x New private individuals and businesses participating in commercial activities, international trade, import and export of goods are still confused about the concept of commercial and non-commercial goods?
x Are you wondering how to identify commercial goods and non-commercial goods?
x You don't know where to carry out customs procedures for commercial and non-commercial import and export goods?
at Proship.vn will help you clarify the concept of trade goods? What are non-commercial goods? Along with that is how to accurately identify these two common types of commercial and non-commercial goods in import and export activities.
What do trade and non-trade mean?
What are tradable and non-tradable goods? Trade and non-trade goods are terms in the field of international business, especially in the fields of import-export and international trade.
Concept of trade goods
What are trade goods? Commercial Goods are goods with sales contracts and unlimited import and export quantities. Businesses often import trade goods for the purpose of production and business to increase profits.
When importing commercial goods, businesses must be responsible before the law for the quality and nature of the goods. When the transaction is confirmed, the customs office will issue an invoice and pay taxes.
In general, trade goods are recognized as official import and export goods. Businesses SHOULD NOT import commercial goods in the form of quotas without invoices or documents, causing many business consequences.
* Example of trade goods: Generators imported for sale in the Vietnamese market.
Concept of non-commercial goods
What are non-commercial goods? Non-Commercial Goods are sample goods, gift goods, and promotional goods. Non-commercial items will not incur any costs when used.
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Non-commercial goods are imported goods for no commercial purpose and are not on the list of goods banned from import according to regulations of specialized import-export management agencies.
* Example of non-commercial goods: A generator is a gift from a foreign partner to a Vietnamese business.
>>See more: What is CO CQ?
Compare tradable goods and non-tradable goods
Similarities between commercial and non-commercial goods
What are the similarities between tradable goods and non-tradable goods?
- Both commercial and non-commercial goods must pay international fees according to regulations and VAT (VAT) to the State;
- Both commercial and non-commercial goods must be accompanied by invoices (international fees, shipping fees, etc.) so that the competent authority can control the value and verify the accuracy of the goods.
Differences between commercial and non-commercial goods
The following summary table will help you clearly understand the difference between commercial and non-commercial goods:
| CRITERIA | TRADE GOODS | NON-TRADABLE GOODS |
| Purpose | For commercial purposes, buying, selling, and exchanging for profit. | Not for commercial purposes, usually samples, gifts, aid goods, display goods, goods sent for repair... |
| Customs procedures | Must carry out customs procedures according to regulations, including declaration, tax payment, goods inspection... | Customs procedures are simpler, usually no import tax is required, but declaration is still required and may be subject to inspection. |
| Document | Documents such as sales contract, commercial invoice, bill of lading, certificate of origin (C/O) are required... | Documentation is simpler, may only require documents proving the non-commercial nature of the goods. |
| Customs clearance time | It usually takes more time due to customs procedures. | Customs clearance time is faster due to simple procedures. |
| Value of goods | Has commercial value, tax is calculated based on declared value. | No commercial value, no import tax. |
Where is the location for customs clearance for commercial and non-commercial goods?
Many businesses wonder what the regulations are when carrying out import and export procedures for importing non-commercial goods and where to find commercial goods?
According to Article 19 - Circular 38/2015/TT/BTC, the location for registering customs declarations for commercial and non-commercial goods is specifically specified as follows:
1. For exported goods, individuals/organizations can register declarations at one of the following three locations:
- The Customs Branch in the locality where the enterprise is headquartered or where it is produced;
- The Customs Branch in the locality where exported goods are gathered;
- Customs Branch at the export border gate location.
2. For imported goods, individuals/organizations can register declarations at one of the following two locations:
- The headquarters of the Customs Branch at the border gate where goods are stored and the destination port is recorded on the bill of lading or transport contract;
- The local Customs Branch outside the border gate where the enterprise is headquartered or where the goods are shipped.
3. For specific types of import and export goods, the declaration registration location is applied according to the provisions of Decree No. 08/2015/ND-CP.
Things to keep in mind when importing non-commercial goods
When carrying out procedures to import non-commercial goods, there are the following notes:
1. Non-commercial goods must also pay import tax. If the item is worth less than 1,000,000 VND, no tax is required.
2. Non-commercial goods enjoy preferential tax if they have C/O (certificate of origin).
3. VAT on imported non-commercial goods is not deductible. This tax is included in other expenses in the tax declaration dossier.
4. Non-commercial goods can be sold as asset liquidation. Record other revenue for the business.
5. Non-commercial goods can be paid or unpaid goods through banks. (For example: payment for sample goods; no payment for humanitarian aid goods).
6. Most non-commercial goods do not require specialized inspection or certification of standard conformity or product declaration.
What are non-traded goods and what are trade goods, how to identify what are trade and non-trade goods have been pointed out. At the same time, Proship also suggests locations to carry out customs procedures for commercial and non-commercial goods. Import-export businesses should consult and contact 0909 344 247 for advice on cheap multi-modal transport services.
