The global trade in human hair extensions has surged in recent years, with Vietnamese hair factories emerging as key suppliers to markets worldwide. Businesses and individuals importing this premium product—known for its natural quality and versatility—often focus on negotiating prices and arranging shipping, only to be caught off guard by unexpected costs at the border. These additional expenses, such as tariffs and import taxes, can significantly inflate the total cost of an order, impacting profitability and planning. Are there any tariffs or import taxes on Vietnamese hair when it enters countries like the United States, Europe, or Africa? This question is critical for buyers seeking to understand the full financial implications of sourcing hair from Vietnam.

To explore this, let’s first define what we mean by "tariffs" and "import taxes." Tariffs are duties or fees imposed by governments on goods crossing their borders, typically calculated as a percentage of the product’s value, designed to protect domestic industries or generate revenue. Import taxes, often used interchangeably with tariffs, may also include additional levies like value-added tax (VAT) or sales tax applied upon entry. In the context of Vietnamese hair, these costs depend on the importing country’s regulations, trade agreements, and product classification. With this foundation, let’s examine whether tariffs and import taxes apply to Vietnamese hair and how they vary across major markets.

The Global Trade of Vietnamese Hair

Vietnamese hair has become a cornerstone of the beauty industry, prized for its strength, shine, and unprocessed nature. Factories like HazuHair, VNhair, and Lyn Hair export tons of raw hair, bundles, wefts, and wigs annually to destinations including the United States, the European Union, Africa, and beyond. Vietnam’s strategic position as a low-cost, high-quality supplier has fueled this growth, supported by a robust workforce and ethical sourcing practices. However, the journey from factory to buyer involves more than just production and shipping—customs duties and taxes at the destination can alter the economics of each transaction.

For importers, understanding these costs is essential. A $1,000 order of hair might seem affordable until tariffs or taxes add hundreds more, affecting pricing strategies or profit margins. The answer to whether Vietnamese hair faces such fees isn’t universal—it hinges on the importing country’s policies and Vietnam’s trade relationships. Let’s dive into the specifics.

Are There Any Tariffs or Import Taxes on Vietnamese Hair?

The presence and extent of tariffs or import taxes on Vietnamese hair depend on the destination country, its trade agreements with Vietnam, and how the hair is classified under customs codes. Below, we’ll explore this for key markets, detailing applicable rates, exemptions, and factors that influence the final cost.

1. United States: Tariffs and Trade Dynamics

The U.S. is one of the largest markets for Vietnamese hair, importing millions of dollars’ worth annually for salons, retailers, and wholesalers.

  • Tariff Status: Human hair, whether raw (unprocessed) or processed (e.g., wefts, wigs), falls under the Harmonized Tariff Schedule (HTS) codes such as 0501.00 (human hair, unworked) or 6703.00 (human hair, dressed or worked). For Vietnam, these products generally enter the U.S. duty-free under normal trade relations. As of March 31, 2025, Vietnam does not face additional sectional tariffs (e.g., Section 301 duties) on hair products, unlike some goods from other countries like China.
  • Import Taxes: The U.S. does not impose federal sales tax or VAT on imports at entry. However, buyers pay a Merchandise Processing Fee (MPF) of 0.3464% of the shipment value (minimum $31.67, maximum $614.35 per entry), regardless of duty status.
  • Example: A $2,000 shipment of raw hair incurs no tariff but pays an MPF of about $6.93. If processed into wigs, the same duty-free status typically applies unless trade policies shift.
  • Trade Agreements: Vietnam and the U.S. lack a bilateral free trade agreement (FTA) specific to hair, but Vietnam benefits from the Generalized System of Preferences (GSP) for some goods. Hair products, however, are already duty-free under standard rates, so GSP doesn’t add further benefits here.
  • Exceptions: During trade tensions (e.g., 2018-2020 U.S.-China trade war), Vietnamese exports faced scrutiny for potential transshipment of Chinese goods. If hair is suspected of being rerouted to avoid tariffs, customs may impose penalties or higher duties, though this is rare and requires evidence.

In summary, U.S. importers of Vietnamese hair typically face no tariffs, only minor fees, making it a cost-effective option—assuming compliance with origin rules.

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2. European Union: Duties and VAT

The EU, another major market, applies a more complex system of tariffs and taxes to Vietnamese hair imports.

  • Tariff Status: Under the EU’s Common Customs Tariff, human hair (HS code 0501.00) is generally duty-free when unprocessed. Processed hair (HS 6703.00, e.g., wigs or extensions) incurs a tariff of 1.7% unless exempted by trade agreements.
  • EU-Vietnam Free Trade Agreement (EVFTA): Signed in 2019 and effective since August 2020, the EVFTA eliminates tariffs on most Vietnamese goods over time. By 2025, hair products—both raw and processed—are fully duty-free when accompanied by a Certificate of Origin (Form EUR.1), proving Vietnamese origin.
  • Import Taxes (VAT): Beyond tariffs, the EU imposes VAT on all imports, calculated on the total value (product cost + shipping + any duties). Rates vary by country: 20% in the UK (post-Brexit), 19% in Germany, 21% in the Netherlands, etc.
  • Example: A €1,000 order of processed hair to Germany (shipped for €200) incurs no tariff under EVFTA but faces 19% VAT on €1,200 (€228), raising the total to €1,428.
  • Notes: Buyers must pay VAT at customs unless they’re VAT-registered businesses, which can reclaim it later. Small shipments under €150 may qualify for simplified procedures but rarely apply to bulk hair orders.

The EVFTA makes Vietnamese hair tariff-free in the EU, but VAT remains a significant cost that importers must budget for.

See more: How To Buy Hair From Vietnam to USA, UK, AU

3. Africa: Varied Tariffs and Taxes

Africa’s diverse markets present a patchwork of tariff and tax policies for Vietnamese hair, with rates depending on the country and regional agreements.

  • Tariff Status: Human hair (HS 0501 or 6703) typically faces tariffs in African nations unless trade deals apply. For example:
    • Nigeria: 5-20% tariff on hair products, depending on processing level, plus a 7.5% VAT.
    • South Africa: 0-10% tariff under the Southern African Customs Union (SACU), plus 15% VAT.
    • Kenya: 10-25% under the East African Community (EAC) tariff, plus 16% VAT.
  • Trade Agreements: Vietnam has no broad FTAs with African nations, so standard Most Favored Nation (MFN) rates apply unless bilaterally negotiated (rare for hair).
  • Example: A $1,000 shipment to Nigeria with $200 shipping might face a 10% tariff ($100) and 7.5% VAT on $1,300 ($97.50), totaling $1,397.50.
  • Challenges: High tariffs, inconsistent enforcement, and port delays can inflate costs. Some buyers negotiate with suppliers to undervalue invoices (risky and illegal), though reputable factories avoid this.

African importers often face both tariffs and taxes, making Vietnamese hair pricier than in the U.S. or EU, though its quality justifies the expense for many.

See more: Why Raw Vietnamese Hair Is a Popular Choice for Extensions?

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4. Other Markets: Asia and Australia

  • Asia (e.g., Japan, South Korea): Tariffs on hair are low or zero (0-5%) under ASEAN-Japan or Vietnam-Korea FTAs, with no VAT at import but local sales taxes later. Shipping proximity keeps total costs competitive.
  • Australia: Human hair enters duty-free under the ASEAN-Australia-New Zealand FTA (AANZFTA), with a 10% Goods and Services Tax (GST) applied on the total value (e.g., $110 GST on a $1,000 order + $100 shipping). Small shipments under AUD 1,000 may avoid GST.

These markets benefit from trade agreements, minimizing tariffs but adding moderate taxes.

5. Factors Influencing Tariffs and Taxes

Several variables determine the final cost:

  • Product Classification: Raw hair (unprocessed) often enjoys lower tariffs than processed goods (wigs, dyed hair).
  • Trade Agreements: FTAs like EVFTA or AANZFTA eliminate duties, while lack of agreements (e.g., Africa) preserves them.
  • Declared Value: Customs assess duties/taxes on the invoice value, including shipping. Under-reporting risks penalties.
  • Country Policies: Protectionist nations impose higher tariffs; open markets favor free entry.

Suppliers like Vin Hair provide Certificates of Origin to leverage FTA benefits, while buyers must research local tax rules.

See more: How long does Vietnamese hair last in extensions or wigs?

How Suppliers and Buyers Manage These Costs

Vietnamese factories help mitigate tariff/tax burdens by:

  • Offering detailed invoices and origin certificates.
  • Advising on shipping methods to optimize declared values (e.g., splitting large orders).
  • Quoting prices inclusive of shipping (FOB or CIF terms), leaving taxes to the buyer.

Buyers, meanwhile, can:

  • Consult customs brokers for accurate cost estimates.
  • Register as businesses to defer or reclaim VAT (e.g., in the EU).
  • Order during tariff-free promotions or under trade deal thresholds.

Challenges and Solutions

Unpredictable tax rates or sudden policy changes (e.g., U.S. trade reviews) can complicate budgeting. Buyers counter this by building a 10-20% buffer into costs. Corruption at some ports (e.g., in Africa) may inflate fees, though using reputable carriers like DHL reduces risks.

See more: What is the average price of Vietnamese hair extensions?

Why Understanding Tariffs and Taxes Matters

For importers, overlooking tariffs and taxes can turn a profitable deal into a loss. A U.S. buyer might pay $1,000 for hair with minimal fees, while a Nigerian counterpart faces $1,400 after duties—knowledge of these costs shapes sourcing decisions. Vietnamese hair remains competitive globally due to its quality and often low/no tariffs, but taxes like VAT or GST are unavoidable in many markets.

Conclusion: A Mixed Landscape of Costs

Are there tariffs or import taxes on Vietnamese hair? It depends on where you’re importing. The U.S. offers duty-free entry with minor fees, the EU eliminates tariffs under EVFTA but adds VAT, Africa imposes both tariffs and taxes, and regions like Asia or Australia balance low duties with local levies. By leveraging trade agreements and preparing for taxes, buyers can keep costs manageable. Vietnamese hair’s value shines through despite these variables, but savvy importers must plan ahead to ensure every strand is worth the investment. Understanding this landscape turns a potential hurdle into a calculated step toward success in the global hair trade.

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