When declaring imports, the duty payable is not calculated on the “contract purchase price” but on the customs value — a legal concept with its own definition and determination methods. Misunderstanding this concept is a common cause of under-declared values, valuation consultations and penalties.
1. What is customs value?
The customs value of imported goods is the price actually paid, calculated up to the first import gateway, determined according to the methods prescribed by law (Clause 1, Article 5 of Circular 39/2015/TT-BTC, as amended by Clause 4, Article 1 of Circular 60/2019/TT-BTC).
Legal basis: Circular 39/2015/TT-BTC (25 March 2015, effective 1 April 2015) governs customs valuation of import/export goods; amended and supplemented by Circular 60/2019/TT-BTC (30 August 2019, effective 15 October 2019; corrected by Decision 2681/QD-BTC of 16 December 2019). The consolidated document is 21/VBHN-BTC (23 April 2020). Higher-level bases include Customs Law 54/2014/QH13 (amended by Law 90/2025/QH15, effective 1 July 2025), Decree 08/2015/ND-CP (Section 3, Chapter 2 on customs valuation) and the Agreement on Implementation of Article VII of GATT (the WTO Customs Valuation Agreement). The Customs Department restated the applicable rules in Official Letter 15317/CHQ-NVTHQ (15 April 2026) guiding customs valuation.
2. How it differs from the contract price
The commercial invoice price is only the starting point. Customs value = the price actually paid up to the first import gateway plus/minus adjustments under Articles 13, 14 and 15 (additions: selling commissions, brokerage fees, packing costs, assists, royalties/licence fees, proceeds of resale payable, international transport and insurance costs to the first import gateway, etc.; deductions under Article 15).
The key reference point: the “first import gateway” — value is calculated only up to the first import gateway, not to the company’s warehouse or the final gateway; costs arising after the first import gateway are excluded.
3. The sequential application rule
The price actually paid up to the first import gateway is determined by applying the methods in sequence under Clause 2, Article 5 (as numbered in consolidated document 21/VBHN-BTC), stopping at the first method that yields a customs value. The only exception: at the declarant’s written request, the order of the deductive value method and the computed value method may be reversed. Every determination must be based on objective, quantifiable documentary evidence.
4. The six valuation methods (imports)
- (a) Transaction value method for the imported goods — Article 6 (the priority method, most commonly used);
- (b) Transaction value of identical imported goods — Article 8;
- (c) Transaction value of similar imported goods — Article 9;
- (d) Deductive value method — Article 10;
- (dd) Computed value method — Article 11;
- (e) Fall-back method — Article 12.
Article 7 separately governs “related party” relationships between buyer and seller — the factor deciding whether the transaction value method may be used. The order of the six methods is mandatory: no “jumping” to a more favourable method, and the fall-back method may not be applied arbitrarily. Note: the fall-back method must rest on objective data — it may not use the domestic selling price in Vietnam of goods produced in Vietnam, nor minimum or arbitrary values (WTO Valuation Agreement principle; details in Article 12).
5. Customs value of exports: a separate method system (Article 4)
For exports, customs value is the selling price of the goods calculated up to the export gateway, EXCLUDING international insurance (I) and international freight (F) — the reverse of the import rule. Sequential order: (1) the selling price up to the export gateway; (2) the selling price of identical/similar exports in the customs valuation database; (3) the selling price of identical/similar goods on the Vietnamese market; (4) selling prices collected and compiled by the customs authority; in special cases with no contract/invoice, the declared value applies.
6. Who determines the value? Rights and obligations (Article 3)
The customs declarant self-declares and self-determines the customs value according to the prescribed principles and methods, and bears legal responsibility for the accuracy and truthfulness of the declared value.
The declarant has the rights to: submit/present documents as required; consult with the customs authority to clarify doubts about the declared value; and request the customs authority to notify in writing the dutiable value, its basis and the method used where the value is determined by the customs authority.
The customs authority determines the value when: the declarant cannot determine it under the methods; or there are sufficient grounds to reject the declarant’s self-determined value. In such cases it must issue a written customs value notice on Form 04/TGHQ (Appendix II).
The customs authority builds a valuation database and a list of goods subject to price-risk management for checking, consulting on and rejecting declared values (Article 25 of Circular 38/2015 as amended by Circular 39/2018; Clause 10, Article 1 of Circular 60/2019 amending the valuation database rules).
Note: This article provides general information for reference only and does not constitute legal advice. Clause numbering follows consolidated document 21/VBHN-BTC; companies should check the original instruments in force or consult a lawyer before applying.
Need help determining customs value or responding to a valuation consultation? Contact FLAT Law Firm for advice.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.