standards, technical regulations; energy efficiency; radiation safety; network information safety; measurement; environmental protection; intellectual property rights protection and other legal regulations. In addition, before January 30 each year, report to the licensing agency and the Ministry of Industry and Trade in writing by direct submission or postal service about the situation of importing refurbished goods under the CPTPP Agreement of the previous year.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
