Vietnam is among Canada’s largest trading partners in the pacific region with over $6 billion in merchandise trade each year. Shippers from Vietnam are increasingly looking to Canada as base in North American for shipping to the USA. Canada and Vietnam maintain strong economic and cultural relations that are expanding thanks to the CPTPP Free trade agreement. Vietnam origin goods shipped to Canada can be imported duty free.
Benefit from Jet Worldwide’s ogistics expertise (as evidenced by our industry leading blog articles) and global parcel shipping solutions: Including shipping Canada from Vietnam.
A review of the following items to consider when shipping from Vietnam to Canada:
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Goods shipped to Canada must be accompanied by an invoice for customs or other supporting documents. Canada uses the harmonized system (HS Codes) and bases duty on the classification and declared value of the shipments.
See section below on preferential duty free import for Vietnam origin goods shipped to Canada and simplified origin declarations under CPTPP.
UNDERSTANDING CANADIAN IMPORT FEES.
VNPost's "Small Bag service" offers the lowest cost for sending parcels up to 2 kg.
VNPost offers parcel post offers the preferred shipping options for individuals shipping from Vietnam to Canada. VNPost shipments from Vietnam are cleared and delivered via Canada Post.
FedEx and UPS are North America's largest carriers and, along with DHL, offer express delivery from Vietnam to the USA and Canada. GET AN INTERNATIONAL SHIPPING RATE TO CANADA.
FedEx and UPS shipping options Canada from Vietnam include:
The default option for shipping internationally from Canada is delivery duty unpaid. Common carriers use the term EXW which essentially assigns all import related costs (duty, taxes, and other fees) to the receiver/ importer. Shippers from Canada can choose to pay the import fees on behalf of the receiver via a Delivery Duty Paid (DDP) options that many carriers offer.
The disadvantage of paying import fees on behalf of the receiver is that the bulk of the import fees are often from a value added tax that the importing business may otherwise be able to claim back.
See section above. Contact Jet’s logistics team to get an estimate of import fees (for parcels shipped via our service).
Goods approved with proper “proof of origin’ supporting paperwork can be exported from Vietnam for duty free clearance in Canada.
Canada’s Most Favoured Nation (MFN) tariff rates are generally applicable to imports from Vietnam. Duty free preferential import under CPTPP apply to goods imported to Canada that meet the rules of origin outlined in the agreement and accompanied by the necessary certification.
Proof of Origin
The key part of all trade agreements is ensuring the goods qualify under the rules of origin. Many incorrectly assume that if goods are sent from a qualifying country, they should qualify for duty free status. Country of origin is not determined solely by where the goods are sent from.
The country of origin rules have been simplified under CPTPP but can still get complex. The guidelines for country of origin qualification include:
The amazing part of CPTPP is that parcels containing products valued less than CA$3,300 do not require a certification of origin to claim CPTPP preferential tariff treatment. The requirement on the importer to maintain records (for example, commercial invoice and B3) applies even if the CBSA does not require a certification of origin or if a requirement for a certification of origin has been waived.
American and Canadian companies can benefit from shipping their orders direct to the USA - and via Canada. Read more about section 321 processes and contact our team for assistance in direct shipping and logistics support to the USA.
Jet Worldwide gives access to all companies seeking international shipping quotes between Vietnam (and the APAC region) and Canada for parcels pallets, and online orders.
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