Vietnam's fast developing economy presents a great opportunity for Canadian businesses. Vietnam has a vast supplier network and growing consumer market. The growth in trade between Vietnam and Canada benefits from the CPTPP free trade agreement. Benefits include duty-free import to Vietnam for originating goods shipping to Vietnam from Canada
Canadian companies are searching for low-cost shipping to Vietnam from Canada and duty-free import via CPTPP
There are several shipping options available for sending goods from Canada to Vietnam. The best options depend on your specific needs and preferences.
- Air freight: This is the fastest shipping option with door to door solutions.
- Ocean freight: Option for shipping full container load and large bulk commercial orders
- Commercial carriers such as FedEx, DHL,UPS and their partners.
- Canada Post is generally the best option for individuals shipping small shipments and personal items to Vietnam.
This Guide to Shipping between Canada and Vietnam explores of the main elements of international shipping between Canada and Vietnam
- Common carrier options for shipping Vietnam from Canada
- Air versus ocean shipping options
- Canadian Export Declaration for Shipments to Vietnam
- Shipping terms to consider delivery duty paid or unpaid
- Getting the best shipping rate to Vietnam
- 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 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
How long will it take to ship to Vietnam from Canada?
The delivery time to Vietnam depends primarily on the mode of shipping. Air courier shipments usually delivery within 1 week. Sea freight shipments average between 30 and 60 days. Transit times may not always be consistent. Freight shipments commonly incur delays according to market conditions, capacity restraints and labour issues.
Cheapest shipping from Vietnam to Canada
When shipping from Vietnam to Canada, the modes to consider include local post, air courier. and sea freight. For individuals shipping personal goods, Canada Post is usually the best option. For businesses, air courier and sea freight should both are good options. Read more about ocean shipping from Canada.
Tips for Reducing Shipping Costs between Vietnam and Canada
The first option is to consider the major modes of shipping: Postal, courier, air freight and sea freight.
- When shipping sea freight, book as far you can in advance. Shipping by sea is the most cost-effective method, but longest transit time.
- Reduce package size to lower chargeable weight
- Consider shipping via off-peak times. Shipping prices and transit times increase during peak periods.
- Know your HS Codes and country of origin. Import fees can have a significant impact on costs. Look for ways to minimize the import costs via correct classification, valuation and free trade.
Ocean Freight FCL is best for transporting large commercial orders in a single container.
FCL, which stands for full container load, refers to.. well. shipping a full 20 or 40 foot container. If you have the volume, FCL shipping is the most economical method. A flat rate applies even if the container in not completely full.
Ocean Freight LCL is a common shipping method for shipping several pallets.
LCL, or less than a container load is best when you are looking to ship one or several pallets. Your shipment are part of consolidation. They will travel in a container with other pallets. Loading a container is at the origin port. Your consignment is will travel to a de-consolidation point near the entry port.
Air cargo shipping cost per kg from Vietnam to Canada
The advantage of shipping air is both speed and lower handling fees. The cost advantage of ocean freight occurs at when shipment exceed around 200 kilograms. Air freight's higher per kilogram rate can be cheaper than ocean. Air freight has much fewer surcharges ocean freight.
The best mode of transportation varies on the size and weight of your shipment. The necessary transit time is also a determining factor.
Canadian Export Declaration for Shipments to Vietnam
For shipments from Canada to Vietnam with a value CAD 2,000 and above require a Canadian export declaration. Goods with restrictions also require a declaration regardless of value
Read more about Canadian Export Reporting System (CERS).
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 import costs to the consignee. Shippers from Canada can choose to pay the import fees on behalf of the receive. Most commercial carriers offer a Delivery Duty Paid (DDP) option.
IncoTerms and shipping terms for packages and online orders.
Import fees paid by the shipper are not recoverable.Importing businesses may otherwise be able to claim back value add tax paid at import.
Carrier Options for Shipping Vietnam from Canada
Shipping to the Vietnam via Canada Post
Canada Post is often the best option for individuals shipping personal items to Vietnam. Shipments via Canada Post to Vietnam import for delivery via the Vietnam Post
- Small Packet International Surface, Air
- International Parcel Surface: Uncertain delivery time
- Canada Post Xpresspost to Vietnam: Delivery in 2 weeks
Shipping to Vietnam via FedEx and UPS Canada
FedEx and UPS are North America's largest parcel carriers. Along with DHL, they offer reliable express delivery to Vietnam from Canada.
FedEx and UPS Canada Shipping options to Vietnam Include:
- International Air Express/ Priority to Vietnam
- FedEx International Air Economy to Vietnam
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.
Shipping between Canada and Vietnam via Jet Worldwide
Jet Worldwide: A global Canadian brand and international shipping for over 40 years!
- Jet Worldwide offers options for shipping between the Vietnam and Canada for parcels, pallets, sea freight and e-commerce.
Shipping Air versus Ocean between Canada and Vietnam
The best shipping option to Canada depends on several factors. In general, the lowest cost for small personal packages is via the local post office.
For heavier cargo, economy air freight is a common option. The higher per kilogram rate is offset by far fewer surcharges. For sea freight from Canada to Vietnam, allow for between 1 to 2 months transit time.
Less than container load LCL to Vietnam
Best with shipping pallet freight and large commercial orders to Vietnam. Additional transit time is necessary to account for the loading, scheduling and de-consolidation.
Full container load FCL to Vietnam
Shipping a full container - either 20 foot or 40 foot - is the fastest way to ship sea freight.
Useful information: Things to know about Ocean Shipping To and From Canada.
Customs clearance for Canadian Goods to Vietnam
Importing Goods to Vietnam from Canada
- Obtain an import license: Confirm if the goods you are shipping require an an import license to Vietnam
- Applicable duties and taxes on imports are on the classification of goods , the value, and country of origin.
- Necessary documents include a commercial invoice, a packing list, and a bill of lading or air waybill
- It is important to verify compliance with the consignee/ importer and regulatory authorities prior to shipping to Vietnam from Canada.
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 to Vietnam. The applicable duty for HS Code of the CIF Value.
- Most items sent from Canada to Vietnam with a value under VND 1 000 000 (around CAD 50) can be clear without duty.
- Goods to Vietnam are subject to a tax (VAT) of 10%
DUTY FREE ≠ TAX FREE: It is important to understand that the CPTPP applies to duty assessments but not taxes. All goods - even if duty-free - are subject to Vietnam’s 10% VAT.
CPTPP duty-free clearance of goods to Vietnam from Canada
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement that Canada shares with Vietnam. The agreement reduces barriers to trade and provides preferential duty free import between each other.
Read more about the benefits of CPTPP shipping between Canada and 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 ship from a qualifying country, they should qualify for duty-free status. Country of origin is not solely from where the goods ship.
Useful information: Understand the difference between shipping from Canada and Canadian origin goods.
The country of origin rules under the CPTPP but can be complex. The guidelines for country of origin qualification include:
Goods are originating if production wholly is in a CPTPP country
- Originating goods of Canada or other CPTPP country entirely of originating materials.
Goods are originating if a product of a CPTPP country from non-originating materials. The goods must undergo production and transformation in a CPTPP country. The value of the non-originating goods can be dutiable.
Certificate of origin and Duty-free import for parcels sent from Canada to Vietnam under the CPTPP
CPTPP does not require proof of origin for consignments less than USD 1,000,
Consignments containing products under USD 1,000 can be for duty-free status if the following conditions include:
A certifying statement with signature via the importer, exporter or produce. This statement is necessary on the commercial invoice. We recommend adding an additional stand-alone supporting document.
The goods must meet the origin rules. Marks to indicate that the goods are not a product of a CPTPP country disqualify the goods.
Data necessary for CPTPP duty-free consideration to Vietnam
Benefit by including a certificate of origin
The country of origin determines if preferential duty free import applies. The country of origin also supports regulatory actions such as quarantine and import quotas.
Read more: Understanding a certificate of origin.
In order to claim the preferential tariff treatment to Vietnam from Canada under CPTPP, a set of data elements are necessary. Completion of the ‘certification origin’ is via the exporter, producer or importer of the goods. The information can be part of any document. Most commonly, the certification is part of the Commercial Invoice. The certification must accompany the shipment. We recommend also including it on a separate document. The data elements do not have to follow a specific format:
- Indicate the certifier (importer, exporter or producer)
- Name, address and contact information of the certifier
- Name, address and contact information of the exporter (if different from the certifier)
- Name, address and contact information of the producer (if different from the certifier, or exporter)
- Name, address and contact information of the importer
- Description and HS Tariff Classification for the goods
- Origin criterion for the goods
- Blanket period
- Signature and date
Note: The certification of origin must include a signature and date by the certifier.
For full details regarding the minimum data requirements for the certification of origin, please refer to Annex 3-B of the CPTPP agreement.
Clearance of consignments from Vietnam to Canada
Consignments from Vietnam to Canada are subject to duty and taxes. Most imports under CAD $20 can clear duty-free and tax-free. Shipments under CAD 3 300 can be import 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.
- Up to CAD $20 and under: duty- and tax-free
- Duty and taxes apply when importing goods over CAD $20.
Duty-free Import when shipping from Vietnam to Canada: Low-value and duty-Free
The value for which formal proof of origin is not necessary is up to CAD $3,300.
For commercial importations CAD $3,300 or less, customs will accept a certifying statement on the Commercial Invoice. A statement indicating the goods originate in Vietnam and qualify for preferential treatment under CPTPP
The statement must include either the country of origin, reference that the request is via CPTPP provisions.
Important note: Claims for preferential tariff treatment over the CAD $3,300 low-value threshold include applicable proof of origin . Refer to the Canadian Customs CBSA ‘Origin of Goods' webpage to confirm the requirements for your shipment.
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.
Getting a shipping quote between Vietnam and Canada.
Jet Worldwide provides Canadian, Vietnam and global logistics. Our support refers to air, ocean and logistics. The international and Canadian movement of goods. This can include things like transportation, storage facilities, and supply chain management.
.....
