De Minimis Demystified: Low-value thresholds have traditionally allowed shipments to enter markets duty-free, but recent changes in Vietnam require a new approach to managing your total landed cost.
The 2026 Shift: In a significant policy change, Vietnam has removed the tax exemption for low-value imports, making it critical for businesses to stay updated on customs regulations for 2026.
Compliance Edge: Utilise automated tools like My Global Trade Services (MyGTS) to accurately calculate duties upfront and provide transparent, reliable pricing for your customers at checkout.
Strategic Solutions: Discover how DHL customs clearance services, such as Break Bulk, can help you effectively manage shipments into Vietnam, ensuring your profit margins are protected.
For businesses engaged in cross-border shipping, unexpected taxes at the point of delivery can present a significant challenge. These unforeseen costs often lead to high return rates and can negatively impact your brand's reputation. This guide is designed to help you navigate Vietnam's import regulations, maintain profitability in your international trade, and ensure a positive experience for your valued customers.
A de minimis threshold is the specific valuation limit below which a shipment is considered too small for customs authorities to collect duties or taxes. Historically, this served as a "free pass" for low-value goods entering a country, but recent regulatory updates in Vietnam have changed this landscape.
Unexpected Costs : Previously, keeping a shipment's value under this limit meant your customer avoided surprise charges. Now, all imports are potentially subject to tax.
Calculation Methods : It is crucial to understand the valuation method used by customs authorities to correctly declare your shipment's value.
Target Markets: You must know which method applies to your target market to avoid costly pricing and declaration errors. In Vietnam, the General Department of Vietnam Customs (GDVC) uses the CIF method.
Automation: MyGTS can identify these calculation rules automatically as you prepare your waybill, simplifying the process and enhancing compliance.
Calculation Method | What is Included? | Impact on Tax |
|---|---|---|
CIF (Cost, Insurance, Freight) | Product value plus shipping and insurance costs. | Reaching the limit is easier, meaning more shipments get taxed. |
FOB (Free on Board) | Only the value of the physical product itself. | Shipping costs are excluded, often allowing higher‑value goods to enter duty‑free. |
Understanding that Vietnam applies the CIF method is the first step toward accurate declarations. Using the wrong valuation can lead to your shipment being delayed or stopped by customs, impacting your relationship with your customers.
Governments worldwide, including in Vietnam, are adjusting their duty-free limits to increase tax revenue from the rapidly expanding e-commerce sector. This policy shift aims to create a level playing field for local retailers and ensure that the digital economy contributes fairly to national budgets.
Lowered Limits : As of early 2025, Vietnam eliminated its de minimis threshold of VND 1 million for goods shipped via courier, meaning most low-value imports are now subject to duties and Value Added Tax (VAT).
Category Shifts : Certain product categories may face different duty rates, and it's essential to classify your goods correctly using the appropriate HS (Harmonised System) codes.
Digital Tracking : Customs offices like the GDVC are leveraging advanced electronic systems to monitor shipment frequency and value more effectively.
Real-time Updates : Our DHL Express Global Trade Services (MyGTS) platform provides real-time updates on these evolving regulations, helping you stay compliant.
You don't need to monitor numerous customs websites each morning. We build a strong partnership by managing this data for you, allowing you to focus on growing your sales and strengthening your brand.
Each market in the region establishes its own unique regulations for what constitutes a duty-free import. There is no single standard across Asia Pacific, making local expertise a vital component of a successful logistics partnership.
Vietnam's New Reality : Vietnam has removed its previous de minimis exemption of VND 1,000,000. Now, nearly all imported goods are subject to import duties and Value Added Tax (VAT), regardless of their value. This makes accurate landed cost calculation more important than ever.
Tax Registration : High-volume sellers shipping to various markets must understand the local tax registration requirements. In Vietnam, VAT is typically applied at the border during customs clearance.
Strict Exclusions : Certain goods, such as alcohol and tobacco, are always subject to duties and taxes regardless of their value and may require specific import licenses. Furthermore, regulations like Decree 69/2018/ND-CP place strict controls on specific goods, such as second-hand items, reinforcing the need for accurate item-level declarations.
Partner Support : Managing these complex and varied regulations manually is a significant challenge for any growing business. A reliable logistics partner is essential for navigating these complexities.
A deep understanding of APAC customs regulations allows you to identify the most profitable markets for your products. A trusted partner like DHL, who tracks these details, enables you to set clear and transparent expectations for your buyers before they complete their purchase.
Your total landed cost represents the complete price of delivering a product to your customer's doorstep. The shipping rate is merely the first component of this calculation.
Additional Factors : With the removal of the de minimis threshold in Vietnam, you must now consistently factor in import duties, Value Added Tax (VAT), and any potential handling fees into your pricing.
Margin Erosion : A variance of 1,250,000 VND per shipment, which can easily arise from incorrect duty calculations, can quickly eliminate your profit.
Customer Friction : Unexpected fees upon delivery are a primary cause of shipment refusals and can damage the trust you have built with your customers.
DDP Solutions : Utilising our Delivered Duty Paid (DDP) service allows you to pay taxes and duties on behalf of your customer, ensuring a seamless and positive delivery experience.
We recommend using the DHL Landed Cost Calculator to ensure your calculations are precise. An accurate total landed cost calculation keeps your international pricing competitive and protects your profit margins from being absorbed by unforeseen charges.
Intentionally declaring a lower value for your goods to evade taxes is a serious compliance violation. The GDVC uses sophisticated data-tracking systems to identify such discrepancies.
Heavy Penalties: Vietnamese customs can impose significant fines, which can often surpass the shipment's value, and have the authority to seize the goods.
Legal Responsibility: Under "Reasonable Care" principles, the merchant bears full responsibility for the accuracy of all data provided on customs declarations.
Blacklisting Risk: Repeated misdeclarations can result in your business being flagged for increased scrutiny or even barred from certain shipping lanes, disrupting your operations.
Reputation Protection: Our dedicated compliance team reviews your commercial invoices to help you operate within the legal framework, protecting your long-term business interests.
Accuracy is the cornerstone of a smooth customs process. It ensures your goods move efficiently through DHL customs clearance without unnecessary flags or delays, building a foundation of reliability and trust.
You can preserve your profit margins by adopting shipping strategies designed to navigate customs efficiently. As nearly all items entering Vietnam now attract tax, sending individual low-value parcels can become less cost-effective.
Break Bulk Solutions: Consolidate multiple small orders into one larger shipment to clear customs as a single entry. We then handle the local split and delivery, streamlining the process.
Local Warehousing: Ship a larger inventory to a warehouse within Vietnam. This allows you to clear customs once for the entire batch and then fulfil orders locally, offering competitive delivery speeds.
API Integration: Integrate our advanced tax calculation tools directly into your e-commerce platform. This allows you to transparently collect Value Added Tax (VAT) at checkout, providing clarity for your customers.
Strategic Hubs: These strategies are particularly effective for businesses managing outbound freight from major manufacturing hubs like Ho Chi Minh City or Bac Ninh, especially when planning around peak seasons like Tết Nguyên Đán, when ports such as Cát Lái experience significant congestion.
These models empower you to compete on an equal footing with local sellers in terms of both pricing and delivery speed. We are here to help you select the most suitable and effective model for each market you serve.
Hidden costs are a manageable risk, not an inevitability. Relying on guesswork for international taxes can compromise your customer's experience and your bottom line. DHL customs clearance is your most reliable defence against unpredictable fees. We invite you to speak with a DHL specialist today to review your shipping lanes and reach your customers with confidence and trust.
Since Vietnam has removed its de minimis exemption for courier shipments, nearly all imports are subject to duties and VAT. The calculation will be based on the CIF (Cost, Insurance, and Freight) value, so duties and taxes will be assessed on the total cost.
Customs authorities in Vietnam monitor shipments to the same recipient. This practice, often seen as an attempt to circumvent regulations, can lead to the values of the shipments being combined, potentially resulting in fines and delays.
You can use the comprehensive search tools available in MyGTS to identify the correct Harmonised System (HS) code for your product. Using the correct code is essential for determining the accurate tax rate.
Yes, when you select our DDP (Delivered Duty Paid) service, we manage the payment of duties and taxes at the border. We then bill these costs back to you, which ensures your customer enjoys a smooth delivery experience with no payments due at the door.
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