HOW TO EXPORT ELECTRONIC COMPONENTS FROM VIETNAM TO INDIA

Vietnam and India have a long-standing traditional relationship and trade and investment are one of the key pillars of the bilateral relationship.

In 2021, bilateral trade turnover reached $ 13.2 billion for the first time. It is expected to reach the target of $ 15 billion set by the leaders of the two countries in 2022.

The main Vietnamese exported products to India are mobile phones and components, computers, electronic products and components. In 2021, Vietnam’s exports of electrical, electronic equipment to India was $3.072.432, accounting for 43,42% of VN’s total export value to India.

1. Some information about electronic component products

• Big electronic component exporters in VN

Electronic components manufacturing is one of the driven industries in Vietnam, creating jobs for thousands of workers and significantly increasing foreign exchange earnings through exports. Therefore, currently, there are many companies manufacturing electronic components in Vietnam, such as: Abeco Electronic Co, Ltd, Daewoo Electronic Corporation, GENESISTEK VINA corp, Autotronics Nguyen Phi JSC,…

• HS code of electronic components

In order to properly determine policies, procedures of the  export, one of the first thing needed to determine is the HS code of the commodity

For electronics you can refer to the HS code of the chapter 85: Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles

The classification of a product to a certain HS code is based on the nature, composition, …. of the actual exported commodity at the export time, based on catalog, technical documents (if any) or /and decided by the Customs Department of Commodity Verification. The actual inspection results of the Customs and announcement by the Customs Department of Commodity Verification are the legal basis for applying HS code to exported goods. Exporters are ultimately responsible for ensuring that the products are correctly classified.

Here are the HS codes of some of most popular electronic components exported from VN to India

 

 

 

 

 

 

 

 

 

 

 

• Documentation for export of electronic components from VN to India

There isn’t any special governmental management policy on Exporting Electronics.

To export electronic components, the documentation required is as below:

• Sales contract 
• Commercial Invoice 
• Packing List 
• Bill of lading 
• C/O 

• Customs duty on exporting electronic components from Viet Nam

VAT on exporting Electronics: pursuant to current stipulations, VAT on exported commodity is 0%

Export duty: Electronics is not in Vietnam’s nomenclature of taxable exports, therefore, the exporters do not have to pay export tax.

2. Delivery of electronic components from VN to India

• By Air Freight

Air freight from India to Vietnam is significantly faster than ocean shipping, with consignments typically taking from 2- 4 days to reach their destination. It should be noted that air freight is more expensive than shipping by sea, especially for consignments weighing 100kg or more.

SM Global provide air service from Vietnam to UK for some routes as below:

HAN/SGN – DEL (Noibai / Tan Son Nhat – Delhi)

HAN/SGN – BOM (Noibai / Tan Son Nhat – Mumbai)

HAN/SGN – MAA (Noibai / Tan Son Nhat – Chennai)

HAN/SGN – BLR (Noibai / Tan Son Nhat – Bangalore)

HAN/SGN – COK (Noibai / Tan Son Nhat – Kochi)

HAN/SGN – CCU (Noibai / Tan Son Nhat – Kolkata)

• By sea freight

Shipment by sea is suitable for heavy items with big volumes and its shipping time is slower compared to transportation by air, however, the sea freight is cheaper as well. Normally, the transit time from VietNam to India is about 15 – 40 days, depending on ship service being direct or transit. There are many ocean lines that provide this route such as: MCC, MSC, YML,OOCL, COSCO, WANHAI, CMA CGM, MOL, HAPAG LLOYD

• FCL (Full container load) Transportation of full containers (Usually there are 3 main types of containers: 20 DC, 40DC, 40HC).
  •  Our staff will help you to advise the type of container that is suitable for the type of goods you intend to transport.
  • Documentation staff department will help you to advise on which documents to prepare before exporting or importing based on type of goods and the size of goods.
  • Deals to have the price and keeping space before confirming with you. Ensure the schedule is notified to customers, except for delays due to weather, machinery of the shipping company…
  • Update daily shipment information for you to follow
• LCL (Less than container load), the LCL is preferred by air freight, however if you want to save cost and time is not an issue, sea freight is still the right solution which is suitable for small amounts of goods.

3. Why choosing SM Vietnam Global Logistics for delivery cargo

• We have many year experience for exporting shipment

SM Global Logistics is known as one of the leading freight forwarding companies in Vietnam, providing ocean freight, air freight for export- import cargo service, customs clearance and local trucking. We can handle all terms, including DDP until final destination. Until now, we have 4 branches in Vietnam and the network of agents all over the world to ensure handling shipment for many routes and types of commodities.

• SM global Logistics have good relationship with vendor and lines

SMG has our own trucking team with a big volume of trucks and we are able to arrange special vehicles for all kinds of cargo. Besides, we have contracts with many lines: MCC, MSC, YML,OOCL, COSCO, WANHAI, CMA CGM …so SM Global is confident with competitive rates

• We always bring the best customer service, ready for 24/7

We are always ready to answer, solve problems related to shipment in order to provide the best service. With the spirit of international working, we not only work according to the Vietnamese time zone, but also have someone on duty to ensure that we do not miss any of our customers’ needs. We believe good service will be what keeps customers more than anything.

• SM Global’s strength is exporting cargo from Vietnam to India

We had experience in handling India shipment, and India shipment accounting for around 25% total volume cargo (data 2021), with a big volume, we got competitive ocean freight and other service also.

• The main commodity: garment, electric components, fruits, plastics,…
• Volume per month: From 30- 40 containers (20 DC & 40HC)
• Port of loading: Ho Chi Minh port, Hai Phong port, Da Nang Port, Qui Nhon port
• Port of discharge: Chennai, Mundra, Nhava Sheva, Pipavav,…