What is import duty? A complete guide

As the international trade landscape continues to evolve — with new regulations, shifting trade agreements, and tightening customs controls — businesses that ship cross-border must stay on top of every update to avoid costly delays, fines, or abandoned shipments. For businesses in Vietnam, where import-export activity is booming, understanding how import customs work is no longer optional. It's a competitive necessity.

This guide breaks down everything you need to know about import duties, taxes, and shipping regulations — so you can ship confidently with DHL Express.

What is import (customs) duty? 

Import duty (also known as customs duty) is a tax levied by a government's customs authority on goods crossing international borders. It serves two primary purposes: Generating revenue for the government and protecting local industries by making imported goods comparatively more expensive than domestically produced alternatives.

In Vietnam, import duties are administered through the VNACCS/VCIS — the Vietnam Automated Cargo and Port Consolidated System. This integrated platform is used by the General Department of Vietnam Customs to electronically classify, assess, and process declarations for all incoming shipments, enabling faster clearance while ensuring the correct duty rates are applied based on the nature and origin of the goods.

Common forms of import duty include trade tariffs and excise duties, both of which vary depending on the type of goods, their declared value, and the country of origin.

Import duties vs taxes vs tariffs: What’s the difference between them? 

These terms are often used interchangeably, but they are distinct — and understanding the difference matters when calculating the true cost of international shipping.

• Import duties are charges imposed on goods entering a country, typically calculated as a percentage of the goods' value. In Vietnam, they are assessed on the CIF (Cost, Insurance, and Freight) value of the shipment — meaning customs factors in not just the product price, but also insurance and freight costs.

• Import taxes are flat-rate consumption taxes applied to imported goods, similar in structure to domestic taxes. The most common example is Value-Added Tax (VAT), which applies to imports just as it does to locally sold products.

• Tariffs are a specific type of import duty, often set as part of a broader trade policy or bilateral agreement between countries. They may be applied as a fixed fee per unit or as a percentage of the goods' value, and are frequently used as instruments of trade negotiation.

While import duty and tariff are closely related — a tariff is essentially a duty applied for trade policy purposes — import taxes like VAT are a separate charge altogether, calculated differently and governed by domestic tax law rather than customs schedules.

How do duties and taxes impact your shipment?

Import duties and taxes directly influence your total landed cost — the full expense of delivering goods from origin to customer.

If not planned correctly, they can result in:

• Clearance delays
• Additional storage or return costs
• Customer refusal at delivery

This becomes particularly important in Vietnam’s e-commerce environment, where delivery experience strongly influences customer satisfaction.

Understanding Vietnam's de minimis rules in 2026

A de minimis threshold refers to the shipment value below which duties and taxes are not applied.

Previously, Vietnam allowed shipments valued under 1,000,000 VND to enter with simplified tax treatment. However, as of 2025–2026, regulations have tightened. VAT and import duties now apply to virtually all commercial e-commerce shipments, regardless of value.

For cross-border sellers, this means:

• Small shipments are no longer automatically exempt
• Accurate declarations are required for every shipment
• Landed cost planning is essential before pricing

Using DHL’s Landed Cost Estimator helps businesses forecast duties and taxes accurately and avoid pricing miscalculations.

Value-Added Tax (VAT) in Vietnam

In addition to import duties, goods entering Vietnam are subject to VAT. The Vietnamese government has extended the reduced VAT rate of 8% — down from the standard 10% — for many categories of goods through 31 December 20261, as part of ongoing economic support measures.

Not all goods qualify for this reduction. The following sectors remain at the standard 10% VAT rate:

• Telecommunications
• Information Technology (IT)
• Financial and banking services

For businesses importing goods outside these categories, the 8% rate represents a meaningful cost saving — but only if you're aware of it and factor it into your landed cost calculations. 

Who pays import taxes and customs duties?

Understanding who is responsible for paying the import duties and taxes is critical for both sellers and buyers engaged in international shipping. The shipping terms determine the responsibilities agreed between the parties, and are governed by internationally recognized rules called Incoterms.

The carrier

This is the service that transports the shipment cross-border — for example, DHL Express. In international trade, the carrier acts as a customs broker, managing border documentation for clients so that their goods clear customs without issues. The carrier is also responsible for collecting all associated import taxes and duties.

The Exporter and Importer

In a cross-border B2C e-commerce transaction, the seller is the exporter and the customer is the importer. Whether the seller or buyer pays import duty depends on the Incoterms agreed:

• DDP (Delivered Duty Paid): The seller takes full responsibility for all transportation costs and import duties. The customer receives the goods with no additional charges at delivery.

• DDU (Delivered Duty Unpaid): The seller covers transportation, but the customer must pay all duties and taxes upon receiving the package.

A note on Vietnamese market preference: In Vietnam, DDP is rapidly becoming the standard for e-commerce shipments. Vietnamese consumers are particularly sensitive to unexpected fees collected at the door, and DDU arrangements frequently result in abandoned packages. 

Shipping DDP with DHL Express in Vietnam also helps shipments clear the Yellow Channel (the document review stage in Vietnam Customs) more efficiently — because duty payment is already handled, reducing friction at the point of assessment.

The Importer of Record

This is the individual or entity responsible for ensuring import compliance. They must manage all paperwork (such as licenses and certificates) needed for the import, as well as covering all duties and taxes. In the instance of DDP, for example, the seller is the Importer of Record.

Considerations when shipping internationally

There is a lot to plan for when shipping to a new cross-border destination, including:

• The destination country’s customs regulations. It’s important to research the local import tax and duty rates to factor into your costs.
• Shipping documentation and paperwork. This may include an accurate and detailed commercial invoice, waybill, and bill of lading.
• Packaging. It goes without saying that you want your shipment to arrive at its destination in perfect condition. Goods should be packed in correctly sized boxes to optimize space (and thus minimize your shipping costs!), with labels displayed clearly. Bonus points for sustainable packaging!
• Prohibited and restricted items. Goods shipped without the correct certificates or permits could be seized by customs or earn you a hefty fine.
• Insurance. This will give you peace of mind in case something does go wrong – such as a damaged or lost shipment. 

Practical steps for handling import tax and shipping duties

Managing customs declarations

When shipping goods internationally, you’ll be required to complete customs declaration forms, including a commercial invoice. This is a specialized export document containing comprehensive information about the goods that customs authorities will use to calculate the taxes, tariffs and duties due. You can cut costs by managing customs declarations yourself, or you can engage a customs broker.

Choose a customs brokerage service

Partnering with DHL Express, for example, will mean your business has access to a global network of customs experts across over 220 countries and territories. You’ll benefit from:

• Full transparency and maximum visibility over what has been declared on your behalf
• Global rate cards for transparent costs
• New technologies such as AI-powered compliance tools to reduce clearance delays of your imports
• DHL’s Duties and Taxes Outlay Service, meaning the company will settle all duties and taxes upfront, on your behalf, to prevent delays in the goods getting to their destination

Prepare your customers for paying import duties

Lastly, remember that whatever Incoterms you choose for your international shipments, be clear about them to your customers upfront. Surprising them with high shipping fees at the very last moment is a sure way to lose the sale.  

Simplify your tax and duty management with DHL Express Vietnam

With DHL Express as your international shipping partner, you benefit from on-the-ground expertise that reduces delays, ensures compliance with Vietnam’s customs clearance requirements, and protects your customer experience at every step.

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