How To Export From Vietnam To Australia // Regulations, Taxes, And Tariffs When Importing To Australia
The growing economic ties between Vietnam and Australia have opened up many opportunities for businesses looking to expand their global footprint. With its vibrant economy and manufacturing prowess, Vietnam offers many products and materials for export. At the same time, Australia, known for its robust market and demand for quality imports, presents a lucrative destination. However, navigating the export process from Vietnam to Australia involves more than just finding the right product; it requires a deep understanding of the legal, log’ legal, logistical, and cultural nuances.
This blog post is designed to serve as a comprehensive guide for businesses and entrepreneurs aiming to bridge the gap between Vietnam and Australia through export. Whether you're an established business in Vietnam looking to tap into the Australian market or an Australian importer seeking to capitalize on the diverse range of products Vietnam offers, understanding the intricacies of this export process is crucial.
We will delve into the essential steps for successful exporting, including understanding market demands, complying with Vietnamese and Australian regulations, handling logistics and customs clearance, and building effective business relationships. This guide will also touch upon the importance of cultural understanding in doing business across these diverse countries.
Additionally, this post will offer insights into the latest trade agreements and tariffs, best practices for quality control and certification, and strategies for effective marketing and distribution in the Australian market.
Embark on this journey as we navigate the exciting and sometimes complex path of exporting from Vietnam to Australia. This journey promises opportunities for growth, expansion, and long-term success in international trade.
In this article, We’ll walk you through the steps of importing items from Vietnam into Australia.
How To Export From Vietnam To Australia
To export from Vietnam to Australia, you must meet all export and import rules and regulations. Most importantly, a well-thought-out strategy and a thorough awareness of market trends and associated risks will help.
We’re here to guide you through how to import goods from Vietnam to Australia. This article can help you with every step of the procedure, from picking up your consignment right through to delivery – and everything else in between.
If you want to import products from Vietnam, there are four procedures you need to take:
Gather information by investigating what you want to import to see if a market exists for them.
Locate suppliers using the following steps: Investigate the Vietnamese manufacturers of the products you wish to import into Australia, make offers, and strike a contract. You can do this alone or work with a partner like Cosmo Sourcing.
Promote your products: Locate outlets for the goods or items you want to sell around Australia.
Arrange for shipping: Use TSL’s superb freight forwarding service to organize your import process. From pick-up to delivery and related services such as packing, storage, and distribution, we will provide all services in the chain.
Australia and Vietnam are Strong trading partners.
In the 2016-2017 financial year, Australia imported AU$4.8 billion worth of goods from Vietnam. Telecommunications equipment, footwear, monitors/projectors/TVs, and furniture/mattresses/cushions are among our top imports from Vietnam. In this study from Australia’s Department of Foreign Affairs and Trade, you can learn more about Australia’s trading relationship with Vietnam. You can also contact the Australian Trade and Investment Commission for further information on Vietnam’s market profile (Austrade).
Which mode of transport is best for shipping goods from Vietnam to Australia?
If you want to import goods from Vietnam into Australia, you’ll need to figure out which mode of transportation is best for you. TSL can assist with Vietnam’s marine and air freight services and answer any queries.
Sea Freight from Vietnam
Are you looking for the most cost-effective way to get your goods into Australia? Sea freight from Vietnam is the most cost-effective means to transport products the 5,200 kilometers or so between Australia and this Southeast Asian country. Sea cargo takes 20 to 30 days to arrive in Australia from Vietnam and is the best option if the products you’re shipping are big or bulky.
Air Freight from Vietnam
Of course, shipping products by plane is far faster than shipping them by sea freight from Vietnam and takes one to six days. However, it is more expensive than shipping things over the ocean. The overall time necessary will be determined by various criteria, including the location of your pick-up and delivery places and the amount of inland transit required in each country.
So, how much of an export tariff will I have to pay on my goods?
You can utilize the Australian Government’s Free Trade Agreement Portal to determine what to expect in export customs from Vietnam to Australia. First, you must type your item’s name into a search engine and the intended import and export countries. Next, we’ll present you with a list from which you may choose a category for your item. You’ll then find out your item’s HS code, the import tariff you’ll have to pay when your products arrive in Australia, and information on any free trade agreements that may apply. As you can see, the AANZFTA has eliminated duties on most commodities.
What is the price of shipping a container from Vietnam to Australia?
In any case, sea freight is the most common mode of transport for Australian importers. Shipping by sea is, without a doubt, the most cost-effective solution for large and frequent shipments.
As a result, most cargo is transported via maritime freight from Vietnam to Australia. Is your shipment larger than 1 CBM / 100kgs? Airfreight will be prohibitively expensive. As you may expect, rail freight is impossible due to the sea.
As a result, sea freight is the most cost-effective method of transporting goods between the two countries (and in general).
How to Look Up Regulations For Importing To Australia From Vietnam
Once an investor establishes a trading company in Vietnam, its employees must understand its import’s import and export legislation.
The essential restrictions corporations should know before trading in Vietnam are outlined below.
Resources For Looking Up Regulations Importing to Australia from Vietnam
You can use the websites and tools listed below to check Australian regulations in your field. In addition, the websites listed below will assist you in learning the fundamentals of importing things into Australia:
Regulations On Importing Textiles & Footwear from Vietnam to Australia
The obligatory standards for labeling various prescription items are outlined in Consumer Protection Notice No. 25 of 2010. Certain portions of the voluntary Australian/New Zealand Standard AS/NZS 1957:1998 Textiles - Care Labelling have been incorporated into this required standard. SAI Global sells the AS/NZS 1957:1998 standard.
Care labeling offers adequate information to the general public to
Understand how to care for garments and textiles
having a prior understanding of expenditures associated with the continuous care of garments and textile products, such as dry cleaning
Grasp how to clean garments and textiles properly (e.g., cold hand wash only)
Clothing and textile items should have a long usable life.
To avoid dyes running and other types of damage (e.g., wash separately).
Textile products, such as apparel, textiles, furniture, suede skins, leathers, and furs, must have appropriate care labeling instructions in English, according to the necessary standard.
The obligatory standard for clothes and textile care labeling applies to:
Textiles, plastic-coated fabrics, suede skins, leathers, and furs are used in apparel, materials, and furniture.
Regulations on Importing Electronics From Vietnam to Australia
You must prove electrical safety for any electrical equipment imported and sold in Australia. All electrical products must follow the general electrical safety standard AS/NZS 3820, regardless of their intended purpose.
The EESS and the AMCA rules mandate that electrical and electronic consumer products include the RCM (Regulatory Compliance Mark), certifying that the products are compatible with the relevant regulations when imported and sold in Australia.
The AS/NZS 4417 standard specifies the criteria for electrical equipment labeling, which include the following:
The label should be written in English and easy to read. It should also be securely attached to the product and its packaging.
The Regulatory Compliance Mark (RCM) must have a height of at least 3 millimeters.
Regulations on Wooden Articles
Importers are responsible for ensuring that their items fit the import requirements. Failure to meet import standards can result in delays, additional expenditures, and, in some situations, the items being re-exported or destroyed at the importer’s expense.
You may find product definitions and links to the applicable import conditions in BIOCON for various types of timber, wooden articles, bamboo, and similar items on the types of wood, wooden articles, bamboo, and associated products page.
The BICON import standards require you to show that pest hazards are reduced during manufacturing or with approved treatments. The department ensures that biosecurity hazards have been effectively managed by examining proof of compliance in documents and inspecting items when they arrive in Australia.
Regulations on Importing Furniture from Vietnam to Australia
The Australian Competition and Consumer Commission (ACCC) confirmed obligatory and voluntary standards for furniture sold to adults and children in Australia, requiring furniture makers and importers to ensure product safety.
The form and construction of furniture, materials, and labeling are all critical considerations for product safety.
Requirements for General Safety
According to the Australian Consumer Law (ACL), some statutory consumer product safety standards safeguard users from any risks posed by non-compliant products. The ACCC has proposed AS/NZS standards as optional safety requirements for some items. Importers should thoroughly research the applicable standards for their items before bringing them to Australia to ensure their safety.
Even if your product does not require precise requirements, you must confirm its safety before importing it.
How To Find Taxes And Duties For Importing To Australia from Vietnam
Duty, GST, and other taxes may apply to goods entering Australia. Customs tax rates vary depending on factors, including the type of products and the place of origin. Because of the AUSFTA’s favorable tariff structure, 99 percent of goods from the United States enter Australia duty-free. However, the importer is still responsible for paying any applicable GST.
Since July 2018, a ten percent GST has been applied to consumer sales of low-value imported items. If a recipient is a GST-registered business purchasing products for use in their business in Australia, they are not considered a consumer.
Suppose the value of their sales of low-value items imported into Australia by consumers (plus any other sales made in connection with Australia) is AU $75,000 or more in 12 months. In that case, a US exporter merely needs to register for GST. If the US exporter solely sells items to GST-registered enterprises in Australia, they will not be required to register for GST.
Top Resources For Looking Up Taxes & Import Duties for Australia
What Taxes Do You Need To Pay On Imported Goods Into Australia?
The Goods and Services Tax (GST) and customs duty are Australia’s two central import taxes. Other taxes, such as Wine Equalisation Tax (WET) for wine imports and Luxury Car Tax (LCT) for some car imports, may apply to imports in certain circumstances.
When goods with a customs value of more than $1,000 are imported into Australia, the party (either the buyer or seller) usually makes an import declaration through their customs broker. Before the items are cleared, The Importer must pay any applicable GST and customs duty to Customs (currently handled by the Department of Home Affairs).
When a person comes to Australia, goods can be brought in by a freight forwarder or courier, via mail, or as accompanied baggage. The rules and import procedures may differ depending on which method is utilized.
Imported cargo is subject to various rules and sometimes complicated duty rates. First, you must submit the electronic customs declaration through the department’s Integrated Cargo System (ICS). ** Your freight forwarder or customs broker can assist you with this.
Items with a worth of less than a thousand dollars
By completing a SAC declaration, Customs and Border Protection clears all cargo (excluding products arriving by mail). Most of the time, your freight forwarder or customs broker will charge you a fee for an SAC declaration on your behalf.
Customs clearance for items worth more than $1000
The importer must clear all items imported into Australia by sea, air, or mail with a customs value above $1000.00 by completing a completed import declaration and paying duty, GST, and other applicable taxes and charges before the goods are cleared and released by Australian Customs.
What method is used to determine the worth of the goods in Australia?
Customs and Border Protection values most items at their transaction value in Australian Dollars. This is because customs use the exchange rate on the goods’ exports (not the day the goods arrive in Australia) as the exchange rate.
What factors do you look for when determining the amount of customs duty?
The amount due for the duty is determined by the classification of the goods and other considerations like exemptions, concessions, and preference schemes (e.g., a Free Trade Agreement between the origin country & Australia). When importing items, the ICS will automatically compute any duty, GST, Wine Equalisation Tax, or Luxury Car Tax due.
Subsequently, the owner is given a payment recommendation. Customs will clear and release the goods once the dispute has been resolved. The customs charge on most imported items into Australia is 5% of the value of the goods converted to Australian dollars, but this varies depending on the imported goods.
When importing items, do I have to pay GST in Australia?
Yes. Most imported goods will be subject to GST except for essential consumables, specific medical equipment and appliances, precious metals, and other items.
When items are imported, GST is levied at a rate of 10% of the Australian dollar value of the commodities. Thus, the value of imported items equals the commodities’ value (as described above) plus any tariff, transportation, and insurance expenses.
To determine how much GST you’ll have to pay on imported products, multiply the cost of the goods in Australian dollars by the freight, insurance, and import duty. On this sum, the 10% GST is determined. So, for example, if you buy calculators for AUD 500, you’ll have to factor in a 5% customs charge of $25, as well as the cost of freight and insurance, which might be $42. This brings the total to $567, plus a 10% GST of $56.70. Thus, the total cost of goods is estimated to be $623.70.
To sum up, Importing and exporting to another country may seem easy. Still, it can be challenging when you are unaware of the regulations and taxes you must pay throughout the process. I hope the article proved helpful for you when you start your export from Vietnam to Australia. So before starting imports and exports in Australia, remember the following points.
Know how much import tax and duty you’ll have to pay on your shipments to Australia.
Remember that you don’t have to be an expert in all aspects of importing before placing an order with your overseas provider.
Your Customs Broker or Forwarding Agent can provide you with expert advice.
Attending the College of International Business’s International Trade (Import/Export) Course, which is held regularly, is an excellent approach to learning about the processes involved in importing.
Cosmo Sourcing // Your Trusted Partner In Vietnam
If you want to source from Vietnam, contact the Cosmo Sourcing team; we have been helping clients source from Vietnam since 2014. Cosmo Sourcing has the skills and the team to find you the best supplier possible. We are also established in China and are among the only companies that can find suppliers in China and Vietnam and pick the one you think is best.
Our Vietnam Sourcing services allow you to access new manufacturers that you would not be able to in China and avoid Tariffs. Our services are designed to do everything to take your idea, turn it into a product, and ship it to the final destination. Cosmo can do everything from creating a product spec sheet to validating, sourcing, ordering, evaluating samples, arranging inspections, finding freight forwarders, quality assurance, negotiations, and shipping. We aim to handle every single step of your business in Vietnam for you.
If you start a new business, finding products and suppliers for your products is one of many things you need to handle. Our services are designed to handle every part of your business in China and Vietnam so you can focus on the rest of growing your own business.
We have helped clients from Fortune 500 companies, brick-and-mortar stores, FBA sellers, and brand-new businesses. So don’t hesitate to contact us and let us know how we can help you.