10 cases permitted for the import of used IT equipment

EXTENDMAX – The procedure for importing used information technology (IT) equipment is always a topic of interest for many businesses. Don’t worry, we will guide you through 10 cases where the import of used IT equipment is permitted. In this article, ExtendMax also provides guidance on the procedures, legal grounds, and necessary documentation for obtaining an import permit for used IT equipment.

What are used IT products and equipment?

Information Technology (IT) products refer to products that utilize digital technology to process, store, transmit, and manage information. IT products can include hardware devices or software applications that support tasks, data management, and digital information security.

Used IT products, or used IT goods, refer to previously owned or used hardware products. Software is not considered used IT goods because it does not have an HS code. When importing software, the HS code will be that of the storage medium (hardware) such as a hard drive, USB, or disk.

Examples of used IT equipment include old computers, used servers, secondhand routers, used firewalls, and old laptops. Refurbished goods are also considered a type of used IT product.

Identifying features of used IT goods

From ExtendMax's experience in import-export and customs inspection, IT goods are suspected to be used if they exhibit any of the following signs:

• IT goods lack packaging or do not have a box.
• The goods have packaging but are not in their original, sealed condition.
• The goods show dirt, scratches, or dents on the casing.

Why the import of used IT equipment must be restricted

Used IT products are prohibited or restricted for import in most cases for the following reasons:

1. Security Risks: Used IT equipment may pose high security risks, such as containing spyware or malware. This can impact critical information systems, leading to serious cybersecurity issues and data breaches.

2. Reduced Performance and Higher Failure Rates: Used equipment generally does not guarantee performance and has a higher risk of malfunction compared to new equipment. This can lead to reduced work productivity and increased maintenance and repair costs.

3. Environmental Concerns: Old IT equipment can generate a large amount of electronic waste, including harmful components like batteries, screens, and other hazardous chemicals. Banning the import of used equipment helps reduce electronic waste, protecting the environment and public health.

4. Safety and Quality Standards: Used IT equipment often does not meet the latest safety and quality standards, posing risks to users. Restricting imports ensures that IT products used domestically meet safety, security, and performance standards.

The types of restricted used IT equipment include:

• Old printers under HS codes 844331, 844332, 844399
• Old computers, servers, or data processing machines under HS code 8471
• Used phones, switches, routers, firewalls, or other old IT products under HS code 8517
• Old landline phones, microphones and speakers, monitors, and other old IT products under HS codes 8518, 8525, 8526, 8527, 8528, 8534, 8540, 8544, 8545, etc.

Note: Some used printers with a lifespan of 10 to 20 years (depending on type) may be imported to meet the production needs of businesses. The procedure for obtaining an import permit for used printers is governed by Decree No. 72/2022/ND-CP.

>>> See also:  Import procedures for used and new printers

The regulations on banning the import of used IT equipment are detailed in Government Decree No. 69/2018/ND-CP. The list of prohibited used IT products, along with their HS codes, is specified in Circular No. 11/2018/TT-BTTTT issued by the Ministry of Information and Communications. However, in the following 10 special cases, the government permits the import of used IT equipment.

10 cases allowed for the import of used IT equipment

According to Decision No. 18/2016/QD-TTg and Decision No. 31/2019/QD-TTg of the Prime Minister, as well as Decree No. 69/2018/ND-CP and Decree No. 77/2023/ND-CP of the Government, the following 10 cases permit the import of used IT equipment:

Decision No. 18/2016/QD-TTg outlines 6 cases:

1. Importing used IT products as part of relocating production equipment within the same organization.

2. Importing used IT products to operate, control, monitor, or inspect part or all of a production system or assembly line.

3. Importing used IT products directly serving software production, IT business process outsourcing, or data processing activities for foreign partners.

4. Importing specialized used IT products.

5. Re-importing IT products that have exceeded their warranty period after being sent abroad for repair.

6. Importing refurbished or renewed products and components to replace or repair items for domestic users when these products or components are no longer manufactured.

Decision No. 31/2019/QD-TTg specifies 2 cases:

7. Importing used IT equipment for scientific research.

8. Importing used IT equipment for repair and processing for foreign consumption.

Decree No. 69/2018/ND-CP outlines 1 case:

9. Importing used IT goods temporarily for re-export business purposes.

Decree No. 77/2023/ND-CP outlines 1 case:

10. Importing used IT equipment for refurbishment, which may be sold domestically or internationally.

Principles for importing used IT equipment

According to Article 3 of Decision No. 18/2016/QD-TTg, only equipment that meets the following conditions is permitted for import:

"Article 3. Principles for importing goods in the prohibited import list

1. Used goods that are imported must comply with relevant regulations on safety, quality, standards, and national technical regulations.

2. Used goods that have been publicly discarded by other countries due to obsolescence, poor quality, or environmental pollution will not be considered for import.

3. In addition to meeting the conditions and criteria specified in Article 5 of this Decision, imported used goods must comply with the current regulations on importing goods."

>>> See also:  Guide on conformity certification for IT products

Entities permitted to import used IT equipment

To be eligible to import used IT equipment, importing enterprises must meet the following conditions:

1) The importer must be an organization or enterprise established and operating in accordance with Vietnamese law.

2) The importer must meet specific documentation requirements as stipulated in Decision No. 18/2016/QD-TTg and Decision No. 31/2019/QD-TTg of the Prime Minister, as well as Decree No. 69/2018/ND-CP and Decree No. 77/2023/ND-CP of the Government for each corresponding import case.

3) For IT equipment that includes civil cryptographic products or cybersecurity products, the importing enterprise must obtain permits for these two specific types of licenses.

>>> Read more:  Conditions and procedures for obtaining a civil cryptography trading license and import license

>>> Read more:  Conditions and procedures for obtaining a cybersecurity trading license and import license

Procedure for obtaining an import permit for used IT equipment

Applying for a permit for the 6 cases outlined in Decision No. 18/2016/QD-TTg

The enterprise should prepare an import application dossier that includes:

1. Import request form prepared by the importer according to the form specified in Decision No. 18/2016/QD-TTg;

2. Documents proving legal status (business registration certificate, or decision, establishment license, investment certificate, or investment license);

3. Specific documentation for each of the 6 cases:

a) Importing used IT products as part of relocating production equipment within the same organization:

• Technical documentation describing the product: 01 (one) copy;
• Documentation proving that the imported IT product is the property of a foreign enterprise related to the importer and is used as the importer's production equipment: 01 (one) original;
• Documents showing the product's origin (invoice, sales contract, or equivalent document): 01 (one) copy;
• Decision on asset relocation by the organization: 01 (one) original.

b) Importing used IT products as equipment to control, operate, utilize, or inspect part or the entirety of a system or production line:

• Technical documentation describing the product: 01 (one) copy;
• Documentation proving that the imported IT product is equipment or a component of the system or production line: 01 (one) original;
• Documentation showing the product’s origin (invoice, sales contract, or equivalent document): 01 (one) copy.

c) Importing used IT products to directly support the production of software products, IT-based business process outsourcing, or data processing for foreign partners:

• Technical documentation describing the product: 01 (one) copy;
• Contract or other document demonstrating the use of the product for producing software, IT business process outsourcing, or data processing for foreign partners: 01 (one) copy.

d) Importing specialized used IT products:

• Technical documentation describing the product: 01 (one) copy;
• Documentation proving the product is a specialized IT product: 01 (one) original;
• Documentation showing the product’s origin (invoice, sales contract, or equivalent document): 01 (one) copy.

đ) Re-importing IT products that have exceeded their warranty period after being sent abroad for repair:

• Service contract for repair: 01 (one) copy;
• Documentation showing the product’s origin (invoice, sales contract, or equivalent document): 01 (one) copy;
• Export records: 01 (one) copy.

e) Importing refurbished or renewed products and components to replace or repair items for domestic users when these products or components are no longer manufactured:

• Report on the establishment of a warranty and maintenance service system for domestic customers, including details of service procedures and stages: 01 (one) original;
• Authorization document for the importer to perform warranty, maintenance, replacement, and repair services on behalf of the manufacturer, including clauses on the responsibilities of each party (for cases involving third-party services): 01 (one) copy;
• Documentation from the manufacturer proving that the product or component is no longer in production: 01 (one) copy.

After preparing the application dossier, the enterprise submits it directly at the Ministry of Information and Communications headquarters or via postal service. Within 5 (five) working days from the date of receiving a complete and compliant dossier, the Ministry of Information and Communications will issue a written response permitting the import. If the import is not permitted, the Ministry will issue a written response stating the reasons.

Applying for a permit for 2 cases under Decision No. 18/2016/QD-TTg

Application dossier for importing used IT products for scientific research:

a) A commitment letter and request for permission to import goods on the list of prohibited used IT products for scientific research, prepared by the trader according to Form No. 01 in the Appendix issued with this Decision: 01 original;

b) Business registration certificate, business license, or investment registration certificate: 01 certified copy;

c) Technical documentation describing the goods; documentation showing the goods' origin (invoice, bill of lading, contract, etc.): 01 copy;

d) Approval decision for the scientific research project, project proposal, or other documentation clearly stating the objectives, content, expected outcomes, and duration of the scientific research activity; an explanation regarding the types and quantities of goods to be imported, as well as the timeline and disposal methods for the goods after the research concludes: 01 original;

The enterprise submits 01 dossier in person or by mail to the Ministry of Information and Communications (address: No. 18 Nguyen Du Street, Hai Ba Trung District, Hanoi) or through the government’s online public service portal. Within 5 working days from the date of receiving a complete and compliant dossier, the Ministry of Information and Communications will review and decide on the permission to import the goods on the list of prohibited used IT products for scientific research. If permission is not granted, the Ministry will issue a written response stating the reasons.

Application dossier for permission to import used IT products for repair and processing for foreign clients:

a) Commitment letter and request for permission to carry out repair and processing activities for goods on the list of prohibited used IT products for foreign traders, prepared by the trader according to Form No. 2: 01 original;

b) Business registration certificate, business license, or investment registration certificate: 01 certified copy;

c) Trader’s capability profile, including: facilities, factories; production lines, equipment suitable for the repair and processing of each product type; personnel appropriate to the scale of production; and financial capacity: 01 original. (For traders who have been previously licensed, if the new processing contract or any adjustments do not alter the scale, capacity, type, or nature of the project’s products, this document is not required);

d) Approval decision for the Environmental Impact Assessment Report or Environmental Protection Plan Certificate for the repair and processing project, as required by the environmental protection law and issued by a competent government authority, based on the project’s scale, capacity, and product nature: 01 certified copy. (For previously licensed traders, this document is not required if the new or adjusted contract does not change the scale, capacity, type, or nature of the project’s products);

đ) Contract to perform repair and processing activities with the foreign trader as per legal requirements: 01 original or certified copy.

The enterprise submits 01 dossier either in person or by mail to the Ministry of Information and Communications (address: No. 18 Nguyen Du Street, Hai Ba Trung District, Hanoi) or through the government’s online public service portal. Within 5 working days from the date of receiving a complete and compliant dossier, the Minister of Information and Communications will review and decide on the permission to perform repair and processing activities for goods on the list of prohibited used IT products for foreign clients. If permission is not granted, the Ministry will issue a written response stating the reasons.

Applying for an import permit for refurbished IT equipment

Circular 11/2018/TT-BTTTT states: "Refurbished IT products are used IT products that have been repaired, with components replaced and other processes completed to restore functionality and appearance equivalent to new products; they must be labeled in Vietnamese to indicate they are refurbished products, or with a foreign language label with equivalent meaning; they must have a warranty policy equivalent to that of the manufacturer's new products. Refurbished IT products with HS codes listed in the Appendix of this Circular are prohibited from import."

Circular 11/2018/TT-BTTTT prohibits the import of refurbished IT equipment, which conflicts with the provisions of Decree 77/2023/ND-CP. According to the Law on Promulgation of Legal Documents, we apply the higher-level document and any international treaties or agreements to which Vietnam is a party. This means that importing refurbished IT products is permitted if the licensing conditions stipulated in Decree 77/2023/ND-CP are met.

For refurbished goods, the refurbishing enterprise (located abroad) must be an enterprise that has been granted a refurbishing code by the Ministry of Industry and Trade.

Based on the management assignments in Appendices I, II, III, IV, and V of Decree 77/2023/ND-CP, the importing trader submits 01 set of documents requesting an Import Permit for refurbished goods via postal service (or online, if applicable) to the licensing authority. The dossier includes:

a) Application form for the Import Permit for refurbished goods, as per the template in Appendix X issued with this Decree (01 original).

b) Investment certificate or Business Registration Certificate or Enterprise Registration Certificate (01 certified copy by the trader).

c) Document from the enterprise granted the refurbishing code, confirming that the refurbished goods in the trader's application are registered goods from the refurbishing code request (01 original with a Vietnamese translation if the original document is not in Vietnamese, signed and authenticated by an authorized representative of the refurbishing code-holding enterprise).

d) Report on the status of refurbished goods imported under previously granted permits, according to the template in Appendix XI issued with this Decree (01 original).

Within 15 working days from the receipt of a complete dossier, the licensing authority will review and issue the Import Permit for refurbished goods to the trader. If the permit is not granted, the licensing authority will provide a written response stating the reasons.

Procedures for Importing Used IT Products

Based on the above overview, you likely now have a general understanding of the import policies applicable to used IT equipment. If your imported product falls under the ten specified categories, the procedures for importing used computers, phones, servers, etc., are as follows:

Step 1: Obtain an import license for used IT equipment.

Step 2: Arrange for the export of the used IT products to Vietnam.

Step 3: Carry out the customs declaration steps as for new products.

Step 4: Submit the customs declaration along with the issued licenses.

Step 5: Pay taxes and complete other procedures for customs clearance.

Step 6: After importation, the importer must submit periodic reports as required by regulations.

The above is ExtendMax's guide on the procedure for importing used IT equipment. If you have any questions or wish to use ExtendMax's consulting services, please contact us for assistance.