Importing goods from the US: A guide for Vietnamese businesses

The U.S.-Vietnam Bilateral Trade Agreement (BTA)

Given the importance of the US as a trading partner, the U.S.-Vietnam Bilateral Trade Agreement (BTA) is fundamental to economic relations¹. This agreement facilitates robust trade and investment through:

• Fair and transparent trade in goods.
• Protection of intellectual property.
• Opportunities for trade in services.
• A stable environment for investment.
• Streamlined business facilitation.
• Clear and accessible trade regulations (transparency).

Vietnamese businesses must understand the BTA's scope for successful importing from the US.

Import tariffs

Since becoming a member of the World Trade Organization (WTO), Vietnam has largely pursued a policy of reducing tariffs on imported goods. As such, the majority of US exports to Vietnam are currently subject to tariffs of 15% or less. It is, however, crucial for importers to be aware that Vietnam has adjusted tariffs upwards on select products in recent years, and the US has also indicated plans to impose a 46% tariff rate on certain Vietnamese imports², necessitating careful research.

To assist businesses in estimating the precise duties and taxes associated with their intended imports, the Customs Info Database tariff lookup tool on trade.gov offers a valuable resource. Using this tool can support accurate cost projections and well-informed decisions regarding Vietnam's applicable tariff rates³.

Labeling/Marking requirements

In Vietnam, the Ministry of Science and Technology is the primary authority responsible for setting the mandatory labeling requirements for goods.

Importers should pay close attention to regulations such as Decree No 21/2011/ND-CP, which stipulates the need for energy labels on certain equipment and vehicles. This decree mandates:

• Comparative labels: Providing information on energy consumption.
• Certification labels: For products recognized as highly energy-efficient.

Furthermore, Decree No. 43/2017/ND-CP on Goods Labels details comprehensive labeling requirements for all products. These requirements include:

• Product name: The official name of the goods.
• Responsible party: The name and address of the entity accountable for the goods.
• Origin: The country where the goods were manufactured.
• Other essential information: Details may vary depending on the product category.

Specific labeling rules also apply to food and beverage items. For food, labels must include:

• Quantity: Net weight or volume.
• Production date: Date of manufacture.
• Expiry date: Date after which the product is no longer safe or of optimal quality.
• Warnings: Any necessary allergy or usage precautions.

For alcoholic beverages, labeling must specify:

• Quantity: Volume of alcohol content.
• Shelf life: Duration the product remains consumable.
• Preservation instructions: Guidelines for storing the product.
• Warnings: Health advisories or restrictions.
• Batch identification: Code for tracing the product's origin.

Moreover, imported goods are required to have auxiliary labels in Vietnamese, containing all the pertinent information. Goods that are not intended for export or are being returned must bear a "Made in Vietnam" label. It's important to also remember that a transition period was granted for labels and commercial packaging produced before 1 June 2017. Compliance with Vietnam's labeling and marking requirements is crucial for ensuring smooth customs clearance and successful market entry⁴.

Prohibited items to import

Vietnam maintains a list of goods for which importation is restricted or prohibited. The following items are not permitted for import into Vietnam:

• Firearms and other weaponry
• Ammunition
• Explosives (excluding those intended for industrial use)
• Military-related technical equipment (the precise list of affected goods, identified by HS codes, is published by the Ministry of National Defense)
• Various types of fireworks (except for signal flares used for navigational safety, as governed by the Ministry of Transport)
• Sky lanterns
• Devices designed to interfere with vehicle speedometers
• Used consumer products
• Publications deemed unsuitable for distribution or circulation within Vietnam
• Postage stamps restricted from trade, exchange, display, and circulation (in accordance with postal regulations)
• Radio and radio-wave equipment that does not comply with established radio frequency plans and relevant technical standards (as defined by radio frequency legislation)
• Other goods as specified by Vietnamese legal provisions⁵

It is imperative that businesses meticulously consult the most current and authoritative list of prohibited and restricted import items provided by Vietnamese customs authorities. This is essential to prevent legal complications and the potential seizure of shipments.

Duties applied to import and exports

Vietnam levies various taxes and duties on the majority of imported products. These typically comprise:

• Import tax: A tariff imposed on imported goods.
• Value Added Tax (VAT): A consumption tax applied to the value of imported items.
• Special Consumption Tax (SCT): An excise tax levied on specific goods, such as alcoholic beverages and tobacco products.

Import tax rates are not standardized and fluctuate based on the merchandise type and its country of origin. Vietnam employs a tiered system of duty rates for imported goods, consisting of:

1. Preferential tax rates: Applicable to goods from nations accorded Most-Favored-Nation (MFN) status.
2. Special preferential tax rates: Applicable to goods from countries benefiting from special trade agreements, for instance, ASEAN member states, under the Common Effective Preferential Tariff (CEPT) scheme.
3. Ordinary tax rates: Applicable to goods from countries without MFN status or special trade preferences.

Import duty declarations are mandatory upon the registration of customs declarations, and all relevant duties must be settled before imported goods are released. Certain categories of goods are granted exemption from import duties. These include:

• Goods temporarily imported for subsequent re-export or temporarily exported for subsequent re-import.
• Goods imported for processing on behalf of foreign entities and subsequently exported (or vice versa).
• Goods imported as fixed assets for projects qualifying for investment incentives or financed by Official Development Assistance (ODA) funds.
• Goods imported for use in petroleum-related activities.
• Goods imported for direct application in scientific research and technological development endeavors.

Given the intricacies of customs regulations, businesses are strongly encouraged to consult the official website of Vietnam Customs for the most current and personalized guidance6.

Import procedures and documentation

Import/Export licensing

Generally, businesses do not need a separate import or export license in Vietnam. For investors aiming to import from the US, export, and distribute domestically, establishing a trading company in Vietnam is a common and relatively cost-effective option. However, an additional trading license, which may take one to three months to obtain, is required if the importer plans to sell imported products directly to Vietnamese consumers.

Alternatively, companies can use an importer of record to handle the import process without forming a local legal entity. Be aware that certain goods require government permits, and some are prohibited from export (e.g., specific petroleum oils) or import (e.g., specific tobacco products, certain petroleum oils, newspapers and journals, and aircraft)6.

Customs procedures

All goods imported into and exported from Vietnam must adhere to the nation's customs clearance regulations. This involves detailed inspections of the goods' quality, specifications, quantity, and volume. Certain imported items are subject to mandatory inspection procedures. For instance, pharmaceuticals necessitate testing and the submission of Vietnamese documentation that outlines product usage, dosage instructions, and expiration dates⁶.

Customs documentation

To successfully clear customs, businesses must submit a complete set of documents, known as a dossier, to the customs authorities. This dossier must, at a minimum, contain the company’s business registration certificate and the import/export business code registration certificate.

Other documents that may be required for customs clearance include:

• Bill of Lading
• Import goods declaration
• Import permit (if applicable, for restricted goods)
• Certificate of Origin
• Cargo release order
• Commercial invoice
• Customs import declaration
• Inspection report (if applicable)
• Packing list
• Delivery Order (for goods arriving via seaports)
• Technical standard or health certificate (if required)
• Terminal handling receipts

Companies that regularly export and import the same types of goods under a consistent contract may be eligible to use a single customs declaration. Customs declarations can be filed electronically, too, which streamlines the process6.

Priority customs treatment

Eligible companies can apply for priority customs treatment in Vietnam to potentially reduce compliance costs. This program, detailed in Decree No. 08/2015/ND-CP, offers benefits like:

• Reduced documentation and inspections.
• Flexible customs declarations (with a 30-day completion requirement).
• Priority in tax procedures.

To qualify, companies generally need to:

• Have a 2-year history of compliance with customs and tax laws.
• Comply with Vietnamese Accounting Standards (VAS).
• Maintain a robust import/export supply chain management system.
• Meet annual import/export turnover thresholds:
  • General: US$100 million.
  • Vietnamese-made exports: US$40 million.
  • Agricultural exports: US$30 million.

Consulting with customs authorities or a professional service firm can provide detailed information on the conditions for preferential customs treatment and the application process⁶.

Grow your business with DHL Express

For Vietnamese businesses seeking to import from the US with speed and reliability, DHL Express offers a suite of services designed to streamline the entire process. Our extensive international network ensures efficient and timely international shipping, a crucial advantage in today's fast-paced market.

We also provide expert assistance in navigating the complexities of Vietnam import regulations and handling the documents needed for customs clearance, simplifying US-Vietnam trade. Furthermore, for businesses committed to sustainability, our GoGreen Plus service offers a way to minimize the environmental impact of your shipments. 

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