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

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

Navigating the complexities of customs duties and taxes requires a strong understanding of various factors, from the country of origin and the Harmonized System (HS) Code, to the customs value and the applicable tariff rate; and not to overlook any additional taxes and fees that might be relevant to your products. Initiating this process towards a seamless export experience from Vietnam to Greece begins with clearly identifying where exactly your goods have been manufactured or produced.

Step 1 - Identify the Country of Origin

Unearthing the trade origin of your goods is paramount, and here's why:

1. Clarity in Customs: Knowing your goods' origin provides clarity in customs documentation, smoothing out the clearance process.
2. Accurate Duty Calculation: It guides precise customs duty estimation, thereby saving unnecessary expenditure.
3. Trade Agreement Perks: Greece and Vietnam share dynamic bilateral trade agreements. Preferential tariff treatments may apply to your goods, reducing your costs.
4. Navigating Import Regulations: Certain goods face import restrains due to their country of origin. Understanding this could help you avoid unexpected hiccups.
5. Authenticity Assurance: Establishing the country of origin affirms your authenticity and compliance with international trade laws.

Now, let's dive into the specific trade relationships Greece and Vietnam share:

1. The EU-Vietnam Free Trade Agreement established in August 2020 opens doors for massive import tax redemptions.
2. Vietnam agrees to eliminate 99% of its import duties over a 10-year period, spelling lower costs or even exemptions for your imports.

For specific import inhibitions, check the European Commission's Import Conditions database. This valuable tool keeps you aware of restrictions and helps you make an informed decision. Remember, knowledge is power in successful importation!

Step 2 - Find the HS Code of your product

Understanding the Harmonized System Code (HS Code) of your product is key to successfully shipping your goods internationally. The HS Code is a universal classification system for products created by the World Customs Organization. Each product has a unique HS Code that helps customs officials to recognize what the products are, what tariffs apply, and if there are any import/export restrictions.

Ordinarily, your supplier would be able to provide you with the HS Code since they are thoroughly familiar with their products and the corresponding regulations. However, if that's not possible, don't worry. There's an easy step-by-step way to find the HS Code of your goods.

Your first step is to utilize an HS lookup tool. One reliable online option is the Harmonized Tariff Schedule.

Next, enter the name of your product into the search bar provided on the website.

Following that, look through the Heading/Subheading column where you'll find the HS Code associated with your product.

A point of caution though - the choice of an HS Code requires precision. Inaccurate coding can lead to unwanted delays and potentially even fines due to misdeclaration. Hence, you must make sure that the HS Code you choose absolutely corresponds with your product.

Wrapping up, for a clearer understanding of HS codes, here's an infographic showing you how to read an HS code. Learning this will smooth your journey in shipping goods internationally.

Step 3 - Calculate the Customs Value

Sure, you might be wondering if the customs value is just the product's cost. It's a little more complex, yet fully navigable. This represents your imported goods’ value, including the product price, international shipping cost, and insurance cost – charmingly acronymized to CIF value. Here's how it works: if your product from Vietnam costs $1000, the shipping charges are $200 and insurance is $50, then your customs value for the Greek Customs Authority is $1250 (not just the $1000 product cost). This value is pivotal while determining import duties, so getting this right helps avoid any surprises with your shipment. It's like getting a full price tag for your imported goods, no hidden charges!

Step 4 - Figure out the applicable Import Tariff

Import tariffs are fees that importing countries levy on foreign goods to protect their local industries from competition or generate revenue. In Greece, which, as part of the European Union, follows the Common Customs Tariff (CCT).

To identify the applicable import tariff for goods imported from Vietnam, one needs to use the TARIC System - European Customs. By entering the Harmonized System (HS) code - a standardised coding system for commodities - and specifying the country of origin, you can check the duties and taxes applied to your product.

For instance, if you're importing footwear from Vietnam with an HS code of 640399, you might observe a tariff rate of 10%. If the Cost, Insurance, and Freight (CIF) values sum up to $1000, your import duty would be $100 (10% of $1000), excluding other taxes.

These steps and the TARIC tool provide valuable insights into your potential outlays, empowering you with the ability to plan appropriately and efficiently while staying compliant with customs regulations. However, be aware that rates can change as part of trade agreement negotiations or other changes in regulations. Keep your research up to date to ensure a smooth importing process.

Step 5 - Consider other Import Duties and Taxes

Beyond standard tariffs, you'll often find additional import duties determined by the nature of the product and its country of origin. For instance, products like tobacco or alcoholic beverages manufactured in Vietnam may attract an excise duty, a tax levied on certain goods considered harmful or linked to health issues.

Anti-dumping duties are another cost, imposed to protect domestic industries from foreign goods priced below fair market value. For example, if Vietnamese steel is being sold at incredibly low prices in Greece, an anti-dumping duty might be applied to level the playing field.

However, the most significant additional duty you'll likely encounter is the Value Added Tax (VAT). In Greece, the standard VAT rate is 24%, applicable to the CIF price (Cost, Insurance, Freight) plus duty. So, if your shipment's CIF price is $1,000 and the duty is $100, your VAT would be $264 ($1,100 24%).

Keep in mind, these are illustrative figures; actual rates may vary. It's crucial to accurately calculate these duties to avoid pitfalls in your import process and ensure your venture remains profitable. A trusted freight forwarder can aid in navigating these complexities, ensuring your goods arrive safely and cost-effectively.

Step 6 - Calculate the Customs Duties

Calculating the Customs Duties for your goods from Vietnam to Greece involves three potential components: Customs Value, VAT, and anti-dumping taxes. Let's clarify each with examples.

Example 1 (Customs Duties only): If your consignment has a customs value of $10,000, and the duty rate is 5%, the customs duty payable would be $500.

Example 2 (Customs Duties and VAT): If your shipment worth $20,000 attracts a 5% duty rate and 24% VAT, first calculate the duty ($20,0005% = $1,000), then VAT is charged on the customs value plus duty ($21,00024%= $5,040). Total amount payable is $1,000 (Duty) + $5,040 (VAT) = $6,040.

Example 3 (Customs Duties, VAT, anti-dumping taxes, Excise Duty): For a parcel valued at $30,000 with a duty rate of 5%, VAT 24%, anti-dumping tax 12%, and Excise Duty of 3%, calculate duty and Vat as above, add the anti-dumping tax ($30,00012%= $3,600), and calculate Excise duty on the total of customs value, duty, VAT and anti-dump ($34,2003%=$1,026). Total payable is $10,666.

Remember, FNM Vietnam's customs clearance services ensure you're never overcharged. Let us handle all your customs obligations everywhere. Contact us to receive a free quote within 24 hours.

Bill of Lading

The Bill of Lading is your cargo travel buddy, marking the exact moment your shipment becomes legally yours upon arrival in Greece from Vietnam. Think of it as a baton in a relay race, smoothly transitioning ownership. Accompanied with an electronic or 'telex' release, you're ready to jump the customs queues, saving you time in that race against the clock. But hey, don't confuse it with the AWB, that's reserved for your air shipments. So, before you pop the champagne to celebrate your goods' arrival, make sure you've got your Bill of Lading sorted. Time for hassle-free customs, right?

Packing List

The Packing List is your safety net in the shipping world, especially when navigating the trade waters between Vietnam and Greece. Think of it as the roll call for your goods. It accurately lists what you're shipping, the quantity, a description, and often the weight. For instance, are you shipping 100 handmade bamboo lanterns? Your Packing List gets down to the nitty-gritty: size, material, net and gross weight, package count, etc.

Creating an accurate Packing List might seem daunting, but it's the key to a smooth customs clearance, whether you've opted for sea or air freight. Customs officers rely on this document for their vital checks. Remember, a superficial or incorrect Packing List can cause delays or even penalties. So, accuracy is paramount. Don't rush and double-check your list, whether you're exporting souvenirs from Hoi An or importing Greek olive oil. A well-prepared Packing List can pave the way for smooth, hassle-free shipping between Vietnam and Greece.

Commercial Invoice

Ready to send your goods from Vietnam to Greece? An accurate Commercial Invoice is key. It should detail vital information like the exact nature and quantity of goods, their value, and terms of delivery, all written in English. Here's a tip: align your invoice information with other shipping documents. Any mismatch can cause delays during customs clearance. Let's say 10 cartons of silk garments on Bill of Lading must reflect in the invoice too. Keep in mind, the Greek customs refer to this invoice for calculating duties. Therefore, ensure your invoice is meticulously filled. A flawless Commercial Invoice is your license for a smooth logistical journey. Happy Shipping!

Certificate of Origin

Getting goods from Vietnam to Greece isn't as easy as packing a box and sending it off. That shipment must have a valid Certificate of Origin. This document clarifies where your goods were manufactured—it's like a passport for your products. It verifies the 'birthplace' of your imports or exports and is crucial for obtaining preferential customs duty rates. For instance, suppose your shipment includes furniture handcrafted in Ho Chi Minh City. Without the Certificate stating Vietnam as its country of origin, you might lose out on reduced tariffs under trade agreements. Remember, every penny counts in business—don't let oversight cost you. Thus, ensure that your Certificate of Origin is in order to streamline your shipping process from Vietnam to Greece.

Certificate of Conformity (CE standard)

Shipping products from Vietnam to Greece? Here's the skinny on the Certificate of Conformity (CE standard). This vital document demonstrates your goods meet the health, safety, and environmental standards set by the European Union. Unlike general quality assurance that confirms your goods meet your company's internal standards, a CE mark is like a passport for your products in Europe. The U.S. equivalent would be the FCC Declaration of Conformity. Do note that if you're dealing with certain high-risk goods, you might need an independent conformity assessment from a Notified Body. Make sure to review the Official Journal of the European Union to check if your products require this.