Vietnam’s New Customs Penalty Decree: Key Compliance Changes for Importers and Exporters

Vietnam’s new customs penalty regime will take effect on July 1, 2026, under Decree No. 169/2026/ND-CP, replacing Decree No. 128/2020/ND-CP and related amendments. The new rules introduce several important compliance changes, including expanded reporting obligations, broader exemptions from penalties, and greater use of digital enforcement mechanisms.

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Decree 169 modernizes Vietnam’s customs enforcement framework while aligning customs administration with the country’s broader digital transformation agenda.

The decree also introduces new compliance risks for businesses operating under customs incentive regimes, including export processing enterprises (EPEs), manufacturers, and Authorized Economic Operators (AEOs).

No penalties for declaration errors that do not affect tax liabilities

One of the most business-friendly changes under Decree 169 is the removal of penalties for customs declaration errors that do not impact the amount of tax payable.

This change reduces compliance risks arising from technical, clerical, or administrative mistakes where no tax loss occurs. It may be particularly beneficial for companies handling high volumes of customs declarations and complex import-export transactions.

For businesses, the change reflects a more risk-based enforcement approach that focuses on substantive tax compliance rather than procedural errors alone.

Expanded customs violations subject to penalties

Decree 169 broadens the range of customs-related compliance obligations that may result in administrative penalties.

New areas of focus include:

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• Failure to notify the actual bill of materials (BOM) before the issuance of a customs finalization audit report or post-clearance audit decision;
• Violations relating to notification and reporting obligations under Decree No. 167/2025/ND-CP;
• Failure to submit required quarterly reports applicable to AEO enterprises;
• Failure to notify changes to registered toll manufacturing or contract manufacturing facilities; and
• Other customs-related notification and reporting obligations.

These additions indicate that customs authorities are placing greater emphasis on the accuracy and timeliness of compliance reporting, particularly for enterprises operating under preferential customs regimes.

Compliance implications

Broader circumstances where penalties may not apply

Decree 169 expands and clarifies situations in which administrative penalties will not be imposed.

In particular, businesses may avoid penalties when they proactively:

• Submit supplementary customs declarations;
• Correct inaccurate information;
• Rectify reporting deficiencies; or
• Address compliance issues within the statutory deadlines prescribed by law.

This approach encourages voluntary compliance and allows companies to remediate issues before they escalate into administrative violations.

For many businesses, strengthening internal review procedures and conducting periodic customs compliance checks may become increasingly important to take advantage of these relief provisions.

Customs enforcement goes digital

In line with Vietnam’s ongoing digital transformation initiatives, Decree 169 allows customs authorities to conduct enforcement procedures electronically.

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Authorities may now:

• Prepare administrative violation records electronically;
• Issue penalty decisions electronically;
• Manage enforcement documentation through digital systems; and
• Reduce reliance on paper-based procedures.

This change is expected to streamline customs administration, accelerate enforcement processes, and improve interaction between businesses and customs authorities.

Expanded sanctioning powers for the People’s Public Security

Another notable development is the extension of enforcement authority to the People’s Public Security.

Under Decree 169, the People’s Public Security may:

• Impose administrative fines of up to VND 200 million;
• Confiscate goods involved in violations; and
• Apply remedial measures prescribed under customs regulations.

The change broadens the range of authorities involved in customs enforcement and may increase scrutiny of customs-related violations beyond traditional customs inspections.

What should businesses do now?

With the new rules taking effect on July 1, 2026, companies engaged in import-export activities should review their customs compliance frameworks and reporting procedures.

Priority actions include:

• Reviewing customs declaration controls and internal validation processes;
• Ensuring BOM records are complete and accurately maintained;
• Evaluating compliance with reporting and notification obligations;
• Reviewing AEO reporting requirements where applicable;
• Establishing procedures for timely supplementary declarations; and
• Preparing for increased use of electronic customs enforcement mechanisms.

Businesses operating under customs incentive schemes, manufacturing-for-export arrangements, or complex supply chains may wish to conduct a compliance health check before the decree takes effect.

Looking ahead

While Decree 169 introduces new compliance obligations and enforcement powers, it also provides greater flexibility for businesses that proactively correct errors and maintain transparent customs records.

By combining stricter oversight with expanded opportunities for voluntary compliance, the new framework signals Vietnam’s continued move toward a more digitalized and risk-based customs administration system.

Managing tax in Vietnam is critical for FDI companies to stay compliant with local regulations, GST requirements, and global standards such as IFRS, navigate complex filings, and apply correct tax treatments. A well-structured tax process helps to avoid penalties and stay 100% compliant.

Luy Doan

Assistant Manager, Tax

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