The economic growth in Southeast Asia is interesting you? Vietnam, amongst other countries, is attracting you particularly?
There isn’t a lot of information online, about freight from or to Vietnam. That’s why we decided to write this exhaustive series of articles explaining you all the transfer procedure between Vietnam and other countries (the United States on this page). Here are detailed, the customs clearance in the US for Vietnamese goods, the transit times and freight methods, the transfer prices and the economic relationship between the 2 countries. If you’re requiring personalised advices, do not hesitate to contact our consultants.

1) What is the best freight method to transfer goods from Vietnam to USA?

1.1) Ocean freight between USA and Vietnam

1.1.1) A quick overview of the American ports infrastructures

The USA is one of the greatest countries in the world, in terms of geography, population and economy. Located in the Northern part of the American continent, its territory is entirely crossing it. It explains why the US have great coastlines on the Pacific Ocean, the Atlantic Ocean, and on the Gulf of Mexico. The country is home to the 5 biggest ports in America according to the American Association of Port Authorities (AAPA). It enables the US to receive great volume of goods from overseas, but also to export its tremendous production to foreign countries. Thereby, maritime freight is the most used method to import goods from Vietnam into the USA.

1.1.2) Shipping companies operating between Vietnam and the US

      logo shipping company evergreenLogo company CSAVLogo shipping company ZIMlogo shipping company maerskLogo company K lineLogo shipping company DelmasLogo shipping company coscoLogo shipping company CMA CGMLogo shipping company Hanjinlogo company Wan HaiLogo company UASCLogo company msclogo FESCO shipping companylogo APL shipping companylogo MOL shipping companylogo shipping company hapag lloyd      

1.1.2.1) Port of Los Angeles

The port of Los Angeles is the busiest port in the United States and in northern America. In 2017, the port managed 198 million of tons in total, and 9.34 million of TEUs. Amongst it, 14 million were bulk cargo. For container shipping, it is a growth of 5.5% compared to the previous year. It is also a growth of 8.2% in terms of other cargo.

 

1.1.2.2) Port of Long Beach

The port of Long Beach is the second port of Los Angeles, and also the second busiest port of North America. They administered 8.1 million of TEUs in 2018 which is a progression of 6.6% compared to 2017. 140,3 million of tons of cargo went through this port in 2018, which is a slight growth of 3.28% compared to the previous year.

 

1.1.2.3) Port of New York/New Jersey

In this ports network, 6.7 million of container TEUs where handled in 2017, which corresponds to a growth of 7.3% compared to the previous year. In terms of cargo tonnage, 80 million of tons where managed there during the year 2016, which is a growth of 6.2% compared to the year 2015. All these quantities are making PONYANJ one of the 3 biggest ports in America and in the USA.

 

1.1.2.4) Port of Savannah

The port of Savannah is the 4th biggest port in northern America. Its total tonnage was of 35 million of tons in 2017 which is a growth of 12.1% compared to the year 2016. 4.05 million of TEUs were handled there during the year 2017, which is corresponding to a growth of 11% compared to the previous year.

 

1.1.2.6) Port of Houston

The port of Houston is the 6th biggest American port in terms of TEUs and the second port in terms of cargo tonnage in 2017. It handled 2.4 million of TEUs and 173 million of tonnes of cargo during that same year. It is the most important port on the Gulf of Mexico.

 

1.1.3) What is the most adapted solution between LCL and a whole container between Vietnam and the USA?

1.1.3.1) What is LCL?

LCL, meaning “Less than a container load” is one of the two methods to manage space inside a container. It is used when your shipment isn’t very voluminous, so a full container is not advantageous to use. Thereby, your shipment will be added to other small shipments from other consignees in order to fulfil greatly the container. It is financially advantageous, because each consignee will only have to pay for the space used by his shipment.

 

1.1.3.2) What is FCL?

FCL is the second method to manage space inside a container. It stands for “Full container” load. In this case an entire container is booked because your shipment is big enough to fulfil it completely, or to be financially interesting to rent the whole container.

 

1.1.3.3) When is it advised to use FCL?

Usually, FCL is more economic for shipments greater than 15 CBMs. Below, it is advised to choose LCL.

 

1.1.3.4) LCL or FCL, what should I choose?

You still don’t know which method is the most appropriate? This table below will provide you arguments to help you choose:

LCLFCL
Advantages
Very flexible way to send goodsThe transfer duration will be shorter than in LCL
Easier than FCL to receive goodsCBM prices are more advantageous than LCL
You’re only paying for the space you’re usingOnly you and your supplier will handle your products
Well adapted for small shipments 
Drawbacks
Prices per CBM are higher than FCLYou will handle the decanting of the container
The groupage and unbundling process are extending the transfer durationIt isn’t adapted for small shipments
Your products will undergo many handlingsYou must be skilled to handle the decanting

1.1.4) What are the transit times for sea ship travelling between Vietnam and the US?

The following table is detailing the necessary transit times to join the American ports, departing from Vietnam.

Los Angeles & Long BeachNew York & New JerseyHoustonSeattle & TacomaSavannahOakland
Hai Phong24 days40 days35 days22 days40 days23 days
Quy Nhon / Da Nang24 days40 days35 days22 days40 days23 days
Ho Chi Minh City26 days32 days38 days29 days37 days25 days

*For further precisions, you can email or call our consultants.

 

1.1.5) What is the price of sea freight between Vietnam and the USA?

*Sea freight is privileged by the US importers, because compared to the other methods, it is more economic for great shipments.

It is also the reason explaining why ocean freight is the most common solution to transfer goods between Vietnam and the US. For big shipments, air freight is generally way more expensive. Thereby, ocean freight is the best solution for voluminous and regular transfers through time.

1.1.6) Special sea freight services

1.1.6.1) Reefer container between Vietnam and the US

Reefer container is one of the favourite methods of chemical and food companies. It enables to transfer perishable or sensitive goods, in a totally mastered environment. Indeed, humidity and temperature inside a container are always controlled. Between Vietnam and the US, FNM can book for you a reefer container freight.

 

1.1.6.2) Roro / Bulk / OOG freight from Vietnam to USA

Like ferries, Roro vessels are built with a retractable ramp in their back. This ramp enables to load an important quantity of goods on trailers, or all sorts of vehicles. That’s how vehicles are transferred through the world.

If you’re aiming to transfer raw materials in great quantities, bulk cargo is the solution you need. Bulk cargoes are enabling to transfer great quantities of liquid (oil, gas…) or solid bulk (cereals, minerals, tar…) in their large tanks.

OOG shipments, which stands for Out Of Gauge, is designating all sorts of goods that can’t be transported by bulk or containers, because they are too voluminous or elaborated. Usually loaded on trailers or platforms, they are transferred inside Roro vessels or on the last stage of container vessels. The inherent handling process must be realized with care.

1.2) Air freight between Vietnam and USA

1.2.1) Overview of classic air freight and express air freight

Express air freight is differing from classic air freight because of the necessary times to transfer goods. Indeed, for an express transfer, around 4 days at most are required to transport your goods, while for classic air freight, a week is necessary. This transfer delay is explained because the customs clearance is an automated process through express companies. Through classic air freight the customs clearance is requiring a few hours or a day.

 

Express air freight (courier)Classic air freight
Advantages
The fastest freight solution everA very flexible method
Well-adapted for small shipmentsMore benefitial than express depending on the volume of your goods
The customs clearance is made very efficientlyFaster than sea freight
 Rates are decreasing if your goods’ volume is high
 You’re only charged for the space you use
Drawbacks
The most expensive transport solutionLonger than express freight
Very expensive if your goods are heavy or voluminousOcean freight is more competitive for great volumes
 Lithium batteries and some other products can be refused

 

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

If your goods are measuring less than 2 CBM and weighing less than 150 kgs, air freight is more advantageous than sea freight. Between the two air methods, express is usually employed for shipments smaller than 0.5 CBMs and 20 kgs. It is becoming more expensive for rates above.

 

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

*To consider the density of your shipment, two methods are used to sort out the chargeable weight of your goods.

These two calculation methods are gross and volumetric weight. Thereby, you can determinate two results, and the highest will be used to rate your freight. The two pictures below are enabling to understand better the two methods:

how to calculate gross weighthow to calculate volumetric weight

1.2.2) Classic air freight from Vietnam to USA

1.2.2.1) Airlines operating between Vietnam and USA
1.2.2.2) How much time is necessary to transfer goods between Vietnam and the US?

Departing from Vietnam, you can count on more or less 20 hours for your goods to be transferred on door-to-door.

 

1.2.2.3) How much does it cost to send a freight from Vietnam to the US?

Air freight, like any other freight solution, is requiring numerous information to be evaluated. We can send you a tailored quote, because we’re rating each demand individually. Thereby, our consultants will answer your demand within 24 hours, do not hesitate to reach them.

 

1.2.3) Express air freight between Vietnam and USA

1.2.3.1) Express, the ideal solution for small shipments

For important volumes, express isn’t advised because it will be too expensive. On the other hand, if your shipment is weighing around 30 kgs or less, it can be an interesting solution. It is also good to remind that it is the fastest freight solution ever. Of course, we can book express freight transfer for all size of shipment, if you require it.

 

1.2.3.2) What is the transit time to transfer goods by air from Vietnam to USA?

From your Vietnamese supplier to your address in the US, it takes at most 4 days to deliver your goods. This method is fast because the customs clearance of your goods is made inside the courier company’s facilities.

 

1.2.3.3) What is the price of Express delivery from Vietnam to the US?

logo company fedexlogo company dhllogo company tnt

*To quote your express shipment, a different method than gross and volumetric weight is applied. For express freight, you must consider that 1 CBM = 200 kgs.  

Because we’re evaluating each request individually, we don’t have a pricing list for this method. We will transmit you a detailed price once we have enough details about your request. Thanks to the business volume we’re bringing them, we have competitive prices for their services. You will not have similar rates if you’re asking them on your own.

1.2.4) Major freight airports in the US

1.2.4.1) Memphis International Airport

It is the busiest American airport in terms of freight/cargo handled. It’s interesting because it isn’t one of the 15th busiest airports in the US in terms of passenger traffic. In 2017, it handled 24 million of tonnes of lbs if we’re counting commercial goods and mail, which was a slight increase of 0.35% compared to the previous year.

 

1.2.4.2) Ted Stevens Anchorage International Airport

It is the second biggest air freight hub in the United States, and the most important on the west coast. Located in Alaska, this airport managed 17.3 million of tonnes of lbs in cargo in 2017, which is an increase of 2.79% compared to the previous year. Also, it is not on the 15 busiest US passenger airport list.

 

1.2.4.3) Louisville International Airport

The Airport of Louisville is the third biggest US Airport in terms of freight, and isn’t one of the busiest in terms of passengers also, like Memphis and Anchorage. 13.4 million of tonnes of lbs were administered in Louisville through the year 2017. It represents a growth of 2.79% compared to the previous year.

 

1.2.4.4) Chicago O’Hare International Airport

The Chicago Airport is the fourth largest in terms of freight handled, and the third largest in the US in terms of passengers managed. In 2017, 10.3 million of tonnes of lbs of goods were handled, and almost 80 million passengers were managed. For the cargo, it is a growth of 10,84% compared to the previous year.

 

1.2.4.5) Miami International Airport

Miami international Airport is the 5th airport in the US in terms of volume of freight managed. It is also the 12th most frequented airport in the US with 44 million of visitors in 2017. Still in terms of passengers, it is the second largest airport in Florida, just after Orlando International Airport. It handled almost 8 million of tonnes of lbs of cargo during the year 2017, which shows a growth of 0.82% compared to the previous year.

 

1.2.4.6) Los Angeles International Airport

Los Angeles International Airport is the 6th biggest airport in the US in terms of cargo, with 7.2 million of tonnes of lbs handled in 2017. It is a growth of 3.85% of its cargo traffic compared to 2016. It is the second most important airport in the US, just after Atlanta international Airport in terms of passenger managed, with 84.5 million of passengers handled in 2017.

 

1.3) Door-to-door transfer from Vietnam to the US

1.3.1) Door-to-door method overview

Door-to-door, also called “All-in” is the transport service that will give you the greatest peace of mind. Indeed, we will make the complete execution of your transfer, including the warehousing, the customs clearance, the main transport, and all the secondary trucking transfers… Until we deliver your goods. We’re responsible of each phase of your transfer, which provides you the biggest quietude possible. You can use the time saved to achieve other activities where you are fully proficient. The comfort provided with this service is greatly appreciated by our customers.

 

1.3.2) How door-to-door services are helpful?

Door-to-door enables to ensure the fluidity of your transfer from A to Z. Indeed, our collaborators in Vietnam and in the US will cooperate to avoid all delays or added costs due to communication mistakes between all the entities responsible for your freight. Hence, phases like the customs clearance will totally be under control, thanks to the proficiency of our collaborators with the US and Vietnamese customs.

2) Customs clearance of Vietnamese goods in the US

2.1) How much will cost the customs clearance?

Before all import procedure, you must be able to precisely estimate the freight and customs cost in the US. USA and Vietnam, as all the other members of the World Trade Organization are using the Harmonized Commodity Description and Coding System. Thanks to this system, articles that you need to buy have the same ID code worldwide. This ID, also called the “HS Code” is composed of 6 numbers.

 

2.2) How to sort out the import taxes on Vietnamese goods with the HS code?

For instance, pineapple is designated with the HS code 08043010, the picture below is describing its signification:

hs code of a pineapple

If you don’t know what the HS code of your goods is, the website of the US International Trade Commission is providing a great tool to determine it. Let’s take the example of a pineapple again. If you’re typing pineapple in the searchbar, you will find the corresponding HS Code:

HS code determination in the US

You can also determine the import taxes on the same page. Because Vietnam doesn’t have any FTA with the US yet, taxes for bulk pineapples produced in Vietnam are as high as 0.51 cents per kg. For pineapple, import taxes are specific tariffs, because they are based on the quantity you’re importing, and not on the total value of your import.

import taxes on pineapple in the US

For all other goods, do the same process, determine the HS Code on the USITC website, and read the applicable rates as described.

 

2.2.1) VAT, GST  and sales tax in the US

There are no GST or VAT in the US. Instead, each state has its own Sales tax, which means it is varying from a state to another.

The sales tax is only perceived by the seller when he sells his goods. Contrary to the VAT and GST the sales tax is only imposed on retail, which means that you will not have to pay it to customs for an import of Vietnamese goods. Also, the purchase of goods for subsequent transformation or for reselling is exempted of sales tax. What you have to understand is that only the final consumer will have to pay this tax, which is applied depending on the type of goods and the state of purchase. All intermediaries aren’t dutiable for this tax.

Also, a broad number of necessary products like machineries for agriculture, medicine… are generally exempted of sales tax in most of the states.

The map below is showing the average sales tax rates for each state:

map of the sales tax in the US

You can determine precisely which rates are imposed on the goods your aiming to sell on the chapter “By jurisdiction” of the Wikipedia page, Sales taxes in the US.

 

2.2.2) The excise tax in the US

The Excise tax in the US is mostly levied on 5 categories of products; Highways (fuels), Tobacco, aviation (flight tickets), alcohol and health:

Highway taxes – Taxes on gasoline 18.4 c/gal and on diesel 24.4 c/gal are composing more than 90% of this category, other goods imposed are other fuels, trucks, trailers and tires.

Tobacco – Depending on the product, the tax is calculated per 1000 cigars or cigarettes or per pound. For cigarettes, the tax equals 1$ per pack of cigarettes.

Alcohol – Different rates are applied depending on the type of alcoholic beverage. Usually tax rates are of 13.50$/proof gal. Wine rates are varying between 1.07$/gal for wines with 14% or less of alcohol, to 3.40$/gal for sparkling wines. Generally, beer is taxed at 0.58$/gal.

Aviation – The majority of the aviation taxes are coming from passenger airfares. It is great to know for importers that no excise taxes are applied on international cargoes, which means that air freight between Vietnam and the US is not subject to this kind of taxes.

Health – Was aiming to fund the Affordable Care Act, or “Obamacare”. But it doesn’t concern international trades.

 

2.3) How to be exempted of import taxes in the US?

In the US, depending on the product type and the country of importation, you can benefit from a total or partial exemption of import taxes. It is concerning:

  • Most important and used products like food products
  • The countries of the Generalized System of Preference (GSP), like Vietnam.
  • All countries having a FTA with the United States, you can consult the list on the USTR website.

 

2.3.1) The Generalized System of Preference (GSP)

The United States, like all the members of the World Trade Organization (WTO), are encouraging the developing countries in their social and economic development. It comes out with the GSP, which is a decrease or elimination of tariffs on goods produced in developing countries.

Most products made in Vietnam can benefit of the GSP, but certain categories of products which are too competitive, like textiles, cannot benefit from this global policy.

The condition for you to benefit of the GSP, is to provide a Certificate of Origin of your goods to the USCBP. Indeed, no other documents is proving officially that your goods where made in Vietnam.

 

2.4) Is FNM Vietnam charging the customs representation?

No, our customs commissioner services will not be charged to you. To prove it, you will receive all the documents produced by the US Customs, during the customs clearance of your goods. Only the import taxes and other taxes will be obviously at your charge.

 

2.5) How is the customs clearance going in the US?

h4>2.5.1) The arrival and the customs clearance of your goods, step by step

Here are the steps you will follow to import goods into the US:

  • First, you should do the Arrangement with the CBP at the port or airport of entry. This arrangement must be done before your goods arrive in the US territory. You will have to pay duties and also send all the documents (possibly electronically) at this office.
  • After the arrangement, you will have to declare your goods once they enter in the port or airport. You will have to declare the purpose, for consumption, re-export…
  • Once the cargo arrived, you or the customs broker have to send the Cargo release to the CBP within 15 days. Ideally, do it in the following days of the arrival to avoid all added storage fees. It will liberate the goods from custody, where your shipment is stored before being released, and enable you to begin the US part of your freight.
  • Within 10 days from the cargo release from custody, send to the CBP office the CBP Form 7501 (entry summary). This document is detailing the category, value and origin of the goods you imported. Also, you should pay the duties asked to customs in the same time limit. You will first pay an estimation of the duties, as described in the first step. After the liquidation process, which means that the exact amount of duties will be determined, you will have to pay the remaining amount, or you will be refund if you paid too much the first time.

Also, please note that your goods will still remain in custody until you completed all these steps. It means that you must verify every time that the documentation is correctly provided, and that there are no missing documents.

 

2.5.2) Customs contacts

Vietnam Customs

Official Name: General Department of Vietnam Customs

Website: Vietnamese Customs

 

US Customs

logo of the US customs

Official Name: US Customs and Border Protection

Website: US Customs

 

2.6) What are the necessary freight documents to transfer my goods in the US?

2.6.1) Bill of lading or Airway bill

The Bill of Lading is equivalent to a passport and a boarding card for your shipment. Depending on the method used to transfer your goods, it can be an Airway Bill (for Air Freight) or a Bill of Lading (for Ocean Freight). It is also a document testifying of the legality of the transfer, because it is emitted once the carrier received payment for its services. This document is important for all international transfer of commercial goods.

The following pictures are detailing what information are provided on a Bill of Lading:

explanation of the information on a Bill of Ladingexample of a Bill of Lading

2.6.2) The original invoice

It will be used by the USCBP to ensure that the goods received are corresponding to the goods you declared.

 

2.6.3) The packing list

The packing list is summing up all the items included in your shipment. You should attach the MSDS data sheet and the international code, if you’re importing hazardous or chemical products in the US.

 

2.6.4) Certificate of Origin

This document is very important if you’re wishing that your import can be treated under the GSP regime. Indeed, it is the only legal proof that your goods were made in Vietnam. Like the Bill of Lading, the Certificate of Origin is a very important document for all international import. The document must be signed by the manufacturer and delivered by a government agency of Vietnam.

Here is what it looks like (for China here):

Chinese Certificate of Origin

2.7) Forbidden or restricted products in the US

2.7.1) Products needing an import license

In the US a lot of goods’ categories such as food products, drugs, plant, animal, trademarked articles such as name-brand shoes, handbags, sportswear apparel, toys, etc. are requiring an import license delivered by the concerned authority to enter the US territory. All the goods requiring an import license are  compiled in the Chapter 39 of the Importing in the United States guide.

 

2.7.2) Products forbidden or restricted to import in the US

These following articles are requiring an import license or are simply forbidden to enter in the US:

Absinthe (subject to permit delivered by the Food and Drug Administration and the Department of the Treasury's Alcohol and Tobacco Tax and Trade Bureau)

Automobiles (subject to approbation of the Environmental Protection Agency and the Department of Transportation)

Cultural Artifacts and Cultural Property (subject to an export permit from the country of origin)

Defense Articles or Items with Military or Proliferation Applications (cannot be permanently imported, contact the Bureau of Industry and Security or the Directorate of Defense Trade Controls to learn more)

Firearms (heavily restricted, importations are requiring approval from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), or the Directorate of Defense Trade Controls)

Dog and Cat Fur (forbidden)

Drug Paraphernalia (forbidden)

Fish and Wildlife (some are forbidden, others require permits from the Fish & Wildlife Service)

Biologicals (subject to permit delivered by the Department of Agriculture and the Centers for Disease Control and Prevention)

Game and Hunting Trophies (some are forbidden, others require permits from the Fish & Wildlife Service and the CBP)

Gold (may be subject to regulation of the Office of Foreign Assets Control)

Merchandise from Embargoed Countries (forbidden)

2.8) FTA between Vietnam and the US

The US leaving the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) during the negotiation phase in 2017, there is no Free Trade Agreement (FTA) existing between the two countries.

 

2.9) Trade relations between the US and Vietnam

Despite the Vietnam War and the following embargo period of the US on Vietnam, the two countries have nowadays great relationship. They both have great communities of Vietnamese and Americans in their respective countries, and their diplomatic relations are at an all-time high. Economically, USA is the second trading partner of Vietnam, after China. Also, since the US trade war on China, a lot of American importers are sourcing a bigger part of their imports in Vietnam.

According to the latest statistics of the World Bank (2017), the US is the second export partner and the 5th import partner of Vietnam. On the other hand, Vietnam is the 31st export partner and the 12th import partner of the US. During this year good flows from Vietnam to the US had a value of 48.4 billion USD, while in the opposite way it was of 8 billion USD. The actual commercial balance is largely benefiting to Vietnam.

The US are importing broadcasting equipment, furniture, integrated circuits, knit sweaters, textile footwear, leather footwear, computers, knit women’s suits and non-knit women’s suits from Vietnam.

On the other way, the US are exporting integrated circuits, aluminium bars, raw cotton, soybeans, nuts and starch residue to Vietnam.

3) What further services can provide FNM Vietnam?

3.1) Our warehousing services

3.1.1) Warehousing in Vietnam

Our warehouses near the ports of HCMC, Haiphong and Quy Nhon, can welcome your shipment during all the time required, before sending it to the US, or delivering it in Vietnam. Our facilities are constantly watched by CCTVs and security staff. Each move is taped inside and outside our warehouses, for a great safety.

 

3.1.2) Warehousing in the US

We can also store your goods in the US at competitive prices thanks to our local network there. Our storage services are secured and financially advantageous on both continents.

3.2) Our packing and unpacking services

3.2.1) Overview

You want to realize the packing of your goods by yourself? We’re giving you further tips and tricks in the following lines. Be aware that this important phase is requiring an extra care to be realized. Indeed, your products packaging is the greatest protection against all environmental constraints applied on your products. We’re possessing very skilled packing teams to pack your goods the best way.

 

3.2.2) Packing material

3.2.2.1) Carton boxes

The thickest and unbending your carton is, the better he will protect your goods against all impacts. Carton is a material used since a long time in the industry, but it is still practical and great for conditioning. No matter how big or shaped are your products, our packing teams will only use excellent cartons to condition them.

 

3.2.2.2) Your goods’ palletization

Pallets enables your goods to be easily moved with mechanical handling methods. Thereby, it enables a safer handling of your goods, in order to place them inside a container. We’re possessing all the pallet dimensions possible inside our warehouses, to put your goods on pallets if your supplier cannot achieve this step.

 

3.2.2.3) Wooden crates

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

 

3.2.2.4) Others: Bubble wrap, tape, wrapping paper…

The wrapping paper, the bubble wrap and all other protection materials are enabling a soft contact between your goods and the carton or box. Our packing teams are systematically using them to isolate your goods.

 

3.2.3) Why packing is important for the insurance?

The packing is very important because in any case of damage inflicted to your goods during their transport, the insurance company covering them can refuse to reimburse you if the packing wasn’t professionally made. To keep calm during the transfer of your goods, take services from our operation teams to pack your goods.

3.3) Insure your goods during the freight

3.3.1) How much costs a freight insurance?

The commercial value of your products serves as a base to calculate the price of your insurance contract. This explains why it is better to not underestimate the value of your goods, because you will not be fully reimbursed in case of any incident. Naturally, you will increase in vain the value of your insurance contracts if you’re declaring a too much important value of your goods.

The price that the insurance will provide you can be determined this way: freight value + product value * 2-3%.

The rate is determined depending on the category of your goods.

3.4) Supplier management in Vietnam

3.4.1) Quality control in Vietnam

It is very important for us to establish a very good contact with your supplier from the beginning, to know the state of your products and their packing. We cannot allow a too fragile or incorrectly packed shipment to be internationally transferred. Thereby, we will avoid a great part of the incidents possible.

 

3.4.2) Relationship with your supplier

No matter which incoterm is ruling your transfer, even for a FOB (Free on Board), the type, the HS Code, the dimensions and the packing of your goods, will always be verified. Our collaborators will ensure an excellent communication with your supplier, thanks to their mastering of Vietnamese, French and English. The pickup the documentation and the packing of your goods will be greatly mastered. Your freight will be fluid from the start to the finish. 

 

3.5) 3PL services for ecommerce in Vietnam

3.5.1) Order fulfilment / Packing and Labelling

The ecommerce supply chain is very complex to handle, mostly if you are not located in the on the country of sourcing. Our packing, labelling and fulfilment services in Vietnam will enable us to be your extension in the country. Thereby we will handle the customer relation and your inventory for you.

3.5.2) Delivery at house in Vietnam and in the US

No matter where you’re located in the US, we can deliver your goods to you thanks to our international network of messengers. They are guaranteeing the quality of our door-to-door services.

 

3.6) Send personal effects from Vietnam

3.6.1) Excess luggage

If you’re coming back home after a trip in Vietnam, taking with too much souvenirs and things than at arrival, it is possible that the airline doesn’t accept all your goods onboard. Thanks to our express transport services, we can deliver your excess luggage to you, in the US in the best time.

3.6.2) Moving services between the US and Vietnam

We are able to handle the packing, the transfer, the customs clearance and the warehousing of your goods if necessary, between Vietnam and the US. Our moving services are efficient, and tailored to your needs.

3.7) Free legislation advisor

Our proficiency between Vietnam and the US enables us to understand efficiently the requirement and possibilities involved for each transfer. You can contact us for all questions about administrative procedures, or all other topic if you’re not sure about it. This will avoid you to waste unnecessary time and money.

 

4) FAQ – All the questions that an importer from Vietnam may ask

4.1) FAQ – Legislation

  • Should I have an import license to import goods from Vietnam to the US?

Some Vietnamese goods are requiring an import license to be forwarded in the US. It depends on the type of goods you’re searching to import, but in most of the situations, such documents aren’t required. To learn which American administrations you must contact, please go to the paragraph 2.7.1) of this article.

 

  • Should I have a customs commissioner in the US?

If you’re not used to deal with customs for the products you’re importing, it isn’t a good idea to handle the customs clearance process by yourself. This procedure must be done in the quickest way possible, or useless fees will be added to the total invoice, and time will be lost. Benefiting of the services of a skilled customs representative, like FNM Vietnam is advised. If you’re proficient enough to handle the customs clearance by yourself, you can do it on your own without a problem.

 

4.2) FAQ – Transport budget optimization

  • In which conditions, air freight is cheaper than sea freight?

Air freight is generally cheaper if the dimensions of your goods are below 2 CBMs and 150 kgs. Otherwise, ocean freight is almost always cheaper between the two countries.

 

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

Subscribing to an insurance contract isn’t mandatory. On the other hand, it is well advised because the carrier can never be taken as responsible of the damages or the loss of your cargo during the transfer. We wrote a dedicated article on the cargo insurance, for further details.

 

  • How to reduce the import taxes in the US for Vietnamese products?

There are numerous possibilities in order to import your goods with a customs exemption in the USA. The paragraph 2.3) is developing this topic.

 

  • Should I pay customs taxes in Vietnam?

If you’re exporting goods from USA to Vietnam, the importer in Vietnam, that maybe you, may have to pay export taxes. In the other hand, there isn’t export taxes to pay in Vietnam in the other way, except if you’re sending sensitive goods out of Vietnam.

 

  • How to find the inherent customs taxes for my products?

We’re detailing you the procedure in the paragraph 2.2).

 

4.3) FAQ – FNM Tips

  • EXW, FOB, or CIF ?

Usually, Vietnamese suppliers are using the incoterms EXW or FOB, and CIF more occasionally to sell their products. It depends entirely of your supplier, what he prefers and what is the most suitable to him.

 

  • Which payment methods are recommended to pay my Vietnamese supplier?

It is recommended to pay your supplier via Paypal, Alibaba Trade Assurance, a letter of credit, a telegraphic transfer or cryptocurrencies. If he asks you any other payment method, you can have doubts about his professionalism and proficiency. All other payment methods are not as secured as the one quoted.

 

  • My goods arrived in the US port/airport, how can I deliver them to my address?

If the transfer contract established with your supplier indicates the incoterm is DAP or DAT, you shouldn’t worry about the delivery at the precised address. For a CFR or CIF, it is necessary to pass through a freight forwarder so your goods can enter through the US territory.

 

  • Door to door services from Vietnam to USA – What must FNM know to provide me a quote?

The information we must know are the packing list, the dimensions and weight, the HS code, the pickup address and the delivery address of your goods. If your goods are special, we can ask you further documents for the great process of the freight.

 

  • How to be sure that I chose the good factory/supplier?

If you don’t know yet the notoriety of your supplier, here is how you should proceed to check it:

  • First, you must verify the reputation of the website or the sourcing platform, where you found him. For this, search for some reviews and opinions on different forums and other websites. After the reputation verified, you can know start to check if the supplier is reliable.
  • For the supplier, you should first analyse his customers. If the major part of his clients are located in Europe or in North America or Japan, you can be sure that his products are of a good quality at least. In the other hand, if his clients are mainly in Africa or Middle East be careful before doing your first order.
  • Next, you have to analyse its product catalogue. If it is homogeneous, and if the products proposed have a common denominator, like leather watch strap, leather wallets and leather accessories, there are chances that it is a producer. In the other hand, if it is providing leather shoes and jackets, synthetic sportswear and women’s underwear, chances are that it is not a producer but a wholesaler. In general, wholesalers are less worried about quality than manufacturers.
  • Finally, check the first date when he was active online. If he has a lifetime of more than 5 years online, it is a good point, showing that you can rely on him.

If any doubts, our consultants can give you their opinion on your producer’s reliability.

 

4.4) FAQ – How FNM can serve me?

  • Do you have a privacy policy? 

Yes, you can consult our privacy policy here. We’re ensuring you that we will not transmit your data to third parties. Your information is only used to provide the best service possible.

 

  • What will you do for the customer support, once that I paid the service?

Because the communication is an unavoidable parameter for the success of your project, our consultants are available at all time to answer your questions. They can be reached everyday, so you can call them as necessary until you’re fully satisfied of our services. Naturally, they will inform you for each step overtook during the freight of your goods.

 

  • I bought several different articles from several suppliers in Vietnam. Can you consolidate and send them to me?

Sure, our consolidation services are realised within our warehouses, once we received your different goods from all the suppliers. Our FNM consultants can bring you more details on this topic, if you contact them.

 

  • Can I modify the delivery address once the freight process has begun?

Yes, you can do it. But please inform us as soon as possible so we can proceed to the necessary changes, the best way possible.

 

5) Conclusion

We hope that this article was helpful for you, and that you’re understanding better the transfer process, and all the inherent administrative procedures for an import of Vietnamese products in the US. You can still contact one of our consultants, if you need to know further information on the topic. As precised, FNM Vietnam can help you in your sourcing quest, or to optimize your international supply-chain from or to Vietnam.

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