CIRCULAR NO. 121/2025/TT-BTC (“CIRCULAR 121”) ON CUSTOMS PROCEDURES

On December 18, 2025, the Ministry of Finance issued Circular No. 121/2025/TT-BTC, amending and supplementing certain provisions of Circular No. 38/2015/TT-BTC (as amended and supplemented by Circular No. 39/2018/TT-BTC) on customs procedures, customs inspection and supervision, export and import duties, and tax administration for exported and imported goods.

The Circular was promulgated to update and harmonize with the new provisions of Law No. 90/2025/QH15 and Decree No. 167/2025/NĐ-CP, while marking a significant shift from traditional management methods to data-driven management.

The Circular will take effect on February 1, 2026.

Some key changes include:

Addition of cases exempt from submitting declarations

The new regulation completely abolishes the requirement to submit paper/scanned customs declarations for tax administration procedures (exemption, reduction, refund, non-collection of tax, and handling of overpaid tax). Notably, the procedure for freezing tax debt has been fully digitized. Enterprises only need to send requests via the electronic system, and customs authorities process them based on available data, significantly reducing administrative procedures, printing costs, and travel time.

Addition of cases exempt from submitting documents

If documents (Certificate of Origin – C/O, License, Specialized inspection results, etc.) have already been updated on the National Single Window Portal or submitted via the ASEAN Single Window Portal, enterprises are not required to present them to customs authorities. This regulation enhances data connectivity and reduces duplication of records.

Tightening of the option not to carry out customs procedures for Export Processing Enterprises (EPEs)

The regulation on the right of EPEs to choose whether or not to carry out customs procedures has been tightened. For example, goods purchased, sold, leased, or borrowed between EPEs are no longer eligible for exemption from customs procedures.

Guidance on customs procedures for transactions between EPEs and domestic enterprises

Circular 121 provides detailed guidance on customs procedures for goods purchased, sold, leased, or borrowed between EPEs and domestic enterprises. Under Law No. 90/2025 and Decree No. 167/2025, such transactions are no longer considered “on-the-spot import-export” (XNKTC) as before, and must follow the new mechanism outlined in the Circular. Enterprises should review their processes to ensure compliance with current regulations.

Use of VNeID for customs system registration

Enterprises may use a Level 2 VNeID account to register users and connect with the electronic customs data processing system. This marks an important step in building “Digital Customs,” enhancing enterprise data security and simplifying system access procedures.