USED GOODS IN INTERNATIONAL TRADE: WHAT SHOULD ENTERPRISES CHECK BEFORE ENTERING INTO A CONTRACT?

In international trade activities, used goods are often traded under contracts involving substantial transaction values and considerable performance periods. However, with respect to transactions involving temporary import for re-export and transshipment, enterprises should pay particular attention to the new regulations on the list of used goods subject to suspension of temporary import for re-export and transshipment activities under Circular No. 41/2026/TT-BCT.

From 5 September 2026, certain used goods included in the List promulgated together with Circular No. 41/2026/TT-BCT are subject to suspension of temporary import for re-export and transshipment activities. Accordingly, checking the condition of the goods, HS codes, and transaction structure before entering into a contract is an important step in mitigating the risk of entering into a contract where the transaction may not be legally implementable under foreign trade management regulations.

I. SCOPE OF APPLICATION OF CIRCULAR NO. 41/2026/TT-BCT

Circular No. 41/2026/TT-BCT was issued by the Ministry of Industry and Trade on 22 July 2026, providing for the List of Scrap and the List of Used Goods subject to suspension of temporary import for re-export and transshipment activities.

The subjects of application include traders engaged in temporary import for re-export and transshipment activities, as well as organizations and individuals involved in such activities.

Notably, the Circular does not apply to transshipment where the goods are transported directly from the exporting country to the importing country without passing through a Vietnamese border gate. Therefore, before applying the restrictions under the Circular, enterprises should accurately determine the type of transaction and the method of transportation applicable to the shipment.

II. THREE KEY ITEMS ENTERPRISES SHOULD CHECK BEFORE ENTERING INTO A CONTRACT

1. Are the goods actually “used goods”?

Circular No. 41/2026/TT-BCT separately provides the List of Used Goods subject to suspension of temporary import for re-export and transshipment activities in Appendix II.

Under the principles set out in Appendix II, this List applies only to used goods. Accordingly, enterprises should clearly determine the actual condition of the goods before entering into a contract, rather than relying solely on the commercial name or description provided by the counterparty.

For goods intended to be traded, enterprises should request the counterparty to provide complete information on:

• Whether the goods are new or used;
• The period and history of use of the goods;
• Model, type, and technical specifications;
• Relevant photographs and technical documentation;
• Operating condition or degree of wear and tear, if any.

Accurately determining the condition of the goods at the negotiation stage provides enterprises with a basis for cross-checking the goods against the List in Appendix II and mitigating potential risks arising during customs clearance procedures.

2. Does the HS code of the goods fall within Appendix II?

Appendix II to the Circular is formulated on the basis of the Vietnam Export and Import Goods Nomenclature promulgated together with Circular No. 31/2022/TT-BTC and applies according to HS codes.

Enterprises should pay particular attention to how the scope of the relevant HS codes is determined:

• If the List specifies only a 2-digit code: all 8-digit codes under the corresponding Chapter shall be covered;
• If the List specifies only a 4-digit code: all 8-digit codes under that 4-digit heading shall be covered;
• If the List specifies only a 6-digit code: all 8-digit codes under the corresponding 6-digit subheading shall be covered;
• If the List specifies a specific 8-digit code: only the 8-digit code specified in the List shall be covered.

Accordingly, enterprises should not rely solely on the name of the goods when conducting their review. The review should be conducted based on both the actual description of the goods and the HS code expected to be declared.

Where the HS classification remains unclear, enterprises should complete the determination of the applicable HS code before making a firm contractual commitment regarding the feasibility of the transaction.

3. Is the transaction subject to suspension or does it fall within an exception?

Circular No. 41/2026/TT-BCT regulates temporary import for re-export and transshipment activities, rather than all export and import activities involving used goods.

Accordingly, before entering into a contract, enterprises should determine:

• Whether the goods will be brought into Vietnam under the temporary import regime;
• Whether the goods will subsequently be re-exported;
• Whether the transaction constitutes transshipment through Vietnam; and
• If the transaction constitutes transshipment, whether the goods will be transported directly from the exporting country to the importing country without passing through a Vietnamese border gate.

Transshipment conducted in the form of direct transportation as described above falls outside the scope of application of the Lists promulgated together with the Circular.

III. RISKS FOR CONTRACTS ALREADY ENTERED INTO BUT NOT YET PERFORMED

One point enterprises should note is that the date of contract signing is not the sole factor in determining whether the transitional provisions apply.

Under Article 5 of Circular No. 41/2026/TT-BCT, for consignments of scrap and used goods for which customs procedures for temporary import or transshipment were completed before the effective date of the Circular, the re-export or transshipment thereof may continue to be carried out in accordance with the laws applicable at the time the customs procedures for temporary import or transshipment were completed.

Accordingly, with respect to contracts already entered into where the goods had not undergone customs procedures before 5 September 2026, enterprises should not automatically assume that the transaction remains subject to the previous regulations merely because the contract was signed before the effective date of the Circular.

Enterprises should review each proposed transaction based on the following factors:

• Date of contract signing;
• Date of submission of the customs declaration and completion of customs procedures;
• Type of import/export regime;
• Condition of the goods;
• HS code; and
• Method of transportation.

IV. LEGAL BASIS

Circular No. 41/2026/TT-BCT was issued pursuant to the Law on Foreign Trade Management No. 05/2017/QH14 and Decree No. 292/2026/ND-CP providing detailed regulations on, and measures for organizing and guiding the implementation of, the Law on Foreign Trade Management.

The Circular takes effect from 5 September 2026 through 31 December 2029. At the same time, the Circular repeals certain previous regulations, including Circular No. 18/2024/TT-BCT and certain provisions of Circular No. 12/2018/TT-BCT and Circular No. 08/2023/TT-BCT.

V. RECOMMENDATIONS FOR ENTERPRISES

First, check the type of transaction before entering into a contract. Enterprises should determine whether the transaction constitutes ordinary importation, temporary import for re-export, or transshipment in order to properly determine the scope of application of the Circular.

Second, accurately determine the condition of the goods. For used goods, enterprises should request the counterparty to provide relevant records, technical information, and supporting documents evidencing the condition of the goods.

Third, review the HS code before making a contractual commitment. The HS code should be cross-checked against Appendix II to Circular No. 41/2026/TT-BCT in accordance with the applicable principles for 2-digit, 4-digit, 6-digit, and 8-digit codes.

Fourth, check the method of transportation for transshipment transactions. Where the goods are transported directly from the exporting country to the importing country without passing through a Vietnamese border gate, enterprises should consider the exclusion provided under Clause 3, Article 3 of the Circular.

Fifth, include contractual provisions ensuring legal compliance. Enterprises may consider expressly stipulating the seller’s responsibility for the accuracy of the description of the goods, their used status, HS code, and technical documentation, as well as mechanisms for handling cases where a competent authority determines that the goods fall within the List of goods subject to suspension of temporary import for re-export and transshipment activities.

Sixth, review contracts already entered into but not yet performed. In particular, for transactions entered into before 5 September 2026, enterprises should verify whether the relevant shipment underwent customs procedures for temporary import or transshipment before the effective date of the Circular in order to determine whether the transitional provisions may apply.

Enterprises should also note that Circular No. 41/2026/TT-BCT remains effective through 31 December 2029. Therefore, for long-term contracts or transactions expected to be performed over multiple years, provisions addressing legal compliance and mechanisms for allocating risks arising from changes in applicable regulations should be considered from the contract negotiation stage.