Draft Law Amending and Supplementing Certain Articles of the Customs Law

Draft Law Amending and Supplementing Certain Articles of the Customs Law

General Information

Lead Drafting Agency: Ministry of Finance

Lead Review Agency: Economic and Financial Committee

Expected Submission: XVI National Assembly - 2nd Session

Expected Adoption: XVI National Assembly - 2nd Session

Background and Purpose

The current Customs Law has been promulgated and amended multiple times to meet state management requirements for customs at different stages of economic development. However, in the context of increasingly deep international economic integration, the explosion of cross-border e-commerce, and the development of new business models, many provisions in the Customs Law need adjustment to:

• Simplify and modernize customs procedures
• Facilitate legitimate import-export activities
• Shorten customs clearance times
• Strengthen inspection and supervision capacity of customs authorities
• Combat trade fraud, smuggling, and tax evasion
• Meet international commitments that Vietnam has signed

Main Expected Content

Although detailed content of the draft has not been fully disclosed, the amended Law is expected to focus on the following groups of issues:

1. Modernization of Customs Procedures

• Strengthen application of information technology and digital transformation in customs management
• Expand application of automatic clearance and electronic clearance mechanisms
• Minimize paper documents and manual files in declaration and customs clearance
• Improve national single window mechanism, connecting inter-agency management systems

2. Management of Cross-Border E-Commerce Goods

• Add provisions on customs management for goods traded through e-commerce
• Define responsibilities of participating parties (sellers, e-commerce platforms, shipping units)
• Regulations on duty-free values and personal goods quotas
• Mechanism for supervision and tax collection on imported goods through e-commerce channels

3. Improvement of Inspection and Supervision Mechanisms

• Strengthen post-clearance inspection
• Apply risk management methods in customs inspection
• Enhance coordination between customs authorities and other functional agencies
• Improve effectiveness in detecting and handling violations

4. Complete Preferential Policies for Reputable Enterprises

• Expand customs procedure incentives for enterprises with high compliance levels
• Mechanism for priority enterprises and enterprises eligible for rapid clearance
• Reduce inspection frequency for reputable enterprises

5. Regulations on Violation Handling and Dispute Resolution

• Update violations and appropriate penalty levels
• Improve mechanisms for resolving customs disputes and complaints
• Strengthen accountability of customs authorities

Significance for Businesses

For Import-Export Enterprises

• Benefit from simplified procedures and shortened clearance times
• Reduce compliance costs and logistics costs
• Increase competitiveness in international markets
• Need to prepare electronic declaration systems and comply with new regulations

For E-Commerce Businesses

• Have a clearer legal framework for cross-border activities
• Understand tax obligations and legal responsibilities
• Need to prepare appropriate declaration and tax payment processes

For Small and Medium Enterprises

• Easier access to import-export activities thanks to simplified procedures
• Need to enhance compliance capacity to take advantage of incentives
• Need to invest in management systems and information technology

Recommendations for Businesses

1. Closely Monitor the Promulgation Process: Proactively update information from the National Assembly website, Ministry of Finance, and General Department of Customs

2. Assess Impact: Analyze how new regulations may affect business operations

3. Prepare Resources: Invest in information technology systems and train staff on customs operations

4. Strengthen Compliance: Build and improve internal management systems to ensure compliance with customs law

5. Participate in Providing Comments: If opportunities arise, participate in commenting on the draft to reflect business realities

6. Professional Consultation: Consider hiring legal and customs consulting services for in-depth support

Timeline and Effectiveness

The draft Law is expected to be submitted and adopted at the 2nd Session of the XVI National Assembly. After being approved by the National Assembly, the Law will be promulgated and take effect as prescribed. Typically, legal documents have a preparation period for businesses before officially taking effect.

Businesses need to pay attention to monitoring implementing documents, decrees, and detailed circulars that will be issued after the Law takes effect to clearly understand specific regulations on procedures, documents, tax rates, and related provisions.

Key Points to Watch

Digital Transformation: The draft is expected to emphasize electronic customs declarations, online processing, and reduced physical documentation requirements. SMEs should begin preparing their IT infrastructure accordingly.

E-Commerce Focus: With the rapid growth of cross-border e-commerce, new regulations are expected to clarify tax obligations for online sellers, platform responsibilities, and streamlined procedures for small-value shipments.

Compliance Incentives: Businesses with strong compliance records may receive preferential treatment including faster clearance, reduced inspections, and simplified procedures. Maintaining good customs compliance records will become increasingly valuable.

Risk-Based Approach: Customs authorities will likely implement more sophisticated risk management systems, meaning businesses with good track records face fewer delays while high-risk shipments receive more scrutiny.

Preparation Actions

Businesses involved in import-export activities should:

• Review current customs procedures and identify potential areas of change
• Ensure accounting and documentation systems are ready for increased digitalization
• Train relevant staff on anticipated changes
• Consider obtaining Authorized Economic Operator (AEO) status if eligible
• Build relationships with customs brokers and legal advisors familiar with the changes
• Monitor official announcements through the General Department of Customs website and business associations

The amendment represents a significant step toward modernizing Vietnam's customs regime to support trade facilitation while maintaining effective control and revenue collection.