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

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

Understanding how to estimate duties and taxes when importing goods from Vietnam to Sweden can streamline your experience and reduce unexpected costs. This process involves several key components: the country of origin, the Harmonized System Code (HS Code), the customs value, the applicable tariff rate, plus any additional taxes and fees specific to your product. Each element plays a crucial role in determining the total amount you will need to pay at the border. The very first action in this process? Pinpointing precisely where your goods were manufactured or produced.

Step 1 - Identify the Country of Origin

Knowing the country of origin is the first key step in estimating duties and taxes for shipping goods from Vietnam to Sweden. This fact seems simple, but it influences five critical aspects:

1) Trade Agreements: Vietnam and Sweden, both being part of Free Trade Agreements (FTAs), can influence the tariff rates. Under the EU-Vietnam FTA, many goods may have reduced or even zero customs duties.

2) Commodity Code or HS Code: Origin details help determine the correct HS code, setting the path for duty calculation.

3) Anti-dumping Duties: The country of origin can influence potential anti-dumping duties, to preserve fair trade.

4) Import Restrictions: Certain goods originating from Vietnam might encounter restrictions, such as specific food products or textiles.

5) Certificate of Origin: This document, stating the goods' origin, is vital. Any error here can lead to customs disputes and delays.

So, remember, before you look up that HS code, know your goods' origin. It can save time, enable you to take advantage of trade agreements, and avoid potential hold-ups at customs.

Step 2 - Find the HS Code of your product

The Harmonized System Code, or HS Code, is a standardized numerical method of classifying traded products. Developed by the World Customs Organization, it's used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics.

Locating your product's HS Code might seem daunting, but it's often as simple as asking your supplier. Since they're intimately familiar with the goods they're importing, they should have this information on hand.

However, if that route isn't available to you, don't worry. We're here to guide you through the process of finding the HS Code yourself. You can utilize an HS lookup tool, such as the Harmonized Tariff Schedule.

First, visit the site and enter your product's name in the search bar. Once the search results appear, look at the Heading/Subheading column - your product's HS code will be there.

Please take note: Accuracy is crucial when it comes to identifying your product's HS Code. Inaccuracies can lead to shipping delays and even potential fines, so it's essential to make sure you have the correct code.

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

Step 3 - Calculate the Customs Value

You're probably thinking, Isn't customs value the same as the value of my products? Not quite! While your product value is your actual item cost, customs value consists of the product value plus the cost of international shipping and insurance, represented as the CIF value. Here's how it works: If your goods are worth $10,000, shipping costs $2,000, and insurance is $500, then your customs value would be $12,500. Remember, the authorities calculate duties based on this customs value, not the actual product cost. So, estimating accurate customs value is vital to avoid unexpected expenses in your shipping journey from Vietnam to Sweden.

Step 4 - Figure out the applicable Import Tariff

Import tariffs are essentially taxes that are applied to imported goods. For goods imported from Vietnam to Sweden, the applicable import tariff can be determined using the TARIC System - European Customs. Here, the Harmonized System (HS) code of the product and the country of origin (Vietnam) are required entries.

Let's consider importing furniture, which comes under HS code 9403. If you have followed the earlier steps and have this code handy, and know your product originates from Vietnam, you simply enter these details into the TARIC system. In this case, you will see an import tariff of 0% under the preferential tariff arrangements with Vietnam (it might change with time or for different products).

After this, you calculate the duties. For instance, if your Cost, Insurance, and Freight (CIF) costs amounted to $10,000, you'd take 0% of that value, which equals $0. This means there are no import duties levied on this particular product.

Remember, it's essential to double-check all figures and stay updated on any changes to prevailing customs duties to ensure accurate calculations.

Step 5 - Consider other Import Duties and Taxes

In shipping goods from Vietnam to Sweden, apart from the standard tariff rates, you should be prepared for additional import duties. These are often influenced by the product's nature and its country of origin.

For instance, excise duty might apply if you're importing specific goods like alcohol or tobacco. Similarly, anti-dumping taxes may come into play if a product is priced below its market value.

The most crucial tax to consider, however, is Value Added Tax (VAT). In Sweden, the standard VAT rate is 25%, but it could be 12% or 6% for certain goods. It’s important to note that VAT is charged on the total value of the goods plus the import costs including freight and insurance, adding to the overall expense.

Let's consider a quick example: Assume that you're importing machinery parts worth $5000 and incurred shipping costs of $500. The VAT would be levied on $5500 (i.e. $5000 + $500) and not merely the product's value.

These figures are hypothetical and for illustrative purposes only. The actual rates may differ, hence consulting with a customs expert or conducting a detailed research is advisable.

Understanding these additional costs and planning accordingly plays a pivotal role in ensuring your importing journey to Sweden is smooth and cost-effective.

Step 6 - Calculate the Customs Duties

This section dives into the formula for calculating customs duties while importing goods from Vietnam to Sweden. The customs duty is calculated on the customs value of the goods, which includes the cost, insurance, and freight (CIF).

For example, if your consignment's CIF value is $10,000, and the duty percentage established by the Swedish Customs Authority for your product is 10%, the duty payable is $1,000.

The Value Added Tax (VAT) is an additional fee and it's determined by applying the current VAT rate on the total value of goods plus customs duty. If the VAT rate is 25% and you already have a customs duty of $1,000, the VAT will be calculated as 25% of ($10,000 + $1,000), which is $2,750.

Sometimes, an anti-dumping duty applies to protect the local industry. Assume an anti-dumping tax of 10% for your goods. It's applicable on CIF + customs duty value, making it 10% of $11,000, that is, an extra $1,100.

Moreover, excise duty might come into play for specific goods like alcohol or tobacco. Let's say the excise duty is 5% on the aggregate of all previous charges. This means an additional 5% on $12,850 ($10,000 + $1,000 + $1,100 + $750), which is $642.5.

Sorting through these calculations might seem challenging. That's where FNM Vietnam comes in! Our end-to-end customs clearance services ensure an effortless journey for your goods, minimizing your costs. Contact us for a free quote within the next 24 hours. Let us take care of the details for you!

Bill of Lading

Shipping your goods from Vietnam to Sweden? Crucial to your epic freight journey is the Bill of Lading or B/L. Think of it as the golden ticket, transferring ownership from the shipper (that's you!) to the consignee once the goods touch Swedish soil. Want a modern twist? Opt for the electronic, or telex release - it's faster, eco-friendly and can't be lost in transit. More of an air cargo fan? Your AWB, or Air Waybill, will hold similar weight in the airspace above. Just remember, always double-check your B/L or AWB details - anything amiss could mean your goods sampling some unwanted Vietnamese or Swedish delicacies. Happy shipping!

Packing List

Creating a Packing List is key when shipping goods from Vietnam to Sweden - it's your lifeline. This document should clearly detail your shipment's content, weight, dimensions, and value. Imagine you're sending an array of mechanical components via sea freight. Without a meticulous Packing List, getting through customs could turn into a real headache. The customs officers might be baffled by what’s inside those crates, delaying clearance, or worse, leading to a hefty fine. It's not just sea freight, though. Craving that ultra-fast airfreight delivery? A Packing List is vital here too. Why? It ensures quick identification of your goods at customs, speeding up the process handily. So, whether you're sending porcelain tableware or car parts, be on point with your Packing List - it could make or break your shipping experience.

Commercial Invoice

When shipping goods from Vietnam to Sweden, your Commercial Invoice holds immense importance. Think of it as a passport for your cargo; it's filled with critical data like the sender's and receiver's details, description of goods, Harmonized System (HS) codes, and valuation. Transparency is key here - ensure every detail aligns with what's on the packing list and the Bill of Lading to avoid delays.

Here's an insight. Mention your goods' origin, even if it's not Vietnam. Factor in insurance and freight when calculating the value – this will be systematic when calculating import duties at the Swedish Customs. Remember, accuracy saves time and money. Give thought to your HS codes too. They might seem daunting but getting them right eases your goods' journey through customs, ensuring a smooth shipping experience.

Certificate of Origin

Navigating customs between Vietnam and Sweden can be a breeze with a Certificate of Origin (CO). The power of this paper lies in its affirmation of your goods' birthplace. For instance, it's your ticket to preferential duty rates, a sweet bonus that can considerably shrink costs. When filling out your CO, don't leave the country of manufacture field blank. It's like forgetting to put your passport in your travel bag — you wouldn't get far. Imagine you're shipping Vietnam-made footwear to Sweden; correctly stating Vietnam as the country of origin on your CO ensures a smooth sail through Swedish customs. Armed with a CO, your goods stand a greater chance of reaching their destination without a hitch. Remember, an incomplete CO is a recipe for delay. Always double-check your documents before shipping.

Certificate of Conformity (CE standard)

When shipping goods from Vietnam to Sweden, your products may need a Certificate of Conformity to the CE standard. This certification is crucial considering Sweden's role in the European market. Unlike typical quality assurance, the CE marking verifies that your product aligns with the health, safety, and environmental protection standards outlined by the European Economic Area (EEA). In the US context, such standards could be compared to the FCC Declaration of Conformity or the UL listing. For action, consider reviewing your goods against the CE requirements before preparing a shipment to Sweden. This proactive approach can save time during customs clearance, ensuring a smooth shipping process.