Short answer: Misdeclaring the customs value (dutiable value) can draw fines from VND 1 million to tens of millions if no tax is underpaid, and 10% or 20% of the underpaid tax plus mandatory payment of the shortfall if tax is underpaid — under Decree 169/2026/ND-CP (effective 01/7/2026, replacing the expired Decree 128/2020/ND-CP). Failure to voluntarily pay the full tax before the inspection record is drawn up can reclassify the case as tax evasion, fined up to 3 times the evaded tax. The fixed fines under Article 9 below apply to organizations; individuals face half of those amounts (Article 6.3(a)). The 10%/20% fines (Article 10) and the 01–03 times fines (Article 15) apply equally to individuals and organizations (Article 6.3(c)).
1. Misdeclaration without underpaid tax: fines under Article 9 of Decree 169/2026
Article 9 of Decree 169/2026/ND-CP (“violations of customs declaration rules”) covers misdeclared quantity, goods name, quality, customs value, origin — where the error does not reduce the tax payable:
- VND 2–4 million for transit, transshipment or transfer goods; goods used/destroyed in non-tariff zones;
- VND 3–5 million for exports/imports that are tax-exempt or not subject to tax but misdeclare quantity, goods name, quality, customs value, origin;
- VND 5–10 million for goods entering bonded warehouses or leaving bonded warehouses for abroad;
- VND 20–40 million when goods cleared customs but were not exported or under-exported against the declaration in quantity, goods name or customs value (except processing goods, goods for export production, export-processing enterprises, temporary import for re-export; except cancelled declarations);
- VND 1–2 million for failing to declare a special relationship between buyer and seller that does not affect the customs value.
Self-discovered and self-reported errors filed after the supplementary-declaration deadline draw lighter fines (VND 500,000–1,000,000 up to VND 10–20 million, depending on the case).
2. Misdeclaration causing underpaid tax: 10% or 20%?
This is the distinction companies must master (Article 10 of Decree 169/2026 — “misdeclaring quantity, goods name, quality, customs value, HS code, tax rate or tax amount” causing a tax shortfall):
- Fine of 10% of the underpaid tax when the taxpayer self-discovers and files a supplementary declaration in these cases: after customs notifies a direct document check for goods still under clearance; more than 60 days after clearance but before any post-clearance audit/inspection decision for cleared goods; or past the supplementary-declaration deadline for final settlement reports but before an inspection decision.
- Fine of 20% of the underpaid tax when: customs detects the error during clearance; detection occurs during a post-clearance audit, inspection, audit or examination of cleared goods; the customs value was not supplementarily declared and is detected during inspection/examination of goods without an official price, goods with actual payable amounts, or goods with unconfirmed adjustable additions at declaration time; or the self-report goes beyond matters already concluded in a post-clearance audit/inspection.
A fine comes with a mandatory order to pay the full underpaid tax (Article 10.5). Article 10 applies only when the tax difference reaches VND 500,000 per declaration (individuals) or VND 2,000,000 per declaration (organizations).
The damage-control window: companies that discover a valuation error on their own should supplement early — a 10% fine is half the cost of being caught in a post-clearance audit (20%).
3. From misdeclaration to “tax evasion”: the dangerous reclassification
Article 10.4 of Decree 169/2026 provides that violations detected through post-clearance audits, inspections, audits or examinations (Article 10.3(b), (c), (d)) where the taxpayer fails to voluntarily pay the full tax before the inspection record is drawn up (or, for cases transferred from criminal proceedings, fails to pay in full before the sanctioning decision) are punished under Article 15.1(c) — i.e. treated as tax evasion.
On tax evasion (Article 15 of Decree 169/2026): a fine of 01 time the evaded tax where there are no aggravating circumstances; each aggravating circumstance adds 0.2 times, up to a maximum of 03 times the evaded tax; plus a mandatory order to pay the full evaded tax. Cases reaching the criminal threshold are handled under Article 200 of the Penal Code (current quantitative thresholds after Law 86/2025/QH15 are being cross-checked by our legal panel — seek counsel before relying on old figures).
4. Statute of limitations and late-payment interest
Under Article 5 of Decree 169/2026:
- The limitations period for tax evasion and misdeclaration causing underpaid tax is 05 years; other procedural violations are 02 years.
- After the limitations period expires: no administrative fine, but the full underpaid/evaded tax plus late-payment interest must still be paid for the 10 years preceding the date of discovery.
Late-payment interest is 0.03% per day on tax administered by customs authorities (under the Tax Administration Law 108/2025/QH15, effective 01/7/2026, replacing Law 38/2019/QH14).
5. What’s new compared to Decree 128/2020
Decree 169/2026/ND-CP (effective 01/7/2026) replaces Decree 128/2020/ND-CP and Article 2 of Decree 102/2021/ND-CP. Notable changes:
- Removed the offence of “misdeclaring … without affecting the tax payable” for taxable goods;
- Extended the limitations period by 01 year for administrative violations transferred by criminal proceeding authorities;
- Added sanctioning authority for the People’s Public Security force.
On transition: acts occurring and ending before 01/7/2026 but discovered/sanctioned after 01/7/2026 are governed by Decree 169/2026 where it imposes no legal liability or a lighter one — companies with old declarations still within the limitations period should review them under the new rules.
Frequently asked questions
Is there a fine if the misdeclared value doesn’t reduce tax?
Yes. Misdeclaring customs value for tax-exempt or non-taxable goods draws a VND 3–5 million fine (for organizations) under Article 9.3 of Decree 169/2026, even with no tax shortfall.
Does self-reporting after clearance reduce the fine?
Yes. Self-discovery with a supplementary declaration more than 60 days after clearance but before any post-clearance audit decision draws only 10% of the underpaid tax, versus 20% when detected (Article 10.2, 10.3 of Decree 169/2026).
What if the tax isn’t paid in full before the inspection record?
Violations detected through post-clearance audits/inspections can be reclassified as tax evasion under Article 15 — a fine of 01 time the evaded tax, up to 03 times, plus mandatory full payment.
Is Decree 128/2020 still in force?
No. Decree 128/2020/ND-CP expired on 01/7/2026 and was replaced by Decree 169/2026/ND-CP. When researching old documents, always cross-check the replacing provisions.
How much is an individual fined for misdeclaring value?
It depends on the fine type: for the fixed fines under Article 9, individuals pay half the organizational levels; the 10%/20% fines (Article 10) and the 01–03 times fines (Article 15) apply equally to individuals and organizations — no halving (Article 6.3(c) of Decree 169/2026).
Need help reviewing customs dossiers, preparing for a post-clearance audit, or handling a back-tax assessment? Reach us via the Contact page of FLAT Law Firm.
For reference only, not legal advice.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.
