How To Export From Vietnam To The United States // Regulations And Tariffs When Importing To The USA

Vietnam is the 7th largest supplier of goods to the United States. The 2007 United States-Vietnam trade agreement provided easy business trading between countries. It helped address bilateral issues, including helping Vietnam reach its WTO accession goals. The US and Vietnam are major trade partners, and billions of dollars are exported from Vietnam each year. US companies actively invest in the Vietnamese economy and its thriving manufacturing sector. Vietnam has a nominal GDP of $369B, with an average GDP growth of 7% annually. The US is Vietnam’s 2nd largest trade partner (after China), and 18% of all Vietnamese exports end up in the United States.

If you need a sourcing company based in Vietnam, contact the Cosmo Sourcing team.

Please email us at info@cosmosourcing.com

How To Export From Vietnam To The US

The shipping infrastructure between Vietnam and the US is highly developed, and investors can choose between air and ocean freight for most goods. The costs of exporting to the US from Vietnam are similar to exporting from China due to its strategic location on the Pacific Ocean and the developed port infrastructure. Your goods can arrive in the United States within a few weeks (or days for air freight). The most important thing to ensure is that you work with trustworthy suppliers who can provide the documentation you need for a smooth import once the goods reach the US. We can help you get in touch with the best suppliers in Vietnam.

Vietnam exported nearly $290 billion in 2018 alone, and this number keeps increasing. Nearly one in five shipments from Vietnam is destined for the United States. We can help you calculate the cost of your import taxes based on the total value of the merchandise and the local export taxes. We can also help you arrange the most affordable transportation from your factory to any location in the US.

Shipping Costs To The US

The average price for shipping goods from Vietnam to the United States varies significantly based on your chosen method. The cheapest method is LCL cargo; the most expensive is a dedicated 40’ container. Here’s a breakdown of the average prices you can expect:

  • A fully dedicated FCL container (40’) costs $3,500.

  • Full dedicated FCL container (20’): $2,000.

  • The LCL load (400 lbs.) and other cargo cost $1,000.

  • Airfreight (400 lbs.): $2,100.

  • Express shipping via FedEx/DHL (100 lbs.): $600.

Note: The seasons can increase shipping charges. For instance, peak season is October/November, when most shopping outlets offer Black Friday deals and other holidays. This is when shipping charges are the highest.

Export Taxes From Vietnam To The US

There are certain export taxes for goods from Vietnam. Most goods are NOT subject to export taxes, but they might depend on what you’re manufacturing. The export taxes range from 0% to 45%, depending on the category of goods. These taxes are paid to the Vietnamese government directly in customs. Vietnamese customs agents inspect the merchandise departing from the country to ensure the supplier has paid all taxes and duties, and the forwarding agent pays these taxes.

To ship your product, you need the following documents:

  • List of products being shipped.

  • Bill of lading (for ocean freight).

  • Labeling.

The supplier and the forwarding company can label your goods and categorize them for easy shipping. Vietnamese manufacturers employ “Customs Clearance” agents who specialize in assembling these documents. The total charge is identical to what you would pay to ship from China to the US.

Calculate Import Taxes

The next step is to calculate the total import taxes you’ll have to pay once your goods end up in the US. US Customs does not apply “anti-competitive” tariffs on Vietnamese goods (unlike China), which is why many manufacturers have moved to Vietnam.

The Harmonized Tariff Schedule is a document that specifies individual taxes for different categories of goods being imported to the US. For example, one chicken from Vietnam could cost 9 cents to import. Microphones and other devices could be 0% (duty-free). The tax on clothing is usually 9% of the total value.

Note: Expect a VAT surcharge. Check the Customs and Border Protection website to calculate how much you’ll owe in advance.

Special Regulations For Items

Most items imported from Vietnam to the US are subject to a 0-25% import tariff, depending on their category. However, certain items cannot be exported from Vietnam or require special export permissions.

For example, one cannot import petroleum and oil products from Vietnam to the US. This is because the Vietnamese government bans their export. Additionally, chemicals and explosives will require special licenses before you’re allowed to export them. Contact us to find out if the category of items you wish to import in the US requires special permits before you arrange to ship with your forwarder.

How To Look Up Regulations For Importing To The US

The US Customs and Border Protection Agency ensures that foreign products imported from Vietnam abide by US health and sanitary standards. In addition, US Customs agents apply special care to sensitive products such as meat, eggs, fisheries, live animals, weapons, chemicals, and other potentially harmful products.

Due to non-compliance, thousands of exporters and re-sellers who started manufacturing in Vietnam found their goods rejected by US Customs at their port of entry. Suppose you want to familiarize yourself with the regulations in your manufacturing sector. In that case, this guide will showcase the most important resources to help you do your research. We will also explain basic import requirements based on our experience successfully shipping thousands of products from Vietnam to the United States.

Most entrepreneurs we work with have imported for years and never had to check for product compliance. The importation process is straightforward for most generic products, such as footwear and textiles. Still, for certain products, you want to check whether you’re compliant in advance because mistakes can be costly.

Resources For Looking Up Regulations

The following is a list of websites and resources to check US regulations in your field. In addition, the websites below will help you learn the basics of importing products to the US.

Note: There isn’t a single compliance check that applies to all imports. US Customs treats each shipment on a case-by-case basis, and it’s only a matter of luck regarding whether you’ll be scrutinized. Most customs agents only check basic documents such as the country-of-origin labels and the bill of lading. However, they can halt your shipment and demand additional evidence if they find any issues.

The real risk is not bypassing US customs but facing legal charges inside the United States if you import bad-quality products that harm citizens. Make sure the products you’re importing are healthy and sanitary.

Vietnamese Origin Labels

The main difference between importing to the US and other regions like Europe is that country of origin labels are not optional but mandatory. It would help if you marked each shipment with the exact location the product was manufactured and assembled. For example, if you purchased your parts from China but manufactured them in your Vietnamese plant, the label must say it was “Made in Vietnam.” This is why origin labels are standard on all products in the US, and the “Made in China” label is very common.

If you want to get around this requirement, you can manufacture part of the product in the United States and mark it as “Made in the USA.” However, you must have an actual factory assembling part of the product on US soil, and you can’t simply re-package the product at home. For the most part, you must have at least 70% of the production by value done in the country to qualify for country of origin requirements. Fraudulently mislabeling the country of origin is a federal crime and can result in jail time and major fines. We advise against doing this. 

Regulations On Textiles & Footwear

Textiles and footwear are Vietnam’s biggest exports to the United States, making up nearly 50% of all shipments. Textiles are a $35B/year industry in Vietnam, and one can find textile factories nationwide. The duty tariff on textiles will range based on the material. The most important thing you need to ensure when importing textiles to the US is that they’re labeled correctly. All textiles being imported must abide by OTEXA labeling requirements.

It would be best to label each t-shirt you manufacture with the composition material. Here are some examples of correctly labeled goods based on OTEXA standards:

  1. 100% Cotton T-shirt.

  2. Care instructions (I.e., don’t wash x with y).

  3. “Made in Vietnam” label.

  4. Instructions are written in the English language.

Ensuring those requirements, US Customs will have no problem letting you import your textiles into the US. The main problem is pointing out to your manufacturer that this needs to be done. Suppose you want to avoid getting in trouble. In that case, we can put you in touch with experienced manufacturers who will label your textiles accurately. We can help you print according to US import regulations and OTEXA labeling standards.

Regulations On Electronics

Electronics are subject to additional scrutiny by the FCC (Federal Communications Commission). As a result, they must meet the minimum safety standards regarding wireless communication. For example, suppose you import electronics such as laptops, phones, computer parts, AirPods, etc... In that case, you should consider FCC regulations to ensure your product is compliant.

Depending on the product, it may need to carry the FCC approval mark. In addition, there are optional safety standards your company might want to abide by. Electronics are hazardous in litigation because they can inflame or cause damage. You should ensure the manufacturer you’re working with in Vietnam has high safety standards.

Regulations On Chemicals & Metals

Chemicals and heavy metals are commonly imported from Vietnam to the US. Depending on the product you’re importing, you might have to deal with numerous government agencies. For instance, most chemical substances are subject to regulation by the US Consumer Product Safety Commission (CPSC). CPSIA regulates children’s products.

Note: You must also abide by state-level regulations, such as CA Prop 65 (cancer warning labels in California). We recommend testing your product to determine if it’s compliant and/or has high amounts of dangerous substances such as lead and cadmium.

Final thoughts on Regulations importing into the United States

The bottom line is that no single regulatory body imposes identical standards on all products imported from Vietnam to the US. However, the main requirement is that they’re labeled adequately and don’t harm Americans.

If you’re importing potentially harmful products, you not only have to deal with government agencies like CPSC prosecuting you but you’ll eventually be faced with lawsuits by end customers. The bottom line is that importing from Vietnam to the US is a gray area. While most products are straightforward and can be imported without looking into the regulations too much, you should still be aware of the general requirements in your sector in case you run into problems and customs agents demand extra documentation.

How To Find Taxes And Duties For Importing To The US

Import tariffs are owed when you import products valued at over $2,500 to the United States. Our guide will help you find the matching HS codes for each imported product to check the tariffs. This way, you can be prepared in advance. US Customs uses World Customs Organization (WCO) trade codes that are internationally recognized, imposing different tariffs based on the product. For example, certain Vietnamese products are duty-free, while others can reach duties up to 40%. Below, you’ll find resources to research the HS code database and find the matching code for your product. Once you have the code, you can input it into the database and determine how much you owe.

US Customs use a 10-digit code for each product you import from Vietnam. This is called the “schedule B number.” The HS number (your product code) is the same internationally. You can find your HS number and then locate the Schedule B number. These codes exist for every product, from shoes to paper clips. The Foreign Trade Division of the US Census Bureau manages them.

Top Resources For Looking Up Taxes & Import Duties

Note: If you can’t find a matching HS code based on the database above, Google “Product + HS code” directly. For example, “T-shirt HS code,” and you’ll find your HS code. You can then input it into the tariff search database.

Tariffs For Importing Foreign Products To The US

Free trade agreements make shipping goods from Vietnam to the US easy. Generally, each shipment over $2,500 must be reported to the AES system in advance (before the shipment departs from Vietnam). The most important part is calculating your import taxes and getting the documentation right. The only way you can do this is to find the HS code and input it into the databases listed above. The taxes can vary significantly based on the materials. Here’s an example of how taxes on t-shirts can vary:

  • Bicycles have an 11% tariff. To import $20,000 worth of bicycles, prepare $2,100 for import tariffs.

  • Cotton t-shirts have a 16% tariff. To import $20,000 worth of cotton shirts, prepare $3,200 extra for import tariffs.

  • Polyester t-shirts have a 32% tariff. To import $20,000 worth of polyester t-shirts, you’ll need to set aside $6,400.

Pro Tip: We can help you find low-cost tariffs in every industry to help you minimize your expenses. We’re an American team operating out of Vietnam, and we know how to lower your import rates for all popular goods.

The bottom line is that you need to get the HS code for your product and look up the Harmonized Tariff Database (HTD) for the particular HS code of the product you’re importing. For instance, the code for t-shirts is 6109, and the code for laptops is 8471. Certain products are duty-free, while the average tariff is 15-20% (similar to Europe).

HS VS. HTS Codes: What Is The Difference?

There are two types of codes you’ll deal with when you’re importing products to the US: HS codes and HTS codes. Every experienced importer can name their product codes easily. The main difference is that the HS code has six digits, and an HTS code has 7-10 digits. In addition, the first four digits indicate the international code for the product (this is the same in the United States and internationally).

The other codes indicate the country of origin. These codes are primarily needed to determine the tariffs you must pay upon import. Still, the US government also uses them to keep track of trade statistics between different countries. The US government keeps track of product value, weight, quantity, product category, and other information to remain competitive in the global market.

This database synchronizes the entire Harmonized Tariff Schedule for imports to the US. Similar import taxes apply from Vietnam as from all other countries except for China, which is subject to special tariffs. In addition, the Harmonized Tariff Schedule displays individual import taxes for over 42,000 products you can import to the US without special permissions/license requirements.

Using this database, you can narrow down 4-digit codes, 6-digit codes, 8-digit codes, and 10-digit codes for your specific product category. For example, the code for Tricycles is 95030000. Suppose you input this code in the tariff database. In that case, you can find the tariffs for tricycles imported from Vietnam to the US.

Pro Tip: Call the US Customs and Border Protection agency to inquire about individual tariffs. They can help you find out how much you’ll owe based on the total value of your merchandise.

Why You Need The HS Code To Ship From Vietnam

The HS code is needed for every step of the shipping process. Once you’ve arranged a shipment with a forwarder in Vietnam and prepared documentation such as certificates of origin/invoices/etc., you’ll need the specific code to handle the import process once the goods reach the US. Here’s what an HS code is used for in practical terms:

  • Categorizing goods for shipment from the Vietnamese port.

  • Filling out necessary forms such as instruction letters, commercial invoices, certificates, etc.

  • Sending reports to the AES (Automated Export System): required for all shipments above $2,5000 in advance.

  • Calculating import duties in advance.

  • Make sure you’re compliant with US laws and regulations.

Shipping Costs Estimates From Vietnam To The US

The total shipping cost (including tariffs) will vary based on the size of the cargo, the means of transportation, and the value of the merchandise. For example, the most profitable mode of transportation from Vietnam is ocean freight. The average 40’ container will cost $3,500 to ship, arriving in 4 weeks.

Here are some examples of shipping + tariff estimates for popular products:

  • 40’ container full of electric bicycles with a total value of $20,000. Adding $3,500 for shipping (peak season) and $2,100 for import tariffs brings the total to $25,600.

  • 20’ container full of cotton t-shirts with a total value of $10,000. Adding $1,500 for shipping (peak season) and $1,600 for import tariffs brings the total to $13,100.

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. 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.

Please email us at info@cosmosourcing.com 

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