Case Study

“Hand-carried”, “Carry-on” or “Hand luggage” Goods

Avater User Author Bud & Prairie

Last update Aug 21, 2024

Selling “Hand-carried”, “Carry-on” or “Hand Luggage” Goods in Vietnam – What Businesses Should Know

The client operates a successful cosmetics and perfumes business in Vietnam, with a portion of their inventory comprising hand-carried goods. Their primary concern was how to legally sell these items without violating Vietnamese import and customs laws. This issue is not only common but increasingly relevant in Vietnam’s evolving regulatory landscape—making it an exciting and insightful case to explore.

What Are “Hand-Carried” or “Carry-On” Goods?

In Vietnam, hand-carried goods, also known as carry-on goods or hand luggage goods, refer to items brought into the country via air travel, often by tourists, flight attendants, overseas relatives, or third-party service providers. These goods are typically purchased abroad and brought in outside of formal import channels.

However, as these goods are not officially imported, issues may arise related to:

  • Unclear product origin and quality

  • Risks of counterfeit or substandard goods

  • Challenges with customs declarations and tax compliance

Currently, Vietnamese law does not have a dedicated regulation for hand-carried goods. Nonetheless, various customs and import rules do apply to control quantity, value, and tax obligations, aiming to prevent smuggling, ensure consumer protection, and secure state revenue.


Key Legal Considerations for Hand-Carried Goods in Vietnam

1. Duty-Free Allowances

  • Travelers entering Vietnam are permitted to bring in a limited quantity of duty-free goods.

  • These typically include personal items, a specific amount of alcohol and tobacco, etc.

  • Common limits include:

    • 1.5 liters of alcohol

    • 400 cigarettes

2. Value Limits

  • Goods exceeding VND 10 million (approx. USD 430) in value may be subject to import duties.

  • Items valued below this threshold may qualify for tax exemptions, depending on their nature and purpose.

3. Declaration Requirements

  • Mandatory customs declarations apply to goods exceeding:

    • Quantity limits

    • Value thresholds

  • Failure to declare may result in:

    • Fines

    • Confiscation

    • Other legal penalties

4. Prohibited and Restricted Goods

  • Items such as weapons, narcotics, or certain agricultural products are banned or restricted.

  • Importing these can lead to severe criminal consequences.

5. Commercial Quantities

  • If the volume of goods appears to be for commercial use (rather than personal), the importer may face:

    • Stricter customs procedures

    • Additional import duties

    • Regulatory compliance requirements

6. Luxury Goods

  • High-value goods such as:

    • Electronics

    • Jewelry

    • Designer brands
      … are closely monitored and often taxed heavily.


Legal Framework Governing Hand-Carried Goods

According to Article 3.6 of Decree 98/2020/ND-CP, “contraband goods” include goods that are:

  • Prohibited or suspended from import

  • Lacking valid import licenses

  • Not passing through official border checkpoints

  • Sold without proper invoices or import documents

  • Lacking or misusing import stamps or labels

Hand-carried goods are not considered contraband if they meet the following:

  • Not listed as prohibited or suspended imports

  • Have valid invoices or documents

  • Go through authorized border checkpoints with customs procedures completed

  • Carry the required import licenses and stamps

  • Have all applicable taxes paid

In such cases, selling hand-carried goods can be considered a legal business practice in Vietnam. But if any conditions are unmet, such goods may be classified as smuggled, with corresponding legal consequences.


Taxation on Hand-Carried Goods: When Are They Exempt?

Per Article 16 of the Law on Export and Import Duties (Law No. 107/2016/QH13), import tax exemptions may apply to:

  • Diplomatic goods

  • Goods within duty-free limits

  • Gifts or personal items within allowed thresholds

  • Goods traded across borders by local residents for non-commercial use

Additional exemptions include:

  • Goods eligible under international treaties

  • Items valued below taxable thresholds

  • Inputs for export production

  • Raw materials not producible domestically

  • Machinery and equipment for:

    • High-tech zones

    • Scientific R&D

    • Healthcare

    • Shipbuilding

    • Oil & gas

    • Education

    • Environmental protection

    • Defense and security

  • Humanitarian and disaster relief goods


Legal Enforcement and Penalties

Vietnam has tightened enforcement on hand-carried imports to reduce tax evasion and limit the uncontrolled flow of luxury goods.

Customs officers are authorized to:

  • Inspect hand luggage

  • Assess duty obligations

  • Apply penalties for violations

As per Decree 98/2020/ND-CP, penalties include:

  • Fines from VND 500,000 to VND 50 million for individuals

  • Fines from VND 1 million to VND 100 million for organizations

  • Doubled fines for smuggled goods involving:

    • Food and medical products

    • Goods under VND 100 million

    • Non-criminal cases over VND 100 million


Conclusion: Legality and Best Practices

The sale of hand-carried goods in Vietnam is legal only when all regulatory conditions are met. Businesses must ensure:

  • Proper import documentation

  • Full customs compliance

  • Accurate invoicing and taxation

At the same time, traders should remain cautious of legal gray areas, particularly around product origin and volume thresholds that suggest commercial intent.


Final Note

If you’re dealing with hand-carried, carry-on, or hand luggage goods in Vietnam and want to ensure full compliance with intellectual property and import laws, our team is here to help.

For further information, please contact us at:
📧 bud-prairie@bud-prairie.com

Popular Types of Hand-carried Goods

Currently, there are many types of hand-carried goods sold on the market. Below are the popular types of hand-carried goods and are chosen by many consumers.

Technology goods

Technology goods are one of the most popular types of hand-carried goods today. Mobile phones, laptops, tablets, smart watches… are technology products that are often purchased from abroad and brought back to sell in Vietnam. When buying hand-carried technology goods, you need to pay attention to the quality and features of the product because hand-carried goods often do not have a warranty stamp from the manufacturer in Vietnam, so it is very important to check carefully before buying.

Shoes

Hand-carried shoes often have unique designs and are made of better materials than shoes made in Vietnam. However, when buying hand-carried shoes, you need to pay attention to the size and quality of the product. In addition, you should also carefully check details such as shoe soles, shoelaces, stitching, etc. to ensure the quality of the product.

Cosmetics

Cosmetics are one of the types of hand-carried goods that many women seek. Usually, hand-carried cosmetics come from countries such as: domestic cosmetics in China, Korea, Japan, the US, etc. However, when buying hand-carried cosmetics, you need to be careful because there are many fake and poor quality products on the market. You should buy cosmetics from reputable stores or ask the seller to provide invoices or documents proving the origin of the product.

Fashion

Carry-on fashion is clothing, shoes, accessories and other fashion items sold at a lower price than the regular retail price. These goods are usually purchased from stores in foreign countries, such as the United States, Korea, China and Japan. Carry-on fashion can be a good choice for those who want to save money when buying clothes and fashion accessories. However, there are also some risks when buying carry-on goods, such as counterfeit goods, defective goods and no warranty.

Other Accessories

In addition to the types of goods mentioned above, there are many other types of accessories such as handbags, jewelry, Chinese watches, etc. that are also sold at carry-on stores. Similar to other types of goods, when buying these types of accessories, you need to pay attention to the quality and legality of the product.

Distinguishment between Hand-carried Goods and Genuine Goods

There are many ways to distinguish hand-carried goods from genuine goods. To distinguish hand-carried goods from genuine goods most accurately, you can rely on the following criteria:

Origin

  • Origin: Hand-carried goods will usually have no brand or only a fake brand. Meanwhile, genuine goods will have a clear origin and be licensed to produce at reputable companies.
  • Certification documents: Genuine goods will be provided with certification documents from the manufacturing company, while hand-carried goods often do not have this document.

Actual experience

  • Time of use: Genuine goods often have a longer time of use than hand-carried goods, especially electronic products.
  • Product quality: With genuine goods, you can check and be sure of the product quality before buying. Meanwhile, hand-carried goods are often not checked and may encounter technical errors.

Warranty policies

  • Warranty policy: Genuine products will have a clear warranty policy and warranty support in Vietnam. Meanwhile, hand-carried products often do not have a warranty policy or are only supported by warranty in the country of origin.
  • Warranty value: For genuine products, the warranty value will be calculated from the new purchase price of the product. Meanwhile, for hand-carried products, the warranty value is usually only calculated from the repurchase price of the product, excluding other costs such as shipping fees or import taxes.

To avoid buying fake or low-quality products, you need to learn how to distinguish between genuine and fake products. For products such as technology, cosmetics, fashion, etc., you can find information about the product on reputable websites or ask for opinions from people who have used the product before. For products such as shoes, accessories, etc., you need to pay attention to the details as mentioned above.

For further information, see the Distinguishment between Hand-carried goods and Genuine goods?

Risks of Buying Hand-carried Goods Online

As you may be aware, many beauty products, functional foods, diapers, milk, etc. are being sold online as hand-carried goods, including brands with official distributors in Vietnam. The price difference between hand-carried goods and genuine goods sold in Vietnam is clear. This difference can range from a few tens, a few hundred thousand to a few million VND depending on the type of product. Genuine distributors are also facing great competition from “hand-carried” online shops.

However, buying hand-carried goods is very risky because there is no origin, no after-sales service, no warranty, no advice on usage instructions and no responsibility for health-related incidents. As analysed above, selling hand-carried goods is considered a legal style of business when the goods sold meet all the conditions prescribed by law. However, in cases where the conditions are not met, this style of business will violate the law and the related goods can be considered smuggled or contraband goods.

Selling hand-carried goods is considered legal if the goods meet the following conditions: they have been cleared through customs according to the procedures for luggage of people entering and leaving the country, as prescribed in Article 59 of Decree 08/2015/ND-CP (dated 21 January 2015 providing specific provisions and guidance on enforcement of the customs law on customs procedures, examination, supervision and control procedures); the correct quantity and type of goods are ensured when customs procedures are carried out; goods are not on the list of prohibited or temporarily suspended imports according to the provisions of law; goods are with invoices and accompanying documents and in accordance with the law on invoice management.Hand-carried goods are sold without invoices and accompanying documents as prescribed, and/or are not been cleared though customs procedures, etc. are identified as smuggled or contraband goods.

However, the inspection of hand-carried goods business activities still faces many difficulties. With the trend that online sales, products are often kept at home by the seller, the market management authority who wants to inspect these cases must have a decision to search the residence signed by the district chairman, but obtaining such a decision is not easy. In addition, many people who sell hand-carried goods often rent business locations, so when a decision is made to impose an administrative penalty, the violating individuals and organizations can easily escape.

Choosing to buy hand-carried goods means risks and disadvantages that buyers cannot control in terms of quality, even affecting health, money, and not enjoying warranty policies from the manufacturer. The taste for hand-carried goods and the foreign-oriented mentality have been thoroughly exploited by businesses to make consumers disburse. In the current situation of the hand-carried goods market being almost completely free, not only is it a loss of budget revenue but it also causes many consequences for society. Despite the availability of penalties, preventive measures are more important. Administrative sanctions are just a channel to limit smuggling and illegal trading of goods in order to prevent tax violations, thereby preventing loss of tax revenue from commercial activities. To deal with this situation at its root, it is necessary to synchronize policies from trade, market to tax, customs, etc. Obviously, the reality is in dire need of drastic intervention from authorities to protect consumer rights as well as the health of the market. Authorities need to strengthen inspections and checks of public services; resolutely and strictly handle violations. With the goal of protecting consumers, in addition to the efforts of the Government and authorities, it is necessary to have the cooperation of sellers, businesses and each consumer.

Avater User

Bud & Prairie

We offer a full complement of services in all areas of IP law, including without limitation patents; trademarks; copyrights; industrial designs; IP litigation; anti-counterfeiting and enforcement; and licensing, due diligence, and contract review. Our strong technique fields include bio-chemistry, biotechnology, pharmaceutical, superconductor devices and systems, civil engineering, electrical engineering, mechanical engineering, electronics, computer software, telecommunications, information technology, communications, media, construction. Bud & Prairie boasts a team of highly-qualified lawyers, licensed patent and trademark agents, engineers, paralegals, technical staff and legal professionals whose knowledge, experience, and acumen are second to none. Most of our attorneys and consultants own advanced degrees from both domestic and foreign institutions. We have the depth of experience of our partners with a perfect combination of knowledge, foresight and creativity, making us possible to analyse and solve issues faced by clients from various industries and providing them with all-round or holistic solutions that are not only legally sound, but also commercially sensitiv

                            

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