Starting February 1, 2026, Vietnam will fundamentally shift its customs clearance model with the enforcement of Circular No. 121/2025/TT-BTC.
The new regulation moves the country toward a "Release First, Value Later" mechanism, a modernization effort long requested by foreign investors. This change removes the notorious bottleneck at the border where customs officers would frequently delay shipments to debate HS codes or declared values. Under the new system, unless a shipment is flagged as high-risk, it will be released immediately based on the importer’s digital declaration.
However, this efficiency comes with a significant trade-off. While goods will move faster, the burden of compliance has not disappeared—it has simply shifted. By removing pre-check hurdles, the General Department of Customs is pivoting its resources toward aggressive Post-Clearance Audits (PCA). Authorities now have a wider window and deeper digital access to scrutinize accounting books, payment records, and inventory systems long after the goods have been sold or consumed.
The New Compliance Reality
The most immediate operational change is the requirement for mandatory digital dossiers. Circular 121 stipulates that all customs paperwork must be fully digitized and linked to the national VNeID system. Physical paperwork is no longer the primary record of truth. This means that any discrepancy between an importer's internal ERP data and their customs filing will be instantly visible to regulators, triggering automatic audit flags.
Valuation rules are also tightening under the "Value Later" protocol. Customs will accept declared prices at the border to facilitate speed but will subsequently run these figures against their pricing database. For companies importing from related parties—such as a subsidiary buying from its HQ in Japan or China—this necessitates robust transfer pricing documentation. If a later audit determines the declared value was artificially low, the importer faces retroactive tax bills and penalties up to 20%.
Furthermore, the new circular places the legal liability for HS Code classification squarely on the importer. The common defense of "following the logistics provider's advice" is no longer valid against administrative penalties. Companies are now expected to self-determine codes with precision, making internal compliance reviews essential.
Actionable Steps for Investors
With the February 1 deadline imminent, "business as usual" carries new risks. To adapt to Circular 121, companies should prioritize the following:
- Conduct a Historical Audit: Review the last six months of import declarations to ensure HS codes match the actual product descriptions in sales invoices.
- Sync Finance & Logistics: Establish a protocol where logistics declarations are cross-checked against finance records before submission to prevent data mismatches.
- Prepare for Price Consultations: Have commercial contracts and proof of payment ready. If your declared value is lower than the database average, expect a summons for a "price consultation" shortly after release.
Worried About Post-Clearance Risks?
The "Release First" model accelerates your supply chain, but it demands flawless paperwork. Linktrans offers comprehensive customs health checks to ensure your declarations under Circular 121 are audit-proof. Contact us before your next shipment arrives to secure your compliance strategy.
29 Jan, 2026
