Enterprises (traders) of Vietnam can import and export without depending on the registered business lines (According to the provisions of Article 3 of Decree 187/2013). If all businesses can do it themselves, why do they need import and export services entrusted to other parties to do it for trouble and costly?
Like other professional services, the import-export consignment service aims to serve the intended users, and exists because of its practical effectiveness.
Reasons for using entrusted import and export services
The use of an import consignment service has several clear benefits.
Your business does not (or does not) have experience in international trade to be able to import goods themselves.
For example, for newly established businesses, human resources are not familiar with import and export, or do not know how to communicate and negotiate with leading foreign sellers. At that time, using an experienced import service unit is a safe solution, at least for the first batch.
Individuals do not have legal status, so they cannot sign contracts with foreign business partners. At that time, if you want to import goods, you can sign a trust contract with the import-export service company to perform the import.
Consider using the import consignment service
Not having to entrust the import-export service company has no limitations. Therefore, you should also consider the following points when you want to entrust another party to import:
• You must pay a trust service fee (or trust commission);
• The trustee lacks initiative and information is more or less restricted by working through an intermediary
• You may face certain risks about supplier information and imported products. Trustees and sellers are used to dealing with each other, so they may forget the role of the real importer. There have been cases where a service company, after commissioning, has imported the goods from the same supplier (worse than becoming an exclusive agent in the region), directly competing with The company has consigned before.
Steps to follow
Here are the steps to follow when you want to delegate imports through a trustee import-export service company.
1. Check whether the goods are banned from import or temporarily suspended from import. If this is the case, then no need to waste your authorization, your goods are not allowed to be imported into Vietnam.
2. Is the product subject to a permit? If so, the authorized or authorized company must apply for this license. This should arrange as soon as possible, do not let the goods arrived at the new port, it is late.
3. When having a set of goods vouchers, the consignee shall carry out import customs procedures according to current regulations.
Responsibilities of trustees:
• Negotiating and signing foreign trade contracts with foreign sellers
• Doing the necessary procedures to import goods
• Pay money to foreign sellers
• Declaring and paying taxes: import duties, VAT … for imported goods
• Store import and export documents: contracts, commercial invoices, packing slip, etc.
• Return the imported goods to the consignor, together with the VAT invoice for the imported goods (besides the VAT invoice for the import consignment service charge)
Responsibilities of trustors:
• Provide full information about the type of product, model, specifications … to the consignee ordering.
• Coordinating with the trustee to negotiate contracts with foreign partners
• Transfer money to the trustee to pay the seller
• Coordinating in receiving cargo (for example, with a cargo inspector at a port)
• Pay the trust service fee
VAT in import consignment
There are 2 VAT related to this import consignment.
1. VAT for trust service fee: 10% as normal as other services.
2. VAT of imported goods