What is temporary import for re-export of wooden floors? Concept and purpose

Temporary import and re-export of wooden floors is the temporary import of traders and businesses wood floor in one country to export to another country. To better understand this concept, please read more about the following forms of temporary import and re-export!

What is temporary import for re-export?

Temporary import for re-export (Temporary import and re-export) is a sequence of actions viewed from the perspective of an intermediary country including:

• Temporary import (Temporary imports): Temporary importation of goods of another country into a separate customs area.
• Come back (re-export): After the storage period expires (about 1 to 2 months), the goods will be exported to another country or returned to the original country.

During the process from temporary import to re-export, the customs authority will strictly control the goods, ensuring that the shipment has all the correct documents according to the import and export procedures.

Because the whole world is in the period of integration and development, temporary import for re-export is not a strange thing for businesses and traders. Especially when temporarily imported goods for re-export do not need to pay value added tax.

5 forms of temporary import for re-export and the purpose of each type

Depending on the purpose of businesses and traders, when temporarily importing for re-export of goods, we classify them into one of five forms as follows:

• Temporary import for re-export in the form of business:

Enterprises making profits in the form of temporary import for re-export must be legally established. When working, this unit must always perform 2 contracts: import contract (made with the original exporting country) and export contract (made with the country where the goods will be re-exported).

Note: This item is not allowed to be converted to import for circulation in the country of temporary import.

• Temporarily imported for re-export under warranty or lease contracts:

If the goods are not banned or suspended from import and export, they have the right to temporarily import for re-export based on the warranty, maintenance, and lease contracts. The time of temporary import of this item is not fixed because it depends on many factors such as: difficulty of equipment, warranty level, rental demand, ... and the parties will agree with each other to press reasonable timing.

• Temporary import for re-export for warranty purposes, recycling upon request:

This product will be warranted or recycled in the country where it was temporarily imported, on a separate request. Once done, they will be returned to the original country. Unlike the above two forms of temporary import for re-export, this item does not have the right to be exported to a third country and does not need a permit for temporary import for re-export.

• Temporary import for re-export for the purpose of promoting goods:

These goods are used for display at fairs and exhibitions. Because the purpose is to stimulate domestic and foreign trade, not to make a profit, this form of temporary import for re-export is specially not required to have a license. Instead, businesses/traders only need to perform a few basic import and export procedures for this item at the customs office.

• Temporary import for re-export of goods for humanitarian purposes:

These goods are usually medical equipment, serving the needs of medical examination and treatment. After a short time, this equipment will be returned to the original country. In a word, this is just a form of lending without the purpose of profit and is privileged without a license as above.

Advantages and disadvantages of temporary import for re-export

The advantage of the form of temporary import for re-export is to improve the economic integration between countries in the world. At the same time, this form also creates jobs for many people such as: loading and unloading, storage. carriage,…

In return, the form of temporary import for re-export has many potential risks in terms of price, storage time, procedural troubles and a series of other problems if the goods are not true to the original declaration.

Why do people temporarily import and re-export wooden floors?

Goods temporarily imported for re-export for business purposes are usually those with large supply and demand. Therefore, wooden flooring is the most popular temporary import for re-export. This is also not surprising because each country will have its own quality of wood. They are affected by factors such as soil, climatic conditions, production technology, etc.

However, there are some units that take advantage of the form of temporary import for re-export to fake the origin and origin of wooden floors. Recently, the status of plywood (plywood) forged Vietnamese origin is circulating in the US, causing a lot of anger. Failure to intervene in time will lead to the US tightening management, directly affecting genuine Vietnamese plywood manufacturers.

The Minister of Industry and Trade has just signed and promulgated Circular No. 22/2019/TT-BCT stipulating the temporary suspension of border-gate trading and temporary import of plywood into Vietnam for re-export to the US. This move is expected to eliminate the situation that plywood disguised as Vietnamese origin is exported to the US, which has caused a lot of frustration over the past time. – Source: Online financial magazine.

How to avoid buying fake wooden floors of origin by temporary import for re-export

Just like the way Americans love Vietnamese plywood, the Vietnamese themselves also have an undying passion for Malaysian laminate flooring. Tropical wood core in this country is the leading carving of termites, bringing absolute peace of mind to Vietnamese users.

Realizing the high profit potential, a series of wooden floors disguised as Malaysian origin were born in the Vietnamese market (faux wood floor). To avoid buying fake wooden floors of origin in the form of temporary import for re-export, you must:

1. Ask the seller to present original documents (CO paper, CQ paper).
2. Check the information of the Laminate flooring factory in Malaysia (website, fanpage, address on gg map, authenticated photos).
3. Genuine Malaysian laminate flooring must have "Made in Malaysia" information on publications such as: box, back of board, catalog, sample book, etc.

Note: Information such as: Malaysia standard, Malaysia technology, HDF Made in Malaysia, etc., is not genuine Malaysian laminate flooring.

Till now, Malaysia has only 2 factories producing laminate flooring and Kosmos Vietnam is the unit that signed an exclusive contract to distribute wooden flooring with one of the two factories above.

To be more precise, Kosmos Vietnam is the distributor for Robina laminate flooring, which is manufactured by the Robina Flooring factory (Malaysia). Kosmos is willing to offer a reward of 2 BILLION VND for those who can prove that the Robina 2023-2026 wooden floor collection is not a genuine Malaysian product.

Summary

Temporary import for re-export of wooden floors is not against the law. But, some crooks have taken advantage of its loopholes to profit, directly affecting the trust of users. Hopefully the above information will hopefully help users better understand the original fake wood floors. Kosmos Vietnam always prioritizes the interests of users and is ready for further advice here.

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