Customs & Global Trade Alert | March 2025 | Repeal of the Threshold for Import Duties and VAT Exemptions regarding Low-Value Express Shipments

This alert provides an important update regarding the revocation of the import duty and import Value Added Tax (VAT) exemption scheme for low-value imported goods transported through express delivery services.

On 3 January 2025, the Prime Minister issued Decision No. 01/2025/QD-TTg (Decision 01/2025) which repeals Decision No. 78/2010/QD-TTg dated 30 November 2010 (Decision 78/2010). Below are the key points for your consideration: 

• Elimination of the exemption threshold: Under Decision 78/2010, imported goods sent via express delivery service with a value of up to VND1,000,000 were exempt from import duty and VAT.  
  • Import VAT: This exemption threshold has now been removed for import VAT, meaning that all express goods, regardless of their value, will be subject to import VAT.  
  • Import duty: The threshold of VND1,000,000 remains effective in accordance with Article 29 of Decree 134/2016/ND-CP and its amendment in Decree 18/2021/ND-CP. 
• Effective date: since 18 February 2025 
• Implementation preparations:  
• The General Department of Customs has issued advance instructions on the new specifics of customs declaration for low-value goods through Official Letter No. 558/TCHQ-CNTT dated 7 February 2025 (OL 558). This is intended to ensure that businesses can adequately prepare and coordinate with customs authorities to implement this change. 
• The Ministry of Finance provided further instructions in Official Letter 1813/BTC-TCHQ dated 17 February 2025, regarding customs procedures for express delivery services. 

We recommend that businesses and relevant organizations take the necessary steps to comply with this new regulation.