Tariffs, costs & compliance compared — so you can make the right sourcing call.
| Factor | 🇮🇳 India | 🇻🇳 Vietnam |
|---|---|---|
| US Trade Rank | #9 | #7 |
| Annual US Imports | $87B | $137B |
| Trade Agreement | ✓ GSP (suspended) | No FTA |
| Avg Duty Rate | 5.2% average MFN (GSP suspended) | 12.7% average (apparel/footwear heavy) |
| Section 301 Surcharge | ✓ None | ✓ None |
| Section 232 (Steel/Alum) | ⚠ 25% steel, 10% aluminum Sectio | ⚠ 25% steel, 10% aluminum Sectio |
| Compliance Complexity | ● Medium Complexity | ● Medium Complexity |
| Ocean Transit to US | 22–40 days (ocean) | 18–35 days (ocean) |
Trade Agreement: GSP suspended since 2019
MFN Status: MFN (GSP suspended)
Transit to US: 22–40 days (ocean) · 6–9 days (air)
Main Ports: Nhava Sheva (Mumbai), Mundra, Chennai, Kolkata
Longer ocean transit than East/Southeast Asia. Air freight cost-effective for high-value goods.
GSP suspension increased costs ~$300M/year. Pharmaceutical misclassification risk high. Jewelry antidumping orders active.
Full India Profile →Trade Agreement: No FTA (IPEF — not in force)
MFN Status: MFN/WTO Member
Transit to US: 18–35 days (ocean) · 5–9 days (air)
Main Ports: Ho Chi Minh City, Haiphong, Danang
Growing capacity. Some congestion at HCMC. Trans-shipment via Singapore common for LCL.
Anti-circumvention investigations ongoing. Vietnam-origin goods must demonstrate substantial transformation, not merely assembly from Chinese inputs.
Full Vietnam Profile →Based on $50,000 FOB product value. Duty rate reflects typical electronics treatment. Freight is estimated ocean FCL. Actual costs vary by HTS code, Incoterms, carrier, and shipment size.
| Cost Component | 🇮🇳 India | 🇻🇳 Vietnam |
|---|---|---|
| FOB Product Value | $50,000 | $50,000 |
| Customs Duties (0% FTA) | Free ($0) | $2,500 |
| Est. Ocean Freight | $3,000 | $4,000 |
| MPF + HMF (US Fees) | $236 | $236 |
| Total Estimated Landed Cost | $53,236 | $56,736 |
That's a 7–6% cost difference. At scale (e.g., 12 shipments/year), that's ~$42,000/year. Run your actual product for precise numbers.
Your HTS code, shipment size, and Incoterms make a big difference. Get a precise cost breakdown for India vs Vietnam in under 60 seconds.
India GSP benefits revoked in 2019. Pharmaceutical imports require FDA registration. Jewelry subject to anti-dumping investigations.
Transshipment risk — CBP scrutinizes goods routed through Vietnam to avoid China Section 301 duties. Country of origin rules strictly enforced.
Accurate country-of-origin marking (19 CFR Part 134), proper HTS classification, CBP entry filing, and applicable agency certifications (FDA, USDA, EPA, CPSC depending on product). Work with a licensed customs broker to confirm requirements for your specific goods.
The right sourcing decision depends on your product category, HTS classification, shipment volume, and tolerance for compliance complexity. Here's the key decision logic:
India benefits from the GSP (suspended) trade agreement, potentially eliminating duties entirely on qualifying goods. Vietnam has no comparable FTA — full MFN rates apply.
India can be significantly cheaper for qualifying goods thanks to the GSP (suspended) trade agreement, which can reduce or eliminate duties. Vietnam has no comparable FTA with the US, meaning full MFN duty rates apply.
India has a clear advantage: it benefits from GSP (suspended), which can eliminate or reduce duties on qualifying goods. Vietnam has no FTA with the US — importers pay the full MFN (Most Favored Nation) duty rate.
India is NOT subject to Section 301 tariffs. Vietnam is NOT subject to Section 301 tariffs. For steel and aluminum: India faces Section 232 steel/aluminum duties: 25% steel, 10% aluminum Section 232 duties apply. Vietnam faces Section 232 steel/aluminum duties: 25% steel, 10% aluminum Section 232 duties apply.
Electronics from India can benefit from GSP (suspended) preferential rates. Most electronics carry a 0% MFN rate under the Information Technology Agreement regardless, but FTA status simplifies customs compliance. Vietnam has no FTA benefit, though MFN rates still apply.
India: India GSP benefits revoked in 2019. Pharmaceutical imports require FDA registration. Jewelry subject to anti-dumping investigations. Vietnam: Transshipment risk — CBP scrutinizes goods routed through Vietnam to avoid China Section 301 duties. Country of origin rules strictly enforced. Both origins require accurate country-of-origin marking (19 CFR Part 134) and proper HTS classification. Consult a licensed customs broker for origin-specific requirements.
Tariff comparisons sourced from USITC HTS Schedule and USTR Section 301 lists as of 2026-04-07. Sample landed cost figures are illustrative estimates only — actual costs depend on HTS classification, Incoterms, carrier rates, and current trade policy. Section 301 product lists, trade agreement rules of origin, and duty rates change frequently. Verify all rates with a licensed customs broker before making sourcing decisions. AI-assisted analysis — not legal or customs advice.