Vietnam Enacts Major Customs Law Amendments to Enhance Intellectual Property Border Enforcement

On August 23, 2026, Vietnam’s National Assembly enacted Law No. 11/2026/QH16, amending the country’s Customs Law to take effect from March 1, 2027. This legislative update represents a comprehensive overhaul of Vietnam’s customs-based intellectual property (IP) enforcement framework.

The amendments come in response to external pressures, notably the 2026 Special 301 review by the U.S. Trade Representative (USTR), which designated Vietnam as a “Priority Foreign Country.” The USTR cited issues including widespread counterfeiting, weak border enforcement, limited ex officio customs powers, and the absence of controls over goods in transit. Vietnam’s legislative action signals a commitment to aligning its border enforcement practices with international standards.

A pivotal reform is the extension of IP-related customs enforcement to cover goods in transit. Previously, Vietnam’s customs regime applied IP controls only to goods being imported or exported. This gap had been specifically identified by the USTR as allowing infringing goods to transit Vietnamese ports without scrutiny. Given Vietnam’s strategic role as a logistics hub in Southeast Asia, this extension addresses a critical vulnerability exploited by counterfeiters.

The amended law introduces a dual-track suspension mechanism under Article 73(2). Customs authorities must suspend clearance upon request by an IP rights holder or authorized representative who provides evidence of IP ownership, infringement, and a financial guarantee. Additionally, customs can now proactively suspend clearance ex officio if, during inspection and monitoring, they find “clear grounds” to suspect counterfeit imported, exported, or transit goods.

To balance enforcement with legitimate trade, Article 73(3) provides carve-outs ensuring suspension measures do not apply to certain categories, thereby targeting commercial counterfeiting without unduly burdening lawful shipments.

The law also establishes a detailed customs recordal and monitoring system (Article 74), enabling rights holders to register their IP with customs for border screening. Notably, rights holders may file monitoring applications at any regional customs office, removing the previous requirement to engage solely with central authorities.

Once monitoring is active, the system operates with notable efficiency. Customs must immediately notify rights holders upon detecting suspect shipments. Even without prior recordal, rights holders can request suspension if they meet specified conditions. Customs is required to issue a suspension decision within two hours of receiving a complete request, reflecting the urgency in preventing shipment clearance. For ex officio suspensions, customs issues decisions and notifies both the declarant and rights holder to coordinate on violation determination.

These procedural enhancements complement Circular No. 06/2026/TT-BTC, effective March 1, 2026, which simplified the customs recordal dossier approval process by reducing documentary requirements and recognizing electronic verification of IP rights.

The amended law further introduces customs inspection and supervision requirements for goods traded via e-commerce platforms (Article 16a). E-commerce operators must connect with customs’ electronic data systems, enabling real-time monitoring of cross-border shipments. This provision addresses the growing role of cross-border e-commerce as a conduit for counterfeit goods entering Vietnam, particularly direct-to-consumer shipments from manufacturing hubs.

A practical clarification concerns goods bearing the registered trademark symbol (®). Under previous legislation, use of this symbol without registration in Vietnam could be deemed a false indication of trademark status. The amended circular now allows use of the symbol provided accurate information about the trademark’s protection status in Vietnam is displayed on the goods or packaging, including via supplementary labels.

Vietnam Customs confirmed this approach in an official letter dated August 19, 2026, stating that imported goods bearing the registered trademark symbol should not automatically be considered counterfeit solely because the trademark is not registered in Vietnam. Businesses may remove or cover the symbol or use supplementary labels to provide accurate trademark status information. For goods already imported, a written undertaking mechanism is available. This approach prioritizes corrective compliance over automatic clearance denial, balancing regulatory oversight with trade facilitation.

Vietnamese law does not mandate a general statutory requirement for trademark authorization letters for all genuine branded goods. However, customs officials may request such documentation, especially for high-value goods or brands frequently targeted by counterfeiters, during verification. Rights holders and authorized distributors are advised to proactively prepare current authorization letters specifying product categories and authorized supply chains. Alternative documentation such as purchase orders, commercial invoices, and supply chain records should be maintained as fallback evidence of authenticity.

Overall, Vietnam’s Customs Law amendments represent a substantial strengthening of the country’s IP enforcement capabilities at the border. The new regime offers significantly improved tools for rights holders who engage proactively. Stakeholders are encouraged to establish necessary administrative foundations before the law’s effective date to fully leverage these enhanced enforcement mechanisms from March 1, 2027.