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.
This Guide to Shipping between Canada and Vietnam explores of the main elements of international shipping between Canada and Vietnam
Disclaimer: The information in this blog is for general information only
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.
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.
The first option is to consider the major modes of shipping: Postal, courier, air freight and sea freight.
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.
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.
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.
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).
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.
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
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:
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.
Jet Worldwide: A global Canadian brand and international shipping for over 40 years!
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.
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.
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.
Importing Goods 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.
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.
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
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
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.
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.
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:
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.
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.
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.
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.
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.
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