Customs & Global Trade Update | July 2025

This Update highlights the following matters:

• Adjustment of export duty rates, preferential import duty rates for certain groups of goods, and amendments to the conditions for the preferential import duty rate for auto components under the duty incentive scheme
• New customs procedures for low-value express shipments
• Authority to impose penalties in the customs sector
• Circular regulating the rules of origin for goods under the ASEAN – Australia – New Zealand Free Trade Area (AANZFTA)

Official Letters providing guidance on the following matters:

• Customs procedures following the restructuring of provincial-level administrative units
• Guidance on customs declaration for imported goods eligible for a 2% value added tax (VAT) reduction
• Update the information of the state budget revenue account of the Customs units
• Determining whether goods are subject to a VAT rate of 10% or 8%
• VAT implications on low-value imported goods sent via postal and express delivery services

Adjustment of export duty rates, preferential import duty rates for certain groups of goods, and amendments to the conditions for the preferential import duty rate for auto components under the duty incentive scheme

On 8 July 2025, the Government issued Decree No. 199/2025/NĐ-CP amending Decree No. 26/2023/NĐ-CP dated 31 May 2023, regarding the export duty schedule, preferential import duty schedule, list of goods and absolute duty rates, mixed duty rates, export duty rates when exceeding the tariff quota (Decree 199). The following amendments were made:

• Adjustment of export duty rates for goods classified in Harmonized System (HS) group 28.04 (hydrogen, noble gases, and other non-metals):
  • Reduction from 3% to 0% for gases under HS codes 2804.10.00, 2804.21.00, 2804.29.00, 2804.30.00, 2804.40.00, 2804.50.00, 2804.61.00, 2804.69.00, 2804.70.00.90, 2804.80.00, 2804.90.00.
• A gradual increase for gold phosphorus under HS code 2804.70.00.10:
  • From 8 July 2025 to 31 December 2025: increase from 3% to 5%.
  • From 1 January 2026: apply a tax rate of 10%.
  • From 1 January 2027: apply a tax rate of 15%.
• Adjustment of preferential import duty rates for following goods:
  • Increase from 0% to 2% for polymer products from ethylene in primary form under HS codes 3901.10.92, 3901.20.00, 3901.40.00, 3902.90.90.
  • Increase from 0% to 7% for black steel sheets (tin mill black plate – TMBP) under HS code 7209.18.10, effective from 1 September 2025.

Additionally, regarding the conditions for enjoying preferential import duty rates when importing auto components under the tax incentive scheme for the production and assembly of automobiles, Decree 199 adds points c.3.6 and c.3.7 to Clause 3 of Article 8 of Decree No. 26/2023/NĐ-CP. Accordingly:

• In cases where enterprises engaged in automobile manufacturing and assembly are considered for incentives under points c.3.2, c.3.3, c.3.4 of Article 8 of Decree 26/2023/NĐ-CP, if they also manufacture or assemble electric vehicles, fuel cell vehicles, hybrid vehicles, vehicles using fully biofuels, or vehicles using natural gas, they may include the quantity of these vehicles in the incentive assessment period into the overall minimum output and the specific minimum output of each group of vehicles, corresponding to gasoline and diesel fuel vehicles, to determine the overall minimum output and specific minimum output of the vehicle group when considering whether the incentives apply.
• In cases where an enterprise holds more than 35% of the charter capital of more than one company that manufactures and assembles automobiles that has been certified by the Ministry of Industry and Trade (MoIT) as meeting the conditions for automobile production and assembly, these companies may aggregate the production and assembly output of automobiles to calculate the minimum output when assessing the conditions for enjoying incentives under the tax incentive scheme.
• Where an automobile manufacturing and assembly company registers to participate in the tax incentive scheme, the customs authority will provide tax refunds corresponding to the quantity of automobiles produced and assembled by that company that have been delivered during the incentive assessment period.

Decree 199 takes effect from the date of signing. Please refer to Decree 199 for further details.

New customs procedures for low-value express shipments

On 16 June 2025, the Minister of Finance issued Decision No. 2038/QĐ-BTC announcing the amended administrative procedures in the customs sector under the state management functions of the Ministry of Finance (Decision 2038).

Accordingly, Decision 2038 updates two customs procedures, detailing the implementation process, documentation requirements, information declaration criteria on customs declarations, and other necessary information when carrying out customs procedures for the following two groups of goods:

• Imported goods with a customs value within the tax exemption threshold as stipulated in Clause 2, Article 29 of Decree 134/2016/NĐ-CP, and not subject to import licensing or specialized inspection, sent via express delivery services.
• Exported goods with a customs value of less than VND5million, exempt from export duty or subject to a 0% export duty rate, and not subject to export licensing or specialized inspection, sent via express delivery services.

Decision 2038 takes effect from 16 June 2025. At the same time, it abolishes the announcement of administrative procedures numbered 4 and 5 corresponding to the two customs procedures in Decision No. 1893/QĐ-BTC dated 24 September 2019. Please refer to Decision 2038 for further details.

Authority to impose penalties in the customs sector

On 11 July 2025, the Customs Department issued Official Letter No. 13927/CHQ-PC requesting their sub-units to implement Decree 189/2025/NĐ-CP dated 1 July 2025, detailing the Law on Administrative Violations regarding the authority to impose administrative penalties (Decree 189) effective from 1 July 2025 (OL 13927).

This includes provisions related to the authority of customs officials as specified in Article 11 as follows:

• For customs officials performing their duties:
  • Retain the authority to issue warnings.
  • Increase the authority to impose fines to VND5million for individuals and to VND10million for organizations. Add the authority to confiscate material evidence and means used in the commission of administrative violations with a value not greater than twice the fine amount specified under the authority of customs officials.
• For heads of customs teams at border gates/outside border gates, heads of post-clearance customs audit (PCA) and inspection teams, heads of customs clearance teams, and heads of anti-smuggling control teams under the Customs Sub-Departments:
  • Retain the authority to issue warnings.
  • Increase the authority to impose fines to VND30million for individuals and to VND60million for organizations.
  • Increase the authority to confiscate material evidence and means used in the commission of administrative violations with a value not greater than twice the fine amount under the authority of the team leader.
  •  Apply remedial measures as stipulated in Clause 1, Article 28 of the Law on Administrative Violations 2012 (amended in 2020, 2025).
• For heads of anti-smuggling investigation sub-departments, heads of PCA and inspection sub-departments, heads of regional Customs Sub-Departments:
  • Retain the same authority as the director of the anti-smuggling investigation department, the director of the PCA and inspection department, and the director of the provincial or inter-provincial customs department previously.
  • Add the authority to apply all remedial measures stipulated in Clause 1, Article 28 of the Law on Administrative Violation 2012 (amended in 2020, 2025).
• For the director of the customs department:
  • Maintain the authority of the general director of the general department of customs previously.
  •  Add the authority to revoke the right to use licenses and professional certificates for a limited time or suspend activities for a limited time, and apply all remedial measures stipulated in Clause 1, Article 28 of the Law on Administrative Violations 2012 (amended in 2020, 2025).

Additionally, the OL clarifies the transitional provisions in Articles 20 and 21 of Decree 189, providing guidance on determining the authority to impose administrative penalties according to customs positions during the period when the Government has not issued a decree to amend Decree No. 128/2020/NĐ-CP dated 19 October 2020, regulating penalties for administrative violations in the customs sector.

Please refer to OL 13927 for further details.

Circular regulating rules of origin for goods under AANZFTA

In accordance with the Agreement establishing the AANZFTA and the second Protocol amending the AANZFTA on 7 July 2025, the MoIT issued Circular No. 44/2025/TT-BCT regulating the rules of origin for goods under the AANZFTA (Circular 44).

Circular 44 provides detailed regulations on the rules of origin for goods, as well as provisions regarding the certification and verification of the origin of goods within the framework of the AANZFTA.

Circular 44 takes effect from 22 August 2025. Accordingly, Circular 31/2015/TT-BCT dated 24 September 2015, of the MoIT implementing the rules of origin in the AANZFTA, and subsequent amendments to Circular 31/2015 will be repealed.

Please refer to Circular 44 for further details.

Some guidance has been provided in the form of Official letters