Variable Frequency Drives (VFDs) are common industrial electrical devices, but import clearance can still be delayed when the product name, voltage, power rating, model, catalogue and intended use do not match across documents. This guide provides an E2E (End-to-End) pre-ETA review map covering HS code, duty, C/O, technical documents, labelling, used-equipment risks and key customs decision points.

QUICK FACTS

Review item	Reference information	Operational note
Product	Variable Frequency Drive / VFD / AC Drive	Applies only to standalone VFDs used to control motor speed/frequency.
Reference HS	8504.40.90; consider 8504.40.40 if the goods fit the inverter description.	If imported as a complete control cabinet, classification may move to 8537.xx.
Reference import duty	MFN 0% for 8504.40.40/8504.40.90; ordinary duty 5% if MFN/FTA conditions are not met.	FTA preferential duty under C/O may also be 0%, but must be checked by C/O form and tariff schedule at declaration date.
VAT	8% during 01 July 2025–31 December 2026 if not excluded; 10% if not eligible for reduction.	Do not finalize VAT by product name alone; verify HS code, goods description and Appendices I, II of Decree 174/2025/ND-CP.
Key policy note	New standalone VFD: HS, duty, C/O and labelling are key. Used, explosion-proof, motor/cabinet-integrated goods require separate review.	Review by catalogue, datasheet, model and actual import purpose.

SCOPE OF APPLICATION

Legal note: This article applies only to VFDs/frequency inverters used to control motor speed, voltage and frequency in industrial machinery systems. It must not be automatically applied to electric motors, completed electrical cabinets, PLCs, controllers, servo drives, soft starters, I/O modules or electrical equipment already integrated into a complete production line/machine. Review must be based on the actual catalogue, datasheet, model and import purpose.

Covered variants

Standalone VFD, AC Drive, Frequency Inverter or Variable Speed Drive imported new for installation or replacement in motor control systems.

Variants to separate

Electrical cabinets containing VFDs, central controllers, servo amplifiers, PLC/HMI units or complete machines with VFDs may require a different HS/policy approach.

Goods condition

New, used, refurbished, warranty-return, project cargo and EPE/FDI imports may trigger different dossier requirements.

CLASSIFICATION & TECHNICAL IDENTIFICATION

A VFD should be identified by its static electrical conversion function: receiving AC/DC input, processing through power electronics and adjusting output voltage/frequency to control motor speed or torque. Commercial documents should clearly show rated power, input/output voltage, phase, model, serial number, accessories and intended use.

Checkpoint	Documents to cross-check	Risk if wrongly described	Suggested description on documents/declaration
Commercial and technical name	Catalogue, datasheet, user manual	Generic “controller” or “inverter” wording may trigger HS questions	Motor control VFD, model…, power rating…, voltage…
Operating principle	Circuit diagram, technical manual	May be confused with power supply, UPS, PLC or switching equipment	Static converter/VFD for motor frequency control
Power, voltage and phase	Datasheet, original label, model list	Incorrect duty/value reference; weak explanation under yellow/red channel	State kW/HP, input/output voltage and phase
Goods condition	Invoice, packing list, product photos, manufacturing year	Used goods may trigger review under Decision 18/2019/QD-TTg	New 100% / used / refurbished must be consistent across documents
Integrated cabinet/machine	BOM, electrical drawings, machine catalogue	May shift classification to control cabinet or complete machine	If imported as a cabinet, describe as electrical control cabinet containing VFD…

HS CODE – DUTY – C/O

For a Variable Frequency Drive (VFD), the tax section should not be closed with a single line such as “HS 8504 – duty 0%”. The goods must be separated by commercial and technical nature: standalone VFD, inverter in a narrower technical sense, control cabinet containing a VFD, or VFD parts. Heading 85.04 covers electrical transformers, static converters and inductors; within this heading, 8504.40.40 covers inverters and 8504.40.90 covers other static converters.

1. Common HS route

8504.40.90 is commonly reviewed for a standalone VFD when the documents show a static converter used to regulate output frequency, voltage or motor torque.

2. HS to compare

8504.40.40 should be compared with 8504.40.90 when the catalogue expressly describes the product as an inverter. If imported as a control cabinet, HS 8504 should not be applied automatically.

3. Current VAT

The baseline VAT for this type of goods is usually reviewed at 10%; during 01 July 2025–31 December 2026, 8% may apply if the goods are not excluded from the VAT reduction policy.

Goods scenario	Reference HS code	How to read the HS description	MFN import duty	Ordinary import duty	VAT	C/O & documents to finalize
Standalone VFD	8504.40.90	“Other” static converters. Suitable where the equipment uses power electronics to regulate output frequency/voltage for a motor and is not imported as a completed control cabinet.	0% under the MFN tariff for heading 85.04, subject to verification on the declaration date.	5% as a reference if MFN/FTA conditions are not satisfied; verify under Decision 15/2023/QD-TTg and the current tariff.	8% during the VAT reduction period if not excluded; 10% if not eligible for reduction or after the policy period.	C/O may not reduce duty further when MFN is already 0%, but remains useful for origin control. Description “frequency inverter/VFD/static converter”, HS, origin, route and invoice must be consistent.
Inverter in the narrower technical sense	8504.40.40	Considered when the goods fit the inverter description in the catalogue/datasheet; distinguish from industrial VFD, UPS, power supply, charger or rectifier.	0%.	5% as a reference if MFN/FTA is not available.	8%/10% according to the conditions above.	Catalogue should show inverter function, input/output, rated power, voltage and phase. C/O description must not conflict with invoice/declaration.
Control cabinet/panel containing VFD	8537.xx or another code based on the cabinet nature	If the imported goods are a cabinet/panel containing VFD, contactor, PLC, MCB, HMI or other control devices, the essential character may be an electrical control cabinet rather than a standalone VFD.	Do not apply 8504 duty by default. Duty varies by 8537 subheading and actual configuration.	Based on the final HS classification.	Based on the final HS code and VAT policy on the declaration date.	BOM, wiring diagram, cabinet catalogue, product photos and internal component list are required.
VFD parts/components	8504.90.xx or another parts code	Applies to boards, modules, keypads, fans, terminals or spare assemblies; not to a complete VFD.	Depends on subheading. Some 8504.90 lines are 0% MFN; certain transformer-related parts may differ.	Based on the actual component subheading.	Based on the final HS code.	Confirm part number, function, and whether the part is solely/principally used for VFDs or is a general electrical part.

Tax item	How to determine for VFD	Reference rate to show	Point to verify before finalizing
MFN import duty	Applies where the exporting country qualifies for MFN treatment and the import dossier meets the relevant conditions.	0% for 8504.40.40 and 8504.40.90.	Check declaration date, current tariff, HS description and whether goods are new/used.
Ordinary import duty	Applies where MFN or FTA preferential treatment is not available.	5% as a reference for 8504.40.40/8504.40.90; re-check at the declaration date.	Do not confuse ordinary duty with MFN; verify exporting country, documents and tariff system.
FTA preferential duty	Applies only with a valid C/O or origin document under the relevant FTA.	Many FTAs may be 0%; when MFN is already 0%, the tax-saving impact may be limited but origin control remains important.	C/O form, origin criterion, third-party invoice, direct transport, goods description and HS code on C/O.
Import VAT	Review under VAT law and the current VAT reduction policy. Decree 174/2025/ND-CP reduces VAT for goods/services subject to 10%, except excluded appendices.	8% during 01 July 2025–31 December 2026 if eligible; 10% if excluded or after the policy expires.	Check Appendices I and II of Decree 174/2025/ND-CP, HS code, goods description and import regime.
Excise / environmental protection tax	Ordinary standalone industrial VFDs are not typical goods subject to excise or environmental protection tax.	Not applicable for the ordinary standalone industrial VFD scenario.	Review again if the shipment includes batteries, chemicals, oil, special equipment or configurations that alter the product nature.

Tax finalization note: For VFDs, a small mismatch between Invoice, Packing List, catalogue, original label and C/O may shift the HS route from 8504.40.90 to 8504.40.40, or from standalone equipment to 8537.xx if imported as a control cabinet. HS, VAT and C/O should be fixed before ETA; do not wait until Yellow/Red channel review to prepare catalogue or function explanations.

C/O warning

A C/O supports FTA preferential treatment only when the form, origin criterion, goods description, HS code and transport route are consistent. For VFDs, a frequent risk is that the C/O states “controller”, “drive” or “inverter module” while the invoice/declaration states “frequency inverter/VFD”, or the HS code on the C/O differs from the declared HS. Even where MFN duty is already 0%, origin documents should still be controlled to protect the origin file and avoid rejection for accompanying items.

APPLICABLE SPECIALIZED POLICIES

Goods scenario	Possible policy	Documents to review	Authority/portal if identifiable	Recommended timing	Risk note
New standalone industrial VFD	Customs dossier, HS classification, duty, C/O if any, import labelling	Invoice, Packing List, B/L/AWB, catalogue, datasheet, original label, C/O	Customs authority; importer prepares labelling dossier	Before ETA	Do not state “no licence required” absolutely; review model and functions.
VFD integrated into cabinet or complete machine	Classification may shift to control cabinet/complete machine; policy follows the main goods	BOM, electrical drawings, machine catalogue, configuration photos	Customs; specialized authority depending on main goods	Before booking confirmation	Wrong product nature may lead to wrong HS and duty.
Used/refurbished VFD	Review conditions for used machinery/equipment under Decision 18/2019/QD-TTg if within scope	Manufacturing year, condition, inspection certificate, import purpose	Customs; inspection body if required	Before purchase	Risk of re-export or dossier supplementation if requirements are not met.
VFD with Wi-Fi/Bluetooth/4G/5G module	Potential ICT/telecom review for radio modules	Module catalogue, test reports, user manual, model list	MIC/VNTA if listed	Before ETA	Only applies when the device actually has radio functions.
Explosion-proof/mining application	May require safety/specialized standards depending on use environment	ATEX/IECEx, explosion-proof certificate, application catalogue	Relevant specialized authority	Before contract signing	Review separately; do not infer from ordinary industrial VFD.
Import for EPE/FDI/project	Import regime, possible tax exemption, fixed-asset management	Contract, PO, project dossier, tax-exemption list if any	Customs office managing the enterprise/project	Before declaration	Wrong customs regime may affect duty and post-clearance records.
VFD for explosion-proof or hazardous-area use	May require review under the Ministry of Industry and Trade’s list of potentially unsafe products; quality inspection/conformity dossiers may be triggered if covered by the list/QCVN	Catalogue, datasheet, explosion-proof certificates, Ex/ATEX/IECEx standards if any, technical label	MOIT/quality inspection authority or conformity assessment body if applicable	Before PO finalization and before ETA	Do not treat as ordinary industrial electrical equipment if documents indicate hazardous-area/explosion-proof use.
VFD imported together with electric motors, distribution transformers or energy-labelling equipment	Review energy labelling/energy efficiency policy for the main goods; standalone VFDs should not automatically inherit motor energy-labelling rules	BOM, packing list, catalogue of each item, model list, power rating, voltage	MOIT/energy labelling system if the main goods are listed	Before splitting invoice and declaration lines	Incorrect line separation may omit energy-labelling documents for accompanying motors or transformers.

LEGAL DOCUMENTS TO REVIEW

Document group	Document name/number	Issuing authority	Effective/applicable timing	Role in procedure	Key article/appendix to review	Review note
Law	Law on Customs No. 54/2014/QH13	National Assembly	Currently applicable, subject to validity check	Legal basis for customs procedure, inspection and clearance	Rules on dossier, inspection and customs supervision	Review by import regime.
Decree	Decree 08/2015/ND-CP as amended by Decree 59/2018/ND-CP	Government	Check validity at time of clearance	Guidance on customs procedure, inspection and supervision	Dossier, declaration and physical inspection rules	Do not quote article numbers without consolidated review.
Circular	Circular 38/2015/TT-BTC as amended by Circular 39/2018/TT-BTC	Ministry of Finance	Check current applicable version	Customs declaration, customs value, duty and dossier check	Operational rules for VNACCS/VCIS declaration	Review according to customs system practice.
HS nomenclature	Circular 31/2022/TT-BTC	Ministry of Finance	Vietnam import-export nomenclature	Basis for 8-digit HS lookup	Chapter 85, heading 85.04 and relevant subheadings	Use to match goods description.
Tariff	Decree 26/2023/ND-CP and amendments such as Decree 199/2025/ND-CP	Government	Check at declaration date	MFN preferential import tariff	Tariff appendix for heading 85.04	Do not use rates without current tariff check.
Ordinary duty	Decision 15/2023/QD-TTg	Prime Minister	From 15 July 2023, subject to current review	Ordinary import tariff	List of ordinary duty rates	Applies when MFN/FTA conditions are not satisfied.
Labelling	Decree 43/2017/ND-CP amended by Decree 111/2021/ND-CP	Government	Decree 111/2021 effective from 15 Feb 2022	Basis for import labelling and Vietnamese supplementary labels	Mandatory label contents	Cross-check original label, Vietnamese label, model and origin.
Used equipment	Decision 18/2019/QD-TTg	Prime Minister	Effective from 15 June 2019	Management of used machinery, equipment and technology lines	Age/inspection conditions depending on case	Only applies when goods are within scope and used.
Specialized quality management	Circular 41/2023/TT-BCT; Circular 36/2019/TT-BCT	Ministry of Industry and Trade	Circular 41/2023 effective from 15 February 2024	Review Group-2 goods under MOIT responsibility	Appendix list and corresponding QCVN if any	Applies only if the model/function falls within the list; pay special attention to hazardous-area/explosion-proof use.
VAT	Resolution 204/2025/QH15; Decree 174/2025/ND-CP	National Assembly/Government	Applicable for 01 July 2025–31 December 2026 under current policy	Basis for determining 8%/10% VAT depending on period and exclusion lists	Appendices of goods/services not eligible for VAT reduction	Verify HS code and goods description before finalizing VAT.
Energy labelling	Circular 52/2025/TT-BCT	Ministry of Industry and Trade	Effective from 01 January 2026	Review if the VFD is imported together with main goods subject to energy labelling such as electric motors/distribution transformers	Equipment list and implementation roadmap	Standalone VFDs are not automatically covered; accompanying goods should be split and reviewed item by item.

VIEW / DOWNLOAD ORIGINAL LEGAL DOCUMENTS

Businesses may search legal documents by document number on official legal databases, the Government portal or the issuing authority website. Businesses should cross-check the official portal or issuing authority website before application.

Decree 199/2025/ND-CP Decision 15/2023/QD-TTg Decree 43/2017/ND-CP Decision 18/2019/QD-TTg Decree 174/2025/ND-CP Circular 41/2023/TT-BCT Circular 52/2025/TT-BCT

CUSTOMS CLEARANCE DOSSIER

Commercial documents

Commercial Invoice.
Packing List.
Bill of Lading/Air Waybill.
Sales Contract/Purchase Order if any.
C/O if preferential duty is claimed.
Catalogue, datasheet, user manual, original label/model photos.

Specialized documents if triggered

Inspection certificate for used equipment if within scope.
Radio-module documents if Wi-Fi/Bluetooth/4G/5G exists.
Safety/explosion-proof certificates for special-use environments.
Import labelling/Vietnamese supplementary label dossier.
Technical documents, BOM and electrical drawings if imported as an integrated cabinet.

Dossier group	Required documents	Used for which step	Typical preparer	Common error	Pre-ETA check
Commercial	Invoice, Packing List, Contract/PO	Value, quantity and transaction terms	Importer/Supplier	Generic product name, missing model/power	Match each line item with catalogue and label.
Transport	B/L or AWB, Arrival Notice, Pre-alert	D/O, manifest and declaration	Forwarder/Carrier	Wrong consignee, wrong package/weight	Lock documents before ETA.
Technical	Catalogue, datasheet, user manual, model list	HS finalization and function explanation	Supplier/Technical team	Missing input/output or kW/HP data	Request official datasheet for each model.
Origin	Preferential C/O if any	FTA duty claim	Supplier/Exporter	Wrong form, wrong HS, mismatching description	Compare C/O with invoice, B/L and packing list.
Labelling	Original label and proposed Vietnamese label	Post-clearance circulation	Importer/Compliance	Missing origin, manufacturer or technical data	Approve label sample before arrival.

DECISION POINTS THAT MAY HOLD THE SHIPMENT

Decision point	Question to answer	Evidence	Consequence if unclear	Recommended handling
HS basis	Is it a static converter, control cabinet or complete machine?	Catalogue, datasheet, BOM, photos	Customs may request consultation/reclassification	Prepare a function explanation before declaration.
Model consistency	Do invoice, packing list, C/O, label and catalogue show the same model?	Model list, original label, serial list	Suspected wrong goods/origin	Lock model list before ETA.
New or used	Is it used/refurbished/warranty-return?	Invoice, photos, certificate if any	May trigger used-equipment policy	Confirm condition at PO stage.
C/O validity	Are form, origin criterion, description, HS and route consistent?	C/O, B/L, invoice	Preferential duty may be rejected	Check draft C/O before original issuance.
Labelling	Are product name, model, origin, responsible entity and technical data sufficient?	Original label, Vietnamese label	Penalty/circulation risk	Prepare supplementary label before delivery.

PRACTICAL E2E PROCESS

1. Pre-ETA review

Finalize HS, MFN/ordinary/FTA duty, C/O, labelling, goods condition and possible specialized policy.

2. Lock documents

Finalize invoice, packing list, B/L/AWB, catalogue/datasheet, model list and serial list; check name, power, voltage and origin.

3. Prepare special dossiers

Used equipment, radio module, explosion-proof use, EPE/FDI/project imports must be reviewed separately.

4. Customs declaration

Declare correct regime, HS, value and C/O. Green channel: clearance by system condition; Yellow: document check; Red: document and physical inspection.

5. Clearance & post-clearance

Deliver goods, apply supplementary label if needed, archive shipment dossier and prepare HS/value/origin explanation for post-clearance audit.

PRE-ETA RISK CHECKLIST

Risk	Consequence	Pre-ETA control	Documents to check
Generic product name	Wrong HS/duty and function questions	Describe as motor-control VFD with model, power and voltage	Invoice, packing list, catalogue, label
Standalone VFD confused with control cabinet	Wrong 8504/8537 classification	Review BOM, electrical drawing and configuration photos	BOM, electrical drawing, datasheet
C/O description or HS mismatch	Preferential duty rejection	Check draft C/O before shipment	C/O, invoice, B/L
Goods condition unclear	Used-equipment policy risk	Request supplier confirmation	Invoice, PO, photos, manufacturing year
Missing technical specifications	Weak HS explanation under yellow/red channel	Request official datasheet by model	Datasheet, user manual, model list
Late Vietnamese label	Storage/delivery/circulation risk	Approve label before ETA	Original label, supplementary label, labelling rules

FAQ – COMMON BUSINESS QUESTIONS

Does importing a VFD require a licence?

Do not conclude absolutely. For new standalone ordinary VFDs, the focus is usually HS, duty, C/O and labelling, but model, condition, connectivity module and application environment must be reviewed.

Is the HS code always 8504.40.90?

No. 8504.40.90 is a common reference for standalone static-converter VFDs; cabinets, parts or complete machines may be classified differently.

What is the import duty for VFDs?

8504.40.40 and 8504.40.90 show a reference MFN rate of 0%, but ordinary duty, VAT and FTA duty must be checked at declaration date.

Can C/O reduce duty?

It may if the FTA rate is more favorable and the C/O is valid. Even when MFN is 0%, C/O may still be relevant for origin and commercial compliance.

Can used VFDs be imported?

Review separately under Decision 18/2019/QD-TTg if the goods fall within the used machinery/equipment scope; do not purchase before dossier conditions are confirmed.

Is Vietnamese supplementary labelling required?

Goods circulated in Vietnam must be reviewed under Decree 43/2017/ND-CP and Decree 111/2021/ND-CP; label contents must match documents and model.

EXECUTION SOLUTIONS FROM TGIMEX

This article provides a map of HS code, duty, dossier and specialized policies. For an actual VFD shipment, the enterprise still needs to review catalogue, datasheet, model, commercial documents, origin and import purpose.

Coordination capability

Agency network in more than 60 countries.
Member of WCA, WCA China Global, VLA and HNLA.
Sea, air, road/rail freight, warehousing and domestic delivery.

Support scope

Pre-ETA review: HS, policy, C/O, duty, labels, catalogue/datasheet/model.
Compliance document control: invoice, packing list, B/L/AWB, C/O and technical documents.
Customs declaration, green/yellow/red channel handling, HS/value/origin explanation support.

For shipments that may involve specialized inspection, licence, C/O or labelling requirements, enterprises should not wait until arrival to start dossier review. A small inconsistency among invoice, packing list, catalogue, datasheet, C/O or label may trigger additional documents, delayed clearance or unplanned storage costs.

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