Importing garments from Vietnam: FTAs and rules of origin explained
Vietnam has signed 18 free trade agreements, 17 of them in force, covering the European Union, the United Kingdom, CPTPP members such as Canada, Mexico, Japan and Australia, RCEP members including China, Korea and ASEAN, and others. For apparel buyers this can mean lower import duty, but only when the goods meet the rules of origin of the agreement you import under.
Sewing alone is not always enough
For garments, the key question is where the fabric, and sometimes the yarn, comes from. The agreements differ:
- EVFTA and UKVFTA generally require the fabric to be made in Vietnam or in the EU (or the UK), and then cut and sewn in Vietnam. This is often called double transformation. Under specific conditions, fabric from Korea can also count through cumulation.
- CPTPP follows a yarn-forward approach: the yarn and fabric should originate within CPTPP members, with limited exceptions for materials in short supply.
- RCEP and some other agreements are more flexible for many garment lines, but the exact rule depends on the product.
Because of this, the cheapest fabric is not always the cheapest landed cost. A slightly more expensive fabric from a qualifying source can save more in duty than it costs.
Check the rule for your HS code
Rules of origin are written per product, by HS code. A knitted polo (chapter 61) and a woven chino (chapter 62) can have different requirements, and duty rates differ by market. Before placing an order where the preference matters, confirm the HS code and the product-specific rule for your import market, ideally with your customs broker.
Proof of origin
To claim the preference, the shipment needs the right proof of origin: a certificate of origin (C/O) or an origin declaration, depending on the agreement. The supplier must also be able to show where the materials came from if customs asks.
How we handle it
When you request a quotation, tell us the import market. If the tariff preference matters to you, we propose a material route that lets the order qualify and prepare the export documents, including the C/O. If it does not, we source fabric on price and quality. Either way, we ship under the Incoterms you require.
See the agreements on our Export & FTA page or contact us with your market and product.
