Import from Vietnam to the EU and USA.
It is well known that the European Union has strong trade ties with Asia, especially China. Similarly, the EU-Vietnam economic ties are getting stronger every year. The situation is similar in the United States, especially in recent years, influenced by the country’s policies. In this article, we present essential information about importing from Vietnam.
EU-Vietnam Economic and Trade Agreement (EVFTA)
On August 1, 2020, an economic and trade agreement signed between the European Union and Vietnam, commonly known as EVFTA or FTA, entered into force. This agreement aims to facilitate trade and investment in the Member States. According to the agreement, 99% of the customs duties of both parties will be eliminated.
Since the agreement entered into force, more than 60% of import duties have been eliminated and more than 70% reduced. Not all duties will be eliminated immediately. The planned customs duty reductions to and from Vietnam are expected to take around seven years.
Examples of products for which the duty rate will no longer apply:
* wines and spirits (after seven years)
* beef (after three years)
* auto parts (after seven years).
Examples of products for which tariff quotas will be established:
* sugar and products with its high content
* surimi (fish products)
* canned tuna
* various starches.
Certificate of origin
Origin clauses were added to the contract so that the product imported to the European Union could be exempt from the due duties. To be qualified as “tax free”, one of two conditions must be met:
1. the good must be manufactured entirely in Vietnam
2. or sufficiently processed in Vietnam
To do this, you will need a declaration of the origin of the product (Certificate of Origin), which contains an original description of the registered exporter. This declaration protects the European market mainly against Chinese products claiming to be Vietnamese.
A product is not considered local if:
* packages were divided or combined
* textiles were pressed
* the animals were euthanized
* the products were diluted or dehydrated
* the goods were stoned or peeled
* the products were mixed.
Also read our article Importing LED lighting from China to the EU
Importing from Vietnam to the EU – What documents are needed for customs clearance in the European Union?
* a commercial invoice (translated into the language of the country to which you import goods)
* packing list – packing list containing the specification of the transported goods
* certificate of origin
* Bill of lading
* certificates required in the European Union (“CE certificate”)
* additional documents required in the destination country.
Trade between the United States and Vietnam
As with the European Union, trade between the United States and Vietnam continues to grow. In 2019, Vietnam was the seventh largest exporter to the US In 2001, the United States and Vietnam signed the Bilateral Trade Agreement (BTA) between the United States and Vietnam, which includes the terms of trade.
The United States mainly imports products from Vietnam such as:
* electric machines
* bed sheets
* other textiles.
Importing from Vietnam to the US – basic information
A tariff is imposed on products imported from Vietnam to the US.
In the US, products entering a country must have a label of origin, as opposed to a declaration for the European Union. The Vietnamese origin label is mandatory. You must mark your shipment with the inscription “Made in Vietnam.” Failure to affix an origin tag is a federal crime. It is regulated by: United States Code, Title 19, Chapter 4, Section 1304 and Marking of the country of origin (19 CFR 134). Appropriate labeling rules are also included in the Fair Packaging and Labeling Act (FPLA) and the Uniform Packaging and Labeling Regulation (UPLR).
Some products cannot be imported into the US, and some require a special license. This mainly refers to chemicals and other highly explosive products.
Each product imported into the country requires different documentation. Information on this matter is available on the pages of the relevant government agency.
The US Customs and Border Protection has prepared a guide on imports into the US.
What documents are needed to import from Vietnam to the US?
* Commercial invoice
* Bill of lading
* List of articles
* certificates and other documents necessary to import a specific product, such as the ISF10 + 2 document.
Vietnam import – conclusions
Trade agreements with the Socialist Republic of Vietnam contributed to increasing imports from that country, especially in the garment industry, for both the United States and EU member states. The EVFTA agreement, which eliminated most customs duties, may improve Vietnam’s position as an EU trading partner. If you import goods from Vietnam, one of the most important things to remember is to obtain all the documentation, especially the label and declaration of origin. In case of doubts, it is best to contact the customs agency.