WHAT ARE OFFICIAL-QUOTA AND UNOFFICIAL-QUOTA IMPORTS? WHAT ARE OFFICIAL-QUOTA IMPORT’S ADVANTAGES?
Official and unofficial quota are two popular ways to import goods internationally. Each of them has their own features and is suitable for a different type of commodities and business. This article will shed a light on these two sorts of imports and their advantages.
1. Official-quota import
Official-quota import is a term indicating the activity of international trade among individuals, organizations and enterprises and is specified in the law of Vietnam in which official-quota import happens between nations having a shared borderline or not.
Every type of commodities that are not prohibited by the government can be imported by this method. However, there are still some special commodities requiring the approvement by the government to be imported. Alongside with the integration and development of Vietnam, official-quota import is adopted all over the world.
Official quota import goods have to be declared and then get the examine and supervise of customs. In this regard, goods need to have clear origin, certificates of quality or food hygiene and safety issued by competent authorities. Owners of these goods have to pay taxes to abide with the regulations.
2. Unofficial-quota import
Unofficial quota import is commercial activities executed among citizens living surrounding the bordering areas. Unofficial quota import commodities are often of low value, for example, agricultural products, clothes, shoes, basic household items.
Each nation has their own regulations of quota about quantity advalue of goods, so the scale of this method might be curbed. In addition, almost unofficial quota imported product is tax exempted.
In Vietnam, unofficial-quota import perpetually takes place in the northern provinces bordering China namely Lang Son, Lao Cai, Quang Ninh… or bordering Laos and Cambodia.
3. Advantages of official-quota import
It is easy to see the benefits of official-quota import over unofficial-quota import just by distinguishing their definitions:
- Unlimited scale, quantity and value of the imported consignment
- Goods can be delivered by many modes of transportation like road, seaway, airway,... as long as it meets importer’s requirements.
- Goods are fully inspected, tested and manifested, assure that they have clear origins, being in good conditions, sealed and unbundled, and reduced being astrayed.
- Goods have clear sales and import records, facilitate trust and reliability towards customers and market regulators.
4. Which one is a better method, official import or unofficial import?
It depends on the type of products, quantity and demand of each business and individual.
Many organizations and companies are “afraid” of official import because of intricate customs procedures and a variety of costs, taxes which push up the price. Nevertheless, many consignments are imported officially very easily and tax exempted.
Understanding this, MDCT Logistics will provide help for enterprises, individuals or business units and consult them on the best measure with fast delivery, straightforward procedures, and minimum costs.
