Since initiating its first economic reforms in the 1980s, Vietnam’s economy has quickly. As one of Asia’s most vibrant economies today, Vietnam offers various commercial options, including import and export.
This article focuses on Australian business owners that want to import their goods into Vietnam and export them from Australia. Here, we examine the compliance when exporting from Australia and the import regulations.
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An In-Depth Look into the Vietnamese Economy
By 2030, Vietnam is predicted to be one of the economies with the quickest growth rates. When Harvard University’s Growth Lab researchers published new growth forecasts in the Atlas of Economic Complexity, they came to that conclusion.
Vietnam achieved several international memberships and trading agreements that would benefit Australian investors. One benefit of free trade agreements is increased market access for Australian exporters and investors in partner nations. Vietnam has negotiated several free trade agreements (FTAs), and is a member of ASEAN, the WTO, and the China-ASEAN FTA. These nations include Australia, Japan, India, Korea, and New Zealand.
Know the Regulations when Exporting from Australia:
It is essential to comply with import laws and regulations when exporting from Australia. Doing so encourages trade by ensuring that shipped items are appropriate for their intended uses and satisfy all relevant import laws. You must be familiar with the regulations pertinent to both countries to ensure that trade between Australia and Vietnam is successful. The duty taxes and clearance the Department of Home Affairs impose are crucial factors.
Export Control Act of Australia
The Export Control Act of Australia mandates Australia’s Department of Agriculture and Water Resources as the primary body regulating the export of agricultural goods.
All agricultural products from Australia, including eggs, dairy, fish, vegetables, fruits, seeds, grains, live animals, hay, meat, straw, and organic goods, must first pass stringent quality tests before they can even be exported.
Stating that the EX26 Export Registration Form must have the following information on it for Australia exporters of the goods above:
- Animal slaughtering in Australia
- Fish capturing in Australia
- Goods handling and loading onto vehicles and freight
- Goods treatment
- Goods processing, packing, and storage
- Livestock quarantine
The EX26 Export Registration form is essential since it is used to register an export establishment and approve a planned arrangement. The application asks someone with management and control to change a registered export establishment and an approved account and activities.
Australians Customs Requirements for Export
Your products must have approval from the Department of Home Affairs before being sold abroad; those that fall under one of the categories of forbidden goods listed on the Australian Border Force’s (ABF) official website will not be allowed.
Understand Customs Requirements for Exporting to Vietnam
Vietnam’s trade is regulated, much like Australia’s, and all imported items are subject to border clearance. The 2015 Law on Customs, as well as other circulars and decrees, establish new conditions and all imports.
Required Documents for Import
Within 30 days of the import date, an Australian trading corporation must submit a customs import declaration. The electronic VNACCS/VCIS (Vietnam Automated Cargo and Port Consolidated System/ Vietnam Customs Information System) system can be used to submit this document.
Importers can use this system to provide any necessary additional paperwork, such as inspection reports, commercial invoices, certificates of origin, and declarations of the value of the goods.
The following items are mentioned in Annex 1 of Decree No. 187/2013/ND-CP as being forbidden from importing into Vietnam: military weapons, fireworks, explosive materials, narcotics, used consumer products, and right-hand drive cars.
Export and Import Duties for Australian Exporters
Taxes are levied on imported and exported commodities under Vietnam’s popular Harmonized Commodity System (HS). But there are some exceptions. These are the goods that:
- exported from a non-tariff zone
- in transit
- imported from Australia into one of the non-tariff areas in Vietnam for being used in this area only
Import Duties in Vietnam
Depending on the type of products and their value, certain costs could arise and increase the overall price of the commodities. These often relate to goods and services tax (GST), clearance, and other expenses.
Products are often divided into the following three categories by Vietnamese import taxes:
- preferential rates
- special preferential rates
- ordinary rates
These rates are based on the products’ origin in the Certificate of Origin.
Due to the trade agreement with Australia, the favorable rate category covers import duties from Australia. All taxes must be paid before goods can be sent to Vietnam.
Related article An In-Depth Look into Import and Export Regulations in Vietnam
Do You Need a Company for Trading from Australia to Vietnam?
According to the Export Control Act of Australia, Australian companies that want to export their goods to Vietnam must create and adequatelyregister a local firm.
This legal entity must be incorporated as a trading corporation to conduct export and import transactions.
Set up a Trading Company in Vietnam for Import and Export Activities
Creating a trading business in Vietnam takes roughly three months once the required paperwork is submitted. The application dossier consists of an import license, a business registration certificate, and an investment license.
The fact that there is no minimum capital requirement is interesting.
Undername Import Service in Vietnam
The unofficial import services are a feasible choice for foreigners considering importing items into Vietnam. As a result, business owners can begin importing immediately instead of going through the complex and time-consuming process of establishing a trading firm.
If you employ a covert import provider like InCorp, you can import goods without establishing a company in Vietnam or obtaining a license. In addition, you are not responsible for paying taxes as an importer because that responsibility falls on the consignees.
InCorp will help you every step of the way whether you’re starting a business, importing products into Vietnam, or looking for undername import services. We will handle all the formalities and paperwork and communicate with everyone. So contact us now for a free quotation on your business plan in Vietnam.
InCorp Vietnam is a leading provider of global market entry services. We are part of InCorp group, a regional leader in corporate solutions, that encompasses 8 countries in Asia-Pacific, headquartered in Singapore. With over 1,100 legal experts serving over 15,000 Corporate Clients across the region, our expertise speaks for itself. We provide transparent legal consulting, setup, and advice based on local requirements to make your business perfectly fit into the market with healthy growth.
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