Photo: Pexels (free to use under the Pexels License)
Short answer: The era of duty-free small parcels between Vietnam and the US is over at both ends. On the US side, the $800 de minimis exemption under Section 321 has been suspended for all countries since 29 August 2025 and written into Customs (CBP) regulation since June 2026 — every low-value commercial shipment now needs an import entry and pays duty. On the Vietnamese side, Decision 01/2025/QD-TTg ended duty-free and VAT-free treatment for express-delivery imports under VND 1 million from 18 February 2025. Cross-border sellers must rebuild their pricing and compliance from scratch.
1. The US side: collapse of the $800 de minimis
What Section 321 was. Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) let goods worth up to $800 enter duty-free without a full import entry — the foundation of the cheap cross-border retail model (CBP once processed over four million de minimis parcels a day).
The suspension timeline. 2 May 2025: suspended for China and Hong Kong. 29 August 2025: Executive Order 14324 extended the suspension to all countries — Vietnamese goods at or under $800 lost duty-free treatment. 24 June 2026: CBP’s interim final rule wrote the suspension into regulation on an indefinite basis, no longer dependent on executive orders.
Statutory termination. The One Big Beautiful Bill Act terminates de minimis by statute from 1 July 2027 — after which the $800 threshold disappears entirely as a matter of law.
The reality today (October 2026). Every commercial shipment needs an entry: informal entry up to $2,500, formal entry above $2,500. For international postal shipments, CBP’s new electronic postal entry process (Entry Type 13) becomes mandatory from 20 January 2027 (extended from 22 October 2026).
2. The Vietnam side: end of duty-free low-value imports
Decision 78/2010/QD-TTg once allowed express-delivery imports worth up to VND 1 million to enter free of import duty and VAT — Vietnam’s version of de minimis for goods bought from abroad (including the US).
Decision 01/2025/QD-TTg (issued 3 January 2025, effective 18 February 2025) repealed Decision 78/2010 in full. Earlier, Resolution 174/2024/QH15 had already ended the VAT exemption from 14 January 2025. From 1 August 2025, customs automatically collects VAT through the system on express-delivery goods.
The result: every express-delivery import — regardless of value — must be declared with import duty and VAT paid under current rules. Splitting orders to dodge tax no longer works.
3. Tax duties of cross-border sellers
Selling into the US. Beyond import duties (including Section 301/232 duties where applicable), sellers must watch state sales tax under “economic nexus” — crossing a state’s revenue or transaction threshold triggers registration, collection and remittance duties, independent of federal import tax.
Selling from the US into Vietnam / on Vietnamese marketplaces. E-commerce platforms must withhold and remit tax for sellers on the platform under current tax administration law (the Law on Tax Administration 108/2025/QH15, effective 1 July 2026, replacing Law 38/2019/QH14). Individual and household sellers should confirm which taxes the platform already withheld to avoid double payment or missed obligations.
4. Checklist for Vietnamese sellers targeting the US market
- Reprice: build full US import duty (including Section 301/232 duties where applicable) into landed cost — the sub-$800 free ride is gone.
- Pick the right entry type: informal entry (up to $2,500) vs formal entry (above $2,500); arrange an importer number and customs bond where needed.
- Review sales-tax nexus in states with material sales; register and set up collection on the selling platform.
- Update delivery terms with US buyers: who bears import duty (DDP vs DAP) must be explicit to avoid disputes when goods are held at customs.
- The reverse direction (US goods into Vietnam): budget full import duty + VAT for every express shipment; do not expect the VND 1 million threshold.
Frequently asked questions
Is the US $800 de minimis still in force?
No, as of October 2026. Suspended for China/Hong Kong from 2 May 2025, for all countries from 29 August 2025, written into indefinite CBP regulation from 24 June 2026, and to be repealed by statute from 1 July 2027.
Are sub-VND 1 million express imports into Vietnam still duty-free?
No. Decision 01/2025/QD-TTg ended the exemption from 18 February 2025; the VAT exemption had already ended on 14 January 2025 under Resolution 174/2024/QH15.
Do sales on Amazon/Etsy into the US trigger state tax?
Possibly. Under economic nexus, crossing a state’s revenue or transaction threshold creates a duty to register, collect and remit that state’s sales tax — independent of federal import duty.
What value does informal entry cover?
Up to $2,500. Goods above $2,500 require formal entry.
Do Vietnamese e-commerce platforms withhold tax for sellers?
Yes — under current tax administration law, platforms must withhold and remit tax for on-platform sellers. Sellers should reconcile with the platform to identify remaining obligations and avoid double payment or gaps.
This article has been quality-reviewed by the FLAW AI Legal Council