Customs Valuation Methodology

Vietnam applies the WTO Customs Valuation Agreement through Circular No. 39/2015/TT-BTC and Decree No. 08/2015/ND-CP. The primary valuation method is the transaction value being the price actually paid or payable for the goods. Vietnamese customs authorities must accept the transaction value unless they have reasonable doubts about its accuracy. Where the transaction value is rejected, Vietnamese customs applies the sequential valuation methods prescribed by the WTO agreement: transaction value of identical goods, transaction value of similar goods, deductive value, computed value, and fallback method.

For Chinese-invested enterprises in Vietnam, related-party transactions between the Vietnamese subsidiary and the Chinese parent company draw particular scrutiny from Vietnamese customs. He advises on preparing the documentation required to demonstrate that the relationship did not influence the transfer price, including industry pricing studies, cost breakdowns, and functional analysis reports.

Tariff Classification and Preference Utilization

Vietnam's tariff schedule is based on the ASEAN Harmonized Tariff Nomenclature (AHTN). He advises on correct classification of imported raw materials, components, machinery, and finished goods, as well as the utilization of preferential tariff rates under the ASEAN-China Free Trade Agreement (ACFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). For Chinese-invested enterprises, the ACFTA rules of origin requirements are critical for securing duty-free treatment on imports from China.

The Vietnam Customs Authority regularly conducts post-clearance audits targeting transfer pricing and valuation of related-party transactions. Chinese enterprises should maintain comprehensive transfer pricing documentation and customs valuation records for at least five years. Failure to produce adequate documentation during a PCA may result in reassessment of duties, administrative penalties, and addition to the customs authority's priority inspection list.

Export Processing Enterprise Regime

Chinese-invested manufacturing enterprises operating in Vietnamese industrial parks may qualify for Export Processing Enterprise (EPE) status, which allows duty-free import of raw materials and machinery used in production for export. He advises on EPE licensing, customs bond management, and compliance audits specific to the EPE regime including the zero-tolerance policy for unauthorized domestic sales of duty-free imported materials.

Professional Standards

Education

Hanoi Law University, LL.B.; National University of Singapore, LL.M.

Languages

Vietnamese, English, Mandarin Chinese

Bar Admission

2009

Firm

VILAF

Post-Clearance Audit Defense

The Vietnam Customs Authority conducts post-clearance audits targeting transfer pricing and related-party transactions. He represents clients through the full audit cycle from notification to appeal. Chinese enterprises should maintain customs documentation for at least five years. Failure to produce adequate documentation may result in reassessment of duties plus administrative penalties.

Bonded Warehouse and Special Customs Regimes

Chinese manufacturing enterprises in Vietnam may qualify for customs simplification procedures and bonded warehousing. Bonded warehouses allow duty-free storage for up to 12 months. He advises on eligibility, application procedures, customs bond requirements, and compliance monitoring for special customs regimes.

Rules of Origin and Free Trade Agreement Utilization

Vietnamese exporters and Chinese-invested manufacturers must comply with rules of origin requirements under the ASEAN-China Free Trade Agreement (ACFTA) and the CPTPP to qualify for preferential tariff treatment. He advises on the Regional Value Content calculation methods, the Change in Tariff Classification requirements, and the product-specific rules applicable to different manufacturing sectors. Certificate of Origin issuance procedures must be managed through authorized Vietnamese issuing bodies. Improper origin documentation can result in duty reassessment and penalties, particularly where Vietnamese customs suspects origin fraud or circumvention of Chinese trade remedy measures.

Intellectual Property Rights Border Enforcement

Vietnam Customs has authority under the Intellectual Property Law to detain goods suspected of infringing IP rights. Rights holders may file applications for customs supervision and control of suspected infringing imports and exports. He advises Chinese brand owners on registering trademarks and patents with Vietnam Customs, providing the required documentation and security, and responding to customs notifications of detained goods. The Vietnam Customs IP enforcement system has become increasingly active in response to the growth of manufacturing and trade volumes.