Vietnam’s New Penalties for Customs Violations: A Guide to Decree 169

Decree 169/2026/ND-CP, effective from 1 July 2026, replaces the previous customs penalty framework. This article explains the key changes, penalty calculation rules, compliance implications for importers and FDI manufacturers, and practical steps for staying compliant.

On 15 May 2026, the Vietnamese Government issued Decree 169/2026/ND-CP on administrative penalties in the customs sector. The decree took effect on 1 July 2026, replacing Decree 128/2020 and Decree 102/2021. This represents the most significant overhaul of Vietnam‘s customs penalty framework in recent years.

The new decree affects a wide range of stakeholders: importers, exporters, export processing enterprises (EPEs), FDI manufacturers, authorized economic operators (AEOs), and customs brokers. Understanding the changes is essential for businesses engaged in cross-border trade, as the new rules alter how violations are identified, penalized, and remedied.

Key changes under Decree 169

Decree 169 introduces certain major changes to Vietnam’s customs penalty framework.

Expanded scope of administrative penalty exemptions

The Decree broadens the circumstances in which administrative penalties may be exempted. In particular, penalties may not be imposed in the following cases:

• Timely amendment of customs finalization reports: Amendments or supplements made within 60 days from the date of submission, provided that no inspection decision has been issued before the amendment.
• Timely adjustment of customs value: Amendments made within the prescribed timeframe where the final transaction price was not available at the time of customs declaration; additional payments arise after the initial declaration; or certain valuation elements could not yet be determined at the time of declaration.
• Adjustments within permitted commercial tolerances: Amendments to customs declarations for goods subject to agreed tolerances in quantity or commercial grade, provided that the variance remains within the permitted threshold and the adjustment has been approved by the competent authority.
• Errors with no impact on tax payable: Incorrect declarations relating to the quantity, description, type, quality, customs value, origin, or HS code of taxable imported goods may be exempt from administrative penalties where the discrepancies do not result in any change to the amount of tax payable.

How it impacts you: These provisions provide greater flexibility for businesses to correct certain customs declarations without incurring administrative penalties, provided that the applicable statutory timelines and conditions are strictly met. Businesses should therefore review their existing customs amendment and finalization procedures to ensure that eligible corrections are made within the prescribed periods.

Expanded scope of customs-related violations

Decree 169 introduces administrative penalties for a number of additional customs compliance breaches, including:

• Late submission of quarterly reports by Authorized Economic Operators (AEOs);
• Late notification regarding the use of goods eligible for preferential import duty treatment under Chapter 98;
• Late notification of subcontracting facilities to the customs authorities;
• Failure to annually notify the actual consumption norms applicable to exported products; and
• Importation of goods without a certificate of origin (C/O) where the C/O is required under applicable regulations to manage safety, social, or environmental risks.

How it impacts you: These additions expand the scope of customs compliance obligations subject to administrative sanctions and should be considered when reviewing the company’s existing customs compliance procedures.

Increased use of electronic enforcement measures

The Decree permits certain violation records and penalty decisions to be prepared and issued in electronic form, supporting the continued digitalisation of customs enforcement. Enterprises should therefore ensure that their electronic customs accounts, digital signatures, authorised user access and electronic records are properly maintained and that relevant documents can be retained and retrieved for inspection purposes.

Expanded enforcement powers of the People’s Public Security

The Decree authorises the People’s Public Security to handle certain customs-related administrative violations and, within the scope of its statutory authority, impose administrative fines, including fines of up to VND 200 million, confiscate exhibits and means of violation, and apply other prescribed remedial measures under Article 33. This represents an expansion of the authorities involved in customs-related enforcement and should be taken into account when assessing compliance risks.

How penalties are calculated (Article 6)

Under Article 6 of Decree 169, the default fine for a customs violation is set at the midpoint of the applicable fine range. From this baseline, the final penalty is adjusted based on mitigating or aggravating circumstances.

A single mitigating factor reduces the fine by 10 percent from the midpoint, while two or more mitigating factors bring the fine down to the minimum of the range. Under Article 4, a mitigating factor also exists where the value of the violation’s exhibits does not exceed 50 percent of the minimum fine for that offence. Conversely, a single aggravating factor increases the fine by 10 percent, and two or more aggravating factors push the fine to the maximum of the range. Where both mitigating and aggravating factors are present, they cancel each other out on a one-for-one basis.

Repeat violations are generally penalized separately, though exceptions apply to late customs documents, misdeclaration of tax-exempt goods, and export declarations filed before goods arrive at the designated location. It is also important to note that fines imposed on organizations are twice those imposed on individuals. For example, where an individual faces a fine of VND 5 million, an organization would face VND 10 million for the same violation.

Statute of limitations and retroactivity (Articles 5 and 39)

The decree establishes clear time limits for penalty imposition and tax recovery. For tax evasion that does not rise to criminal prosecution, the statute of limitations is five years. For other customs violations, the limit is two years. However, even after the penalty time limit expires, taxpayers remain liable for any underpaid, incorrectly exempted, reduced, refunded, or evaded tax. The recovery period extends up to 10 years from the date the violation is discovered.

On retroactivity, Article 39 provides that violations committed before 1 July but discovered after that date are judged under the new decree if it provides more lenient treatment. However, cases where a penalty decision has already been issued under the old rules continue to be governed by those rules and the penalized party still has a pending complaint/appeal. Cases without a final decision may benefit from the more favourable provisions of the new framework.

Implications for importers and FDI manufacturers

For importers and foreign-invested manufacturers, Decree 169 introduces several important compliance considerations.

• HS code risks

An incorrect HS code does not automatically constitute tax evasion. However, the risk escalates when a company continues a treatment that conflicts with prior classification guidance. Such guidance may include written instructions from the Ministry of Finance, classification notices, advance rulings, or earlier tax assessments. Companies should first determine whether the goods are genuinely the same and whether qualifying prior guidance exists.

• Data reconciliation

Customs declarations must be reconciled with ERP systems, accounting records, inventory, bills of materials, consumption norms, and finalization reports. Discrepancies among these data sources can move a matter beyond simple late filing and into tax-shortfall analysis.

• EPE and export manufacturing

For export processing enterprises and manufacturers for export, inconsistencies among BOM, consumption norms, inventory, and finalization reports are a particular concern. These can escalate into more serious tax exposure if not addressed promptly.

• Electronic compliance

Electronic notices are now formal compliance events. Businesses need reliable control over account access, digital signatures, and document retention. Electronic notices should be treated with the same seriousness as paper-based official correspondence.

Practical compliance recommendations

Businesses should take the following steps to align their operations with Decree 169.

1. Review HS code classifications: Compare the current HS code master against all prior classification notices, advance rulings, and tax assessments. Identify any discrepancies before they become audit issues.
2. Assess correction periods: Before filing explanations or supplementary declarations, test whether discovered errors still fall within applicable correction periods. Not all errors can be corrected without penalty, and timing matters.
3. Reconcile customs data: Ensure customs declarations are consistent with ERP, accounting, inventory, BOM, consumption norms, and finalisation reports. Discrepancies should be investigated and resolved promptly.
4. Maintain a deadline register: Create a single register for AEO reports, facility changes, subcontracting arrangements, and consumption norms. Missing these deadlines now attracts penalties under the expanded scope of the decree.
5. Manage electronic accounts: Assign primary and backup owners for electronic customs accounts. Require employees and brokers to escalate discrepancies promptly. Electronic notices are formal compliance events.
6. Seek professional advice: Before repeating a classification treatment that has been disputed or is inconsistent with prior guidance, consult a customs or tax advisor. Proactive advice is cheaper than reactive penalties.

Key takeaways

Decree 169 offers meaningful relief for minor errors, particularly those that do not affect tax liability, and encourages proactive correction. However, it also expands the scope of compliance obligations and introduces new penalties for reporting failures. The decree strengthens enforcement through electronic procedures and gives Public Security authorities broader powers.

For businesses, the path to compliance lies in accurate data reconciliation, timely reporting, and proactive error correction. Those who familiarise themselves with the new rules, review their internal controls, and adjust their procedures accordingly will be best positioned to avoid penalties and maintain smooth customs operations.