Vietnam Amends Customs Law to Expand Powers Against Counterfeit Goods Following U.S. Section 301 Scrutiny
Vietnam’s National Assembly on Sunday approved key amendments to the national Customs Law, granting customs authorities broader statutory powers to intercept counterfeit goods and merchandise that infringe upon intellectual property rights (IPR).
The legislative move is designed to directly address longstanding concerns raised by the United States regarding the enforcement and protection of intellectual property within the country.
The reform follows the launch of a Section 301 investigation by the Office of the United States Trade Representative (USTR) in May, which targeted Vietnam’s intellectual property regime after the country was designated as a Priority Foreign Country in the annual Special 301 intellectual property review.
Customs Law Reform vs. USTR Concerns
The table below outlines the core enforcement gaps highlighted by the U.S. and the legislative remedies enacted by Vietnam's parliament:
Focus AreaU.S. Trade Representative (USTR) ConcernsLegislative Amendment Remedy
Ex-Officio AuthorityLimited ability for customs officers to seize suspected counterfeit goods on their own initiative.Empowers customs authorities to act proactively (ex-officio) without requiring prior brand owner complaints.
Goods in TransitLack of clear statutory authority to inspect and intercept infringing goods transiting through Vietnamese territory.Broadens jurisdiction and interdiction powers over goods in transit across land borders and seaports.
Border EnforcementWeak border controls leading to widespread proliferation and trade of counterfeit items.Strengthens inspection protocols and legal mechanisms at all points of entry and customs checkpoints.
Strategic Trade Context
Addressing Section 301 Risks: The passage of these customs amendments represents a proactive step by Hanoi to mitigate the risk of potential retaliatory trade measures or tariffs resulting from the USTR's Section 301 investigation.
Enhancing Bilateral Trade Ties: By aligning domestic customs enforcement more closely with international intellectual property standards, Vietnam aims to reassure major trading partners and safeguard its position as a primary global manufacturing and supply chain hub.