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.
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A review of the following items to consider when shipping from Vietnam to Canada:
- Import clearance to Canada for shipments from Vietnam
- Shipping terms from Vietnam delivery duty paid or unpaid?
- Common Carrier Shipping Options to Canada
- Clearance processes for consignments imported to Canada from Vietnam
- CPTPP duty free import for Vietnam origin Goods
- Mandatory registration in CARM
- Simplified country of origin declaration for low value Vietnam origin goods to Canada
- Shipping from Vietnam to USA and Canada
- GET A COMPARISONshipping quote from Vietnam to Canada
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only.
Duty and taxes in Canada for shipments sent from Vietnam
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.
Parcels imported from Vietnam to Canada are subject to Canadian duty and taxes. Most parcels valued under $20 CAD can be imported free of duty and taxes. Parcels valued under $3,300 CAD from Vietnam can be imported via Canadian customs low value shipment / LVS express clearance processes. Carriers charge a disbursement fee that usually averages around $20 CAD.
UNDERSTANDING CANADIAN IMPORT FEES.
- Up to CA$20 and under: duty and tax free when imported from Vietnam.
- Duty and taxes apply when importing goods valued over CA$20. Contact Jet’s logistics team to get an estimate of your import fees (for parcels shipped via our service).
Common Carrier Shipping Options to Canada from Vietnam
Shipping from Vietnam via Vietnam Post / VNPost
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.
Shipping Vietnam to Canada via FedEx and UPS
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:
- International express priority to Canada
- international economy air Canada from Vietnam.
Shipping between Vietnam and Canada via Jet Worldwide
Jet Worldwide: A trusted brand offering international shipping for over 40 years!- Jet Worldwide offers options for shipping between Vietnam and Canada for parcels, pallets, and online orders
- Jet Worldwide offers transparency and logistics support.
Jet's PDF Presentation: Shipping to Canada from Vietnam
Shipping Terms to Consider When Shipping to Canada from Vietnam
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. IncoTerms 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.
Clearance of consignments from Vietnam to Canada
See section above. Contact Jet’s logistics team to get an estimate of import fees (for parcels shipped via our service).
CARM for Importing to Canada from Vietnam
Registering in the Canada Border Services Agency (CBSA) Assessment and Revenue Management System (CARM) is necessary for all importers.
All commercial importers must register in CBSA's CARM system. Doing so requires importers to assign a customs broker and submit a surety bond (or deposit) to guarantee payment of duty and taxes. How to register for CARM.
CPTPP Duty free clearance of goods shipped from Vietnam to Canada
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. SEE OUR BLOG ON CANADA'S MAJOR FREE TRADE AGREEMENTS.
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:
- Goods are considered originating if they are wholly obtained, such as goods that are grown, raised, caught, or extracted in Canada /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/CPTPP country from non-originating materials that undergo production in Canada/ 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.
Duty Free import for parcels sent from Vietnam to Canada under CPTPP
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.
- Parcels containing products under CA$3,300 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.
Shipping from Vietnam to the USA
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.
Getting a shipping quote between Vietnam and Canada.
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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