October 18, 2022
Freight & Logistics -
The ultimate guide to exporting from Vietnam to Australia | Tariffs and charges included.
The Ultimate Guide to Exporting from Vietnam to Australia | Tariffs and Charges Included.
Are you looking to export your products from Vietnam to Australia? Our guide will tell you everything you need to know, from tariffs and charges to the manufacturing process.
Many businesses are interested in expanding their operations to include exporting goods from Vietnam to Australia. The Vietnamese economy is booming, and there is a growing demand for products made in Vietnam, especially among millennials. During 2021, United Nations COMTRADE database reported that Australian imports from Vietnam exceeded US $5.37 Billion.
In this guide, we will talk about the manufacturing process, tariffs and charges, and what you need to know in order to export your products from Vietnam to Australia. We hope that after reading this guide, you will have a better understanding of the process and be able to make an informed decision about whether exporting from Vietnam to Australia is right for your business.
The Manufacturing Process
The first step in exporting products from Vietnam to Australia is to find a manufacturer. There are many manufacturers in Vietnam that produce a wide variety of goods, so it is important to take some time to research which one would be the best fit for your business. Once you have selected a manufacturer, you will need to sign a contract that outlines the terms of the agreement.
It is important to note that the minimum order quantity (MOQ) for exporting from Vietnam is usually higher than the MOQ for domestic orders. This is because manufacturers need to cover the costs of shipping and customs clearance when exporting goods. The good news is that there are many reputable manufacturers in Vietnam that are used to working with international clients and can help you navigate the export process.
After you have signed a contract with a manufacturer, they will begin production onyour order. The lead time for production depends on the complexity of the product and the size of the order, but it is typically between 2-4 weeks. Once production is complete, your order will be shipped from Vietnam to Australia.
Tariffs and Charges
There are several charges that you will need to pay when exporting goods from Vietnam to Australia. These charges include shipping costs, customs duties, import processing charge and GST/VAT. The amount you will need to pay for each of these charges depends on the value of your shipment and the type of goods being exported.
All goods exported from Vietnam are subject to Vietnam Customs clearance standards, which ultimately check the quality, specifications, quantity, and volume of the goods being exported.
Does Australia have a free trade agreement with Vietnam?
While Vietnam and Australia don’t currently have a bilateral trade agreement, they fall under other trade agreements; the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP).
The ASEAN- Australia-New Zealand Free Trade Area (AANZFTA) is a trade agreement between the following countries; Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam; with Australia and New Zealand. This agreement allowed for increased market access via progressive tariff reduction and ultimately elimination. The trade agreement means that over 95% of goods imported into Australia from Vietnam have zero tariffs.
What documents do I need for import into Australia?
All imports into Australia must have a commercial invoice, packing declaration, packing list and certificate of origin. To ensure a smooth import into Australia it is crucial all documents are correct.
Commercial Invoice
A commercial invoice is the most important document as it contains all the terms agreed upon by both parties, including the shipping terms, quantity and description of the goods, the loading and destination port, method of transportation, the origin of the goods as well as the total cost of the goods.
Packing Declaration
The packing declaration provides Australian Custom authorities with the material used to pack the goods. Packing material must be free of any unacceptable material and items are to be clean and free of any plant or animal matter.
Packing List
The packing list features the measurements, weights and detailed list of the goods inside the package.
Certificate of Origin (COO)
Finally, the Certificate of Origin (COO) provides the details of the country of origin for the imported goods. This declaration should have government authority confirmation that the goods have been manufactured in the country.
Australia’s Importing Costs
When goods arrive into Australia, the Australian Border Force apply an import processing charge (IPC); with the cost depending on the value of the goods and whether lodgement was electronic or documentary. An import declaration is completed when the imported goods have a value of over $1000AUD and must be completed by the importer or their agent. It is a statement of the goods being imported, details on the importer, how the goods are being transported and the tariff classification and customs value. This fee must be paid for the goods to be released from customs control.
Do I have to pay GST and Customs duty on my imports into Australia?
Customs duty is a tax that must be paid on all imported goods. The rate of duty varies depending on the type of goods being imported, but it is typically charged at 5% of the value of the shipment. Goods and services tax (GST) is used in Australia, which is charged at 10% of the value of the goods.
Which mode of transport is best for shipping your goods from Vietnam to Australia?
There are two choices when it comes to shipping goods from Vietnam; air freight and sea freight. When deciding the best mode of transport; the cost, shipping time and type of items to be shipped should be considered. To determine the cost of shipment, the term chargeable weight is used by the shipping or airline company. The weight of the goods will be measured in volumetric weight or gross weight.
Air freight is the quickest option; with freight taking between one to seven days to arrive in the country however it is more expensive than using sea freight.
Sea freight has a longer transit time of between 12 and 30 days; but is generally the cheaper option when importing goods. Shipping goods via sea freight is better for large and bulky items while smaller items would be suited to air transport.
Exporting products from Vietnam to Australia can be a great way to expand your business. There are many manufacturers in Vietnam that produce high-quality goods at competitive prices. The lead time for production is typically 2-4 weeks, and there are several shipping options available to choose from depending on your needs. When exporting goods from Vietnam, you will need to pay customs duty, GST, Import Processing Charge and shipping costs. These charges vary depending on the value of your shipment and the type of goods being exported. We hope that this guide has given you everything you need to know in order to make an informed decision about whether exporting from Vietnam to Australia is right for your business.
Interested in Vietnam manufacturing for your goods? OneLink Holdings offer a complete suite of supply chain management services, from procurement and logistics to warehousing and distribution. We’ll work closely with you to understand your specific needs and requirements, and tailor our services to meet those needs.
With our extensive network of global partners and suppliers we can handle this entire process on your behalf in an “end to end”, all inclusive service.
Please speak to our team today at info@onelinkholdings.com to find out more
Written By
One Link Holding team
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