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

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

Grasping the world of import duties and taxes can feel like navigating through a labyrinth, but we're here to guide you every step of the way. To tackle customs duties, it's crucial to know a handful of key factors; the country of origin, the Harmonized System (HS) code, the customs value, the applicable tariff rate, plus any additional taxes and fees that apply to your products. With this knowledge in your hands, you'll be able to make accurate predictions of your import costs.

The quest starts at the roots - identifying the country where the goods were manufactured or produced. This forms the foundation for a smooth journey through customs and a crucial first step in your import adventure from Vietnam to Denmark.

Step 1 - Identify the Country of Origin

Knowing the country of origin - in this case, Vietnam - is essential for five reasons. Firstly, it determines whether your goods are subject to any international trade sanctions.

Secondly, it can influence the classification of products for customs purposes, the Harmonized System (HS) Code. Thirdly, it plays a role in tariff concessions. Fourth, it may affect anti-dumping margins and fifth, it could trigger import licensing requirements.

The trade agreements between Vietnam and Denmark, under the EU-Vietnam Free Trade Agreement (EVFTA), mean understanding the country of origin is crucial. This agreement lowers many customs duties, making your import potentially cheaper. Check whether your goods fall under this pact before engaging in the shipping process.

Remember, certain goods face import restrictions, so get familiar with Denmark's list of restricted items. Being well-informed saves you headaches at customs.

Our practical advice? Make identifying the country of origin your first step, as it will set the tone for your import duties and taxes estimate. With Vietnam and Denmark's trade relations, this step should not get overlooked.

Step 2 - Find the HS Code of your product

The Harmonized System (HS) Code is an international classification system used by customs authorities around the world to identify and classify products. These codes, comprising six to ten digits, are vital for determining potential duties and taxes, handling customs clearance, and tackling many other aspects of international shipping.

If you're unsure about your product's HS code, the easiest approach is to ask your supplier directly. Given their familiarity with the item they're exporting, they're likely to know the appropriate HS classification alongside the corresponding import regulations.

If reaching out to the supplier isn't possible, don't fret. We have an easy, step-by-step guide for you. First off, make use of an HS lookup tool such as the Harmonized Tariff Schedule.

Once on the site, type your product's name into the search bar. Then, be sure to inspect the Heading/Subheading column carefully. This is where you'll find your item's HS code.

Please note that accuracy is absolutely crucial when assigning HS codes. An incorrect code may result in shipping delays and possible penalty charges due to incorrect duty and tax calculations. Mistakes are expensive, so make certain you have the correct code!

Here's an infographic showing you how to read an HS code. It can provide visual guidance, ensuring you understand every element of this classification system.

Step 3 - Calculate the Customs Value

Understanding the customs value is crucial for your shipping process. It's not just the cost of your products, but it includes international shipping and insurance expenses.

Let's say you bought some goods from Vietnam for $10,000, and spent $2000 on shipping and $500 on insurance. Your customs value, therefore, is the sum of these three - $10,000 + $2000 + $500 = $12,500.

This is your Cost, Insurance, and Freight (CIF) value which Danish customs will use to determine import taxes. Remember that each cost adds up, so planning these aspects thoroughly can save you from unexpected expenses and potential delays. This calculation is essential for gauging your overall costs and keeping your shipping process to Denmark smooth.

Step 4 - Figure out the applicable Import Tariff

An import tariff, in simple terms, is a tax imposed by a country on goods imported from abroad. For goods brought in from Vietnam to Denmark, which is a member of the European Union (EU), the tariff is determined by the EU’s Common Customs Tariff.

To figure out the exact tariff for your products, you will refer to the TARIC System - European Customs. By inputting the Harmonised System (HS) code for your product and specifying Vietnam as the country of origin, you can check the detailed breakdown of duties and taxes that apply.

Let's walk through a real-world example. Suppose you are importing bicycles from Vietnam, and the HS code is 8712.00. The TARIC tool informs that the duty rate is 14%. If your insurance and freight (CIF) costs total $1000, the import duty would be computed as 14% of $1000, which equals to $140.

Understanding how to identify and calculate import tariffs can play a crucial role in your overseas trading strategy, considering it directly impacts your costing and pricing.

Step 5 - Consider other Import Duties and Taxes

Importing goods from Vietnam to Denmark isn't just about paying the standard tariff. In fact, several other types of duties and taxes - varying according to the product's nature and origin - often come into play.

Take excise duty; it's an indirect tax levied on certain goods like alcohol or tobacco. Imagine importing a crate of Vietnamese rice wine into Denmark. Just like any other alcoholic beverage, it will most likely attract an excise duty, adding a cost per unit on top of your standard tariff.

Then there's the anti-dumping tax. If there's an assumption that your goods, let's say, ceramic dishes are sold at a considerably lower price than in Denmark, an anti-dumping tax might be imposed to level the playing field for local manufacturers.

The tax you'll probably encounter most frequently is VAT. For Denmark, this is typically 25% on the customs value of the goods, plus the any duty paid. Here's a simplified formula: VAT = 25% (Customs Value + Duty).

Please keep in mind that these are simplified examples and rates could vary. We strongly advise you to consult with a trusted customs specialist to understand the exact duties you'll be liable for when importing specific goods from Vietnam to Denmark. Remember, every penny counts in international trade!

Step 6 - Calculate the Customs Duties

Calculating customs duties can be seen as a puzzle; once you know where the pieces fit, it becomes less daunting. But begin the process with a value called the 'Customs Value.' This is essentially the price paid for your goods, including transport, insurance, and handling fees up to the Denmark border.

Example one: Suppose you've got goods valued at $1000 with a customs duty rate of 10% but no VAT. Your customs duties would be $100 ($1000 x 10%).

Now, throw VAT into the mix with the same conditions as before and a VAT rate of 20%. The VAT is calculated after adding customs duty ($100), meaning your payable VAT will be $220 ($1100 x 20%).

For our third example, let's introduce both anti-dumping taxes and excise duty. You've got goods valued at $1000, a customs duty rate of 10%, VAT at 20%, anti-dumping duty at 15%, and excise duty of 5%. First calculate customs ($100) and anti-dumping duties ($150), then add these to the original value ($1250). Now, apply the excise duty to find the subtotal ($1312.50). Finally, calculate VAT ($262.50) for a total of $1575 to be paid.

Frustrating, right? That's where FNM Vietnam comes in. Offering complete care and precision with your customs clearance anywhere worldwide, we ensure you don't pay more than what's due. Interested? Get a free quote within just 24 hours. Let us untangle the puzzle of customs duties for you.

Bill of Lading

When sending goods from Vietnam to Denmark, your cargo isn't going anywhere without a Bill of Lading (BoL). This hardworking document does triple duty. First, it serves as a receipt for your shipped goods. Second, it’s proof that the carrier has taken responsibility for the cargo. Finally - and here's a biggie - it signifies the transfer of cargo ownership from the seller to the buyer.

In the digital age, you might opt for a telex or electronic release. It speeds things up, sending the BoL electronically and preventing any hold-ups due to lost or late paperwork. Sound good?

However, if your goods are taking to the skies, replace the BoL with an Air Waybill (AWB). It performs similar functions but is specifically for air cargo.

Remember, to prevent any speedbumps, always ensure that the BoL/AWB details match exactly with the cargo information to keep your shipping process smooth.

Packing List

A Packing List is your shipper's secret weapon on your quest to streamline shipping between Vietnam and Denmark. Picture it as an itemized roll call of your shipment - it must detail each item, their types, quantities, and weights.

But it isn't just a mundane list. It's the backbone of your shipping process, your barrier against customs hold-ups. Imagine the process is a game of pass-the-parcel.

Without a correctly detailed Packing List, your precious cargo gets stuck in transit purgatory, neither here in Vietnam nor over in Denmark. And whether you're shipping by sea or by air, it's non-negotiable: no Packing List, no travel. It's like trying to board a plane without your boarding pass!

So, put in the time, triple-check your Packing List and ensure swift, hiccup-free shipping on your international expedition.

Commercial Invoice

Knowing your Commercial Invoice inside out is key to a smooth customs clearance between Vietnam and Denmark. This document validates your goods' value - the spine of your customs duties and taxes.

As such, it should be aligned with the packing list and Bill of Lading or Airway Bill. Be vigilant about precisely christening your goods and adhering to the Harmonized System Codes. Remember, an error could trigger unwanted inspections or penalties. The golden rule? Consistency.

Say you're shipping ceramics - let's not show 'tableware' on one form and 'homeware' on another. You wouldn't want Danish customs to delay your shipment over trivial inconsistencies. Keep it transparent, straightforward, and as identical as you can across all your documentation. Now you're one step closer to a breezy customs clearance process.

Certificate of Origin

If you're moving goods from Vietnam to Denmark, don't underestimate a Certificate of Origin's power. This crucial piece isn't just a formality - it gives you access to preferential duty rates at Danish customs. Double-check and ensure Vietnam, as the manufacturing country, is clearly stated. Let's say you're shipping a batch of bamboo furniture; by providing a Certificate of Origin, you'll validate that the furniture is truly made in Vietnam, thus possibly enjoying lower customs duties. This certificate becomes your passport to a smoother, more cost-efficient shipping experience. Save money, avoid complications and make customs clearance a breeze.

Certificate of Conformity (CE standard)

The Certificate of Conformity to CE standard is a key requirement when exporting goods from Vietnam to Denmark.

Essentially, this declares that your product complies with all applicable European health, safety, and environmental protection standards, targeting businesses that are breaking into the lucrative European market.

While a Quality Assurance certificate shows that your product meets specific quality requirements, the CE Mark proves its compliance not just with quality but with safety standards as well. However, if you're accustomed to US standards, think of it as the European equivalent to the FCC Declaration of Conformity or DOT requirements.

To simplify your shipping process, always assure your goods meet these standards upfront, sparing you from potential hitches at the Danish customs.