Freight Shipping between Vietnam and Ireland | Rates – Transit times – Duties and Taxes

How to calculate duties & taxes when importing from Vietnam to Ireland?

Navigating the terrain of customs duties and taxes might appear challenging, but with the right knowledge, it becomes a straightforward and predictable process. The calculation of customs duties hinges on a few crucial variables which are the country of origin, the Harmonized System (HS) code of the merchandise, its customs value, the applicable tariff rate, and finally, any additional taxes and fees that your product may attract.

Embarking on this process requires that you first ascertain the country where the goods were manufactured or produced. This information kick-starts the calculation journey, serving as a key factor in anticipating the potential customs duties and taxes when importing from Vietnam to Ireland. With these pointers at your fingertips, you're well on your way to mastery of international shipping duties and taxes.

Step 1 - Identify the Country of Origin

Knowing your product's origin unlocks several perks. First, it determines the customs duties levied under Ireland's trade agreements. For instance, the EU-Vietnam Free Trade Agreement (FTA) lets goods from Vietnam enter Ireland at reduced tariffs or duty-free.

Second, it sets trade compliance standards. Vietnam, just like every country, has its unique manufacturing, safety, and quality norms. Knowing your product's origins helps confirm whether these norms align with Ireland's.

Third, identifying your goods' Country of Origin helps to prevent potential import restrictions. Take note, Ireland imposes specific limitations on certain Vietnam-made products.

Fourth, pinpointing where the goods were produced can streamline the import process and help avert custom delays.

Finally, you never have to get caught off-guard by unexpected import costs. Simply put, no nasty surprise tariffs.

Be mindful that details on Vietnam's exports to Ireland, the use of specific FTAs, and any import restrictions should be confirmed with a licensed customs broker or through the Customs Authority's direct channels. You'll thank us later when your shipping goes as smooth as an ocean breeze.

Step 2 - Find the HS Code of your product

The Harmonized System (HS) Code is a coded numerical representation of your product used in international trade. It facilitates the classification of goods for efficient customs-clearing processes. This universal language of product labeling is recognized and used by customs authorities across the globe.

Your supplier is typically the best start point in finding your product's HS Code. They're familiar with the products they export and know the pertinent regulations, hence can provide the correct HS Code.

If your supplier is unable to provide the HS Code, here is a step-by-step guide to obtain it:

1. Visit the Harmonized Tariff Schedule HS lookup tool
2. Enter the name of your product in the search bar.
3. Observe the Heading/Subheading column where you'll find the HS Code.

A word of caution: Accuracy is crucial when it comes to HS Codes. A wrong code could lead to customs hold-ups, delays in transport, and potentially even fines. Verify that the Code's details match your product description to ensure shipping compliance.

Here's an infographic showing you how to read an HS Code.

Step 3 - Calculate the Customs Value

Calculating customs value might initially seem like yet another financial hurdle on your shipping journey from Vietnam to Ireland. Let's break it down: your customs value isn't simply just the price tag on your goods. Instead, it's known as the CIF value. That's the cost of your products (let's say it's $5000), the price of international shipping (let's estimate at $1000), and the insurance cost (at around $200). In this scenario, your CIF Customs value would be $6,200. This is the base on which any applicable customs duties are calculated, not simply the value of your products. So, getting familiar with your CIF value clears up potential confusions and paves the way for a smooth customs clearance process in Ireland.

Step 4 - Figure out the applicable Import Tariff

Import tariffs are basically the taxes paid on imported goods, a form of revenue for governments and a way to regulate trade. For goods moving from Vietnam to Ireland, import tariffs are typically categorized under the Common Customs Tariff (CCT) of the European Union.

To figure out the tariff applicable to your product, you can refer to the TARIC System - European Customs. Here, enter the HS code of your product, and specify Vietnam as the country of origin. It will display the duties and taxes applicable.

For example, let's say you're importing a type of footwear under HS code 6403 91. The system informs us that the duty is 16.9%. Suppose your CIF costs (cost, insurance, freight) are $10,000. Therefore, your import duties would be calculated as 16.9% of $10,000 = $1,690.

Remember, every HS code and origin might have a different rate. This understanding will empower you to anticipate your costs accurately and avoid any unwelcome surprises.

Step 5 - Consider other Import Duties and Taxes

Upon successfully completing prior customs clearance steps for your goods from Vietnam, you'll now need to consider other import duties and taxes. Beyond the standard tariff rate, different extras can apply based on your goods and their origin.

Excise Duty, for instance, can be levied on items like alcohol or tobacco. If you're importing wine worth $1000, an Excise Duty of 60% adds $600 to your import costs. Note that this is hypothetical; actual rates may vary.

Similarly, Anti-Dumping Taxes aim to prevent cheap imports from flooding the market. If you import steel at $2000 per ton but the minimum price is determined as $2500, you might incur an Anti-Dumping duty to cover this deficit.

Yet, the tax you'll most likely encounter is VAT. Let's assume you're importing goods worth $5000, the standard VAT rate in Ireland is 23%. This equates to $1150 extra in VAT. However, remember this illustration uses arbitrary numbers; real duty and tax rates can differ, making professional advice crucial for accurate calculations. This step reminds us that importing involves more than paying the standard tariff - careful consideration is required to avoid unexpected costs.

Step 6 - Calculate the Customs Duties

In Step 6 - Calculate the Customs Duties, we break down how to calculate your customs duties when importing goods from Vietnam to Ireland. First, your customs value is calculated, encompassing the cost of your goods, insurance, and freight charges.

Example 1 - Only Customs Duties: If goods cost $10,000, with a customs duty of 10%, you'll pay $1,000 in customs duties. No VAT applied here.

Example 2 - Customs Duties and VAT: If goods cost $8,000, a customs duty of 10% equals $800. Add a VAT of 23%, your total tax is $800 (customs duties) + $1,840 (VAT) = $2,640.

Example 3 - Customs Duties, VAT, Excise Duty & Anti-Dumping Taxes: Suppose you have goods costing $6,000 with a 10% customs duty ($600), a 23% VAT, ($1,438), a 5% excise duty ($300), and a 4% anti-dumping tax ($240). Your total tax will be $2,578.

Keep in mind these calculations are simplified versions to provide basic understanding. Customs calculations can be complex with several factors like trade agreements coming into the picture. Here at FNM, our expertise in Vietnam customs clearance ensures that every step is handled professionally to prevent any excess charges. Get a free quote within 24 hours to know how we can assist you with your shipping needs.

Bill of Lading

The Bill of Lading is your golden ticket in the shipping world. It’s not just a contract between you, the shipper, and the carrier; it's a walkthrough to your goods' journey from Vietnam to Ireland. It waves 'Goodbye' as your cargo sails off and greets it on arrival, running the customs clearance marathon so you don't have to. Remember, time is precious! Opt for a telex release, an electronic B/L that speeds up the process. Nothing beats its practicality, from omitting paper trails to reducing delays. If choosing the skyway, the Air Waybill (AWB) meets your needs. Undoubtedly, understanding these pivotal documents and their digital counterparts is key to making your business operations smoother and keeping your customers happier.

Packing List

If you're shipping goods from Vietnam to Ireland, never underestimate the power of a well-prepared Packing List. This isn't just a mundane list—it's your key to an easier clearance through customs, whether you're opting for air or sea freight. The Packing List details each item in your shipment, helping customs authorities determine any potential duties. It's vital to be accurate; imagine unclear descriptions leading to your electronics shipment being held at customs, causing costly delays. As a shipper, you're the maestro of your Packing List. Ticking it off with meticulous detail not only eases your shipment's voyage but could also save you from unexpected charges. Remember, your shipment’s smooth journey is as much in your hands, as it is in ours.

Commercial Invoice

Shipping your goods from Vietnam to Ireland? The Commercial Invoice is your best buddy! Jot down every single detail of your traded items on this document - including their product codes, quantity, description, and the total value in Euros (€). This invoice plays the referee in calculating the customs duty you need to pay. Triple-check its accuracy to avoid discrepancies and DELAYS in customs clearance.

Remember, your Commercial Invoice should echo the details on your Bill of Lading or Airway Bill to ensure smooth sailing of your goods across borders. Don't leave room for mistakes - your business depends on it!

Certificate of Origin

Ever shipped goods from Vietnam to Ireland and stumbled on the term 'Certificate of Origin'? This document is crucial; it confirms where your goods were manufactured - in this case, Vietnam. Think of it as the ID your shipment needs to show at the Irish customs to enjoy certain preferential customs duty rates, thus saving your business significant costs. For instance, imagine you're exporting Vietnam-made footwear to Dublin. Without this certificate, your shipment could face higher duties, creating unnecessary expenses. Therefore, always ensure your Certificate of Origin is filled accurately, reflecting Vietnam as your goods' country of manufacture. It's the passport easing your goods' entrance into the Irish market!

Certificate of Conformity (CE standard)

When shipping goods from Vietnam to Ireland, having a Certificate of Conformity (CE standard) in your document stack is essential. This isn't your typical quality assurance - it's the ticket to European markets, confirming that your goods meet EU safety, health, and environmental protection requirements. Unlike QA, which often focuses on product functionality and durability, the CE standard ensures your products comply with European regulations, a crucial difference. If you're familiar with American standards, think of this as the European equivalent of FCC or FDA approval. Going forward, you might want to consider pairing up your Vietnam manufacturer with a EU-recognized Conformity Assessment Body to ensure your goods stay CE-compliant. This way, the road from Vietnam to Ireland becomes a breezier, simpler journey.