Since the boom in Vietnam’s economic, consumer demand for cosmetic products (especially for women) has increased dramatically. In which, perfume, the luxury cosmetic product is a major product with trade volume increase year by year. Economic growth alongside the improvement in material life has boosted up demand for perfume. In Vietnam nowadays, alongside companies specify in importing perfume, there are also local manufacturers, they are enterprises of a hundred percent foreign direct investment (FDI), with products mainly to satisfy internal demand.

Nowadays, as public trend is changing and customers’ demand for luxury perfume is increasing, many enterprises in the perfume industry is looking to expand their market’s share in Vietnam. Due to being luxury product with no tax favor, at the same time being cosmetic and liquid, the Customs procedure for importing perfume is not easy. To satisfy customer’s demand on understanding the perfume import procedure, H-A Logistics decides to publish this article on company’s official page. The article below will provide detail information on the legal procedure for importing perfume products to Vietnam.

 

I)             Things you need to know about perfume:

Perfume is a luxury cosmetic product. Currently, Vietnam mostly import perfume from foreign to satisfy internal demand. A few local perfume manufacturers mostly serves the internal market. Alongside local flavors, a large number of flavors for manufacture are imported from abroad. These flavors are currently officially listed and regulated in the export – import tax according to Degree No 125/2017/NĐ-CP (December 16^th, 2017). An important point that enterprises need to take note is that the regulations and testing of cosmetic products, specifically perfume is responsibility of Drug Administration of Vietnam – Ministry of Health.
Currently, perfume’s HS code is 33030000. Its value-added tax (VAT) of 10%. The product has preferential tax of 18%. It’s very important to take note that this tax rate is for all nations, except for these countries: for Thailand specifically and ASEAN region using C/O form D, import tax is là 0%, for the Korean using CO form AK, tax rate is 20%, for Russia using C/O form EAV, tax rate is 11.5%. In which, ASEAN region with Thailand as the biggest trade partner has special preferential tax of 0%. 
 
II)            Procedure and required documents:

First and foremost, in order to import perfume to Vietnam, enterprises will need to finish the “Template for cosmetic product” declaration. The Template will requires documents as follow:
 
•             “Template for cosmetic product” form (02 versions) alongside with Particulars of product (soft version of the Template);
 
•             Copy version of the Enterprise Registration Certificate (ERC) of the organization, individual who take responsibility of launching the product to the market (with sign and seal of the enterprise).
In case the cosmetic product is internally produced but the organization, individual who take responsibility of launching the product to the market is not the manufacturer, there must be a copy version of the Enterprise Registration Certificate (ERC) of the manufacturer;
•             Main version or the copy version with the legal testify of the Letter of authorization of the manufacturer or the owner of the product authorize to organization, individual who take responsibility of launching the product to the market the right to distribute cosmetic products in Vietnam (applying to imported cosmetic and internal produced cosmetic which organization, individual who take responsibility of launching the product to the market is not the manufacturer). For import products, the Letter of authorization must be the legal testified version with sign and has to be Consular Legalized according to International Treaties which Vietnam is a member of. The Letter of authorization must fulfil the requirements regulate at Point 6 of this Circular.
•             Certificate of Free Sale (CFS): only for imported cosmetic product proclamation and satisfy requirements as follow:
a)            CFS approved by local country, must be original version or copy version with legal testify, under duration. In case CFS has no duration, the version must be at least 24 months since the approved day;
b)            CFS must be Consular Legalized according to the laws, except for case that are exempted from Consular Legalization according to International Treaties which Vietnam is a member of.
After finishing the “Template for cosmetic product”, enterprise can begin the Customs procedure for importing perfume. The procedure requires documents as follow:
 
•             Customs Declaration form.
•             “Template for cosmetic product” form that has been approved by the Drug Administration of Vietnam   – Ministry of Health with granted permission number and under duration.
•             Sales contract, invoice, packing list (according to current regulations, the importer need only to submit invoice – Sales contract, however under some circumstances, to help make things clearer, the sales contract and packing list can be submitted to the Customs Agency).
•             Bill of Lading.
•             C/O: 01 original version or electronic C/O in case the importer want to have preferential tax.
 
III)          Legal documents:
 
•             Decree No 08/2015/NĐ-CP (January 21^st, 2015).
•             Decree No 122/2016/NĐ-CP (December 1^st, 2016).
•             Decree No 125/2017/NĐ-CP (November 16^th, 2017).
•             Circular No 06/2011/TT-BYT (January 25^th, 2011).
•             Cicular No 39/2018/TT-BTC (April 20^th, 2018).
 
KH.