Custom Duties and Import-Export Regulations

Vietnam is quickly gaining momentum as a global manufacturing hub, thanks in large part to the China+1 strategy. This shift has made the country an increasingly attractive option for businesses exploring relocation or expansion. With strong growth forecasts for its trade sector, Vietnam is well-positioned to benefit as the global economy picks up. That said, companies operating there may still encounter challenges in navigating the import and export landscape.

Contributing Advisor

Mia Pham

Senior Manager, Corporate Accounting Services

Legal frameworks

Vietnam's import-export landscape is governed by a structured legal framework, primarily anchored by the Customs Law (No. 54/2014/QH13) and the Export and Import Duties Law (No. 107/2016/QH13).

These laws outline the procedures for customs operations, define taxable goods, and outline the responsibilities of taxpayers. They also establish the basis for tax calculations, timelines for tax assessments, and provisions for various duties, including anti-dumping, countervailing, and safeguard duties. Additionally, they encompass regulations for tax exemptions, reductions, and refunds related to export and import activities.

In recent years, Vietnam has undertaken significant reforms to modernize its trade regulations and align with international standards. Notably, Decree 144/2024/ND-CP, effective from December 16, 2024, amends previous tariff schedules, adjusting export and import duties for specific goods. For instance, export duties for certain mineral products under HS code Chapter 25 increased from 25 percent to 30 percent as of July 1, 2024. Moreover, the decree specifies that preferential import tax rates for items under group 24.04 and HS code 8543.40.00 apply only when such items are permitted for import into Vietnam according to legal regulations.

To enhance transparency and efficiency in customs procedures, the General Department of Customs issued official letter 5162/TCHQ-GSQL on October 24, 2024, proposing amendments to the customs regime. These proposals include new procedures for amending and canceling customs declarations, updating provisions on customs value and classification, and introducing various forms and technical modifications.

Furthermore, Vietnam has been proactive in combating trade fraud. In April 2025, the Ministry of Industry and Trade issued a directive to crack down on the illegal transshipment of goods to the United States and other trading partners. This move aims to avoid potential U.S. sanctions and tariffs by enhancing inspections of imported goods, especially raw materials used for exports, to verify their origin.

Competent government agencies

In Vietnam, several ministries and agencies are responsible for implementing import-export regulations. The primary government agency overseeing most activities in this area is Vietnam Customs.

Its key responsibilities include:

• Inspecting and supervising goods and vehicles;
• Tackling smuggling and illegal cross-border trafficking of goods;
• Implementing laws on taxation applied to imported and exported goods;
• Releasing statistics on imported and exported goods in conformity with the laws; and
• Proposing policies and administrative measures for customs applicable to the import, export, exit, entry, and transit operation, as well as tax policies applicable to imported and exported goods.

The Ministry of Industry and Trade (MOIT) decides the application of anti-dumping, countervailing, and safeguard duties. The Ministry of Finance (MOF) provides for the declaration, collection, payment, and refund of anti-dumping, countervailing, and safeguard duties.

Restricted imported goods

Under Decree No. 187/2013/ND-CP, the Vietnamese government enforces strict prohibitions on certain categories of goods, regardless of whether they are intended for commercial use or personal consumption. The list of banned imports includes:

• Weapons and explosives, including military equipment and ammunition;
• Culturally sensitive or restricted publications not approved for circulation in Vietnam;
• Items such as sky lanterns, firecrackers, and devices that interfere with speed monitoring systems;
• Used consumer goods, particularly second-hand cars and electronics, which are considered environmentally risky or technologically outdated;
• Tobacco products, cigars, and certain petroleum oils;
• Unauthorized radio and telecommunications equipment, particularly those that do not meet standards set by the Law on Radio Frequencies;
• Postal stamps and cultural products that are restricted or banned from distribution;
• Environmental hazards, including waste, scrap materials, and refrigeration equipment containing chlorofluorocarbons (CFCs);
• Hazardous chemicals listed in Appendix III of the Rotterdam Convention, along with prohibited pesticides and products containing amphibole asbestos.

Further specificity is provided by Circular No. 12/2018/TT-BCT from the Ministry of Industry and Trade (MOIT), which outlines a comprehensive list of used consumer goods, medical devices, and vehicles prohibited from import. Each item is clearly categorized with its corresponding HS (Harmonized System) code, facilitating precise classification for businesses.

Additionally, Circular No. 34/2013/TT-BCT sets boundaries for foreign-invested enterprises, identifying certain goods they are not permitted to import. This restriction helps maintain regulatory oversight and aligns foreign business activities with Vietnam’s trade and industrial policies.

Export and import procedures

Step 1: Business establishment and licensing

Vietnam does not mandate a separate license solely for import or export activities. However, the company must be legally registered and have the relevant business codes for import/export activities.

The most common and cost-effective way for investors interested in import/export and domestic distribution is to establish a trading company. There is no minimum capital contribution requirement for this.

If the importer plans to sell imported goods directly to Vietnamese consumers, an additional trading license is required. Establishing the trading company usually takes about three months, while acquiring the trading license can take one to three months.

Foreign businesses without a local legal entity can use an IOR service to handle importation, customs clearance, tax payments, and delivery. This is suitable for companies testing the market or importing infrequently, helping to overcome regulatory and language barriers.

Step 2: Registration and documentation

• Submit documents to the Department of Planning and Investment (DPI) including:
• Investment Registration Certificate (IRC)
• Enterprise Registration Certificate (ERC)
• For customs clearance, the following are typically required:
• Business registration certificate
• Business code registration certificate for import/export
• Commercial invoice, packing list, bill of lading, and other relevant documents

Step 3: Import preparation and classification

Check if goods are banned, require specialized inspection permits, or need import licenses. Vietnam uses an 8-digit HS code system. Proper classification is essential to determine applicable tariffs and taxes.

Step 4: Tariffs, taxes, and fees

Vietnam applies tariffs based on Most Favored Nation (MFN) rates or preferential rates under trade agreements like EVFTA. Import VAT, excise tax, environmental protection tax, and any anti-dumping or safeguard duties must be considered.

Step 5: Customs declaration and clearance

• Submit customs declaration electronically in advance using customs software.
• Pay tariffs and taxes for all applicable duties and taxes must be paid before goods are released.
• Inspection and quarantine for goods that may be subject to inspection by relevant Vietnamese authorities to ensure compliance with quality, safety, and quarantine standards.

Step 6: Import licensing application (if applicable)

• If goods require import licenses, submit:
• Application form.
• Investment or business registration certificate.
• Other relevant documents to the competent ministry.

Authorities notify deficiencies within 3 working days; final decision within 10 working days after complete submission. Procedures exist for license amendments or replacements with written explanations if refused.

Vietnam customs procedures

All goods imported into or exported from Vietnam must comply with customs clearance standards, which verify the products' quality, specifications, quantity, and volume. Certain items, like pharmaceuticals, require specific inspections, including testing and documentation in Vietnamese for usage, dosage, and expiration dates.

Required documents

Companies must submit a set of documents to customs authorities, including an enterprise registration certificate and an import/export business code. The additional required documents may vary depending on the goods. Export shipments can usually be completed on the same day, while imports may take one to three days. Companies that frequently import or export the same goods can use a single customs declaration form if the goods are listed under the same purchase contract and delivered within the specified timeframe. Declarations can be filed electronically.

Timeline of customs procedures

A customs declaration must be registered with the customs office within 30 days of the arrival of imported goods at Vietnam's checkpoints. For exported goods, the customs declaration must be registered after the goods are ready for export, but at least four hours before the transport means departs, or at least two hours before the departure of an aircraft if the goods are sent via courier. In practice, it is advised to register export customs declarations with the customs office at least one day prior to the departure of the transport means.

Priority customs treatment

Companies in Vietnam seeking to reduce customs compliance costs can apply for priority treatment, which provides benefits such as exemptions from the examination of supplementary customs documents and physical inspection of goods.

Additionally, companies can submit incomplete customs declarations, provided that complete declarations are filed within 30 days. They also receive prioritized access for tax formalities related to goods. Companies must meet several conditions outlined in Decree No. 08/2015/ND-CP to qualify for this preferential treatment.

These include maintaining compliance with customs and tax laws for two years after applying, adhering to accounting and auditing standards, and having an effective system for managing supply chains. Furthermore, companies must meet specific annual turnover requirements: US$100 million for general trading, US$40 million for goods produced in Vietnam, and US$30 million for agricultural exports.

Export and import duties in Vietnam

Export duties

Most goods and services exported from Vietnam are exempt from tax. Export duties (ranging from zero percent to 40 percent and computed on free-on-board (FOB) price) are only charged on a few items, mainly natural resources, such as minerals, forest products, and scrap metal. For exported goods or services, a 0-percent VAT rate typically applies if the company retains sufficient documentation as required by VAT regulations. If not, VAT will be imposed. In addition, the Law on Special Consumption Tax (SCT) stipulates that those exporters who purchase SCT tax-liable goods for export but instead sell the products domestically are liable for SCT. Export duty declarations are also required upon registration of customs declarations with the customs offices, but they can be paid within 30 days of registration of customs declarations.

Import duties

Vietnam levies taxes on nearly all imported products, including import tax, VAT, and, for some items, SCT. Import tax rates vary by product type and origin, with higher rates for consumer and luxury goods, while machinery and raw materials may enjoy lower taxes or exemptions.

Proof of origin

Import duty rates based on product origin are categorized as follows:

• Preferential rates, which apply to goods from countries that grant most favored nation treatment to Vietnam.
• Special preferential rates for goods from countries that provide special tariff preferences to Vietnam, mainly applicable to ASEAN nations under the Common Effective Preferential Tariff (CEPT).
• Standard rates, which apply to goods from countries that do not offer either the ‘Most Favored Nation’ treatment or special preferences.

Import tariff rates are available on the official Vietnam Customs portal. When registering customs declarations with the customs offices, import duty must be declared and paid before receiving consumer goods.

Tax exemption and refund

While tax exemption and refund regulations in Vietnam will remain as before during the first half of 2025, it will experience significant changes following the activation of Law No. 48/2024/ QH15 on Value Added Tax (VAT). The new VAT Law, approved in November 2024, will be effective from July 1, 2025.

Eligibility for zero VAT

A 0 percent VAT rate applies to the following:

• Exported goods, include;
  • Goods sold from Vietnam to foreign buyers and consumed overseas.
  • Goods sold from inland Vietnam to organizations in non-tariff zones and consumed there for export production.
• Exported services, include;
  • Services provided directly to overseas clients and consumed abroad (foreign individuals must be overseas during service use).
  • Services provided to non-tariff zone entities for export production (e.g. logistics, lifting, packing, warehousing, etc.).
• Other exported goods/services, include;
  • International transport; leasing of transport vehicles used abroad.
  • Aviation and maritime services supporting international transport.
  • Overseas or non-tariff zone construction/installation.
  • Digital content products for foreign customers (with proof of overseas use).
  • Spare parts/materials for overseas equipment repair.
  • Contract manufacturing for export.

On-spot export and import regime

On-the-Spot (OTS) export and import procedures enable companies to optimize manufacturing and logistics by allowing export and import activities to occur within Vietnam’s borders. In practice, goods are produced for a foreign buyer but are delivered to a designated recipient inside Vietnam, by passing international shipment. This approach can significantly reduce cargo delivery times and lower operational costs, making it attractive for manufacturers and traders aiming for supply chain efficiency.

Key steps for successful OTS operations

• Ensure your products and trading partners qualify for OTS procedures. This typically involves goods produced for export to a foreign trader but delivered domestically, often within export processing zones or to foreign-invested enterprises.
• Gather and prepare all necessary documents, including:
  • Foreign trade contracts specifying domestic delivery
  • Commercial invoices and packing lists
  • Export and import declarations
  • Relevant permits or inspection certificates (if required)
  • Registration of export/import codes with customs authorities
• Depending on the goods and transaction type, register with customs, quarantine, or tax authorities. This step is crucial for compliance and smooth processing.
• Arrange for the movement of goods from the production site to the designated import location within Vietnam, ensuring all logistics providers are briefed on the OTS nature of the shipment.
• Submit all required documentation for customs clearance at the appropriate branch. Be prepared for inspections and ensure all information is accurate to avoid delays.
• Settle all applicable customs duties, taxes, and fees promptly to finalize the process and avoid penalties.

VAT refund

Under Vietnam’s 2024 VAT Law, several important changes affect eligibility for VAT refunds:

• Investment-stage expansion projects may claim a VAT refund once accumulated input VAT reaches VND 300 million (US$11,400) or more.
• Businesses selling goods or services subject to the 5 percent VAT rate can request a refund if unrecovered input VAT reaches VND 300 million after 12 months or four quarters. If multiple VAT rates apply, refunds are calculated based on the revenue allocation ratio.
• VAT refunds are no longer available for cases involving changes in ownership or enterprise structure, including mergers, consolidations, divisions, or conversions.

From 1 July 2025, taxpayers applying the VAT credit (deduction) method may qualify for refunds in the following situations:

• Eligible new investment projects in the pre-operational phase with accumulated creditable input VAT exceeding VND 300 million.
• Business expansion investments during the investment stage with creditable input VAT of VND 300 million or more.
• Exporters with excess creditable input VAT above VND 300 million, subject to regulatory conditions and refund caps.
• Businesses undergoing dissolution that have overpaid VAT or unused input VAT credits.
• Enterprises exclusively supplying 5 percent VAT goods or services with uncredited input VAT of at least VND 300 million after 12 months or four quarters (or proportionally allocated where multiple VAT rates apply).
• Organizations implementing non-refundable ODA or humanitarian aid projects may claim VAT refunds on eligible goods and services purchased in Vietnam.