Import Costs From Vietnam: Taxes, Duties, and Other Fees

Import costs from Vietnam include a variety of charges, which can fluctuate based on market or political conditions, making it a challenge to accurately anticipate the total expenses. Mistakes or deliberate attempts to avoid these fees can lead to stiff penalties from the U.S. Customs and Border Protection (CBP). 

The CBP stresses that import costs from Vietnam include tariffs, shipping fees, and duties. These costs vary based on product type and quantity. Importers must be aware of the duty rates and tariffs applicable to their goods to accurately estimate total import costs. Doing so is key to having a successful import business.

Are you curious about how to import goods from Vietnam? If so, join us as we examine the fees associated with Vietnamese imports.

Overview of Import Costs From Vietnam

Given the hostile relations between the two nations in the not-so-distant past, Vietnam might not be the first country you’d think of when it comes to importing to the USA. However, leaders from both countries have made significant diplomatic inroads since the mid 90s. As such, Vietnam now enjoys a growing economy as a trade partner with the United States.

There are a few main types of fees to be aware of when importing from Vietnam:

• Shipping Costs: This includes any sea, air, or land transportation for the imported goods.
• Tariffs: Import taxes by the U.S. government on certain products to discourage their importation. This can be done for political or economic reasons.
• Duties: Import duty tax rates from Vietnam to the U.S. are based on the product’s Harmonized Tariff Schedule (HTS) code, which in turn is based on the international Harmonized System (HS) code.
• Customs Bond: If your goods are worth $2,500 or more, you’ll need a customs bond in place to make duty payments to CBP once they arrive in port.
• Port Charges: These are charged by the port of entry for tasks like handling goods.
• Storage Fees: Containers that sit too long at port can incur additional storage costs. These are called demurrage charges.

In addition to those listed above, there are two types of duties worth specific mention: countervailing and anti-dumping duties.

Collectively known as AD/CVD, they are used in two particular situations:

• Countervailing: Used when a foreign government subsidizes the production costs of a commodity being exported to the U.S. 
• Anti-Dumping: Levied when a foreign manufacturer floods the U.S. market with a commodity sold below cost to undercut domestic manufacturers.

AD/CVD import duty rates are usually higher than average and sometimes subject to special conditions, such as total units imported within a given time frame. Both duties are intended to maintain fair and competitive trade between suppliers in the USA and those in foreign countries.

Before we go into greater detail about the costs associated with shipping from Vietnam, let’s take a look at Vietnamese imports that are popular in the U.S.

What Does the U.S. Import from Vietnam?

In 2022, the United States received $135.88 billion USD worth of imported goods from Vietnam. The lion’s share of that value belongs to the following five commodities.

Most Popular Products Imported From Vietnam to the USA for 2022

Source: tradingeconomics.com

It’s also worth noting that the total value of imports from Vietnam to the USA increased by over 20 percent from 2021 to 2022.

Importing from Vietnam is a lucrative opportunity for stateside businesses. However, to make the most of that opportunity, you’ll need a deep understanding of the relevant costs.

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Shipping Costs From U.S. to Vietnam

When importing products from Vietnam to the USA, costs will vary based on the size, weight, and type of goods, as well as the chosen shipping method. 

Here are some common shipping costs that importers may encounter:

• Freight Charges: Air freight is faster, but more expensive. Conversely, sea freight offers larger capacity at a lower cost.
• Fuel Surcharges: These are applied by carriers to cover fluctuating fuel costs.
• Container Fees: For sea shipping, container fees are charged based on the type and size of the container.
• Customs Clearance Fees: These are charged for processing the goods through customs at U.S. ports of entry. 
• Insurance Costs: The cost is usually a percentage of the declared value of the goods.
• Terminal Handling Charges: These charges cover the cost of unloading cargo once it reaches the port.
• Inland Transportation: Includes transporting the shipment to its final destination in the U.S.
• Warehouse Storage: If goods need to be stored at the port or a warehouse before shipping or after arrival, storage fees will be applied.
• Documentation Fees: Charges for processing necessary shipping documents, such as certificates of origin and bills of lading.

Of course, shipping costs are just one facet of import costs from Vietnam. Customs charges, such as tariffs and duties, make up a significant portion of overall import fees regardless of the country of origin.

Are There Tariffs from Vietnam to the USA?

Since there is no free trade agreement (FTA) between the U.S. and Vietnam at this time, tariffs do apply to a number of Vietnamese imports. If you plan on importing from this country, make sure to thoroughly research which U.S. Import tariffs from Vietnam are applicable to your goods. This is best accomplished by finding the HTS code for the commodities you wish to import. The CBP uses this code along with the country of origin documentation to determine which tariffs apply to a given commodity.

How Tariffs Affect Overall Import Costs

As taxes imposed on imported merchandise, tariffs can increase the cost of goods, affecting profit margins and a business’s ability to compete. However, there are legal ways to keep these costs from getting out of hand.

• Correct Product Classification: Using the wrong HTS code can sometimes lead to overpaying of import taxes from Vietnam to the U.S. This is another reason that using the right code is so important for importers.
• Tariff Exclusions and Reductions: Importers can apply for tariff exclusions or reductions for specific products, lowering or eliminating certain costs.
• Regular Review of Supply Chain Costs: Vigilant monitoring of supply chain costs can help in identifying areas tariffs impact the most and changes that can lead to cost savings.
• Consultation with Trade Experts: Working with customs brokers or trade consultants can provide insights into navigating tariff regulations effectively and legally.

These strategies help importers to mitigate the impact of tariffs on their overall import costs. Speaking of which, another cost that goes hand-in-hand with tariffs is customs duties.

Import Duties from Vietnam to USA

Duties are usually charged as a percentage of a shipment’s total value. That percentage changes based on a number of factors, but the two most important factors are the previously mentioned HTS code and country of origin. 

To provide an example, we can calculate duties on a common export from Vietnam: footwear.

Calculating Duties From Vietnam to the USA

Let’s say you’re an importer in the USA and you plan to import sneakers made in Vietnam. These sneakers are valued at over $12 per pair. 

With this information, you can consult a customs expert or use an HTS code look up tool to find the code for these shoes, which is 6402.91.90.05. Since there’s no FTA with Vietnam, the shoes are subject to a flat 20% duty rate.

Assuming a quantity of 100 shoes valued at $20.00 per pair, the duty calculation would work as follows.

Keep in mind that this is a simplified example meant to illustrate the basics of duty calculations. For businesses importing large quantities of varied goods, the process becomes far more complicated and subject to penalty-producing errors.  

The fines an importer can face for incorrect paperwork submission or duty calculation are substantial, even as high as $5,000.00 for a single, crucial error. Importers can significantly reduce the risk of these errors by working with trained customs brokers to ensure all information and fees submitted to CBP are on-time and accurate.

Importing From Vietnam with USA Customs Clearance

The fees associated with importing goods from Vietnam are numerous and difficult to calculate for those without the proper training or certifications. To avoid these issues, importers frequently work with customs clearance experts, such as ourselves.

The USA Customs Clearance team has over 100 years of combined experience helping stateside and foreign-based importers to clear the complicated U.S. customs process. Look to us for expert assistance with services such as:

• Customized consulting sessions
• Manifest confidentiality
• Customs brokerage
• And more

Don’t play guessing games with import costs from Vietnam. Call us at (855) 912-0406 or drop us a line via our website. We have the resources and know-how to help you with any and every aspect of the importing process.