Vietnam's fast developing economy presents a great opportunity for Canadian businesses who seek new suppliers and customers. The growth in trade between Vietnam and Canada is further enhanced by the CPTPP that gives duty-free access between Canada and Vietnam for originating goods.

Canadian companies are searching for low-cost shipping to Vietnam from Canada and duty-free import via CPTPP

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A few quick points to consider when shipping international to Vietnam from Canada: 

  1. Canada Post is the preferred option for individuals shipping small parcels and personal items internationally to Vietnam.
  2. Market dominant carriers, such as UPS, FedEx have crazy high base pricing.  Discounted shipping can be obtained via resellers who provide  "comparison quotes"  but can still be expensive and lack expertise and support.
  3.   Jet's logistics professionals will personally respond  to your inquiry within 1 business day sharing our expertise and helping you find the right solution (we freely recommend alternative carriers and methods that may better suite your needs). Contact Jet.
  4. Ecommerce shippers usually need a much lower cost than can be provided by traditional shipping methods and need direct shipping solutions (visit our ecommerce page).

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This post provides a deeper dive and explores of the main elements of international shipping between Canada and Vietnam

  • Common carrier options for shipping Vietnam from Canada and shipping terms
  • Information required for shipping quote between Vietnam and Canada:  See below
  • Vietnam customs clearance processes
  • CPTPP duty-free import for Canada-origin goods to Vietnam
  • Carrier Options for Shipping TO Canada from Vietnam
  • Common Canadian  import fees for goods shipped from Vietnam
  • CPTPP duty-free import TO Canada for Vietnam origin goods 
  • Canadian customs assessment and revenue management system (CARM)
  • Shipping from Vietnam to the USA and Canada

Disclaimer: The information in this blog is for general information only and is not intended to, constitute legal and/or tax advice.  Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided “as is”; no representations are made that the content is error-free.

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Shipping terms to consider when shipping to Vietnam

The default option for shipping internationally from Canada is Delivery Duty Unpaid (DDU). Common carriers use the term Ex Works (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.

READ-MORE-INCO-TERMSIncoTerms and shipping terms for packages and online orders.

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.


Carrier Options for Shipping Vietnam from Canada

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Shipping to the Vietnam via Canada Post

Canada Post is the preferred option for individuals shipping small packages and personal items to Vietnam. Shipments sent from Canada via Canada Post to Vietnam are imported and delivered by the Vietnam Post

  • Small Packet International Surface, Air
  • International Parcel Surface: Uncertain delivery time
  • Canada Post Xpresspost to Vietnam: Delivery in 2 weeks

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Shipping to Vietnam via FedEx and UPS Canada

FedEx and UPS are North America's largest parcel carriers and, along with DHL, offer reliable express delivery to Vietnam from Toronto, Vancouver, Calgary, Montreal and all major Canadian Cities.

FedEx and UPS Canada Shipping options to Vietnam Include:


Shipping to Vietnam via Purolator Canada

Purolator is a leading domestic carrier in Canada and offers international express delivery via other carriers (such as UPS Canada).   Purolator is a division of Canada Post.


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Shipping between Canada and Vietnam via Jet Worldwide

  • Jet Worldwide:  A trusted brand offering international shipping for over 35 years!
  • Jet Worldwide offers options for shipping between the Vietnam and Canada for parcels, pallets, and online orders (with Shopify integration)
  • Jet Worldwide offers transparency and logistics support.  We are not shy to recommend alternative options that are better suited for your needs.  

For a quote for shipping online orders, provide details including shipping volume, item(s) being shipped, average value and weight of each parcel.  The more details the better :).


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Customs clearance for Canadian parcels sent to Vietnam

As for all international shipments, it is important to include clear customs paperwork including an invoice for customs.

Vietnam customs assesses the CIF value (Cost, Insurance and Freight) of goods shipped to Vietnam. The applicable duty for HS Code of the imported goods is applied to the CIF Value.

  • Most items sent from Canada to Vietnam with a value under VND 1 000 000 (around CAD 50) can be imported without duty.
  • Most goods imported to Vietnam are subject to at tax (VAT) rate of 10%

DUTY FREE ≠ TAX FREE: It is important to understand that the CPTPP applies to duty assessments but not taxes. All goods - even those cleared duty-free - are subject to Vietnam taxes (including a 10% VAT).

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CPTPP duty-free clearance of goods shipped to Vietnam from Canada

Goods approved with proper “proof of origin’ supporting paperwork can be exported from Canada for duty free clearance in Vietnam.

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 the CPTPP but can still get complex. The guidelines for country of origin qualification include:

  • Goods are considered originating if they are wholly obtained, such as goods that are grown, raised, caught or extracted in Canada or a CPTPP country.

  • Goods are considered originating if they are produced in Canada or a CPTPP country entirely from originating materials.

Goods are originating if they are produced in Canada or a CPTPP country from non-originating materials that undergo production in Canada or a CPTPP country, such that the resulting good satisfies the applicable product-specific rule of origin. The value of the non-originating goods that are part of the originating product can be considered dutiable.

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Duty-free import for parcels sent from Canada to Vietnam under the CPTPP

The amazing part of the CPTPP is that parcels containing products valued less than USD 1 000 do not require a certification of origin to claim the CPTPP preferential tariff treatment.

CPTPP provisions waive the requirement for the certification of origin where the value of the goods is under USD 1 000 or its equivalent in the importing party’s currency.

Parcels containing products under USD 1 000 can be considered for duty-free status if the following conditions include:

  • A signed statement completed by the importer, exporter or producer certifying that the goods originated from a CPTPP country. This statement is required on the commercial invoice and we recommend adding an additional stand-alone statement / supporting document.

  • The goods must meet the origin rules. For example, marks to indicate that the goods are not a product of a CPTPP country will disqualify the goods and have issues related to mis-declarations.


Data required for CPTPP duty-free consideration to Vietnam

In order to claim the preferential tariff treatment to Vietnam from Canada under CPTPP, a set of data elements referred to as a ‘certification origin’ must be provided by the exporter, producer or importer of the goods by adding the information to any document (e.g., Commercial Invoice) accompanying the shipment or if preferred, by providing it on a separate document. The data elements do not have to follow a prescribed format but must contain the minimum data elements listed below. In addition, the imported goods must originate and be exported from a CPTPP ratified country.

  1. Indicate the certifier (importer, exporter or producer)
  2. Name, address and contact information of the certifier
  3. Name, address and contact information of the exporter (if different from the certifier)
  4. Name, address and contact information of the producer (if different from the certifier, or exporter)
  5. Name, address and contact information of the importer
  6. Description and HS Tariff Classification for the goods
  7. Origin criterion for the goods
  8. Blanket period
  9. Authorized signature and date

Note: The certification of origin must be signed and dated by the Certifier and accompanied by the following statement:

“I certify that the goods described in this document qualify as originating and the information contained in this document is true and accurate. I assume responsibility for proving such representations and agree to maintain and present upon request or to make available during a verification visit, documentation necessary to support this certification”

For full details regarding the minimum data requirements for the certification of origin, please refer to Annex 3-B of the CPTPP agreement.

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Clearance of consignments from Vietnam to Canada

Consignments imported from Vietnam to Canada are subject to duty and taxes. Most imports valued under CAD 20 can be cleared duty-free and tax-free. Shipments under CAD 3 300 can be imported under Courier Low-Value Shipment (CLVS) processes.

Consignments containing Vietnam origin goods may benefit from preferential duty free entry under the CPTPP free trade agreement (see below).

  • Up to CAD 20 and under: duty- and tax-free 
  • Duty and taxes apply when importing goods valued over CAD 20.

Contact Jet’s logistics team to get an estimate of import fees (for parcels shipped via our service).

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Duty-free Import when shipping from Vietnam to Canada: Low-value and duty-Free

Canadian Customs (CBSA) has harmonized the value for which formal proof of origin is waived at CAD 3300, for all of Canada’s current Free Trade Agreements (including CPTPP)

For commercial importations valued at CAD 3300 or less, customs will accept a certifying statement on the Commercial Invoice stating that the goods originate in Vietnam and qualify for preferential treatment under CPTPP

The statement must include either the country of origin for the imported goods, reference that the request is being made under CPTPP provisions. Here is a sample statement:

“I hereby certify that the goods covered by this shipment qualifies as an originating good for the purposes of preferential treatment under Canada Trans Pacific Free Trade Agreement CPTPP

Important note: Claims for preferential tariff treatment over the CAD 3300 low-value threshold must be supported by the applicable proof of origin required by CPTPP . Refer to the Canadian Customs CBSA ‘Origin of Goods' webpage to confirm the requirements for your shipment.

READ-MORE-ABOUT-HSCODES


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Shipping from Vietnam to the USA

Companies and online sellers 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.

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Getting a shipping quote between Vietnam and Canada.

Jet Worldwide gives access to all companies seeking shipping quotes between Canada and Vietnam for parcels pallets, and online orders.   For a quote, please provide:

  • Your company name and contact details
  • Ship from Address
  • Ship To Address
  • Weight and dimensions of each piece
  • Item(s) being sent
  • Value

Click Here to Request a Quote and Information

For a quote for shipping online orders, provide details including shipping volume, item(s) being shipped, average value and weight of each parcel.  The more details the better :).


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Reminder: The information in this post is for general information only. Producers, shippers, exporters, importers should confirm their processes with their customs brokers, carriers and regulating authorities.

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Written by Timothy Byrnes