Content: I - Current Demand in the Textile Market in Vietnam II - Legal Policies Regarding Textile Imports III - HS Code and Tax Policies for Textile Fabrics 1. HS Code for Textile Items 2. Tax Policies for Textile Fabrics IV - Required Documentation for Importing Textile Fabrics V. Import Procedure for Textile Fabrics VI. Questions Related to Importing Textile Fabrics
I - Current Demand in the Textile Market in Vietnam
Textiles play a crucial role in the garment manufacturing industry, woven from various fibers such as cotton, silk, flax, wool, rayon, or bamboo. The importation of textile fabrics involves a standardized process and documentation, regardless of the source and Harmonized System (HS) code.
China presently stands as the primary supplier of textile fabrics to Vietnam, holding a significant share in the country's overall textile fabric imports. About 64% of Vietnam's textile supply is sourced from imports, with 62% coming from China, 13% from South Korea, and 13% from Taiwan (China). Similarly, the supply of textile fibers and garment accessories is predominantly influenced by China.
The textile market in Vietnam is experiencing increased dynamism and diversity. Economic development and rising incomes have propelled the demand for shopping and investment in fashion. Consumers are showing a growing interest in choosing fashion products that align with their personal style and modern fashion trends.
Furthermore, Vietnam has become an attractive destination for international fashion brands. Renowned names in the fashion industry have expanded their business networks in Vietnam, creating diverse opportunities for consumers. International fashion stores and high-end shopping centers have emerged in major cities to meet the demand for diversity and quality.
However, for a convenient textile importation process, individuals and businesses need to understand the relevant regulations. What are the specific regulations and import procedures for textile fabrics? What are the conditions for importing textiles from abroad to Vietnam? How are import policies and HS codes applied? What is the customs declaration process, including its steps? All these questions will be detailed below.
II - Legal Policies Regarding Textile Imports
Based on current regulations, textile fabrics are not included in the list of goods prohibited from importation into Vietnam.
However, during the textile importation process, businesses need to comprehend the relevant regulations, especially those detailed in the following legal documents:
According to Circular No. 21/2017/TT-BCT, issued on October 23, 2017 (amended and supplemented by Circular No. 07/2018/TT-BCT on April 26, 2018) by the Ministry of Industry and Trade, standards have been set regarding the allowable limits of formaldehyde content and aromatic amines derived from azo dyes in textile products.
Based on this circular, when importing textile fabrics into Vietnam, businesses must ensure that the products meet the national technical standards. In case businesses do not comply with these regulations, they will not be allowed to distribute these textile products in the market.
III - HS Code and Tax Policies for Textile Fabrics
1. HS Code for Textile Items
Every imported good is assigned a unique HS code. Determining the accurate HS code for the imported goods helps in understanding the related policies and procedures. For textile products, there are various HS codes. To find the suitable HS code for the textile you want to import, you need to check from Chapter 50 to Chapter 63 in the Export and Import Tariff Schedule. Textile items are generally classified under Part XI - Textile and Textile Articles. In this Part, there are several chapters, including:
Chapter 50: Silk;
Chapter 51: Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric;
Chapter 52: Cotton;
Chapter 53: Other Vegetable Textile Fibers; Paper Yarn and Woven Fabric of Paper Yarn;
Chapter 54: Man-Made Filaments; Strip and the Like of Man-Made Textile Materials;
Chapter 55: Man-Made Staple Fibers;
Chapter 56: Wadding, Felt and Nonwovens; Special Yarns; Twine, Cordage, Ropes, and Cables and Articles thereof;
Chapter 57: Carpets and Other Textile Floor Coverings;
Chapter 58: Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries; Trimmings; Embroidery;
Chapter 59: Impregnated, Coated, Covered or Laminated Textile Fabrics; Textile Articles of a Kind Suitable for Industrial Use;
Chapter 60: Knitted or Crocheted Fabrics;
Chapter 61: Articles of Apparel and Clothing Accessories, Knitted or Crocheted;
Chapter 62: Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted;
Chapter 63: Other Made-Up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; Rags.
Describe | HS Code |
HS CODE OF SILK FABRIC | |
HS code for woven fabrics of shredded silk, unbleached or unbleached | 50071020 |
HS code for woven fabric made from shredded silk, printed using the traditional batik method | 50071030 |
HS code for other woven fabrics, containing 85% or more silk, unbleached or unbleached | 50072020 |
HS code of woven fabrics, containing 80% or more silk, printed by the traditional batik method | 50072030 |
HS code of other woven fabrics, containing 85% or more silk, other type | 50072090 |
HS code of other silk fabrics, whether or not bleach | 50079020 |
HS code of silk fabrics printed using traditional batik meth | 50079030 |
Other silk fabric HS | 50079090 |
HS CODE WOVEN FABRICS FROM ANIMAL FUR | |
HS code for woven fabric from sheep or animal hair, combed, with a content of 85% or more, and a weight not exceeding 300 g/m2. | |
200 g/m2. | 51111100 |
HS code for woven fabric from sheep or animal hair, combed, with a content of 85% or more, of a different type2. | 51111900 |
HS code for woven fabric from animal hair, combed, blended with artificial filament. | 51112000 |
HS code for woven fabric from animal hair, combed, blended with artificial staple fiber. | |
51113000 | |
HS code for woven fabric from animal hair, combed. | 51119000 |
HS code for woven fabric from fine animal hair, 80% or more combed, weight not exceeding 200 g/m2. | 51121100 |
HS CODE WOVEN FABRIC OF COTTON | |
HS code for woven fabric from cotton, 85% or more, patterned, weight not exceeding 100 g/m2, not bleached. | 52081100 |
HS code for woven fabric from cotton, 85% or more, patterned, weight exceeding 100 g/m2, not bleached. | 52081200 |
HS code for woven fabric from cotton, 85% or more, 3-ply or 4-ply twill, including marked twill, not bleached. | 52081300 |
HS code for woven fabric from cotton, 85% or more, other twill not bleached. | 52081900 |
HS code for woven fabric from cotton, 85% or more, patterned, weight not exceeding 100 g/m2, bleached. | 52082100 |
HS code for woven fabric from cotton, 85% or more, patterned, weight exceeding 100 g/m2, bleached. | 52082200 |
HS code for woven fabric from cotton, 85% or more, 3-ply or 4-ply twill, including marked twill, bleached. | 52082300 |
2. Tax Policies for Textile Fabrics
When importing woven fabrics into Vietnam, importers need to pay import tax and value-added tax (VAT). The tax rates depend on the specific HS code of the imported fabric, and these taxes are applied as follows:
VAT for textile fabrics is 5-10% (depending on the HS code).
Preferential import tax for textile fabrics ranges from 5-20% (depending on the HS code).
For fabric imported from Japan: Preferential import tax from 0% to 12%.
For fabric imported from South Korea: Preferential import tax from 0% to 20%.
For fabric imported from Thailand/Indonesia/Malaysia: The import tax is 0%.
If importing from countries that have signed Free Trade Agreements with Vietnam, and the goods meet the necessary conditions, you may benefit from special preferential import tax.
IV - Required Documentation for Importing Textile Fabrics
Common customs documentation for importing textile fabrics usually includes the following:
Commercial Invoice: Electronic scanned copy or original commercial invoice from the business.
Bill of Lading: A copy of the bill of lading used to transport the goods.
Introduction Letter: The original introduction letter.
Certificate of Origin: Original or electronic copy of the certificate of origin, crucial for claiming special import tax benefits.
Packing List: A copy of the packing list detailing how the products are packaged.
Customs-Business Partnership Development Agreement: The original agreement, if required by specific customs authorities.
Businesses that need to declare conformity must prepare two sets of conformity declaration documents:
A set submitted directly or by post or through the one-stop portal of the Department of Industry and Trade of provinces and centrally-run cities.
A set kept by the enterprise.
V. Import Procedure for Textile Fabrics
For the import of textile fabrics, the procedures are similar to other imported goods. The import procedure for textile fabrics consists of the following steps:
Step 1 – Customs Declaration Submission: After obtaining all the necessary import and export documents, such as contracts, commercial invoices, packing lists, sea waybills, and certificates of origin, and determining the HS code for textile fabrics, you can enter the declaration information into the customs system using software.
Step 2 – Customs Declaration Opening: After completing the customs declaration, the customs system will return the result of the declaration classification. Based on this result, you need to print the declaration and bring the import documents to the customs office to open the declaration. This process will follow the green, yellow, or red lanes depending on the classification result.
Step 3 – Customs Declaration Clearance: After inspection and finding no issues, customs officers will accept the clearance of the customs declaration. At this point, you can pay the import tax for the customs declaration to complete the customs clearance process.
Step 4 – Bringing Goods to the Warehouse for Storage and Use: After the customs declaration is cleared, proceed to liquidate the declaration and carry out the necessary procedures to bring the goods to the warehouse for storage and use.
Please note that this is a general overview, and the specific requirements may vary based on the regulations of the importing country. It is advisable to consult with customs experts or legal professionals for precise guidance on your particular
VI. Questions Related to Importing Textile Fabrics
What are the key factors to consider when choosing a textile supplier? → When choosing a textile supplier, focus on reputation, quality of raw materials, price, and the ability to meet your specific requirements. It is essential to build relationships with reliable suppliers.
How long does the process of importing textiles usually take? → The time for the import process can vary significantly depending on factors such as the complexity of regulations, customs clearance time, and the supplier's location. On average, it may take a few weeks to complete.
Are there any considerations regarding sustainability in importing textile goods? → Yes, sustainability is an increasing concern in the fashion industry. Many consumers and current regulations require sustainable practices. Consider sourcing textile goods from suppliers committed to environmentally friendly production.
What happens if my imported textile goods do not meet quality standards? → If your textile goods are not quality-controlled, you have several options. You can negotiate with the supplier for replacement, return the goods, or request compensation, depending on your agreement and the severity of the issue.
What are the benefits of using a customs agent? → Using a customs agent can streamline the import process as they are experts in understanding customs regulations. They can assist with completing paperwork, paying taxes, and ensuring compliance.
How can I stay updated on changes to import regulations? → To stay informed about changes to regulations, regularly check with relevant government agencies, industry associations, and subscribe to newsletters or alerts from trade publications.
Contact us H-CARGO INTERNATIONAL LOGISTICS Email: info@hcargovn.com Hotline: (+84) 283 5359 678
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