Where Does Vietnam Import Garment Fabric From?
Vietnam imports garment fabric from many different sources, but China is the main supplier. According to statistics, Vietnam imports most of its garment fabric raw materials from abroad, with 39.34% of total imports coming from China.
This means that more than a third of the garment fabric used in Vietnam's manufacturing industry comes from China. In the fabric import segment alone, the industry has to import up to 86% of its production needs, 46% of which is imported from China.
Besides China, Vietnam also imports garment fabric from many other countries such as Australia, India, Korea, Europe and Mongolia. However, China remains the main market supplying garment fabric to Vietnam, accounting for a large share of the total import value of this commodity.
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Vietnam's Garment Fabric Import Value
According to preliminary statistics from the General Department of Customs, Vietnam's garment fabric import value has fluctuated recently. In the first quarter of 2023, Vietnam's import value for all types of garment fabric reached about 2.98 billion USD, down 17% compared to the same period the previous year.
Although it fell sharply in the first quarter of 2023, it should be noted that the garment fabric import value can change from period to period and with various factors such as the consumer market and the production situation.
Importing garment fabric from abroad, especially from China, still accounts for a large share. China continues to be the largest market supplying garment fabric to Vietnam and accounts for a significant portion of the total import value of this commodity.
In short, Vietnam's garment fabric import value fluctuates and depends on many different factors such as the production situation and the consumer market. For specific, up-to-date information on garment fabric import value, you should refer to reports and statistics from the General Department of Customs and other official sources.
The HS Code and Import Duty for Garment Fabric
The HS code (Harmonized System) and import duty play an important role in the process of importing garment fabric. Different fabric products have their own HS codes, and the import duty rate also varies based on this code. For example, for wool fabric (95% wool and 5% polyester), the HS code is 51121100, and the import duty is 10%, along with 10% VAT. Meanwhile, 100% polyester fabric has the HS code 54023300.
In addition, various websites and services provide information on garment fabric import procedures, including updates on tax regulations, licenses, costs and shipping times. These procedures are usually provided by logistics companies and organizations specializing in import-export.
Customs Procedures for Importing Garment Fabric
For garment fabric, the import procedure is like that for other normal goods. The garment fabric import procedure consists of the following steps:
Step 1. Complete the customs declaration
Once you have all the import-export documents — the contract, commercial invoice, packing list, sea bill of lading, certificate of origin, arrival notice — and have determined the HS code for the garment fabric, you can enter the declaration information into the customs system via software.
To declare the customs form as accurately as possible, you need to know the steps for preparing a customs declaration. If you are not clear on how to declare on the electronic customs system, you should not attempt it yourself. Incorrect operations will lead to many regrettable consequences, and may cause declaration delays, especially declaring wrong information that cannot be corrected on the customs form.
Step 2. Open the customs declaration
After the customs declaration is completed, the customs system will return the declaration channeling result. Once there is a declaration channel, print out the declaration and bring the import file to the customs sub-department to open the declaration. Depending on the green, yellow or red channel, carry out the steps to open the declaration.
Step 3. Clear the customs declaration
After the file has been checked, if there are no questions, the customs officer will accept clearance of the declaration. At this point you can pay the import duty on the customs declaration to clear the goods.
>>>See More: All-Inclusive Customs Service – Embassy Freight VN
A Few Frequently Asked Questions About Customs Procedures for Importing Garment Fabric
1. How long does it take to import one shipment?
The total import time for one shipment depends on many factors and includes the following periods:
- Time for packing and transport from the factory to the export port
- Time for import-export customs procedures
- Container cut-off time (the cut-off time varies by port and shipping line)
- Vessel transit time
- Time for import customs procedures
- Time for transport from the port to the receiving warehouse.
2. Things to note when carrying out garment fabric import procedures
A few things to note when carrying out garment fabric import procedures:
- Goods are only cleared once the tax obligation to the State has been fulfilled;
- Used garment fabric is a banned import item. To import it, you must have an import license under the scrap category;
- The C/O certificate of origin is a fairly important document that affects the amount of import duty;
- Fabric used to make clothing must have a formaldehyde declaration after the clothing has been made.
3. If the customer imports on their own, what documents and paperwork must they prepare?
a/ Conditions for the customer to import goods on their own
Legally: The business needs to register to trade the goods it wants to import, to facilitate invoicing later on
In terms of procedures:
- The business needs to update the company's information on the General Department of Customs' system
- Register the business's information on the National Single Window portal system for the relevant ministries and sectors
- A digital signature with an integrated customs declaration function. Otherwise, the business can use a customs brokerage service.
b/ If the customer imports on their own but hires Embassy for transport and customs procedures, what documents does the customer need to provide?
- Foreign trade contract (Sales contract)
- Invoice
- Detailed goods declaration list (Packing list)
- C/O (if any)
- Bill of lading (for sea and air freight)
Contact Information
EMBASSY FREIGHT SERVICES (VIETNAM)
Address: Room 4.25, 4th Floor, 8 Hoang Minh Giam, Ward 9, Phu Nhuan District, Ho Chi Minh City.
Email: info@embassyfreight.com.vn
Contact for Consultation:
- 0936911656 (HCM) – Embassy Freight Services (VN) Southern Region
- 0937361637 (Hanoi)- Embassy Freight Services (VN) Northern Region
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