Importing Finished Leather from India to Vietnam: AIFTA 0% Duty, 8% VAT and Documents (2026)

5 days ago

6 min read

Updated: 20 hours ago

Vietnamese footwear and leather-goods factories can import finished leather from India at 0% import duty under the ASEAN–India Free Trade Agreement (AIFTA) when the shipment carries a valid Form AI certificate of origin; without it, Vietnam's MFN duty of 5–10% applies. Import VAT is 8% until 31 December 2026, and India charges no export duty on finished leather.

Key Takeaways (Updated November 2026)

AIFTA duty on finished bovine leather (HS 4107.19.00) from India is 0% with Form AI, under Decree 122/2022/ND-CP.
Without valid proof of origin, the MFN rate for 4107.19.00 is 10% (Vietnam tariff data, as of Nov 2026).
Vietnam's import VAT is 8% until 31 December 2026 under Resolution 204/2025/QH15; the standard rate is 10%.
India's export duty is nil on finished and crust leather and 20% on wet blue (CLE Budget 2025-26 summary).
Tanned leather under HS 4104–4107 and 4112–4115 does not need animal-quarantine registration in Vietnam, per MARD Decision 4758/QĐ-BNN-TY.

What import duty does Vietnam charge on finished leather from India?

For most finished bovine leather, the answer is 0% under AIFTA if the goods originate in India and the importer presents Form AI; otherwise the MFN rate applies. Vietnam sets AIFTA rates line by line in Decree 122/2022/ND-CP for 2022–2027, so the 8-digit HS code on your invoice decides the exact rate.

Charge	Rate (as of Nov 2026)	Basis
AIFTA duty, HS 4107.19.00	0% with Form AI	Decree 122/2022/ND-CP
MFN duty, HS 4107.19.00	10%	Decree 26/2023/ND-CP schedule
MFN range, HS 4107 / 4112 / 4113	5–10% by 8-digit line	Vietnamese customs-broker guidance
Import VAT	8% to 31 Dec 2026, then 10% unless extended	Resolution 204/2025/QH15
Environmental protection tax / special consumption tax	Not applicable	Vietnam tariff data for 4107.19.00
India export duty	Nil on finished and crust leather; 20% on wet blue	Union Budget 2025-26

Two practical points follow from the table. First, the AIFTA saving only applies if the origin paperwork is right, so agree on who applies for Form AI before the order is confirmed. Second, India's export duty structure favours finished and crust leather over wet blue, which is why most Indian hides exporters quote finished or crust for overseas buyers — our guide on whether India charges export duty on leather hides explains the full schedule.

Finished cow leather hides from an Indian exporter ready to import to Vietnam under AIFTA

Does finished leather from India need animal quarantine in Vietnam?

Generally no. Under MARD Decision 4758/QĐ-BNN-TY (18 November 2015), customs should not require animal-quarantine registration for tanned leather in HS 4104, 4105, 4106, 4107, 4112, 4113, 4114 and 4115 (summary from a Ho Chi Minh City customs-procedure publisher). Raw or salted hides are a different case, so confirm the classification with your customs broker before booking.

What documents should a Vietnamese importer ask the Indian exporter for?

Ask for the full set before the goods leave India, because a missing or wrong certificate of origin turns a 0% duty into the MFN rate.

Commercial invoice with the 8-digit HS code, leather type, finish, colour and total area in square feet or square metres
Packing list showing hides per bundle, area per bundle and gross/net weight
Bill of lading (sea) or air waybill (air)
Form AI certificate of origin for the AIFTA rate, issued by an authorised agency in India
Test reports your factory or end-brand requires (for example chromium VI or restricted-substance tests) and a copy of the exporter's LWG certificate

Which hides and finishes can Vietnamese factories source from Sanwas?

Sanwas supplies cow, buffalo and goat hides in full-grain, nubuck, suede and vegetable-tanned finishes, selected and cut to the buyer's specification. The table maps each option to the details a Vietnamese purchase order should state.

Specification	Options Sanwas offers	What to state in your PO
Hide type	Cow, buffalo, goat	Animal and intended product (shoe upper, bag, belt, upholstery)
Finish	Full-grain, nubuck, suede, vegetable-tanned	Finish plus custom colour reference
Selection grade	Cutting 1, Cutting 2, BB, Reject	Grade per lot and acceptable defect level
Weight class	Super, Extra Heavy, Heavy, Medium	Weight class and target thickness range
Cutting	Machine-cut or hand-cut	Whole hides, sides or cut panels to your pattern
Quality check	AQL inspection before dispatch	AQL level and who signs off the lot

For factories making footwear, our guide to shoe upper leather specifications covers thickness and grading for uppers in more depth.

Graded leather hides at Sanwas International for export to Vietnamese footwear factories

How do Incoterms, shipping and payment usually work from India to Vietnam?

Most Vietnamese buyers use FOB or CIF terms and pay by telegraphic transfer (TT) or letter of credit (LC). From Jalandhar, export cargo typically moves by road or rail to a west-coast gateway such as Mundra or Nhava Sheva, then by sea to Ho Chi Minh City (Cat Lai or Cai Mep) or Hai Phong.

FOB: you book the ocean freight with your own forwarder and carry the risk from loading in India.
CIF Cat Lai / Hai Phong: the exporter books freight and insurance to your named port; you handle Vietnamese customs and VAT.
Ask your forwarder for current transit times and transhipment routing at booking, as schedules vary by carrier.
Request sample hides for approval before bulk so colour, thickness and grade are signed off before production.

For the wider export process — documents, ports and how overseas buyers vet a supplier — see our guide for buyers working with a leather hides exporter in India.

How Sanwas International works with Vietnamese leather buyers

Sanwas International is an LWG-certified OEM and private label leather manufacturer based in Jalandhar, Punjab, India, producing footwear, outerwear, furniture leather and hides for brands in India and worldwide.

For Vietnamese footwear, bag and furniture factories, Sanwas supplies cow, buffalo and goat hides by grade and weight class, in custom colours, with AQL inspection and export shipping. The company supplies buyers across India and exports to Asia, Europe, North America, Africa and Australia. See the full leather hides supply range and leather materials, or request a hides quote for delivery to Vietnam.

Frequently Asked Questions

Can I import leather hides from India to Vietnam duty-free?

Finished bovine leather under HS 4107.19.00 can enter Vietnam at 0% duty under AIFTA if it originates in India and is covered by a valid Form AI certificate of origin, as of November 2026. Without Form AI, the MFN rate of 10% applies to that line. Check the exact 8-digit code for each leather you buy, as rates vary by line.

What VAT will my factory in Vietnam pay on leather imported from India in 2026?

Vietnam applies a reduced 8% VAT rate until 31 December 2026 under Resolution 204/2025/QH15, and tariff data shows finished leather under 4107.19.00 at 8%. After that date, the standard 10% rate applies unless the reduction is extended again. VAT is paid at import alongside any customs duty.

Does India charge export duty on finished leather shipped to Vietnam?

No. Following Union Budget 2025-26, India's export duty is nil on finished leather and crust leather, while wet blue carries 20%. This is why Indian exporters usually quote finished or crust leather to overseas buyers.

Which Incoterm should a Vietnamese shoe factory use when buying hides from India?

FOB suits factories that have their own forwarder and want to control freight; CIF to Cat Lai, Cai Mep or Hai Phong suits buyers who prefer the exporter to book freight and insurance. Under either term, the importer clears Vietnamese customs and pays VAT. State the named port and Incoterm in the purchase order.

Can I get sample hides from Sanwas before placing a bulk order for Vietnam?

Yes, buyers can request sample hides for approval before bulk. Share the hide type, finish, colour, weight class and intended product so the sample matches your production specification. Approval of colour, thickness and grade before bulk reduces disputes at receiving.

Importing Finished Leather to Vietnam? Request a Hides Quote

Sourcing managers, footwear and leather-goods factories, furniture makers and traders in Vietnam can send us their hides requirement for a quote. Share the leather type, finish, target quantity, destination port and preferred Incoterm; Sanwas supplies buyers across India and exports worldwide, and you can request sample hides before bulk.

Include these details in your enquiry: