Shipping from Vietnam to the U.S.A 1

Shipping from Vietnam to the U.S.A.: The Ultimate Guide

Shipping from Vietnam to the U.S.A. entails a series of procedures before the products reach their destination.

This guide will explain documents needed, costs, benefits, and other factors that comprise the shipping process from Vietnam to the U.S.A.

Existing Trade Relations between Vietnam and U.S.A.

Vietnam and U.S.A. have a very great trade relationship between them and very high diplomatic relations.

Most American importers nowadays source their goods from Vietnam, and they greatly benefit from the commercial balance.

Since the U.S.A. normalized bilateral relations, trade relations between Vietnam and the U.S.A. have become comprehensive and cooperative, bringing forth flourishing partnership.

The U.S.A. supports Vietnam to make it strong, independent, prosperous, and contributes to its international security.

USA-Vietnam trade relations ensure engagement in a fair trade that is reciprocal and respects human beings’ rights.

Trade relations between the U.S.A. and Vietnam are guided by US-Vietnam Comprehensive Partnership, which advances bilateral relationships.

This comprehensive partnership puts a mechanism to facilitate cooperation in several areas like trade, economic ties, security, and political and diplomatic relations.

After introducing its new market reforms, Vietnam was able to open for foreign investment to include countries like U.S.A. and greatly improved its economic environment.

It made Vietnam become the fastest growing economy in the entire world.

Since the enactment of the US-Vietnam bilateral trade agreement, there has been rapid trade growth between them.

Through this agreement, U.S.A. and Vietnam have been able to achieve the following:

  • Concluded a trade investment framework.
  • Signed agreements for air transport, maritime and textile.

US Vietnam Trade Relations

 US Vietnam trade relations

Average Time it Takes to Ship from Vietnam to U.S.A.

Many people are adopting the norm of buying from Vietnam to the U.S.A.

However, shipping takes quite some time to reach the destination due to the geographical distance.

It is because Vietnam and U.S.A. are about Two-thirds of the distance of the earth apart.

The most basic form of transportation between the two is air freight and ocean freight.

There are no direct flights from Vietnam to the U.S.A. thus, there is a need to take several flights.

Therefore, the average time needed to transport cargo using air transport from Vietnam to U.S.A. is about eight to ten days.

It is inclusive of the time used in transporting the cargo from the place of purchase to the destination.

For ocean freight, the time may last up to a month.

Depending on the type of goods, local characteristics, and the order, the duration may be short or long.

Use this website to estimate the freight time by sea/ocean: Ports.com

Sea Routes from Ports com

Sea routes from Ports.com

Cost of Shipping from Vietnam to U.S.A.

Many factors determine the cost of shipping from Vietnam to the U.S.A., and these include:

  • Location.
  • Size.
  • Shipping mode; sea F.C.L., sea L.C.L., air or express.

The F.C.L. shipping rates of the 40-inch container from Vietnam to the U.S.A. range between $2100 and $4000.

On the other hand L.C.L. shipping rate from Vietnam to U.S.A. range between $900-$1500.

The cost of shipping via air from Vietnam to U.S.A. ranges between $2050-$2300.

These are door to door shipping averages for a load of 200kg/1 cbm.

Air freights costs per kg decreases the larger your shipment’s weight.

The chargeable weight per K.G. for a load of 10kg is $114.96, for 100kg is $15.89 and for 300kg is $8.98.

Shipping freight that is below 100 kg from Vietnam to the U.S.A. is quite affordable, and quicker using express.

When freight reaches around the 100 kg mark, the air becomes the most affordable option.

How to Reduce Cost of Shipping from Vietnam to the U.S.A.

Some of the ways to reduce the cost of shipping from Vietnam to U.S.A. include:

  • Decrease the shipping distance: the higher the shipping zone, the more expensive and slow it is to ship. In this case, you can reduce the shipping cost by eliminating shipping to higher zones.
  • Weighing your packages and reducing dimensions: heavy items cost more unless using a flat rate shipping. You can reduce this cost by consolidating packages and reducing their dimensions.
  • Getting discounted shipping rates by attempting to negotiate volume discount in exchange for loyalty.
  • Ensuring your cargo with third parties.
  • Checking out offers from suppliers you buy from and taking advantage of that.
  • Familiarize yourself with the import rules of your country to avoid spending on unnecessary expenses.
  • Going prepaid: prepaying for your products at times can get you at least 20% off the shipping costs.
  • Obtain the necessary licenses to obtain incurring costs as a result of fines.
  • Switching from Boxes to Polymers: if you are shipping small nonfragile materials from Vietnam to the U.S.A., like clothing, you may package them in a polymer. It is because polymers are cheaper in comparison to boxes, and they take up smaller space. Thus, you can pack a lot in a single shipment.
  • Opt for an agent to guide you on the best prices around.
  • Check the shipping charges to ascertain if drop shipping is available.

Best freight Modes when Shipping from Vietnam to U.S.A.

Some of the best freight modes when shipping from Vietnam to U.S.A. include:

  • Airfreight
  • Ocean freight
  • Express shipping

Airfreight between Vietnam to U.S.A.:

Airfreight from Vietnam to the U.S.A. is the first time but also the most expensive.

The time taken to move products by air from Vietnam to the U.S.A. is about 7 to 8 days using classic air freight while using express air freight takes about 3 to 5 days.

Express air freight is faster because it uses an automated process thus takes about a day or few hours.

Airfreight can be more advantageous than other modes if your goods measure less than 2CBM and weigh less than 150 kilograms.

There is no direct airline linking Vietnam to the U.S.A. directly, and stopovers will have to be made in several Asian hubs before a transfer is made to its final destination.

Major freight airports in U.S.A. include:

  • Memphis international airport:
  • Ted Stevens Anchorage International Airport:
  • Louisville International Airport
  • Chicago O’Hare International airport
  • Miami International Airport
  • Los Angeles International Airport

Major freight airports in Vietnam include:

  • Tan Son Nhat International Airport
  • Noi Bai International Airport
  • Da Nang International Airport
  • Phu Bai international airport
  • Haiphong international airport
  • Cam Ranh International Airport

Ocean Freight between Vietnam and USA:

Maersk line

 Maersk Line

U.S.A. is one of the greatest countries in the world geographically, economically and has a large population.

Being in the Northern part of the continent makes it have great coastlines on oceans such as the Pacific, Atlantic, and Gulf of Mexico.

These features enable the country to receive and export large numbers of goods to and from overseas.

Ocean freight mode of transport is the most commonly used method when shipping from Vietnam to U.S.A.

Some of the shipping companies operating between Vietnam and U.S.A. include:

  • Evergreen
  • CSAV
  • ZIM
  • Yang Ming
  • MAERSK
  • “K” Line
  • Delmas
  • Cosco Shipping
  • CMA CGM
  • Hanjin
  • Wan Hai Line Limited
  • UASC
  • MSC
  • Fesco
  • Hapag Lloyd

Seaports in Vietnam Include:

  • Hai Phong Port
  • Vung Tau Port
  • VungPhong port
  • Quy Nhon Port
  • Quang Ninh Port
  • Saigon Port
  • Cua Lo Port
  • Dung Quat Port
  • Chan May Port
  • Da Nang Port

Seaports in U.S.A. include:

  • Port of Los Angeles: this is the busiest port in the U.S.A. and North America. It mainly handles very bulky cargo.
  • Port of long beach: it is the second port in Los Angeles and ranked among the U.S.A busiest ports.
  • Port of New York/ New Jersey: it is among the biggest and busiest ports in U.S.A.
  • Port of Savannah; has an average tonnage of about 35 million and is a rapidly growing sport.
  • Port of Houston; is ranked as the 6th busiest and the biggest port in the U.S.A. In terms of handling cargo tonnage, the Port of Houston is ranked second.

Express shipping from Vietnam to U.S.A.:

Express shipping is used in scenarios where you have a small shipment, and you need it to be delivered as quickly as possible.

Express shipping is usually preferred for shipments that are smaller than 5 C.B.M.s and 20 kilograms.

Advantages of express shipping include:

  • It is the fastest method of transporting freight.
  • Express shipping is very suitable for small shipments.
  • Customs clearance is quicker and efficient.

Express shipping is ideal for:

  • Executives who would like to send urgent documents.
  • Businesses that require to send their products quickly.
  • Individuals who require their parcels faster.
  • People are traveling and sending luggage to pick it at their destination.

The main drawback of express shipping is that it is relatively expensive concerning other modes.

Courier companies that you can use for express shipping from Vietnam to U.S.A. include:

  • Viettel Post Joint Stock Corporation
  • AN Binh Express International Transport TM-DV Company Limited
  • Viet International Express Joint Stock Company
  • T.I. Express
  • Viet AN International Service Logistics Company Limited
  • DHL Global Forwarding (Vietnam) Corporation
  • P.S. Viet Nam Joint Stock Company
  • Federal Express Viet Nam Company Limited (FedEx)
  • S.C. Express Service and Trading Joint Stock Company

Freight Documents needed to Ship from Vietnam to U.S.A.

Documents needed to ship goods from Vietnam to U.S.A. include:

Bill of Lading

A bill of lading is like a passport for the goods you want to ship in simpler terms.

It is a document that shows that the transfer is legal because it is issued after payment has been made to the carrier.

Depending on the mode of transport used, it can either be a bill of lading for ocean freight or an air waybill if the goods are shipped via air.

The information provided in the bill of lading includes:

  • Shipper.
  • Consignee.
  • Vessel Number.
  • Notify Party.
  • Place of delivery.
  • Port of discharge.
  • Containers number.
  • Dimensions or Volume of the cargo.
  • Goods description.
  • The net weight of the cargo.

The Original Invoice

It is a type of document issued by USCBP to ascertain that the number of goods received corresponds to what was declared.

Packing List

This gives a summary of all the items in your shipment. in case there are hazardous or chemical products.

In the shipment, you should attach an MSDS datasheet.

Certificate of Origin

This document is very important as it is proof showing that you manufactured your goods in Vietnam.

The manufacturer should sign the certificate of origin.

The Vietnam Government then delivers it.

Import/Export Declaration

It is prepared by either the exporter or importer, and it is submitted to the customs office.

Depending on the different requirements the importer should meet, the form will vary in different contracts.

Import Permit

This is issued for restricted goods as they require a license delivered to the authority concerned before the goods leave or enter a country.

Some of the products requiring this license include:

  • Food products
  • Drugs
  • Plant
  • Animal
  • Articles that are trademarked, for example, name brand shoes
  • Sportswear apparel
  • Toys
  • handbags

Packing Materials when Shipping from Vietnam to U.S.A.

Some of the packing materials used when shipping from Vietnam to U.S.A. include:

 Packing boxes on pallets

Packing goods on pallets

  • Carton boxes: cartons that are thick and do not bend will be the best for protecting your cargo in case of impacts.

Carton boxes ensure excellent packing of your products no matter their size and shape.

  • Pallets: they ensure safety when handling cargo and placing it in a container as you can move easily with mechanical handling methods.
  • Wooden Crates: for easier transportation from Vietnam to the U.S.A., voluminous products can be placed inside a wooden crate.

Also, if the goods are displayed without a particular direction, it is better to use the crate.

  • Other packing materials include bubble wrap, wrapping paper, and tape, and these enable a cushion between the products and the carton or the box. They are used to isolate the products during transit.

Top Exports from Vietnam to U.S.A.

Some of the top exports from Vietnam to U.S.A. include:

  • Broadcasting equipment.
  • Integrated circuits.
  • Furniture
  • Textile footwear.
  • Knit sweaters.
  • Leather footwear.
  • Knit women’s suits.
  • Computers.
  • Non-knit women’s suits.
  • Bedding.
  • Agricultural products.
  • Seafood.

Incoterms to use when Shipping from Vietnam to U.S.A.

Some of the incoterms that you should use when shipping from Vietnam to U.S.A. include:

  • EXW: the incoterm in this category is EXW (Ex Works plus a named place).

This incoterm states that, the seller is not responsible for the costs, risks, and obligations, and their job is all done when the goods are ready at their factory.

  • Free on Board (F.O.B.): this term grants you and the seller freedom to do what you know best, and the seller needs to secure more competitive pricing at the origin.

This is because the seller is aware of the processes and requirements of their country.

  • Cost Insurance and Freight (C.I.F.): the seller assumes the risk and will be responsible for buying insurance to import the products. C.I.F. is only used in sea transportation.
  • Free Carrier (F.C.A.): due to the flexibility of F.C.A., it allows your goods to be delivered at the premises of the seller and several other points located in the seller’s country.
  • Free Alongside Shipment (F.A.S.): this is mostly used when importing bulk cargo from Vietnam to U.S.A. The seller organizes the delivery of their purchased goods to be near a given port or given vessel to await shipment.
  • Cost and Freight (C.F.R.): in this incoterm, the seller will not pay for insurance, and it is only used for sea transport.
  • Carriage Paid To (C.P.T.): it is used for all modes of transport. It states that the seller will deliver the goods to the carrier at their own expense or nominate another person.
  • Carriage and insurance paid to (C.I.P.): C.I.P. is used for all modes of transport. It states that once the seller transfers the goods to the carrier, the risk of transportation of the goods shifts.
  • Delivered at Terminal (D.A.T.): it states that besides a transport terminal in your country.

The only other place where your shipments can be delivered maybe your premises or a nearby location,

  • Delivered Duty Paid (DDP): in DDP, the seller assumes the costs of risks and the importation procedures in shipping from Vietnam to U.S.A.

The seller will also ensure the delivery of the goods at the agreed.

  • Delivered at Place (D.A.P.): in D.A.P., the buyer will take care of the importation procedures, the costs of risks, and ensure that they are delivered to the destination.

Best Time to Ship from Vietnam to U.S.A.

Seasonal factors greatly determine the rates of freight, especially F.C.L. sea freight and air.

It is important to take into account peak seasons when shipping from Vietnam to U.S.A.

It is important to note that during the holiday shopping season, the prices of products will rise, which will not be an appropriate time to ship from Vietnam.

The best time to shop is during the fall months, which lack holidays as the prices will be relatively lower.

You may use these tips to track peak seasons when shipping.

Types of Containers to use when shipping from Vietnam to U.S.A.

Some of the types of shipping containers used when shipping from Vietnam to U.S.A. include:

Types of shipping containers

Types of shipping containers

  • Ocean container or sea container: they are a type of container specifically suited for the transportation of products across the ocean. Their material is corrosion-resistant.
  • Intermodal container: this type of container is suited for several transport modes, including sea and air.
  • ISO container: it is a type of container that suits the international organization’s specification for standardization.
  • Cargo containers: it is a type of container with the certification to move goods across the ocean.
  • One-trip containers: these are types of containers that have only been used once across the sea.
  • Reefers: this type of container is used to transport perishable products that are temperature sensitive.
  • Conex box: this type of unit was designed in the Korean war.

Labeling Requirements when Shipping from Vietnam to the U.S.A.

Labeling regulations stipulated in the Regulation on Labels and Decree provides guidance on how goods produced in Vietnam should be labeled.

Labeling in Vietnam requires exact numbers, scripts, drawings, symbols, and signals in line with the products’ nature.

Notes that are unclear and may result in mistakes with other goods are not allowed.

For uniform state management of labeling requirements, the Ministry of Science and Technology is the one responsible.

It is done under the Directorate for Standards and Quality Department in the stated ministry.

The labeling requirements when shipping from Vietnam to U.S.A. include:

Labelling when shipping to USA

Labeling when shipping to the USA

Goods not Requiring Labeling

Some of the products that do not require labeling when shipping from Vietnam to the U.S.A. include:

  • Fresh foodstuff
  • Processed foodstuff
  • Fuel
  • Raw materials (agricultural products, minerals, and sea products)
  • Construction materials such as bricks, lime, stone, sand, gravel, rich soil, cement, and commodity concentrate mixture and mortar.
  • Waste material in business production

Goods that require to be used for security, national defense, or emergency purposes are not labeled when shipping from Vietnam to U.S.A.

Other goods that do not require labeling are export goods labeled to suit the importer’s requirements.

Languages to use in Labeling Import, Export Goods

Export goods can be labeled o the importing regions and countries under the supply contract.

Import goods require that they be labeled in Vietnamese for obligatory contents unless I have a particular specified event.

The original labels should be kept unchanged.

The labels should state clearly the obligatory contents like business address, name of the products, origin of the products, and particular requirements of each kind of goods.

Contents of Label

A good label should state clearly the following:

  • Name of the goods
  • Origin of the goods
  • Traders address

Apart from these requirements, organizations or individuals must state clearly if they want any other provisions on the labels.

Custom Clearance Requirements when Shipping from Vietnam to U.S.A.

When importing goods into the U.S., here is a series of steps that you will follow:

  • The first step is arranging with the C.B.P. at the airport or port before the goods arrive in U.S.A. territory. You will have to make payment for all necessary duties and electronically send the documents.
  • Once the arrangement has been made, it is necessary to declare the goods by stating their purpose; whether for consumption or re-export.
  • Once the cargo arrives, either you or the customs broker should initiate the C.B.P. within 15 days. This will help in avoiding incurring the added costs of storage and will liberate the products from custody.
  • The entry summary form should be sent to the C.B.P. office within ten days after the cargo release. This form should give very clear details about the value and origin of the goods imported.
  • It is important to pay the required duties in the specified period. It is also essential to note that the goods will remain kept in custody until all the customs requirements are followed.

Quality Standard Requirements to Consider when Shipping from Vietnam to the U.S.A.

Some of the quality standard requirements to consider when shipping from Vietnam to U.S.A. include:

  • National technical regulations (QCVN)
  • Vietnamese Standards (TCVN)
  • Foreign Standards: GOST, BS. I.S., AS, DIN, NF.JIS and K.S.
  • Professional Association Standards: ASTM, AOCS, AOAC, ASMEA, API, and A.W.S.
  • International standards: ISO, CODEX, I.E.C., and OIML.
  • Other publications and journals.

Role of Freight Forwarder in Shipping from Vietnam to U.S.A.

The roles of freight forwarder when shipping from Vietnam to U.S.A. include:

  • Offering advice to the shipper: freight forwarders advise clients and inform them of the challenges likely encountered in the shipping process.
  • Freight forwarders make the shipping process easier as they are knowledgeable in shipping regulations, transportation costs, and banking practices.
  • Booking freight space on transportation modes: they book cargo space for their clients on ships and airplanes. They have the expertise and very extensive connections to enable importation and exportation from various countries.
  • Packing, warehousing, and distribution: the freight forwarder can organize for packing, warehousing, or distribution once the goods arrive.
  • Providing insurance services: freight forwarders organize for insurance to ensure that cargo is safe in case of damages during transit.
  • Perform documentation and customs clearance: they prepare and submit the necessary documentation required to export goods. They will ensure legal compliance of the goods to required regulations and customs.

Challenges in Air Freight from Vietnam to the U.S.A.

Each mode of transportation faces its challenges.

Despite shipping goods by air from Vietnam to the U.S.A. being the fastest way, it has several challenges.

Some of the challenges likely to be encountered in air freight when shipping from Vietnam to the U.S.A. include:

  • Security: more stringent security measures have been established in all aspects of trade globally. However, there still is no accepted global standard.
  • Ecommerce: the rapid growth in eCommerce has led to many goods been shipped by air. The rise in shipment by air has resulted in the air transport sector’s challenge inventing ways of the goods reaching their destination faster.
  • Oil prices: fluctuating fuel prices are a major challenge in the aviation industry. It is not easy to solve this challenge shortly, through a little progress is being made.
  • Protectionism: trade protectionism is an issue that concerns the whole industry, and it leads to a reduced volume of trade. This, in turn, leads to a drop in the business of the entire industry.
  • Capacity: at time there is reduced demand for air transportation, which can be a loss to the air freight industry. However, technology can offer assistance by optimizing loads to achieve effective operations.

Challenges in Ocean Freight from Vietnam to the U.S.A.

Some of the challenges in ocean freight when shipping from Vietnam to the U.S.A. include:

  • Bunker fuel Sulphur reduction: most large ocean-going ships obtain their fuel; from “Bunker” oil, a residue obtained by distilling crude oil.

When this oil is used in the ships, it produces huge Sulphur oxides that harm the ocean.

  • Political and economic trouble and tariffs: political situations can bring about rising tariffs as they influence international exchange rates for currency.

The U.S.A. dollar is mostly used as a benchmark for international pricing, and thus its performance greatly affects the payment prices used.

  • Fluctuating capacity from international shippers: ocean shipper is always very keen on protecting their profit margins.

Due to impacts from the economy and politics, international shippers avoid keeping their rates standard in a volatile market place.

  • Lack of visibility cost: due to multiple organizations being involved in global shipping, there is a lack of transparency.

This makes it difficult for the freight forwarder to ascertain what they are paying for and difficult to quote exact rates to customers.

  • Price sensitive market: the price is a major attraction to most end customers. This makes it difficult for freight forwarders to beat the competition when customers require their quote or rate sheet.

Benefits of US-Vietnam Bilateral Trade Agreement when Shipping from Vietnam to the U.S.A.

Some of the benefits of the US-Vietnam Bilateral trade agreement include:

  • Restrictions on trading rights have loosened: before the trade agreement, engaging in trade was restricted, and several intense conditions were in place before obtaining export and import licenses.

This restriction has been abolished due to B.T.A., which has ensured efficiency in trade relations between the U.S.A. and Vietnam.

  • Significant reduction of products with import quotas: import quotas were an important protection element in the past in Vietnam.

B.A.T. between U.S.A. and Vietnam has ensured that each sector is protected using quantitative restrictions and only allowing important quotas for specific restricted goods.

  • Reduced average tariff rate: Th US-Vietnam bilateral trade agreement has designed efficient quantitative restrictions that protects sellers in Vietnam.

To compensate for the quota system that has been loosened, many rates have been revised, thus ensuring efficiency.

  • High protection: B.A.T. has positively impacted the tariff rates for all sectors.

Thus ensuring they are safe from violation and ensuring protection when shipping to the U.S.A.

  • Tariff concessions: The US-Vietnam Bilateral trade agreement includes very specific requisitions by Vietnam to reduce the tariff rates on a percentage of agricultural products.

The Vietnamese rates are not considered high by established countries like the U.S.A.

  • Safeguard: The Bilateral Trade Agreement between Vietnam and the U.S.A. offers provisions in the market access area by protecting the sellers.

For example, when the economy encounters a surge, either the importer or the exporter should temporarily raise the tariff.

  • Transparency: B.T.A. made Vietnam agree to implement transparent commercial dealings with U.S.A. and allowing U.S.A. individuals and businesses the right to appeal rulings.
  • Expansion: US-Vietnam Bilateral Trade agreement has opened up goods service sectors for foreign investments.
  • The US-Vietnam Bilateral Trade Agreement has eliminated trade-related investment measures between Vietnam and the U.S.A. to ensure efficiency.

Importance of Cargo Insurance in Shipping from Vietnam to U.S.A.

 Accident during ocean freight

Accident during ocean freight

The process of transporting cargo across the world entails encounters with certain risks.

Therefore, it is important to have insurance for your cargo as you can’t always protect your freight.

Providing insurance to your goods will always protect their value from potential losses that can happen while in transit by either air or ocean.

Insurance of marine cargo is the frequently used method to protect the cargo from theft, general average, or damage while in transit from Vietnam to the U.S.A.

It is important to note that cargo insurance is not always included automatically for all goods to be shipped in most cases.

However, the sellers or buyers can purchase insurance policies from providers such as websites, local agents, websites, and freight forwarders.

Buying cargo insurance is not a requirement, but it is highly recommended to achieve better security for your goods while in transit.

You may weigh the costs of insurance and the potential risk of the cargo and strike a balance as to whether you require the insurance or not.

After insurance of your cargo, the liability will transfer to the carrier of the shipment from Vietnam to the U.S.A.

Some of the aspects covered under the cargo insurance during transportation from Vietnam to the U.S.A. include:

  • Infestation.
  • Customs rejection.
  • Damages as a result of improper packing.
  • Cargo abandonments.
  • Employee’s dishonesty.
  • Damages as a result of heavy water, derailment, and sinking.
  • Non-delivery.
  • Theft.
  • Damages as a result of corrosion.
  • Fire.

Common Types of Cargo Insurance Include:

  • All risk: it takes care of physical damages due to external factors considering some listed exclusions.
  • Free of Particular Average (F.P.A.): this cover is also referred to as Named Peril Policy, and it gives an exact list of factors covered by the policy. It does not cover theft, but it covers stranding, burning, collisions, derailment, and natural factors.
  • Shipment by shipment: this insurance cover is taken care of by the carrier of the goods.

U.S.A. Import Duty Rates when Shipping from Vietnam to the USA

US import duty rates vary depending on many variables when shipping from Vietnam to U.S.A.

There are products exempted from import taxes in the U.S. Some of these products may include:

  • Some types of used food products.
  • Various products from countries of the Generalized System of Preference (G.S.P.). Vietnam is one of the benefits.
  • Allowed products from countries having an F.T.A. with the United States of America.

It is not easy to get a specific rate for the import duty rates required when shipping from Vietnam to the U.S.A.

It is because of the wide range of products shipped and specifications.

To get the specific import duty rates, it is important to verify from one or all of these sources;

  • Ports directory.
  • Customs Ruling.
  • Rulings.
  • About the customs rulings online search system (CROSS).
  • The official Harmonized tariff schedule

Setting up Drop Shipping when Shipping from Vietnam to U.S.A.

Dropshipping refers to a plan between a business and the distributor or manufacturer of a product in which products are shipped by the manufacturer or distributor.

In this model, the seller just creates an online store and outsourcers all the other logistics functions.

The seller will only handle customer support and product marketing—the online store purchases orders from third-party suppliers who then ship them to the buyer.

Dropshipping between Vietnam and the U.S.A. requires adherence to the following legal requirements:

  • You are protecting your intellectual property and registration of the official trademark.
  • Stringent compliance with laws of Anti-spam.
  • Efficient management of taxes. It is important to note that different states in the U.S.A. have varying taxes, depending on the business type.

Dropshipping from Vietnam to the U.S.A. works in the following way:

  • First, you must find an online supplier who has the products which you would like to sell.
  • Show the products of the supplier with prices that are marked up on your website and advertise them.
  • You will then receive payment directly from customers that buy from your website.
  • Redirect the orders to your supplier and then pay them the original price. You should keep the profits to yourself.
  • After that, the supplier will ship goods to your clients directly.
  • To enjoy continuous earnings, repeat the process consistently and with a variety of the supplier’s products.

Advantages of Drop Shipping Include:

  • Low barriers and restrictions to enter the business.
  • Requires minimal startup investment.
  • No need for startup inventory.
  • So long as there is internet connectivity, it can operate from anywhere in the world.
  • Does not require handling warehousing issues and inventory.
  • Technical work is not required when setting up.

Disadvantages of Drop Shipping Include:

  • High competition.
  • No inventory control.
  • Dependency on the supplier is too much.

Prohibited Commodities to Ship from Vietnam to U.S.A.

There are hundreds of products that the U.S.A. does not allow for their importation.

Most of the items are regulated by the border patrol units and custom regulations.

Some of the notable products that are prohibited include;

  • The U.S. government highly regulates military-technical weaponry.
  • Any weaponry.
  • Fish and wildlife.
  • Biologicals.
  • Any explosive material.
  • Drug paraphernalia.
  • Second-hand consumer goods.
  • Some types of publications.
  • Game and hunting trophies.
  • Ammunitions such as machine guns.
  • Firecrackers.
  • Dog and cat fur.
  • Some regulated cultural products.
  • Right-hand drive motor vehicles.
  • Chemicals
  • Trademarked articles such as clothes.
  • Absinthe
  • Scrap and waste.
  • Refrigerating equipment using C.F.C. products.
  • Gold
  • Raw material containing asbestos of the group amphibole.
  • Merchandise from embargoed countries.

Common Problems you can Encounter when Shipping from Vietnam to U.S.A.

Some of the problems that you might encounter when shipping from Vietnam to the U.S.A. may include:

  • Random custom exams and inspections to verify your knowledge and compliance with the customer specifications.
  • One of the common problems you may encounter is custom clearance, and this occurs mainly when you are not familiar with the various customs requirements.
  • Another major problem is delay costs associated with late freight release.

Some of the delays charges that you might encounter include per diem, demurrage, and detention charges.

  • Taxes and duties missing in your documentation are among the most common shipping problems encountered by first-time shoppers.
  • It is prudent to pick shipping agents with experience in handling shipments. This is to avoid problems that arise from damaged cargo.
  • Sometimes you might be tempted to exceed the allowed weight capacity/limit.

It might result in your cargo not meeting road weigh limits or I.M.O.’S Verified Gross Mass Regulation.

  • Penalties such as Importer Security Filing (ISF) are common occurrences for shippers.
  • Unexpected closures of ports due to unavoidable circumstances are also some of the problems you might encounter in shipping.
  • It is not uncommon to hear of lost containers while on transit.

How L.C.L. Shipping from Vietnam to the U.S.A. compares to F.C.L. Shipping from Vietnam to U.S.A.

Full Container Load (F.C.L.) and Less than container load (L.C.L.) are two main container shipment modes.

 LCL vs FCL

FCL vs LCL

F.C.L. is a type of shipment where the load takes the entire space of a container.

In F.C.L., the importer or exporter uses the whole container without sharing it with other users.

In L.C.L., shippers take only a portion of the container and share the excess space with other shippers.

Main Differences Between the Two Shipping Methods Include:

  • C.L. allows for more shipping volume compared to L.C.L.
  • C.L. offers more cargo security compared to L.C.L. It is because F.C.L. has only one user compared to multiple users that utilize L.C.L.
  • C.L. is used when shipping low volume shipments, while F.C.L. is used when shipping high volume shipments.
  • C.L. is preferable for urgent shipments compared to L.C.L. shipments, which might have multiple stops.
  • Overall, F.C.L. tends to be more expensive compared to L.C.L.

Some of the Advantages of L.C.L. include:

  • C.L. provides for flexibility in shipment.
  • Provide for simpler ways of receiving goods,
  • Advantageous for small businesses because it provides for payment of space used.

Disadvantages of L.C.L. include

  • B.M. rates are lower compared to F.C.L.
  • Shipments take longer compared to F.C.L.
  • Handling of shipment is tedious.

Some of the Advantages of using F.C.L. include:

  • The duration of shipping is shorter.
  • M.B. rates are friendly compared to L.C.L.
  • Product or shipment handling is smooth.

Disadvantages of using F.C.L.:

  • Unlike in L.C.L. where the shipper shares costs of shipment, in F.C.L., the shipper handles all the costs of the shipment.
  • C.L. is not suitable for small shipments.
  • Overhead costs for F.C.L. are higher.

How Door to Door Shipping from Vietnam to U.S.A. Works

Door to door shipping, also known as all-in, is one of the most convenient shipping routes from Vietnam to the U.S.A.

Under this service term, the freight forwarder picks up the container holding the goods or the goods itself, transports it to the port, and does all the paperwork necessary.

Door to door shipping involved the following easy steps:

a) Transferring of shipment from sellers’ warehouse to the freight forwarders warehouse.

b) The shipment is checked for defects, packaging, labeling, or any other issue before shipping.

c) The freight forwarder clears your goods or shipments through the export customs.

d) The shipment is then containerized ready for shipping.

e) Your shipment is then transported out of Vietnam to U.S.A.

f) The package is cleared through the import customs in the U.S.A.

g) Once cleared, the shipment is then sorted.

h) Lastly, the shipment is transferred to the stated address.

Door to Door Shipping Involves:

  • Provision of standardized service processes and transparency.
  • Door to door services provides transportation choices such as the sea, air, or express.
  • Door to door shipment allows for the supplier to ship to your preferred warehouse or D.D.U.
  • Allows for shipment of any package size.

Advantages of Door-to-door Delivery include:

  • It saves you costs associated with handling the shipment processes.
  • Door to door delivery saves time.
  • It also saves you all the stress and effort of shipments.
  • Door to door has simplified the shipping process.
  • The process speeds custom clearance.

Some of the incoterms that are associated with the door-to-door shipment and that you should be aware of include:

  • Ex Works
  • Free alongside ship (F.A.S.)
  • Free carrier (F.C.A.)
  • Free onboard (F.O.B.)
  • Cost and Freight (C.F.R.)
  • Cost, Insurance and Freight (C.I.F.)

How Ecommerce Shipping from Vietnam to U.S.A. Works

Ecommerce shipping in Vietnam is one of the most developed in Asia. It is pretty easy to ship goods from Vietnam to the U.S.A.

Many international eCommerce businesses have set shop in the U.S.A. and can be used by both countries to ship goods between the two countries.

To ship through e-commerce from Vietnam to the U.S.A.; you can use these easy steps:

  • First, you should find the best eCommerce partner to ship your package.
  • You should ensure that your package or shipment is packaged and labeled appropriately.
  • Next, ensure that the service you chose is of the right level and corresponds with your package. Some of the levels of service to be aware of include:

a) Free pick-up at origin address.

b) Compensation in the event of loss of shipment.

c) Packaging service.

d) On-call customer service.

e) Delivery time.

f) Weight limit.

g) Real-time tracking & tracing.

  • The details provided for your shipments and the shipment address should be correct. The shipping details may include:

a) Harmonized System (H.S.) Code of Item.

b) Item description.

c) Recipient’s details and address.

d) Country of manufacture.

e) Item weight and dimensions.

f) Sender’s details and address.

g) Item quantity.

  • Lastly, you take the package or shipment to the carrier you have chosen for shipment. Some of the notable carriers operating in Vietnam include:

Importance of H.S. in Shipping from Vietnam to the USA

 HS Code structure

HS Code structure

HS code, also known as Harmonized Commodity Description and Coding System, is one of the regulations that govern shipments of goods from Vietnam to the U.S.A.

H.S. codes are used by countries that are members of the world trade organization.

It is used in the classification of goods for easy identification.

Every provides given a unique H.S. code that identifies it.

H.S. codes are particularly important in determining the import taxes required to pay to import the particular product.

In short, there are many factors you should consider when shipping from Vietnam to USA.

That’s why BanSar offers perfect solution for all your shipping needs from Vietnam to USA – contact us now.

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