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IMPORT PROCEDURES FOR FUNCTIONAL FOODS, HEALTH PROTECTION FOODS, AND FOOD SUPPLEMENTS!

Procedures, import taxes and transportation of functional foods

Are you looking to import functional foods for business in Vietnam? Are you looking for a reputable logistics unit providing functional food import services to Vietnam? Do you want to know how much the import tax on functional foods is at this time? Are there any import tax incentives for functional foods? What are the state management regulations on functional foods? What are the procedures for importing functional foods? What is the process for importing functional foods?

In the article below, NPL - NP LOGISTICS with many years of experience providing functional food import services for businesses/individuals nationwide will support consulting and answering the above questions.

HS code of functional foods:

In the field of import and export, in general, for any item, to correctly determine the import policies and procedures, it is first necessary to determine the HS code of the item.

Functional foods have HS code in Chapter 21: Other edible preparations:

However, it should be noted that for liquid health protection foods, HS code: 2202 may be applied.

In case of determining the items as food supplements/health protection foods/functional foods consisting of many ingredients (for example: water, plant extracts, sugar, vitamins,...) in liquid form, packaged ready to drink, without further dilution, containing no alcohol or containing alcohol with a concentration of not more than 0.5% by volume, they belong to group 22.02 "Waters, including mineral waters and carbonated waters, containing added sugar or other sweetening matter or flavouring, and other non-alcoholic beverages , not including fruit juices or vegetable juices of group 20.09 " , subgroup 2202.99 " - Other:" , code 2202.99.50 "- - Other non -carbonated beverages ready to drink without dilution" , regardless of the dosage used."

Determining the HS code of an item must be based on the nature, composition, etc. of the actual imported goods. According to current regulations, the basis for applying the HS code to the actual imported goods at the time of import is based on the catalogue, technical documents (if any) or/and inspection at the Customs Inspection Department. The results of the actual inspection by customs and the results determined by the Customs Inspection Department are the legal basis for applying the code to the imported goods.

Our HS Code advice above is for reference only, depending on each item, composition, and specific properties.

Prohibited export, prohibited import

According to current regulations, functional foods are not on the list of prohibited import and export goods.

Import policy of functional foods

What license is required to import functional foods?

Functional foods are under the specialized management of the Ministry of Health . When imported, it is necessary to declare functional foods and register for food safety quality inspection for customs clearance.

Decree No. 38/2012/ND-CP dated April 25, 2012 of the Government detailing the implementation of a number of articles of the Law on Food Safety: “All types of food, food ingredients, food additives, processing aids, utensils, packaging materials, and food containers when imported into Vietnam must be inspected by competent state inspection agencies designated by the sector management ministries.” This provision stipulates that food hygiene and safety must be inspected upon arrival.

Cases exempted from state inspection of imported food safety (except for cases with food safety warnings) *Note: According to Decree 15/2018/ND-CP

1. The product has been granted a Certificate of Product Declaration Registration.

2. Products carried by the entrant, sent before or after the entrant's trip to serve the needs of daily life or the purpose of the trip; gifts and presents within the import tax exemption limit according to the provisions of tax law.

3. Imported products for personal use by subjects enjoying diplomatic privileges and immunities.

4. Products in transit, transshipment, transshipment, temporary import, re-export, and bonded warehouse storage.

5. The product is a test or research sample with a quantity suitable for the testing or research purpose confirmed by the organization or individual.

6. Products used for display at fairs and exhibitions.

7. Products and raw materials manufactured and imported are only used for the production and processing of export goods or for internal production of organizations and individuals and are not consumed in the domestic market.

8. Products temporarily imported for sale at duty-free shops.

9. Imported goods serving urgent needs under the direction of the Government and the Prime Minister.

Functional food declaration

• Pursuant to Circular 43/2014/TT-BYT, it clearly states: Article 3. Declaration of conformity and compliance with food safety regulations

1. Imported and domestically produced functional foods that have technical regulations must be declared to comply with regulations and have their declaration of conformity registered with the Ministry of Health (Department of Food Safety) before being circulated on the market.

2. Imported and domestically produced functional foods that do not have technical regulations must be declared in compliance with food safety regulations and registered with the Ministry of Health (Department of Food Safety) before being circulated on the market.

Thus, the declaration of conformity is applied to imported products that have technical regulations. The declaration of conformity is applied to imported foods that do not have standards but are in accordance with Vietnam's food safety regulations, such as: milk, candy, cakes, etc.

**Note: Whether it is a declaration of conformity or a declaration of suitability, the functional food declaration dossier must pay attention to the following issues:

• Business registration certificate with food business line or legal entity certificate for organizations and individuals (copy certified by the organization or individual).
• Certificate of Free Sale (CFS) issued by the exporting country, and legalized by the Vietnamese consulate in that country.
• Documents proving the product's effectiveness: scientific evidence proving the product's effectiveness and ingredients are suitable for consumers. Certificate of product composition analysis: If this certificate is certified by an independent testing laboratory with ISO 17025 certification and meets all the main quality indicators, microbiological indicators, and heavy metal indicators for functional foods according to the provisions of Vietnamese law.
• Product testing results at competent authorities in Vietnam (This result sheet is required when making a food declaration). Before submitting the declaration dossier to the Food Safety Department, the declaring units need to bring samples for testing at competent state agencies according to the criteria in the Regulation or based on the ingredients and intended use to declare appropriate criteria. (For the shipment to be able to clear customs smoothly, usually the importing units will have to import a sample shipment and request confirmation of the sample to take the sample for testing).
• HACCP certificate or ISO 22000/2005 certificate (if available).

Procedures for declaring compliance with food safety regulations:

1. Assessment of compliance with food safety regulations:

Organizations and individuals conduct product testing at designated testing laboratories or recognized independent testing laboratories or accepted testing laboratories.

2. Registering the declaration of compliance with food safety regulations

Note: Product testing results are specified as follows: product testing results within 12 months (original or notarized copy with original for comparison or consular legalization), including indicators with requirements of corresponding technical regulations, of designated testing laboratory or recognized testing laboratory.

Customs procedures for importing functional foods:

Customs documents for importing functional foods:

a) Import goods declaration

b) Contract, invoice, packing list (according to current regulations, the importer only needs to present the invoice - Commercial invoice, however, in some cases, for clarification, it is possible to present both the contract and packing list to the customs authority)

c) Bill of lading

d) Certificate of receipt of declaration of conformity/confirmation of conformity declaration

e) Certificate of origin of goods: 01 original or electronic C/O in case of wanting to enjoy special import tax incentives

(See Regulations in Clause 5, Article 1, Circular 39/2018/TT-BTC  April 20, 2018 of the Ministry of Finance)

f) Quality inspection registration certificate (or documents proving exemption from quality inspection)

Implementation process:

• Register for food safety inspection at competent authorities such as: Quality Measurement Standards Center 1 (Quatest 1, in Hanoi), Quality Measurement Standards Technical Center 3 (Quatest 3, in Ho Chi Minh City); National Institute for Food Safety and Hygiene Testing (in Hanoi),...
• Declare and transmit the customs declaration attached to the approved registration.
• Do customs procedures and request to bring goods to warehouse for storage.
• Check the warehouse and take samples for testing
• After checking, if the result is satisfactory, submit additional results to Customs to clear the shipment. If not, the shipment must be returned.

Labels of functional food products

Imported goods must have full labels according to current regulations.

Product labels must show the following information:

a) Name of goods;

b) Name and address of the organization or individual responsible for the goods;

c) Origin of goods;

d) Other contents according to the nature of each type of goods

In addition to the general regulations on labels as above, 43/2014/TT-BYT dated April 14, 2017 on product labels stipulates mandatory content that must be shown on health food product labels (point 3, appendix I), including the following contents:

a) Quantitative;

b) Date of manufacture;

c) Expiry date;

d) Composition, quantitative composition or nutritional value;

d) Instructions for use, instructions for storage;

e) Publicize risk warnings (if any);

g) Write the phrase: "Health protection food";

h) Write the phrase: “This food is not a medicine and cannot replace medicine.

Taxes on importing functional foods:

When importing functional foods, importers need to pay import tax and value added tax (VAT).

VAT on functional foods is 10%.

Preferential import tax rate of functional foods: if HS 2106 , import tax is 15%; if HS 2202 : import tax is 30%

In the case of functional foods imported from countries with free trade agreements with Vietnam, they may enjoy special preferential import taxes if they meet the conditions set forth in the agreement. You should pay attention to this content to enjoy legal benefits on tax incentives. Currently, Vietnam has signed FTAs with over 50 countries, so it is likely that the items you import will enjoy special preferential import taxes.

Your company needs support in consulting on customs procedures, procedures for applying for import-export licenses, and product policies for "Functional foods, Food supplements, Health protection foods". Contact the following information:

Hotline (Zalo OA): 0917.32.46.39 - 0919.68.32.78

Email: info@nplglobal.vn & customerservice@nplglobal.vn & sales@nplglobal.vn