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

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

Calculating customs duties when importing goods from Vietnam to Norway or any other global destination, hinges on several vital factors. These include country of origin, the Harmonized System (HS) Code, the Customs Value, the applicable tariff rate, and any additional fees or taxes leveled on the product type.

Let's start by identifying the country of origin—this refers to where your goods are actually manufactured or produced, in this case, Vietnam. This will play a significant role in how duties and taxes are calculated, as different nations have different trade agreements that can influence these costs.

Whether it's consumer electronics or traditional handicrafts, every piece of information has a role to play in determining the final cost of importing your goods from the busy ports of Ho Chi Minh City to the serene fjords of Norway.

Step 1 - Identify the Country of Origin

While it may seem obvious, recognizing Vietnam as the country of origin is a fundamental step. Here's why:

1. Trade Agreements: Vietnam and Norway are signatories to numerous trade accords. Understanding these arrangements gives you insight into potential customs duty reductions or exemptions.
2. Duty Rates: Import duties vary by origin. With Vietnam as a reference, you can accurately calculate your financial obligations.
3. Import Restrictions: Certain goods may face prohibitions or limitations. Staying aware of these restrictions ensures smooth transport.
4. Compliance: Accurate documentation prevents legal troubles. Your shipment’s country of origin is often requested.
5. Product Labelling: Certain countries require origin-specific labels. Avoid unnecessary delays by proper labelling.

Regarding the trade agreements, for instance, under the partnership and cooperation agreement (PCA) between Norway and Vietnam, a range of goods could see reduced or even zero tariffs.

Remember, verifying the country of origin like Vietnam helps streamline your import process, abiding by all Norwegian customs regulations. It's not just a tedious step in getting your HS code, but a protective measure ensuring a smooth delivery, minimizing cost, and maximizing efficiency.

Step 2 - Find the HS Code of your product

The Harmonized System (HS) of coding is a global standard used to describe items for customs procedures. This system uses codes, referred to as HS Codes, to classify products and calculate customs duties. These codes communicate important information about the product, such as what it is and where it comes from.

The simplest way to find the HS Code for your product is often simply to ask your supplier. They’re likely to have a sound understanding of their goods and the associated regulations.

However, if this route isn't open to you, no worries, we’ve got you covered. You can use the Harmonized Tariff Schedule's HS lookup tool. Start by entering the name of your product into the search bar. Next, look for the HS code listed in the Heading/Subheading column - that's the info you need.

A word of caution, though: Ensure you are choosing the correct HS Code. Accuracy in this step is imperative as incorrect codes can result in shipment delays and potential fines.

Here's an infographic showing you how to read an HS code. Make sure you familiarize yourself with it to avoid potential disruptions. Moving goods across borders doesn't have to be a daunting process, and with the right information, it becomes much easier.

Step 3 - Calculate the Customs Value

Step 3 in tackling customs clearance in Norway for your goods from Vietnam is calculating the Customs Value - an essential figure that might seem similar to your product's worth but holds a different implication. It isn't merely the price you have paid for your goods; rather, it represents the CIF (Cost, Insurance, and Freight) value, which includes the goods' price, international shipping costs, and insurance.

For instance, if your goods cost $5000, shipping is $300, and insurance is $200. Your Customs Value won’t be just the $5000, but it's a sum total - $6500.

This value is pivotal in determining how much duty you'll owe, so it's crucial to calculate it accurately, keeping all costs in USD. Always remember, the right calculations can substantially streamline your shipping journey from Vietnam to Norway.

Step 4 - Figure out the applicable Import Tariff

An import tariff is essentially a tax imposed on goods that are imported into a country. For goods imported from Vietnam to Norway, it's crucial to understand the specific tariff that applies to your product. In this case, the 'Most Favored Nation' (MFN) tariff is applied in Norway, a type of rate that guarantees non-discriminatory trading between nations.

To identify the tariff, follow these steps:

1. Use the TARIC System - European Customs to find the applicable tariff.
2. Enter the HS code you've identified earlier and Vietnam as the country of origin to check the duties and taxes applied to your product.

Let's illustrate this with an example. Assume we're importing furniture, with an HS code of 940161 (upholstered wooden seats). Entering this data into the TARIC system might indicate an MFN tariff rate of, say, 5%. To calculate the import duties, we must consider this rate along with the Cost, Insurance, and Freight (CIF) value. If the CIF value totals to $10,000, the import duties would be: 5/100 $10,000 = $500.

Remember, understanding your product's specific tariffs is essential for cost planning and regulatory compliance, ensuring a smooth import process.

Step 5 - Consider other Import Duties and Taxes

When importing goods from Vietnam to Norway, it's crucial to keep in mind that besides the standard tariff rate, other import duties may apply depending on the product type and country of origin.

For instance, an excise duty might apply to certain goods like alcohol or tobacco. If the goods are under anti-dumping legislation, additional taxes might be levied to protect local industry.

But, the most significant is the Value Added Tax (VAT). For example, if a shipment of ceramics (hypothetical, rates can vary) is valued at $10,000, with a customs duty of 5%, the entry value for VAT is $10,500 ($10,000 + $500). If the VAT rate is 25%, the total VAT will be $2,625.

Remember, these charges can dramatically affect your bottom line, so it's essential to account for them. By doing so, you'll avoid unexpected costs and ensure a smoother shipping process. Researching beforehand and consulting with an expert can give you a specific overview of these potential charges.

Step 6 - Calculate the Customs Duties

When importing goods from Vietnam to Norway, duties are an essential part of your costing to get right. The customs duty is calculated based on the customs value of your goods.

For instance, if your product's customs value is $1000 with a duty rate of 5%, your customs duty will be $50.

Value Added Tax (VAT) can also come into play. Let's say your customs value is $2000 with VAT at 25% and a customs duty of 10%. You'll first find the duty ($200), then add this to the value of the goods ($2000+$200=$2200) before then calculating the VAT. Hence, your VAT would be $550.

Finally, consider anti-dumping duties and excise duties, applicable on certain goods to safeguard local industries.

For example, if you're importing footwear worth $3000, with a duty rate of 10%, VAT of 25%, anti-dumping tax at 15%, and an excise duty of 20%. You'd first calculate the customs duty ($300), then the anti-dumping duty on ($3000+$300) 15% = $495. Add all these to the goods' value ($3000+$300+$495 = $3795) to calculate the excise duty (20% $3795= $759). The total duties payable become $1554.

It's crucial to calculate these values accurately to avoid overpaying or falling afoul of local regulatory laws. At FNM, we specialize in tackling these complexities for you, providing seamless customs clearance services everywhere. We ensure a fair computation so you won't pay more than you should.

Contact us for a free quote within 24 hours.

Bill of Lading

Navigating the sea of shipping between Vietnam and Norway? Then the Bill of Lading is your essential lifebuoy. It's a game-changer, testifying the transition of cargo ownership from seller to buyer, while serving as a contract of carriage. As important as a captain's handshake, it details your shipment specifics - without it, customs might seem as daunting as VW-X ice class waters. But here's a secret, consider using a 'telex' or electronic release. A blessing in the digital age, it fast-forwards the process by eliminating the wait for an original document, much like the AWB (Air Waybill) does for air cargo. Listen, in the Norwegian fjords of freight, going electronic can be your shortcut to a smother journey. Remember, smooth seas never made a skilled sailor, but a timely Bill of Lading just might.

Packing List

Imagine you’re shipping a bunch of Vietnamese lacquerwares to Norway. Your Packing List is a key part of that journey. It's your chance to detail every item in your shipment, from the number of pieces to weight, dimensions, or even serial numbers. Make sure you get it right, whether you're using sea or air freight! Customs officers in both Vietnam and Norway will use this document to verify the contents of your cargo. Incorrect or incomplete details might lead to delays or even fines. Picture it like giving directions – the clearer and more accurate you are, the smoother the journey. Get more peace of mind by keeping your Packing List exact and up-to-date.

Commercial Invoice

When shipping goods from Vietnam to Norway, your Commercial Invoice is a key player. Reflecting the pact between buyer and seller, it not only details product specifics like the HS code, description, and unit price, but also carries tax implications.

For seamless customs clearance, it’s crucial that every detail aligns with those in your Packing List or Bill of Lading. Picture this - a mismatch in the cargo weight mentioned here and on your Bill of Lading can stall your freight at the Vietnam port, causing unnecessary delay and cost.

To avoid such logistical nightmares, double-check everything, right down to your terms of delivery (Incoterms). Remember, a well-drafted Commercial Invoice keeps the customs officials in both countries happy and your shipment on schedule.

Certificate of Origin

If you're shipping goods from Vietnam to Norway, don't overlook the Certificate of Origin (CoO).

This critical document verifies where your goods are manufactured. Being factual here can lead to substantial savings, as it may allow you to qualify for preferential customs duty rates under trade agreements. For instance, let's say you're shipping handheld electronic gadgets made in Vietnam. By including a CoO, you might enjoy lower duty rates, making your goods more competitive in the Norwegian market.

Bottom line? Never underestimate the impact of a correctly filled out Certificate of Origin. It's your key to smoother, more cost-effective shipments.

Certificate of Conformity (CE standard)

For shipping goods from Vietnam to Norway, your products need to carry a Certificate of Conformity (CoC), ensuring they adhere to the European CE standard, crucial in this European market.

Unlike general quality assurance, CE marking states that your product meets high safety, health, and environmental protection standards set by the European Economic Area (EEA). Essentially, it's your product's passport into Europe, including Norway. It differs from the American equivalent, where compliance with US standards is asserted through voluntary product testing and certification.

To streamline your shipping process, before exporting, ascertain whether your product requires CE marking and ensure compliance. It's a proactive step that could save you re-exporting headaches down the line.