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

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

Deciphering the duties and taxes when importing from Vietnam to Turkey can be quite the puzzle without the right pieces. Here's what you'll need: the origin country of the goods, their Harmonized System (HS) code, their customs value, the tariff rate applicable, and awareness of other possible taxes and fees that your products might attract. This comprehensive comprehension gives you a detailed forecast of the shipment, aiding with your budgeting and costing.

So, where do you start? Begin at the beginning - identify the country where your goods were manufactured or produced. This becomes the foundation from which the rest of these calculations will be pieced together.

Step 1 - Identify the Country of Origin

Knowing your product's country of origin, in our case Vietnam, is the crucial first step in estimating duties and taxes for imports to Turkey. Why is this so important?

1. Building Marekting Strategy: Your product's origin helps shape your marketing plan. If it's part of a recognized trade agreement, it adds credibility to your product.

2. Trade Agreement Advantages: Vietnam has a free trade agreement with Turkey, which can significantly lower or even eliminate import duties.

3. Customs Classification: The origin influences how customs classifies your product, affecting the Harmonized System (HS) code assigned.

4. Import Restrictions: Some commodities from Vietnam may face import constraints in Turkey. Always check for any restrictions to avoid potential issues at the border.

5. Compliance with Laws: It ensures your company respects the legal requirements, including anti-dumping laws, of both countries.

So, equip your business with the right tools by acknowledging the role the country of origin plays in your importing journey. It may seem like a given, but appreciating its impact might save your company time, prevent potential legal issues, and possibly drive your marketing strategies. On your path to going global, let's not overlook the basics.

Step 2 - Find the HS Code of your product

The Harmonized System Code, commonly referred to as the HS Code, is an international product classification system developed by the World Customs Organization. It designates every item that can be transported globally with a unique six to ten-digit number. This allows customs to identify the content of your shipment and ensures correct taxation and duties are applied.

Under normal circumstances, to find an HS Code, it's often most straightforward to ask your supplier. They would be familiar with the products they are exporting and the corresponding regulations.

Not to worry if you can't get the code from your supplier, we've got you covered. Here is a step-by-step guide to finding it yourself:

- Step 1: Visit the Harmonized Tariff Schedule .
- Step 2: Type the name or a brief description of your product into the search bar.
- Step 3: Look at the 'Heading/Subheading' column. The number you see there is the HS code for your item.

A word of caution, though: Accuracy is paramount when choosing an HS Code. Any error can drastically delay your shipment and potentially result in fines. Therefore, ensuring you have accurately coded your product is critical for a smooth customs process.

Wrapping things up, here's an infographic showing you how to read an HS code. With this information and the guide above, you should be fully equipped to locate and understand the significance of your product's HS code.

Step 3 - Calculate the Customs Value

Sure, you're scratching your heads over the term 'Customs Value,' right? Well, it's not as mysterious as it sounds. Though it seems like just the value of your product, there's a bit more to it. Remember the lovely jewelry worth $1000 you're shipping from Vietnam to Turkey? Here's the twist - its customs value isn't $1000. Shocked? Let's break it down.

The customs value, also known as CIF value (Cost, Insurance, and Freight), adds three major elements - cost of your product ($1000 in our case), cost of international shipping (say, $200), and the insurance cost (perhaps $50). So, the Customs value in this example is $1250, not merely the value of the product. Hope this cleared things up!

Step 4 - Figure out the applicable Import Tariff

An import tariff is a tax put on goods imported from abroad, designed to protect domestic industries. For onward shipment from Turkey, your imported goods from Vietnam will be subject to this tariff.

To find out the applicable rate for your particular product, you need to consult the TARIC System - European Customs. Remember the HS code we identified earlier? Key that in, also stating Vietnam as the country of origin, and the tool will provide you with the duties and taxes applicable to your product.

Let's illustrate with a real-world example. Suppose you're importing electric bicycles (HS code 8711.60) from Vietnam. If, for instance, the tariff rate stands at 6%, and your declared insurance and freight (CIF) value is $10,000 USD, you would calculate your import duties this way:

6/100 (tariff rate) x $10,000 (CIF) = $600

So, you would be expected to pay $600 in import duties. Understanding this process helps you foresee costs and better plan for your freight forwarding from Vietnam to Turkey.

Step 5 - Consider other Import Duties and Taxes

Beyond standard tariffs, there are often extra import duties, varying based on product type and originating country. For instance, excise duty, an indirect tax levied on certain goods like alcohol. Similarly, anti-dumping taxes can come into play if Vietnam products are sold cheaper in Turkey than their domestic price in Vietnam.

But the most significant is probably VAT (Value Added Tax), a general consumption tax levied on goods and services. In Turkey, standard VAT rate was 18% as of 2021, but can be lower for specific goods.

Let's consider an example: You are importing electronics worth $10,000 from Vietnam to Turkey. Suppose there's a 10% tariff ($1,000), 3% excise duty ($300) and 18% VAT. The VAT will be levied not only on the initial value but also on the tariff and excise duty, effectively meaning you pay VAT on $11,300 ($10,000 + $1,000 + $300), which equals $2,034.

In total, you'll pay an estimated $3,334 in import costs ($1,000 + $300 + $2,034). Bear in mind, these are example figures and actual rates can differ. So, it's always crucial to check the most up-to-date rates while planning your budget.

Step 6 - Calculate the Customs Duties

Calculating customs duties in Turkey involves a formula that takes into account the customs value of your goods, Value Added Tax (VAT), and possibly other taxes such as anti-dumping and Excise Duty.

Example 1: If you have a customs value of $10,000 but no VAT, the duty could be simple - let's say a 5% duty: $10,000 x 0.05 = $500 would be your customs duty.

Example 2: If your goods have the same customs value and a VAT of 18%, calculate the duty first: $10,000 x 0.05 = $500, then add the VAT on the total ($10,000 + $500): $10,500 x 0.18 = $1,890, making the total for duty and VAT $2,390.

Example 3: Now, suppose there's an anti-dumping tax of 10% and Excise Duty of 15%. Start with the duty: $10,000 x 0.05 = $500. Then the anti-dumping tax: $10,000 x 0.10 = $1,000. Add both to the customs value: $10,000 + $500 + $1,000 = $11,500. Add VAT: $11,500 x 0.18 = $2,070. Now, add Excise Duty on the resulting value, $11,500 + $2,070 = $13,570 x 0.15 = $2,035.5. Your total then amounts to $13,570 + $2,035.5 = $15,605.50.

Navigating customs can seem daunting, but with FNM Vietnam at your side, we'll ensure you're never overcharged. Providing global customs clearance services, we're ready to assist you. Contact us for your free quote within 24 hours - your hassle-free shipping is our mission.

Bill of Lading

When shipping goods from Vietnam to Turkey, the Bill of Lading (B/L) becomes your best friend. Acting as a receipt, contract, and title of goods, it's like the ID of your cargo showing what's onboard. It's a vital part of the customs clearance process, often required by Turkish customs officials to confirm the goods' ownership. Let's not forget its cousin, the Air Waybill (AWB), that takes charge during air transport!

In today's digital age, telex release or 'electronic B/L' could save you precious time and unnecessary paperwork. Swift and secure, it enables the faster release of goods at the destination. Think about that last-minute order that needs an express delivery!

Practical tip? Always double-check details on your B/L or AWB - a single error may lead to costly delays! Embrace the telex release when speed is the name of the game. Shipping internationally is a tough puzzle, but the right pieces can turn it into a smooth sail!

Packing List

Nailing your Packing List is like unlocking the door to straightforward shipping from Vietnam to Turkey. Picture this, the Packing List acting as the referee of your shipment game - it outlines exactly what's in each box, the quantity, and the weight. It's your responsibility to ensure every detail is accurate, whether you're sending textiles by sea or electronics by air. Think of a box filled with silk garments mislabeled as cotton - it could lead to misplacement or even seizure at customs. A thoroughly checked Packing List is not just a piece of paper, but a key to save you from a lot of unexpected headaches and delays. So, load diligently, list accurately, send confidently!

Commercial Invoice

Shipping goods between Vietnam and Turkey? A well-prepared Commercial Invoice can ease your customs clearance process. This essential document should detail your shipment's value, description, HS code, and country of origin. Remember, the Turkish customs authorities will use these details to calculate duties. Always make sure it's aligned with your other documents, especially the packing list, to avoid delays at the border. An actionable tip? Be thorough and accurate - a precise description and correct classification can save you from unexpected tariffs. Your cargo, whether it's Halong Bay's seafood or Istanbul's ceramics, deserves a trouble-free journey. So, invest time in preparing your Commercial Invoice, and enjoy a smoother shipping experience.

Certificate of Origin

When it comes to navigating customs between Vietnam and Turkey, the Certificate of Origin (CoO) can be a real game-changer. This vital paper certifies that your goods were produced in a particular country—in this case, Vietnam. Why does this matter? Well, Turkey has some preferential duty rates with Vietnam, so flashing your CoO can potentially shave those costs down. Think of it like a VIP ticket for your shipment, offering some nifty financial perks. For example, if you're exporting Vietnamese furniture to Istanbul, your CoO could be the golden ticket to a speedy customs clearance and lower duty rates. Just remember to clearly state 'Vietnam' as the country of manufacture and voilà—smooth sailing for your goods from Hanoi to Ankara.

Certificate of Conformity (CE standard)

When shipping goods from Vietnam to Turkey, your products need a Certificate of Conformity (CE standard). This certificate proves your goods meet the health, safety, and environmental protection standards of the EU. Although Turkey isn't a member of the EU, it still requires CE marking because it plans to become a member and has aligned its standards with those of the EU.

However, you can't equate the CE marking with quality assurance. While it certifies compliance with regulations, it does not guarantee quality in a traditional sense. Also, don’t confuse it with US standards like UL or FCC, which serve similar purposes but with different criteria.

To simplify the process, ensure your goods conform to the required standards before they leave Vietnam. This way, you'll avoid unnecessary hitches at the Turkish border that could delay your goods.