What tariffs do I need to pay when importing welding parts from Vietnam to the US?

When we coordinate shipments from our facility in Vietnam to clients in the United States, the first question that arises during the quotation phase is almost always about landed costs. We know that for a Purchasing Manager, the unit price at the factory gate is only half the story. Recently, we have seen significant confusion regarding the shifting tariff landscape. At our factory, we have helped dozens of US clients migrate their supply chains ¹ from China to Vietnam, and we have learned that while the savings are substantial, the duty structure is not zero. Understanding the exact breakdown of what you will pay at the port is critical to ensuring your project remains within budget.

Importing welding parts from Vietnam to the US typically incurs a total duty rate of 20% to 27%. This includes the standard General tariff of 0% to 7% based on your HS code, plus a 20% reciprocal tariff. Unlike Chinese imports, you avoid the 25% Section 301 penalty and the 10% fentanyl tax.

Let's break down exactly how these numbers are calculated and how you can verify them for your specific components.

How do I determine the correct HS code for my welding parts?

In our engineering department, we often spend days reviewing technical drawings to ensure the description on the commercial invoice matches the physical reality of the part. We have found that a vague description is the fastest way to get a shipment flagged by US Customs ². When we assist clients with their documentation, we emphasize that "welding part" is too generic. The material composition, the function, and whether the part is electric or non-electric all dictate the classification.

To determine the correct HS code, use the USITC HTS search tool. Common codes include 8515 for welding machines and 8311 for electrodes. Correct classification is vital because it dictates your base duty rate and prevents costly Customs and Border Protection penalties for misdeclaration.

Determining the Harmonized Tariff Schedule ³ (HTS) code is the foundation of your import strategy. If you get this wrong, you are either overpaying duties or risking a heavy fine for underpayment.

The Logic Behind Classification

The US Harmonized Tariff Schedule is organized by chapter. For welding parts, you are usually looking at three main areas:

1. Chapter 73: Articles of Iron or Steel. If you are importing a simple machined weldment that is a structural component, it often falls here.
2. Chapter 83: Miscellaneous Articles of Base Metal. This is where you find consumables like coated electrodes.
3. Chapter 85: Electrical Machinery. If the part is a component of an electric welding machine, or the machine itself, it belongs here.

Common HTS Codes for Welding Imports

To give you a clearer picture, here is a table of the codes we most frequently encounter when exporting to the US:

Why Specificity Matters

The difference between "Free" and "2.9%" might seem small, but it adds up on a $100,000 container. Furthermore, the HTS code triggers other government agency requirements. For example, if you classify a part as a "steel structure" (Chapter 73), it might be subject to Section 232 steel tariffs ⁴ if the raw material origin is not carefully documented.

We recommend using a "ruling based" approach. If your custom part is unique, we can help you apply for a binding ruling from CBP. This gives you legal certainty before the goods ever leave our dock in Vietnam. Remember, the importer of record (you) is ultimately responsible for this code, not the manufacturer, though we always provide our best recommendation based on the bill of materials.

Are Vietnamese imports subject to Section 301 tariffs like China?

This is the primary reason our clients approach us for sourcing. They are exhausted by the volatility of trade with China. When we discuss project transfers, the conversation inevitably turns to Section 301. Our team has seen firsthand how these punitive tariffs destroy profit margins. While Vietnam offers a safe haven from the specific "China tariffs," it is not a duty-free zone, and recent trade frameworks have introduced new reciprocal measures you must be aware of.

Vietnamese imports are exempt from the 25% Section 301 tariffs that apply to Chinese goods. However, you must pay the 20% reciprocal tariff and potentially Section 232 duties on steel content. This structure still offers significant savings compared to the compounded tariffs on Chinese products.

To understand the savings, you have to look at the total landed cost comparison. It is not just about the base price of the part; it is about the "tax" you pay to get it across the border.

The "China Plus One" Math

The US government applies Section 301 tariffs ⁵ specifically to products of Chinese origin. This is currently a flat 25% on most industrial components, on top of other duties. Vietnam is not subject to Section 301. However, under the 2025 US-Vietnam Framework Agreement and subsequent reciprocal measures, the US has implemented a 20% reciprocal tariff on Vietnamese goods to address trade imbalances.

Even with this 20% reciprocal tariff, Vietnam remains the more cost-effective option. Let's look at the numbers.

Cost Comparison: China vs. Vietnam

Here is a breakdown of the duty stack for a standard steel welding assembly (HTS 7326.90) valued at $50,000:

The Transshipment Risk

There is one critical caveat we always warn our clients about: Transshipment.

Because the duty difference is so high (nearly 25%), some unscrupulous suppliers try to ship Chinese-made parts to Vietnam, repackage them, and label them "Made in Vietnam." US Customs is aggressively auditing for this.

At DEWIN, we perform strict process control. We ensure that the "Substantial Transformation" happens at our facility. This means we don't just pack the box; we weld, machine, and assemble the product in Vietnam. We maintain a clear paper trail of raw material purchasing and labor hours. If CBP audits your shipment, we have the documentation to prove the Country of Origin ⁶ is legitimately Vietnam, protecting you from the 40%+ penalties associated with duty evasion.

Does Vietnam benefit from any Generalized System of Preferences (GSP) status?

We often hear clients assume that because Vietnam is a developing economy in Southeast Asia, it must qualify for the same duty-free perks as some other nations. In our experience, this assumption causes budget errors. When we prepare commercial invoices, we must be clear: Vietnam is a powerhouse in manufacturing, but it is not currently on the list of beneficiaries for the US GSP program for these types of industrial goods.

Vietnam does not currently benefit from the Generalized System of Preferences (GSP) status for exporting to the United States. Consequently, importers cannot claim duty-free treatment under this program and must calculate landed costs based on Most Favored Nation rates and applicable reciprocal duties.

The Generalized System of Preferences ⁷ (GSP) is a US trade program designed to promote economic growth in the developing world by providing duty-free entry for thousands of products. However, the status of a country can change, and Vietnam's relationship with the US trade office is complex.

Why No GSP?

Vietnam has grown rapidly. The US government considers several factors for GSP eligibility, including market access and labor rights. Currently, Vietnam is not a designated beneficiary developing country (BDDC) for GSP purposes. This means you cannot put the special program indicator (SPI) "A" or "A*" on your entry summary to claim zero duty.

Impact on Your Margins

Since you cannot claim GSP, you default to the Most Favored Nation (MFN) or "General" column in the tariff schedule.

• Scenario: If you were importing from a GSP country like Cambodia or the Philippines (for certain items), your duty might be 0%.
• Reality: From Vietnam, you pay the General rate (e.g., 2.9% or 5%) plus the 20% reciprocal tariff mentioned earlier.

Strategic Alternatives

Since GSP is off the table, we help our clients look for other ways to optimize costs:

1. Bonded Warehouses / FTZ: If you are importing components that will be assembled into a final product for export to Canada or Mexico, utilizing a Foreign Trade Zone (FTZ) might allow you to defer or reduce duties.
2. Section 321 (De Minimis): For very small shipments (under $800), you might avoid duties entirely. This is rarely useful for B2B bulk orders of welding parts, but good for samples.
3. Duty Drawback: If you import welding parts from us, assemble them into a machine in the US, and then export that machine, you can claim back up to 99% of the duties paid.

We always advise checking the latest status on the USTR website, as trade agreements are negotiated frequently. But for your 2025-2026 budget planning, assume GSP is not applicable.

Where can I find the official US import duty rates?

Transparency is key to our business model. We don't want you to take our word for it; we want you to see the data yourself. When we onboard a new Purchasing Manager, we often do a screen-share session to walk them through the official government tools. It is surprising how many professionals rely on third-party blogs rather than the primary source.

You can find official US import duty rates at the US International Trade Commission website (hts.usitc.gov). Always verify the General rate, check for Section 232 applicability on metal content, and factor in the 20% reciprocal tariff to estimate your total landed cost accurately.

The US International Trade Commission (USITC) maintains the Official Harmonized Tariff Schedule of the United States (HTSUS). This is the bible for importers.

Step-by-Step Lookup Guide

1. Go to hts.usitc.gov.
2. Search Keywords: Type "Welding" or "Electrodes".
3. Review the "General" Column: This is your base rate (Column 1).
4. Check the Notes: Look for footnotes regarding Section 232 (Steel/Aluminum) or Section 301.

The "Hidden" Fees

While the HTS gives you the duty rate, it does not list the port fees. When you build your landed cost model, you must include the Merchandise Processing Fee ⁸ (MPF) and Harbor Maintenance Fee (HMF). These are collected by CBP on almost every shipment entering by sea.

Total Landed Cost Checklist

Use this table to ensure you aren't missing any line items in your calculation:

A Note on Section 232

For welding parts, Section 232 is tricky. If you import raw steel wire, you pay the 25% steel tariff. If you import a finished welding machine, you usually do not. However, "derivative" steel articles (like nails, staples, and certain wire products) are subject to the tariff.

We assist our clients by providing mill certificates for all raw materials used in our Vietnam factory. This transparency helps your customs broker determine if the Section 232 duties apply to your specific custom parts.
Harbor Maintenance Fee ⁹

Conclusion

Importing welding parts from Vietnam offers a strategic advantage over China, primarily by avoiding the 25% Section 301 tariff and the 10% fentanyl tax. While you must still budget for the 20% reciprocal tariff and standard General duties (totaling roughly 20-27%), the overall cost profile is significantly lower. By classifying your goods correctly and partnering with a transparent manufacturer, you can secure a stable, cost-effective supply chain.
US International Trade Commission ¹⁰

Footnotes

1. General background on the concept of supply chain management and migration. ↩︎

2. Official guidance from U.S. Customs and Border Protection on basic importing and exporting procedures. ↩︎

3. International standard for product classification maintained by the World Customs Organization. ↩︎

4. Industry perspective and information on the national security tariffs affecting steel imports. ↩︎

5. Official USTR documentation regarding the investigation and implementation of tariffs on Chinese products. ↩︎

6. Academic resource explaining the complex legal rules used to determine a product’s country of origin. ↩︎

7. Background information on the trade program providing duty-free entry for developing countries. ↩︎

8. Practical breakdown of common import fees including MPF from a major logistics provider. ↩︎

9. Technical documentation on additional shipping charges and government-mandated harbor fees. ↩︎

10. Official portal for searching the Harmonized Tariff Schedule of the United States. ↩︎