Vietnam considers tighter tax rules for low-value imports

The Customs Department said on Tuesday that the proposal is included in a draft decree guiding the implementation of the Law on Export and Import Duties, which is being circulated for feedback from ministries, agencies, and industry associations.

Under current rules, goods imported through postal and express delivery services are exempt from import tax if their customs value does not exceed VND1 million ($38) or the tax payable is no more than VND100,000 ($3.8).

For other import channels, the exemption applies to goods valued at no more than VND500,000 ($19) or with tax payable of up to VND50,000 ($1.9).

The ministry is now considering a uniform threshold across all import methods.

Under the proposal, goods would be exempt from tax if their customs value does not exceed VND100,000 ($3.8) or the tax payable is no more than VND10,000 ($0.38) per shipment.

The proposed rule would not apply to gifts or goods bought, sold, or exchanged by border residents.

The Customs Department said the existing thresholds were originally introduced to reduce administrative costs and facilitate trade.

However, the rapid expansion of cross-border e-commerce has led to a surge in low-value imported parcels, exposing shortcomings in the current policy.

Authorities said the tax exemptions may give imported goods an advantage over domestic products, encourage sellers to split orders into smaller shipments to qualify for tax breaks, and make customs management more difficult.

The Customs Department said the proposed VND100,000 ($3.8) threshold is consistent with Vietnam’s international commitments.

Vietnam has been a member of the Revised Kyoto Convention since 2008. The convention allows countries to set a minimum customs value or tax amount below which duties are not collected when the administrative cost of collection would exceed the tax revenue generated.

Each country can determine its own threshold based on domestic conditions and customs management practices.

With Vietnam’s average preferential tariff at around 10 percent, VND10,000 ($0.38) in tax corresponds to goods with a customs value of roughly VND100,000 ($3.8), the department said.

The threshold is designed to ensure that tax collection remains worthwhile from both a regulatory and revenue perspective while preventing administrative costs from exceeding the amount collected.

The department said the proposal is also in line with a broader international trend toward tightening “de minimis” exemptions for low-value imports as cross-border online shopping grows.

The U.S. suspended its de minimis exemption for parcels valued at $800 or less from all countries from August 29, 2025.

The European Union also tightened its rules from July 1, 2026, ending the customs duty exemption for imports valued at up to €150.

Such shipments are now subject to a fixed €3 duty for each product category under the tariff classification system within a parcel. The temporary measure will remain in place until July 1, 2028, after which standard tariff rates will apply.