Rubber Import and Export Customs Clearance

Vietnam ranks third worldwide in natural rubber production. For many businesses, navigating rubber export procedures is a key concern. In this article, Nguyen Logistics explains customs clearance for natural rubber imports and exports and the steps involved in exporting these products.

Vietnam’s rubber export market

In 2022, Vietnam exported 2.14 million metric tons of natural rubber, worth approximately US$3.31 billion. Compared with 2021, export volume increased by 9.6% and export value by 1.1%. The volume was 2.6 times the level recorded in 2011, although the average value per metric ton had fallen to just 40% of its earlier level. The average export price was approximately US$1,547 per metric ton, down 7.8% from 2021.

Nevertheless, exports of 2.14 million metric tons demonstrate the scale of this market opportunity. Vietnamese manufacturers are also expanding international sales of products made from rubber.

Key considerations when exporting rubber

Electronic customs declarations have helped simplify export procedures. However, exporters of natural rubber and rubber products should pay particular attention to the following points:

1.Determine the HS code and applicable taxes

The first step is to determine the correct HS code and tax treatment. Rubber and rubber products fall under Chapter 40 of the Harmonized System. This chapter includes 17 headings, which are further divided into more specific classifications. Businesses need to assess the product description and classification rules carefully to identify the correct code for each export shipment.

The source guidance identifies export duty and value-added tax (VAT) as considerations for natural rubber and rubber products, with rates varying by HS code. Incorrect classification may result in a business paying more tax than the applicable rules require.

Conversely, incorrect classification may lead to an underpayment. If customs identifies the discrepancy during export processing, the business may have to pay the shortfall and could also face penalties.

2.Check phytosanitary certificate requirements

Plant-based exports may require phytosanitary inspection before clearance. Although rubber and rubber products originate from plants, the guidance described here states that exporters submit a phytosanitary certificate when the buyer or importing country requires one.

In other words, the source describes an exemption from phytosanitary inspection during Vietnamese export clearance for rubber. When the buyer requires certification, the exporter includes the relevant certificate with the customs documentation.

3.Choose the appropriate customs clearance location

Under the Customs Law, the location for customs clearance of rubber shipments is a border-gate customs branch or an inland customs branch. For electronic procedures, businesses transmit their declarations and documents to the relevant provincial, interprovincial, or centrally administered city customs office. In exceptional cases requiring physical inspection of rubber exports, the Director General of the General Department of Customs determines the inspection location.

4.Apply for a tax refund after export

Natural rubber latex is an agricultural product. The source guidance describes a 5% VAT rate for commercial transactions in rubber and presents payment of this tax as a prerequisite for clearance.

After export, businesses can apply for a VAT refund. The source gives a typical refund processing period of four to nine months.

Why use Nguyen Logistics for rubber export clearance?

Nguyen Logistics works with a range of businesses as a trusted customs service provider. For rubber and rubber products in particular, Nguyen Logistics’ customs services offer practical support throughout the export process.

Dedicated one-to-one support

Nguyen Logistics has more than 100 staff with experience in electronic declarations and handling issues at international ports. Our experienced team provides dedicated one-to-one support for rubber export clearance. We work to complete each stage promptly so that cargo can meet vessel schedules and planned delivery arrangements at the destination port.

Comprehensive customs support

Nguyen Logistics offers a complete rubber customs clearance service. When you appoint us, we handle the procedures required to export your rubber products on your behalf. Our services for businesses and individual customers include:

• HS classification and tax assessment.
• Applications for certificates of origin (C/O).
• Applications for phytosanitary inspection certificates.
• Preparation and transmission of customs declarations, supporting documents, and clearance submissions.
• Payment of customs fees.
• Export tax and tax refund support.

A single service quotation

Nguyen Logistics provides a single quotation for rubber export clearance, allowing businesses to plan their service costs without unexpected additional charges.

Freight and cargo handling support

Alongside customs clearance, Nguyen Logistics offers international transportation for rubber shipments. Our relationships with shipping lines help us arrange cost-effective freight options.

This article is intended as a reference. Procedures for exporting rubber and rubber products may change over time. Contact Nguyen Logistics when planning a shipment so that we can advise you on the requirements applicable at that time.