03 Notes For Importing Used Machinery, Equipment, And Technological Lines From Overseas Into Vietnam.

The import of machinery, equipment, and technological lines (“Machinery”) from overseas into Vietnam is quite common these days, especially the import of used Machinery. This is a solution to help enterprises save initial investment costs. However, Vietnamese laws stipulated the import conditions for used Machinery and a strict quality examination process before customs clearance. 

So which notes when importing used Machinery? BLawyers Vietnam will present the below.

1. What is “used Machinery”?

According to Article 3 of Decision No. 18/2019/QD-TTg: 

1. Machinery or equipment is a complete structure including details, assemblies, and parts that are linked together for operation according to the designed use purpose. 

2. A technological line is a system of machines, equipment, tools, and vehicles arranged, installed, and connected continuously at a certain location according to the designed diagrams and technological processes, ensuring synchronous operation for production. 

3. Used machinery or equipment or technological line is a type that has been assembled and operated after being manufactured.

It is an additional note about the age of the equipment is the time (in years) determined from the year of manufacture to the year of import of the used machinery and equipment. The year of importation is the year the goods arrive at the Vietnamese border gate.  

2. Conditions to import used Machinery

Used Machinery when imported must meet the following criteria:

1. It is manufactured in accordance with National Technical Regulations (“QCVN”) on safety, energy-saving, and environmental protection or conformity with technical indicators of Vietnam’s Standards (“TCVN”) or Standards of G7 countries or Korea with regard to safety, energy-saving, and environmental protection;

2. Remaining capacity (which is the number of products that the technological line produces in a given time period) or performance must achieve at least 85% of its design capacity or performance;

3. The number of raw materials or energy consumed by the technological line shall not exceed 15% of its design consumption level;

4. The age of the piece of used machinery or equipment does not exceed 10 years. Ages of machinery and equipment in certain specific fields are specifically provided by laws; and

5. Other criteria provided by laws.

Notes: If an enterprise wishes to import used machinery or equipment whose age exceeds 10 years but remaining capacity (which is the number of products that the machinery or equipment produces in a given time period) or performance achieves 85% or above of its design capacity or performance, and amount of raw materials or energy consumed by that machinery or equipment does not exceed 15% of its design consumption level, the enterprise can submit an application to the Ministry of Science and Technology for consideration. 

3. Notes on dossiers, procedures for importing used Machinery

1. Notes on dossiers

Some documents to be prepared include:

1. Dossiers for importing used technological lines must include an inspection certificate issued by a designated inspection body that meets the requirements of the laws;

2. Dossiers for importing used machinery and equipment must include:

• The original certificate of the manufacturer of the machinery, equipment about the year of manufacture and the standards of the machinery, equipment meeting the criteria specified in Section 2 in case the machinery, equipment is manufactured in G7 countries, Korea. The certification must be consular legalized and accompanied by a translation into Vietnamese;

• An inspection certificate issued by a designated inspection organization that meets the requirements of the laws in case the machinery, and equipment is manufactured in G7 countries, Korea but do not have a certificate of the manufacturer or the machine, equipment is manufactured in a non-G7 country, Korea.

2. Notes on procedures for importing used Machinery:

Enterprises submit 01 set of import documents and related documents to the customs authority where the customs declaration is registered. The customs authority shall carry out customs clearance procedures when the import dossier and documents are complete and valid.

For further information, please contact:

Minh Ngo Nhat, Managing Partner, BLawyers

minh.ngo@blawyersvn.com