Are you about to import (or export) products between Canada and Vietnam? You still have a doubt regarding the regulation or transport method? This is because it is very difficult to find decent information among the ton of online advice that FNM Vietnam has made its “country guide”.

1) What is the best method to ship your goods from Vietnam to Canada?

1.1) Sea freight shipping from Vietnam to Canada

1.1.1) Overview - Ocean cargo from Vietnam to Canada

Canada is one of the largest countries in the world.  Geographically, its situation crossing the northern American continent from east to west is providing great coastline on the Atlantic and the Pacific Ocean to the country. Numerous ports and well-developed  infrastructures are enabling the country to handle important volumes of goods. Canadian ports are all ranked in the list of the 25 busiest ports of north America, according to the American Association of Port Authorities (AAPA). The main ports of the country are Vancouver, Montreal, Halifax and Prince Rupert. Thereby, ocean freight is one of the most used methods to transfer goods between Canada and Vietnam.

1.1.2) Shipping companies offering services from Vietnam to Canada ports

Logo company CSAVLogo shipping company CMA CGMLogo company mscLogo shipping company cosco logo shipping company maersklogo shipping company evergreenlogo shipping company hapag lloydLogo Shipping company OOCLLogo shipping company ZIMLogo company K line

1.1.2.1) Port of Montreal

During the year 2017, the port of Montreal managed 38 million tonnes of goods in total. Among them, 14 million tonnes have been imported or exported by containers, which is corresponding to 1.5 million of TEUs. Others were 23.9 million tonnes of bulk. 61% of this bulk was liquid bulk, which is corresponding to 14.6 million of tonnes and the other 39% were solid bulk, which is corresponding to 9.3 million of tonnes of goods. Comparing to the previous year, the port of Montreal realised a growth of 7.6% of its goods’ traffic.

 

1.1.2.2) Port of Halifax

In 2017, port of Halifax handled 5 million tonnes of containerized goods, which is equivalent to 560 thousand of TEUs. Bulk goods handled during the same year were of 3.9 million of tonnes, which is a total of 8.9 million of tonnes of goods handled in 2017. This is describing a growth of 7% of the goods administered compared to the previous year.

 

1.1.2.2) Port of Vancouver

Port of Vancouver is the largest Canadian port and the 6th busiest port in North America, just after the neighbouring port of Seattle-Tacoma. In 2017, the port handled 142 million of tonnes of freight, which is describing a growth of 5% compared to the year 2016. Among these goods, 26 million of tonnes where containerized products which is corresponding to 3.2 million of TEUs. Bulk and transhipped goods will have respectively been of 98 million of tonnes and 16.6 million of tonnes during that same year. 430 thousands vehicles were imported or exported within this port.

 

1.1.2.2) Port of Prince Rupert

Port of Prince Rupert is the 3rd largest port of Canada. In 2017, it handled 9.2 million of containerized goods, which is corresponding to 926 thousand of TEUs. Among these goods, 5.2 million of tonnes where imported and 4 million where exported. In total 24.3 million of tonnes of goods where handled in Prince Rupert in 2017.

 

1.1.3) Should I ship by consolidation or full container from Vietnam to Canada?

1.1.3.1) What is LCL?

Also called groupage, LCL is one of the two management methods for space in a container. It serves to handle different small shipments in a same container. Thereby, your shipment will be assembled with shipments from other senders, and each person will only pay for the space he is using. It enables to allocate fairly the total cost of the container between each consignee.

 

1.1.3.2) What is FCL?

FCL is the other method to handle space inside a container. Simply, if your goods are voluminous enough to entirely fulfil a container, or to be financially interesting to rent it all, this method will be preferred to groupage.

 

1.1.3.3) In which conditions is FCL recommended?

Usually, FCL is more advantageous economically, when your goods are larger than 15 CBMs.

 

1.1.3.4) How can I determine which solution is better appropriated?

You still don’t know which method will be the most suitable to your personal situation? This table will help you to determine it:

LCLFCL
Advantages
Very adaptable way to send goodsThe total duration of the transfer will be shorter than in LCL
Easier to receive your goods, compared to FCLPrices per CBM are more interesting than LCL
You’re only charged for the space used by your goodsOnly two persons will handle your goods, your supplier and you
Well-adapted for small shipments 
Drawbacks
Prices per CBMs are higher than FCLThe decanting of the container is your duty
Operations of groupage and decanting are extending the total duration of the transferNot adapted for small shipments
Your products will undergo numerous handlingsYou must have skilled people for the decanting of your container

 

1.1.4) How long does it take to ship from Vietnam to Canada by sea freight?

The following table is describing the necessary navigation time between Vietnam and Canada.

Montréal HalifaxVancouver Prince Rupert
Hai Phong42 days40days25 days23 days
Quy Nhon40 days39 days25 days24 days
Ho Chi Minh City39 days38 days26 days25 days

*You can reach one of our consultants for further precisions on the necessary transit times between Vietnam and Canada

 

1.1.5) How much does it cost to ship a container from Vietnam to Canada?

*Maritime freight is generally privileged by Canadian importers because compared to other methods, it is the most economic for large cargos.

It is the main reason explaining why ocean freight is the most used solution to transfer goods between Vietnam and Canada. For important volumes air freight is generally very expensive. Thereby, for voluminous and regular transfer through times between both countries, ocean freight is the best solution.

1.1.6) Special sea freight services

1.1.6.1) Reefer container from Vietnam to Canada

The reefer container is often used by chemical and food companies. It enables to move sensitive or perishable goods in a totally mastered environment. Indeed, humidity and temperature inside a reefer container are controlled in all times. Between Canada and Vietnam, FNM can book you reefer container freight.

 

1.1.6.2) Roro/Bulk/OOG from Vietnam to Canada

Similar to ferry ships, Roll-on/Roll-off vessels, also called “Roro” are equipped with a retractable ramp at their extremity. This ramp enables to load important quantity of goods on trailer, and all sorts of vehicles. It is the method used to transfer all types of vehicles worldwide, like cars, buses, trucks, boats…

 If you’re aiming to transfer raw goods in great quantities, bulk is the solution you need. Bulk cargos are enabling to transfer large quantities of liquid goods (gas, oil…) and solid goods (cereals, wood, ores…) in their large tanks.

OOG goods, which stands for Out of Gauge is including all sorts of goods that can’t be transferred by bulk cargo or container, because they are too voluminous or elaborated. They are generally charged on trailers or platforms, and then transported inside Roro vessels or on the last stage of a container. The inherent handling operations must be processed with care.

1.2) Air freight shipping from Vietnam to Canada

1.2.1) Overview – Classic vs Express air freight

Express air freight is different from classic air freight, because the necessary time to deliver your goods is different. Indeed, to deliver your goods with express air freight, 4 days at most are necessary, while for classic air freight, around a week is required. This delay between the two methods is explained because the customs clearance is an automated process made inside express carriers’ facilities. For classic air freight it requires several hours, or even a day.

Express air freight (courier)Classic Air freight
Advantages
The fastest freight method existingA very flexible method
Well-adapted for small shipmentsMore advantageous than express depending on the volume of your shipment
The customs clearance is effectively madeQuicker than ocean freight
 The more you ship, the less you pay per CBM
 Only the space you’re using will be charged
Drawbacks
The most expensive freight solutionLonger than courier freight
Very expensive for heavy or large shipmentsOcean freight is less expensive
 Lithium batteries and other dangerous goods can be refused

 

1.2.1.1) What should I choose between courier air freight and classic air freight?

If your goods are measuring less than 2 CBMs and weighing less than 150 kgs, air freight will be more advantageous than sea freight. Between classic and express, the second is generally privileged for shipments smaller than 0.5 CBM and lighter than 30 kgs. Above, it is more expensive than classic air freight.

 

1.2.1.2) What is the difference between volumetric and gross weight?

*To better consider the density of your goods, two calculation methods are used to determine the chargeable weight of your items.

These two calculation methods are the gross weight and the volumetric weight. Thereby, you will determine two results, and the biggest will be considered to rate your shipment. The two pictures below are illustrating how to calculate with the two different methods:

how to calculate gross weighthow to calculate volumetric weight

1.2.2) Should I choose a Classic Air freight from Vietnam to Canada?

1.2.2.1) Which airlines company should you ship with?
1.2.2.2) How long is the transfer from Vietnam to Canada by air freight?

From Vietnam, more or less 20 hours are required for your goods to land in Canada.

 

1.2.2.3) How much does it cost to ship a parcel from Vietnam to Canada?

Air freight, like all other freight solution is requiring numerous information to be quoted. We will provide you a tailored quote thanks to our quoting policy. Thereby, our consultants will answer your demand in the best time for air freight services. Don’t hesitate to contact them.

 

1.2.3) Should I choose an Express Air freight from Vietnam to Canada?

1.2.3.1) Express service – Perfect solution for small package

For large volumes, express freight isn’t recommended because it will be very expensive. Contrariwise, if your shipment is lighter than 20 kgs and smaller than 0.5 CBM, it is an interesting solution. Also, it is necessary to remind that it is the fastest transfer method existing. Of course, if you’re absolutely requiring this method to transfer your goods, we will do it without regarding the volume or the weight.

 

1.2.3.2) How long does it take for a package to be shipped from Vietnam to Canada?

From your supplier’s location in Vietnam to your address in Canada, courier freight is requiring 4 days at most. This method is very quick because the customs clearance of your goods is made inside the facilities of the express carriers.

 

1.2.3.3) How much an Express service costs from Vietnam to Canada?

logo company tntlogo company fedexlogo company dhllogo ups

*To quote your express freight, a different method is applied instead of gross and volumetric weight. The following ratio must be considered: 1 CBM = 200 kgs

Because we’re evaluating each request individually for express also, we don’t have a price list for this kind of service. We’re transmitting a precise and detailed price once we have enough data. We have very competitive rates for this type of services with the courier companies, thanks to the business volume we’re providing to them each month. You will not have such great rates if you’re asking them prices directly.

1.2.4) Major airports to ship in Canada 

1.2.4.1) Toronto Airport

Toronto Airport is the most important airport in Canada, both in terms of freight and passengers. In 2014, 40% of the air freight in Canada was handled in this airport, which is corresponding to approximately 450 thousands of tonnes of goods. Around 50 million passengers travelled through this airport in 2017.

 

1.2.4.2) Vancouver Airport

Vancouver airport is the most important airport on the east coast of Canada. In 2016, this airport welcomed more than 22.3 million of passengers. During the year 2017, around 313 thousands of tonnes of cargo were administered in Canada through this airport. It is situated on the Sea Island in the estuary of the Fraser river, south of Vancouver.

 

1.2.4.3) Montréal Airport

Montréal Airport is the third airport of the country, both in terms of passenger and cargo flights. 206 thousand tonnes of goods were handled there in 2017, and 18 million passengers travelled there during the same period. It is corresponding to a growth of 7% of the cargo volume handled compared to the previous year.

 

1.2.4.4) Calgary Airport

Calgary Airport handled 147 thousands of tonnes of cargo and 16.3 millions of passengers in 2017. It corresponds to a growth of 4% of the passenger number compared to the previous year.

 

1.3) Door-to-door transport from Vietnam to Canada

1.3.1) Overview – Door to Door

Door-to-door, also called “All-in” freight, is the transport service that will provide you the greatest peace of mind. Indeed, we will handle the complete execution of your freight, including all the phases of storage, customs clearance, main and secondary transport… Until we deliver your goods to your address. We’re totally responsible of each phase of your transfer, which provides you serenity and time to achieve other things. The comfort provided with this solution is greatly appreciated by our customers.

 

1.3.2) Why door-to-door services are necessary?

Door-to-door is enabling us to ensure the greatest fluidity of your transfer from the start to the end. Indeed, our agents in Vietnam and Canada will cooperate to get rid of all possible delay and added costs, caused by communication mistakes between all the parties involved for your freight. Also, steps like the customs clearance will be monitored thanks to our collaborator’s proficiency with Canadian and Vietnamese customs.

2) Customs clearance in Canada for goods imported from Vietnam

2.1) How much will the customs clearance cost?

Before all import process, it’s a must to estimate the freight and customs clearance cost of your goods in Canada. Canada, Vietnam and all other countries that are members of the World Trade Organization (WTO) are using the Harmonized System. Thanks to this, all the articles that you’re buying have the same ID code worldwide. This ID is called the “HS code” and is composed of 6 figures.

 

2.2) Calculate the import taxes that you will be liable to with the HS code

For instance, the HS code of a pineapple is 08043010, the picture below is describing the signification behind the code :

hs code of a pineapple

In case that you still don’t know what is the HS code of your product, the website of the Canadian post implemented an interesting tool to help you determine it. Let’s take still the example of a pineapple. When typing pineapple in the search bar, and choosing Canada as a country of destination, you will find the corresponding HS code:

Now that you know the HS code of your product, you can find the inherent import taxes. In this objective you have to consult the departmental codification of the customs tariff 2019. In a first time, it is interesting to know which tariff treatment is applied to products made in Vietnam. In this objective, you can reach the page 27 of the document. You will find that Vietnamese goods can benefit of the Most Favoured Nation (MFN) and the General Preferential Tariff (GPT).

You can now determine the amount of import taxes you will pay on your products. In this objective, you must go to the corresponding chapter. Still for pineapple, it is the chapter n°8 “EDIBLE FRUIT AND NUTS; PEEL OF CITRUS FRUIT OR MELONS” beginning at the page 149 of the document. Tariffs on pineapples are described on the page 154, where you can see:

Prices are referred per Kgs of goods, as you can see. But pineapples are free of import taxes, so you will not have to pay any tariffs when you import this product.

For all other kind of goods, please refer to the corresponding chapter, to the precise unit of measure used and the applicable preferential rate.

 

2.2.1) VAT in Canada

Canada is implementing a unique system in terms of VAT. Three rates are applying individually or added, depending on the province where you’re bringing your goods. These rates are the GST, the PST and the HST:

  • The GST (Goods and Services Tax) is applied in most of the Anglo-Saxon countries and is the equivalent of the VAT in other countries. The rate is of 5% in all the province.
  • The PST (Products and Services Tax) is applied in complement of the GST, only in certain provinces. It is applied on the price of the product without taxes, except in Québec, where it is applied on the price with the GST.
  • Finally, the HST is designating all the taxes that you will have to pay, like the GST + PST eventually, depending on the province.

To learn more about the applicable taxes in the province where you aim to import goods, the website AdValorem.ca is explaining greatly how it works.

 

2.2.2) Excise duties in Canada

The law on excise in Canada is aiming to tax different products and services like:

  • Jewelry
  • Cosmetics
  • Air transportation
  • Some types of vehicles
  • Air conditioning for vehicles
  • Gas and Fuel
  • Telecommunications
  • Liquors and alcoholic beverages
  • Tobacco products and cannabis

The laws applying on these products are very detailed. If you wish to import them in Canada from Vietnam, you will find the corresponding information by following these links:

 

2.3) How to have an import tax exemption in Canada?

In Canada, depending on the type of goods and the country of import, you can benefit of a diminution or a total exoneration of tariffs. It is concerning:

  • The most basic products like food and agricultural products, drugs…
  • The import countries of the GPT list like Vietnam, or the Least Developed Country (LDCT)
  • All the countries possessing a FTA with Canada like Israel, Colombia, Australia, Chile, Costa Rica, EU, USA, Honduras, Mexico, Iceland, Jordan, Korea, Norway, New Zealand, Peru, Panama, States of the Commonwealth, Switzerland, Lichtenstein and Ukraine

 

2.3.1) General Preferential Tariff (GPT)

Canada, like all the countries member of the WTO, is supporting the economic and social development of the emerging countries like Vietnam. This comes out in the form of a reduction or a total exemption of import taxes on the goods produced in these countries.

Most of the products made in Vietnam can benefit of the GPT, except some categories of products, where the international competition is too intense, like textile products.

The necessary condition to benefit of such measures is to provide the Certificate of Origin of your goods to the Canadian customs. Indeed, no other documents can legally prove that your articles were made in Vietnam.

 

2.4) Does FNM Vietnam charges the customs representation?

No, we’re only charging the handling and production of the necessary documents. Of course, you will be liable to pay the import taxes and other taxes that are inherent to your goods. All the necessary documents during the customs clearance of your goods will be provided to you.

 

2.5) How is the customs clearance process doing in Canada?

2.5.1) The arrival of my goods and the customs clearance, step by step

Here are the steps that you should follow to clear your goods with the Canadian customs:

  • If you don’t have one, you can ask an enterprise registration number to the Canada Revenue Agency (CRA), (by the way you can call them for this at the 1-800-959-7775). You have to do the Business Registration Online (BRO)
  • Then use the Electronic Data Interchange (EDI), to declare your goods to the Canadian customs
  • You will have to pay the import taxes after, to obtain the release of your goods, after that the customs received them in custody. You will find the different payment options by following this link
  • The goods can travel through the Canadian territory after and be delivered to the final destination

 

2.5.2) Customs contacts

Contact at the Vietnamese customs

logo of the vietnamese customs

Official name: General Department of Vietnam Customs

Website: Vietnamese Customs

 

Contact at the Canadian customs

Badge of the Canadian customs

Official name: Canada Border Services Agency

Website: Canadian Customs

 

2.6) What are the necessary documents for the freight and the clearance of my goods?

2.6.1) The Bill of lading or Airway bill

The BL is equivalent to a boarding pass and a passport for your cargo. Depending on the used transfer method, it can take the form of an Airway bill for an air freight, or a Bill of Lading for an Ocean freight. It is also a document testifying that the transport of your shipment is legal, because it is emitted once the carrier is receiving payment for its services. This document is paramount when we’re talking about an international transfer of commercial goods.

The following pictures are detailing how a B/L is organised and all the information we can find on:

copy of a Bill of Ladingexplanation of the information on a Bill of Lading

 

2.6.2) The original invoice

The CBSA will use it to make sure that the goods you’re importing are corresponding to the one that are described on your customs declaration.

 

2.6.3) The packing list

The packing list is summing up all the items in your shipment. You must attach to it the MSDS data sheet and the international code, in case that you’re importing hazardous or chemical goods to Canada.

 

2.6.4) Certificate of Origin

This document is of a prime importance if you wish to be granted the GPT tariff treatment. Indeed, it is the only legal proof that your goods were manufactured in Vietnam. Your supplier must sign the certificate of origin, who must be produced by a Vietnamese government agency. Like the Bill of Lading, the Certificate of Origins is one of the most important documents for all international import.

Here is how a certificate of origin is looking, here in Chinese:

Chinese Certificate of Origin

2.7) What are the restricted or forbidden products in Canada?

2.7.1) Products requiring an import license

The following goods are requiring an import license delivered by the corresponding authority, in order to be imported:

 

2.7.2) Products restricted to import

Some kind of products can be imported, but their import is strictly controlled. Such products are:

  • Weapons and ammunitions
  • Turkeys, chickens, eggs and poultries for a personal use
  • Beef and veal for a personal use
  • Dairies and margarine for personal use
  • Eligible agricultural goods
  • Hazardous chemical products
  • Roses (flower)
  • Wheat and barley
  • Steel and specialized products in steel

You will find all these details on the Justice Laws Website

 

2.7.3) Products forbidden to import

Are forbidden to enter in the Canadian territory:

  • All materials considered obscene
  • All goods produced by prisoners
  • Fake or altered money
  • Goods mentionned in the Departmental consolidation of the customs tariff 2019
  • Used or 2nd hand mattress
  • Matches with white phosphorus
  • Used or 2nd hand vehicles
  • Vicious propaganda and all material aiming to create sedition and betrayal

 

2.8) Free Trade Agreements between Canada and Vietnam

The CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is a Free Trade Agreement (FTA) implying 495 million of persons in 11 different countries, including Vietnam and Canada. This FTA entered into force the 30 December 2018 for Canada and the 14 January 2019 for Vietnam. Since 2015, Vietnam is the first economic partner of Canada inside ASEAN.

The CPTPP will favour trades and both economies of Vietnam and Canada by suppressing import taxes on numerous Canadian goods in Vietnam like agricultural products:

  • Beef and pork – All the import taxes on these two meats can be as high as 31% in Vietnam and will be suppressed within 9 years
  • Lobsters – Tariff barriers of up to 34% will be completely eliminated within 3 years
  • Salmons and fish filets – Import taxes of up to 18% are suppressed since the 14 January 2019
  • Canola – Import taxes of up to 5% and 20% respectively on seeds and canola oil are suppressed since the 14th of January 2019 for seeds and within 7 years for the oil.
  • Whiskey and ice wine – Import taxes up to 56% will be suppressed within 10 years
  • Cardboard packaging, journal paper, papers and uncoated cartons – Tariff barriers of up to 27% will be totally eliminated within 3 years

Industrial products :

  • Industrial machineries – Customs tariffs of up to 25% will be totally suppressed within 8 years
  • Chemical and plastic products – Import taxes on these products can reach 31% and will become free of tax within 10 years
  • Minerals and metals – Customs rights on such products are at least of 31%, and will be free within 10 years
  • Cosmetic products – Import taxes on such products in Vietnam can reach 30% and will be free within 4 years

CPTPP will provide to Canadian investors more security, protection and ease to penetrate the Vietnamese market. The sectors of the economy in Vietnam with the biggest potential nowadays are:

  • Education – Vietnam is one of the biggest importers in the world of education products and services
  • Communication and information technologies – The Vietnamese GDP is composed at 7% by the CIT sector
  • Agriculture and Food – Two massive sectors in Vietnam
  • Infrastructures – Transport, Health and social infrastructures are booming in Vietnam, since the standard of living is growing
  • Environment – Conscious of the fragility of their territory, and of earth in general, Vietnam is aiming to create a viable economic development on long term and is including fully the ecologic dimension
  • Aerospace – The Vietnamese sector of aerospace will be one of the tenth markets worldwide with the biggest growth in the next decade, according to the International Air Transport Association (IATA)

 

2.9) Trade relationship between Vietnam and Canada

The last trade statistics from the World Bank (2016), are showing that Canada is the 18th export and the 30th import partner of Vietnam. On the other way, Vietnam is the 36th export and the 10th import partner of Canada. During this year, trade flows departing from Vietnam and going to Canada had a value of 3.7 billion USD, while flows going to Vietnam from Canada had a value of 400 million USD. The trade balance between these two countries are largely benefiting to Vietnam.

Canada is largely exporting soy seeds, wheat, crustacean, frozen fish, potassium fertilizer, raw furs, coal bricks and polyethylene to Vietnam.

In return, Canada is importing broadcasting equipment, computers, furniture, textile and leather shoe, insulated wires from Vietnam.

3) What other services can FNM Vietnam provide?

3.1) Our warehousing services

3.1.1) Warehousing in Vietnam

Our warehouses located near the ports of HCMV, Haiphong and Quy Nhon, can welcome your goods during all the necessary time before being sent to the final address in Canada or in Vietnam. Our facilities are watched 24/7 by a CCTV system and security staff. All moves inside and outside are taped to provide a great safety during your goods’ storage.

 

3.1.2) Warehousing in Canada

We can also store your goods in Canada, in our warehouses with the same security exigency than in Vietnam. Our warehousing services are greatly competitive on both continents.

3.2) Our packing/unpacking services

3.2.1) Overview

You wish to do the packing of your goods by yourself, before their transfer? We’re giving you some tricks and tips in the next paragraphs. Note first that this important step is requiring a great care to be processed. Indeed, the conditioning of your goods is the biggest protection possible, to protect your cargo against all constraints applied by the environment. We’re having very skilled packing teams to pack your goods the best way.

 

3.2.2) Packing material

3.2.2.1) Cardboard packaging

You should know that more the carton is thick and inflexible, the better it will cover your goods against all shock. Cardboard packaging is a material used in the industry since a long time ago, but it is still very convenient to use to pack numerous types of goods. No matter the volume and the shape of your products, our packing teams will only use premium cardboard to condition your goods.

 

3.2.2.2) The palettization of your products

The pallet is enabling your goods to be easily moved with mechanic handling methods. Thereby, it allows a better and safer handling of your goods, to put them inside a container. We’re possessing in our warehouses all possible dimensions and types of pallets, to palletize your goods if your supplier can’t provide this service.

 

3.2.2.3) Wooden crates

Voluminous objects can be placed inside wooden crates to ease their transport. Depending on the necessary precautions to handle them, they can be placed inside a crate or a box. Indeed, if they need to be oriented in a particular direction during their transport, it is better to place them inside a wooden crate. On the other hand, if they can be placed without any precise direction, the crate is better used. Our operation teams can place your goods in crates, without regarding their dimensions.

 

3.2.2.4) Other: Polystyrene, bubble wrap, tape, wrapping paper

All these protecting and wrapping materials are enabling a cushioned contact between your goods and their box or crate that are containing them. Our packing staff is systematically using it to isolate each object.

 

3.2.3) Why packing is important for the insurance?

The packing is very important because in any case of damage inflicted on your goods during their transport, the insurance company that may cover your goods will systematically verify how the packing was realized. If it wasn’t made professionally, they can refuse to refund the goods you lost. To keep a peace of mind during the transfer of your goods, you can ask for our packing teams to condition your goods.

3.3) Insure the transport of your goods

3.3.1) How much does a freight insurance cost?

The commercial value of your products is used as a base to calculate the price of your insurance contract. It explains why it’s not recommended to declare a too small value of your goods, because you will not be completely refunded in case of any damage happening. Obviously, you will only increase the price of your insurance contract if you’re declaring a superior value.

The price that the insurance will charge you is determined this way: freight value + product value * 2-3%

The percent rate is determined in function of the type of goods you’re aiming to ensure

3.4) Supplier management in Vietnam

3.4.1) Quality control in Vietnam

With your supplier, it is important for us to establish a great contact from start, to learn more about the state and the packing of your goods. It is extremely important because we can’t let go goods that are too fragile or poorly packed, because they will not survive to an international transport. Thereby, we can avoid a great part of the incidents that can happen.

 

3.4.2) Relationship with your supplier

Without regarding the incoterm of your transfer, even for a FOB (Free On Board) transfer, the type, the HS Code, the dimensions and the packing of your goods will always be verified. Our collaborators are well-concerned and will ensure an excellent communication with your suppliers, thanks to their proficiency in Vietnamese, French and English. The handling of your goods, their documentation and packaging will be perfectly handled. Thereby, your freight will be fluid and uninterrupted.

 

3.5) 3PL services for ecommerce in Vietnam

3.5.1) Order fulfilment/Packing and labelling in Vietnam

The supply chain of an ecommerce is very complex to handle, furthermore if you’re not located in the country where you’re sourcing your goods. Our packing and fulfilment services in Vietnam are enabling you to be fully assisted. Thereby, we will handle for you the customer support and your inventory management.

3.5.2) Last mile delivery

Without regarding where you’re located in Canada, we can deliver your goods to your address thanks to our international network of messengers, presents in Vietnam as well as in Canada. They are guaranteeing the quality of our door-to-door services.

 

3.6) Shipping personal effects from Vietnam

3.6.1) Excess luggage

If you’re coming back from a trip in Vietnam, and you’re bringing home with you a lot more items than on your arrival, the airline might refuse to bring all your luggage on board. Thanks to our express transport services, we can deliver your excess personal effects and souvenirs to your address in Canada in the best time.

3.6.2) Relocation services between Vietnam and Canada

We’re able to take in charge the packing, the transfer, the customs clearance and the storage (if necessary) of your goods between the two countries, without regarding the sense. Our relocation services are very effective and flexible for your particular needs.

3.7) Free regulation advisor

Our proficiency between Vietnam and Canada is enabling us to effectively point out the possible issues and requirements that are proper to each transfer. You can reach us for all administrative aspects, or any other topic that are important for your project. It will avoid you to spend unnecessary money and time.

 

4) FAQ – For 1st time importer from Vietnam

4.1) FAQ – Regulation

  • Do I need a license to import goods from Vietnam in Canada? 

Some types of goods are requiring an import license to be introduced in the Canadian territory. It only depends on the type of goods you’re aiming to import, but in most of the situations, it isn’t required. To learn which Canadian administrations you should reach for you request, read the paragraph 2.7.1 of this article.

 

  • Do I need a customs broker in Canada?

If you are not skilled for the type of product you’re aiming to import in Canada, it isn’t recommended to try to do the customs clearance of your goods by yourself. This procedure must be realized as quickly as possible, to dodge any useless fees, and lost time. To take the services of a skilled customs commissioner like FNM Vietnam is advised. If you’re skilled enough for the customs clearance with the CBSA, you can do it yourself.

 

  • Should I have a Business number registration to import? If yes, how to obain it?

The BNR is imperative to have prior to all import process, you can reach the Government of Canada website to have more details on how to have it.

 

4.2) FAQ – Shipping budget optimization

  • How Can Air Freight Be Cheaper Than Ocean Freight?  

Air freight is generally more competitive if your shipment has dimensions smaller than 2 CBM and a weight lighter than 200 kgs. Above, maritime freight is absolutely cheaper than other freight solutions between the two countries. The paragraph 1.2.1.1) is bringing a clear answer to this question.

 

  • Should I pay an insurance for the transport of my goods from Vietnam?

Subscribing to an insurance contract for the freight of your goods isn’t mandatory. Reciprocally, it is very advised to take one, because the carrier of your goods cannot legally be put in cause for the damage or the loss of your cargo during the transfer. We wrote a dedicated page on the cargo insurance, for further details.

 

  • Do I need to pay insurance for my goods from China?

There are several possibilities for your goods to be imported in Canada with a customs exoneration. The paragraph 2.3) of this article is going deep on the topic.

 

  • Should I pay import taxes or other taxes in Vietnam?

If you’re exporting goods from Canada to Vietnam, the importer in Vietnam, that maybe you by the way, should fulfil eventual import taxes. On the other hand, in the opposite way, there isn’t export taxes to pay in Vietnam in general, except in the case that your goods are sensitive for Vietnam.

 

  • How to find the inherent import taxes on my products?

You’ll need the ASFC website in this objective, we’re detailing the complete procedure in the paragraph 2.2) of this article.

 

4.3) FAQ – FNM tips

  • EXW, FOB or CIF?

Usually, Vietnamese suppliers are using the FOB or EXW incoterm, and more occasionally CIF in their selling contract. It only depends on your supplier, what he prefers and what is more suitable for him.

 

  • What payment method is recommended to pay my vietnamese supplier?

It is recommended to pay your supplier through Paypal, Alibaba Trade Assurance, with a letter of credit, with a wire transfer or cryptocurrencies. It is a lack of professionalism and seriousness if he is requiring another payment method, because all other proposed solutions aren’t as safe as the one precedently quoted.

 

  • Goods have arrived at my port in Canada, how do I get them delivered to the final destination?  

If the transfer contract established with us or with your supplier is stipulating that the selling incoterm is DAP or DAT, you shouldn’t be worried because the delivery is planned to your address. In the case of a CFR or CIF, it will be necessary to pass through an agent in Canada so your goods can enter in the Vietnamese territory.

 

  • Door-to-door services from Vietnam to Canada – What should FNM know to provide me a quote?

The information and documents that we should have are the packing list, the dimensions and weight of your goods, the HS Code, the pickup address and the delivery address of your goods. If your goods are particular, we can ask you other information for the great process of the freight.

 

  • How can I ensure that I have selected the correct site/supplier/factory to shop on?  

 

If you don’t know the reputation of your sourcing website, in the case that you sourced your supplier on the internet, it is primary to verify the notoriety of the platform. For this you can watch for opinions on other websites and forums. Afterwards you can verify the reputation of your supplier particularly. Here are a few steps to check your supplier’s reputation:

 

  • Firstly, analyse his clients. If most of his clients are in Europe, in the US or in Japan for instance, you can be sure that his products are at least of a correct quality. On the other hand, if the majority of its clients are in Africa or Middle-East, you must be pernicketier before placing your first order.
  • After, it is important to analyse his products catalogue. If it is homogeneous, and that there is a clear directing line, for instance wooden jewellery, wooden artwork, wooden accessories… It is certainly a manufacturer. On the other hand, if he is providing very different articles like silicon phone cases, headphones and selfie sticks, he is probably a wholesaler rather than a producer. In general, wholesalers are less focused on quality than direct manufacturers.
  • Finally, verify since when your supplier is active online. If he’s been active for more than 5 years, you can easily trust him.

In case of any doubts, do not hesitate to reach our consultants, they will provide you great advices on the proficiency of your supplier.

 

4.4) FAQ – How can FNM be helpful?

  • Do you have a privacy policy?

Our privacy policy can be consulted on our website. We’re ensuring you that none of your information will be disclosed. We’re only using your details to deliver the best service possible.

 

  • What will you do next for customer services once I paid the cost?  

Because communication is a key factor for the success of every project, our consultants are available at all time to answer your questions. They can be reached every day of the week, until you’re totally satisfied of the service provided. Naturally, they will join you for each progress of your freight, until the final delivery.

 

  • I have bought many different items of goods from cities around Vietnam, could you gather together to send me?  

Of course, our consolidation services are realized in our facilities, once we will receive all the different goods from your several suppliers. Our FNM specialists will bring you further details on this topic, you can reach them on purpose.

 

  • Can I change the delivery address once the transfer process has begun?

Yes, you can. However, please inform us as soon as possible, so we can adapt and reorganize you transfer the best way possible.

 

5) Conclusion

We hope that this page provides you more knowledge on the freight and customs process between Vietnam and Canada. We also hope that your project between the two countries seems clearer now, and you’re guided to proceed it. You always can reach one of our consultants for recommendations based on your situation. As told, FNM Vietnam can help you to source your products in Vietnam, to optimise your transport and supply chain, from or to Vietnam.

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