A truck crossing a border gate is found hiding undeclared goods — what happens next? From drawing up the violation record and temporarily seizing exhibits to issuing the penalty decision, every step is strictly regulated. This article analyses the handling framework under Decree 169/2026/ND-CP (effective 1 July 2026), clearly separating three tiers: administrative violations, tax evasion, and criminal offences.
1. The declaration duty and forms of “non-declaration”
Under the Customs Law 54/2014/QH13 (still in force), all goods imported or exported across border gates and borders must complete customs procedures with full declaration (Article 25 on customs declarations). “Border gate” here includes road border gates, seaports, airports and international post offices. Transported goods are subject to customs supervision along prescribed routes, gates and timeframes.
In practice, “non-declaration” takes many forms:
- No customs procedures carried out for imported/exported goods;
- Under-declaring quantity or value compared with the actual goods;
- Concealing goods or bypassing the gate to evade inspection;
- Unlawful documents: harbouring, buying, selling or transporting import/export goods without lawful documents within the customs operation area;
- Illegal cross-border transport of goods, foreign currency, gold or precious stones.
2. On-site handling: records and temporary seizure
When undeclared goods are found at a border gate, customs authorities:
- Draw up an administrative violation record documenting the act, exhibits and violator;
- Temporarily seize exhibits and violating vehicles for verification and to prevent dispersal — this is a temporary preventive measure, not a punishment (Articles 119–125 of the Law on Handling Administrative Violations; Article 27 of Decree 169/2026);
- Issue a penalty decision under the authority of the border-gate customs team leader, regional customs sub-department director, customs department director, etc., with fines and confiscation powers increasing by rank (Article 30 of Decree 169/2026).
3. Administrative fines: value-based tiers (Article 14)
Article 14 of Decree 169/2026/ND-CP — “Violations of customs control regulations” — imposes fines based on the value of the violating exhibits:
| Exhibit value | Fine |
|---|---|
| Under VND 30 million: harbouring, buying, selling or transporting import/export goods without lawful documents; illegally transporting goods, foreign currency, gold or precious stones across the border | VND 5–10 million (Clause 2) |
| VND 30 million to under 50 million | VND 10–20 million (Clause 3) |
| VND 50 million to under 70 million | VND 20–40 million (Clause 4) |
| VND 70 million to under 100 million | VND 40–60 million (Clause 5) |
| VND 100 million or more, without criminal prosecution | VND 60–80 million (Clause 6) |
Dispersing, destroying or discarding goods to evade customs inspection, supervision or control is fined VND 40–60 million (Clause 5(d)). Unauthorised consumption of goods under customs supervision is also penalised under Decree 169/2026 — the specific amount must be checked against the original text.
4. Confiscation and mandatory payment of exhibit value
- Confiscation of administrative violation exhibits (a supplementary penalty) applies to acts under Clauses 2(a)(b), 3, 4, 5(a)(d) and 6 of Article 14 (Clause 7);
- Mandatory payment of an amount equal to the exhibit value already consumed, dispersed or destroyed in violation of regulations (Clause 8).
Note: confiscation is a supplementary penalty, applied only where the decree expressly provides — not every violation leads to confiscation.
5. Three tiers: do not confuse “non-declaration” with “smuggling”
Non-declaration is not automatically smuggling. The law distinguishes three tiers:
- Tier 1 — Ordinary administrative violation: fined under Article 14 as in the table above;
- Tier 2 — Tax evasion: where non-declaration aims at evading tax (e.g. colluding with the consignor to import goods to evade tax), Article 15(1) applies — a fine of 1 to 3 times the evaded tax plus mandatory payment of the full evaded tax (Clauses 2, 3). Using forged documents to evade tax is likewise handled under Article 15 (Article 12(10));
- Tier 3 — Criminal: where signs of a crime appear, the case is transferred to proceedings bodies — Article 188 of the Penal Code (smuggling), Article 189 (illegal cross-border transport of goods or currency). The quantitative thresholds for criminal liability must be checked directly against the current Penal Code.
Article 3(3) of Decree 169/2026 confirms: acts are subject to administrative penalties under this Decree only when they are not subject to criminal prosecution.
6. Prohibited goods and licence-required goods: harsher handling
Article 16 of Decree 169/2026 separately covers importing, exporting or transporting prohibited goods into Vietnam: fines from VND 10–20 million up to VND 70–100 million based on exhibit value, confiscation of exhibits (Clause 5), plus mandatory removal from Vietnamese territory/re-export or destruction (Clause 6).
7. Liability of carriers and vehicle owners; rights of goods owners
- Carriers and vehicle owners transporting undeclared goods may be penalised as violators; vehicles used in the violation may be temporarily seized;
- Goods owners have the right to explain and provide documents proving the lawfulness of the goods during handling;
- Disagreeing with a penalty decision: the right to complain under the Law on Complaints or to sue in an administrative case as prescribed by law.
Frequently asked questions
Can undeclared goods later complete procedures?
In some cases the law allows subsequent completion of procedures — but only where specific written guidance permits. Do not assume late completion always resolves the matter.
Is temporary seizure the same as confiscation?
No. Temporary seizure is a provisional measure for verification; confiscation is a supplementary penalty transferring exhibit ownership to the State.
How is exhibit value determined?
By the actual value of the violating goods at the time of violation; in a consignment containing both violating and non-violating goods, only the violating portion is handled.
This article is for general information only and does not constitute legal advice. Specific cases should be discussed with a lawyer or the customs authorities.
Goods temporarily seized or a violation record drawn up at a border gate? Contact FLAT Law Firm: /en/contact/ — lawyers with 30+ years of experience assisting with explanations and complaints against customs penalty decisions.