March 13, 2023
Trade -
Rules and Regulations for Importing and Exporting from Vietnam | OneLink Holdings
Learn about the essential rules and regulations for importing and exporting goods to and from Vietnam. This comprehensive guide covers import and export permits, customs clearance procedures, tariffs, product standards, and more. Stay compliant and ensure a successful international trade transaction with this informative blog post.
Vietnam has experienced significant economic growth in recent years, becoming one of the fastest-growing economies in the world. With a strategic location and a competitive workforce, Vietnam has become an attractive destination for businesses looking to import and export goods.
However, like any other country, Vietnam has rules and regulations that govern the import and export of goods. Understanding these regulations is essential for businesses looking to import or export goods to and from Vietnam. In this blog, we will discuss the rules and regulations for importing and exporting from Vietnam.
Importing to Vietnam
Before importing goods into Vietnam, businesses need to be aware of the following regulations:
Import Permits:
Certain goods may require an import permit from the relevant authorities in Vietnam. For example, chemicals, food products, and medical devices require import permits. Businesses should check whether their goods require an import permit and apply for one if necessary.
The process for obtaining an import permit in Vietnam varies depending on the type of goods. For example, the Ministry of Health is responsible for issuing import permits for food, food additives, and food processing aids, while the Ministry of Industry and Trade issues import permits for chemicals, and the Ministry of Agriculture and Rural Development issues import permits for agricultural products.
To obtain an import permit, businesses must submit an application to the relevant authority, along with the required documentation, such as a product specification, safety data sheet, and test reports. The application process can take several weeks, and the permit is valid for a specific period of time.
It is important for businesses to check whether their goods require an import permit and to obtain one if necessary. Failure to obtain an import permit for goods that require one can result in delays at customs, seizure of the goods, or other legal consequences.
Customs Clearance:
All goods imported into Vietnam must go through customs clearance. The importer needs to provide customs with the necessary documentation, including the bill of lading, commercial invoice, packing list, and import permit (if required). The process of customs clearance for imports into Vietnam can vary depending on the type of goods and the mode of transportation. However, here is a general overview of the steps involved:
- Submission of Import Declaration: The importer or their customs agent submits an electronic Import Declaration (ID) to the customs authority. The ID must contain information about the imported goods, such as the quantity, value, and origin.
- Customs Inspection: The customs authority will inspect the goods to ensure that they meet the necessary safety, health, and environmental standards, and to verify the information provided in the Import Declaration.
- Payment of Customs Duties and Taxes: The importer must pay any applicable customs duties and taxes based on the value and classification of the goods.
- Release of Goods: Once the customs authority has verified the information and the payment has been made, the goods will be released for delivery to the importer.
It is important to note that the customs clearance process can take several days, or even weeks, depending on the complexity of the goods, the completeness and accuracy of the information provided in the Import Declaration, and any inspections or testing required by the authorities. To ensure a smooth and timely customs clearance process, importers should work with a reputable customs broker or freight forwarder who can provide guidance on the import requirements and handle the customs clearance procedures on their behalf.
Tariffs:
Vietnam imposes tariffs on certain imported goods. The tariff rates vary depending on the type of goods and the country of origin. Businesses should check the applicable tariff rates before importing goods into Vietnam. Here are some examples of tariff rates for selected products imported into Vietnam:
Agricultural products: Tariff rates range from 0% to 35%, with an average rate of 14.6%. Some products, such as rice, wheat, and soybeans, are subject to special tariff rates.
Industrial products: Tariff rates range from 0% to 50%, with an average rate of 6.9%. Some products, such as automobiles, motorcycles, and electronic products, are subject to special tariff rates.
Textile and garment products: Tariff rates range from 0% to 20%, with an average rate of 9.6%.
It is important for businesses to check the applicable tariff rates for their goods before importing them into Vietnam. This information can be obtained from the Vietnam Customs website or by consulting with a customs broker or trade consultant.
Exporting from Vietnam
Businesses looking to export goods from Vietnam must comply with the following regulations:
Export Licenses:
Certain goods may require an export license from the relevant authorities in Vietnam. For example, raw minerals, some food products, and certain chemicals require an export license. Businesses should check whether their goods require an export license and apply for one if necessary.
Here are some examples of products that require an export license or permit from Vietnam:
- Certain types of minerals and ores, such as bauxite, tin, and titanium
- Endangered wildlife species and their products, such as ivory and rhinoceros horn
- Chemicals, including some types of pesticides and industrial chemicals
- Certain types of woods and timber products, such as teak and ebony
- Radioactive materials and nuclear-related products
To obtain an export license or permit, the exporter must apply to the appropriate authorities, such as the Ministry of Industry and Trade or the Ministry of Agriculture and Rural Development, and provide information about the goods to be exported, including their value, quantity, and destination country. The authorities will review the application and may require additional information or documentation before issuing the license or permit. Exporters should work with a reputable customs broker or trade consultant to ensure that they comply with all applicable export requirements and obtain the necessary licenses and permits before exporting their goods from Vietnam.
Customs Clearance:
All goods exported from Vietnam must go through customs clearance. The exporter needs to provide customs with the necessary documentation, including the bill of lading, commercial invoice, packing list, and export license (if required).
Tariffs:
Vietnam imposes tariffs on certain exported goods. The tariff rates vary depending on the type of goods and the destination country. Businesses should check the applicable tariff rates before exporting goods from Vietnam.
Here are some examples of tariff rates for selected products exported from Vietnam:
Agricultural products: Tariff rates vary depending on the product and the destination country. For example, Vietnam exports rice to some countries at a zero tariff rate, while other countries impose tariffs ranging from 5% to 65%.
Industrial products: Tariff rates vary depending on the product and the destination country. For example, Vietnam exports textiles and garments to the US at a zero tariff rate under the Generalized System of Preferences (GSP), while other countries impose tariffs ranging from 4% to 17%.
Seafood products: Tariff rates vary depending on the product and the destination country. For example, Vietnam exports shrimp to the EU at a zero tariff rate under the EU-Vietnam Free Trade Agreement (EVFTA), while other countries impose tariffs ranging from 2% to 30%.
Here are some examples of tariff rates for textiles and garments exported from Vietnam:
United States: Under the United States-Vietnam Bilateral Trade Agreement (BTA), most textile and garment products exported from Vietnam to the United States are subject to duty-free treatment. However, certain products, such as socks and some knit fabrics, are subject to tariffs ranging from 2.5% to 20%.
European Union: Under the EU-Vietnam Free Trade Agreement (EVFTA), most textile and garment products exported from Vietnam to the European Union are subject to duty-free treatment. However, some products, such as certain types of knit fabrics and T-shirts, are subject to tariffs ranging from 4% to 12%.
Japan: Under the Japan-Vietnam Economic Partnership Agreement (VJEPA), most textile and garment products exported from Vietnam to Japan are subject to duty-free treatment. However, some products, such as certain types of knit fabrics, are subject to tariffs ranging from 3.4% to 10%.
Australia: Most clothing and textile products are duty-free, but some products such as certain types of knit fabrics and synthetic textiles, are subject to tariffs ranging from 5% to 10%.
Other Regulations
In addition to the above regulations, businesses need to comply with other regulations when importing or exporting goods from Vietnam. These include:
Product Standards:
Products imported and exported from Vietnam must comply with various product standards, which are set by Vietnamese authorities or international organizations. The specific product standards and requirements vary depending on the type of goods and their intended use. Here are some examples of product standards that may be required for import and export from Vietnam:
Food and agricultural products: Imported and exported food and agricultural products must comply with the requirements set by the Ministry of Agriculture and Rural Development. This may include standards for product labelling, hygiene, and quality.
Electrical and electronic products: Imported and exported electrical and electronic products must comply with the requirements set by the Ministry of Industry and Trade. This may include standards for product safety, electromagnetic compatibility, and energy efficiency.
Chemicals: Imported and exported chemicals must comply with the requirements set by the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment. This may include standards for product labelling, hazard classification, and environmental impact.
Textiles and garments: Imported and exported textiles and garments must comply with the requirements set by the Ministry of Industry and Trade. This may include standards for product labelling, fibre content, and product safety.
Taxes:
Businesses may be subject to taxes on imported or exported goods. Here are some of the taxes that may apply to imports and exports in Vietnam:
Value Added Tax (VAT): A tax of 10% is generally applied to the value of imported goods, as well as to domestic goods sold within Vietnam. For exports, VAT is not applied, and exporters can claim a refund of VAT paid on inputs used in the production of the exported goods.
Special Consumption Tax (SCT): This tax is applied to goods such as alcohol, tobacco, and luxury goods, and the rates vary depending on the type of goods.
Import and Export Duties: These are taxes levied on the value of imported or exported goods, and the rates depend on the classification of the goods. For example, garments and textiles may be subject to duties of up to 10% when exported from Vietnam.
Corporate Income Tax (CIT): Companies engaged in importing and exporting are subject to CIT on their profits. The standard CIT rate in Vietnam is 20%, but some industries or regions may be eligible for reduced rates or exemptions.
To comply with tax requirements when importing and exporting from Vietnam, businesses should work with a reputable customs broker or trade consultant to determine the applicable taxes for their goods and ensure that they are correctly calculated and paid. It’s important to note that failure to pay taxes or comply with tax regulations can result in penalties or other legal consequences.
Prohibited and Restricted Goods:
Certain goods are prohibited or restricted from import or export in Vietnam. Businesses should check the list of prohibited and restricted goods before importing or exporting goods from Vietnam.
Here are some examples of prohibited or restricted items:
Illegal drugs and narcotics: The import and export of illegal drugs and narcotics are strictly prohibited in Vietnam.
Weapons and ammunition: The import and export of firearms, explosives, and other dangerous weapons are restricted in Vietnam.
Pornography and obscene materials: The import and export of pornographic materials, obscene objects, and other offensive items are prohibited in Vietnam.
Endangered species: The import and export of endangered species and their products, such as ivory and rhinoceros’ horn, are restricted in Vietnam.
Cultural heritage artifacts: The export of cultural heritage artifacts, such as antiques and artwork, requires a special permit from the Ministry of Culture, Sports, and Tourism.
Certain chemicals: The import and export of certain chemicals, including some types of pesticides and industrial chemicals, are restricted in Vietnam.
In conclusion, understanding the rules and regulations for importing and exporting from Vietnam is essential for businesses looking to engage in international trade. Businesses should be aware of the import and export permit requirements, customs clearance procedures, tariff rates, and other regulations when importing or exporting goods from Vietnam. By complying with these regulations, businesses can ensure a smooth and successful international trade transaction.
Written By
OneLink Holdings team
With our experience it puts us in a very unique position in being able to take your business from idea to reality, or if you’re part of the way there we can help with a number of individual areas in your business.
