USTR has opened a Section 301 IP investigation on Vietnam that may lead to new tariffs or other import measures on Vietnamese goods.

REGULATORY BRIEFING – USTR SECTION 301 INVESTIGATION ON VIETNAM (IP PROTECTION & ENFORCEMENT)

1. What changed

• On May 29, 2026, the U.S. Trade Representative (USTR) formally initiated a Section 301 investigation into the Government of Vietnam’s acts, policies, and practices related to intellectual property (IP) protection and enforcement.
• This follows Vietnam’s designation as a “Priority Foreign Country” in the April 30, 2026 Special 301 Report due to persistent failures in IP protection and enforcement.
• USTR’s Federal Register Notice (FRN) proposes to determine that Vietnam’s IP-related acts, policies, and practices are actionable under Section 301(b) as “unreasonable or discriminatory” and as burdening or restricting U.S. commerce.
• USTR is soliciting public comments, including on whether any responsive action should include tariff measures on Vietnamese products.

At this stage, no new tariffs, HTS changes, or Chapter 99 provisions have been implemented. However, the investigation is the formal prerequisite step that can lead to new Section 301 duties or other import restrictions on Vietnamese-origin goods.

2. Affected products

• No specific products or HTS subheadings have been identified yet for potential tariff action.
• The investigation is issue-based (IP protection and enforcement) rather than product-based at this stage. However, USTR explicitly invites comments on:
• The nature and level of burden or restriction on U.S. commerce caused by Vietnam’s IP-related acts, policies, and practices.
• What action, if any, should be taken, including tariff and non-tariff actions.
• Industries likely to be of interest, based on the FRN’s description of IP problems in Vietnam, include:
• Copyright-intensive sectors: film/TV, music, software, video games (online piracy, unlicensed software use).
• Trademark-intensive sectors: branded consumer goods, apparel/footwear, electronics, health and safety–sensitive products (e.g., counterfeit milk, food, supplements).
• Technology and software providers (corporate end-user software piracy).

Because no product list is yet proposed, there are no specific HTS codes or Chapter 99 numbers to cite at this time. Any future tariff action would likely be implemented via new or amended Chapter 99 provisions, similar to prior Section 301 actions.

3. Rate changes

• There are currently NO changes to tariff or duty rates on U.S. imports from Vietnam as a result of this notice.
• The FRN explicitly contemplates that potential responsive actions may include:
• Tariff actions (e.g., additional ad valorem duties on specified HTS subheadings of Vietnamese-origin goods).
• Non-tariff actions (e.g., other trade restrictions or measures).
• No proposed rates, ranges, or product coverage are specified yet.

Compliance teams should treat this as a high‑risk early signal that additional Section 301 duties on Vietnamese goods are possible within the next 6–9 months, but not yet defined.

4. Key dates and timelines

• April 30, 2026: Vietnam identified as a Priority Foreign Country in USTR’s 2026 Special 301 Report.
• May 29, 2026:
• USTR initiates the Section 301 investigation on Vietnam’s IP-related acts, policies, and practices.
• USTR opens the electronic docket for written comments.
• July 2, 2026, 11:59 p.m. EDT:
• Deadline for submission of written comments to be assured of consideration.
• Statutory determination deadlines under Section 304:
• Base deadline: No later than six months after initiation (i.e., by approximately November 29, 2026) for USTR to determine:
• Whether Vietnam’s acts, policies, and practices are unreasonable or discriminatory and burden or restrict U.S. commerce; and
• What action, if any, to take (including possible tariffs).
• Possible extension: USTR may extend the investigation for up to an additional three months in certain circumstances (potentially to around February 28, 2027).

No effective date for any tariffs or HTS changes exists yet; such dates would be set in a subsequent determination and implementing notice if USTR decides to impose measures.

5. Required and recommended actions for importers and brokers

5.1 Immediate compliance posture

• Recognize that this is a PRECURSOR to possible new Section 301 tariffs on Vietnamese-origin goods, not an immediate change.
• There is no need to change current HTS classifications, duty calculations, or Chapter 99 declarations for Vietnamese imports at this time.

5.2 Risk assessment and exposure mapping

• Identify and quantify exposure to potential Section 301 tariffs on Vietnamese-origin imports:
• Generate a list of all HTS codes imported from Vietnam over the last 12–24 months.
• Calculate total customs value and duty-paid value by HTS and supplier for Vietnam-origin goods.
• Flag IP-intensive or branded products that could be politically or economically salient if USTR targets sectors linked to IP concerns (e.g., media, software, electronics, branded consumer goods, health/safety products).
• Prepare internal scenarios:
• Model the impact of potential additional ad valorem duties (e.g., +10%, +15%, +25%) on key Vietnamese HTS lines.
• Assess alternative sourcing options (other countries, domestic production) for high-risk categories.

5.3 Participation in the comment process

• Consider submitting comments if your company or industry is materially affected by Vietnam’s IP practices or by potential tariffs:
• USTR is specifically requesting input on:
• The acts, policies, and practices described in the FRN (online piracy, counterfeiting, border enforcement, unlicensed software, signal theft).
• Other relevant IP-related acts, policies, and practices in Vietnam.
• Whether these are unreasonable or discriminatory.
• The nature and level of burden or restriction on U.S. commerce.
• Whether the practices are actionable under Section 301(b) and what actions (including tariff and non-tariff) should be taken.
• Submission instructions:
• Portal: https://comments.ustr.gov/s/
• Docket: “Request for Comments on the Section 301 Investigation Regarding Vietnam’s Identification as a Priority Foreign Country,” Docket No. USTR-2026-0364.
• Deadline: July 2, 2026, 11:59 p.m. EDT.
• You do not need an account to submit comments.
• Third-party representatives (law firms, trade associations, customs brokers) should identify the full legal name of the organization represented and a primary contact.
• Business Confidential Information (BCI):
• Clearly mark pages containing BCI as “BUSINESS CONFIDENTIAL.”
• Bracket or highlight specific BCI.
• Provide a public version of the submission with BCI redacted.
• Certify that BCI would not customarily be released to the public.

5.4 Internal communication and planning

• Inform procurement, finance, and supply chain teams that:
• No new duties are in place yet, but there is a credible risk of future Section 301 tariffs on Vietnamese goods.
• A decision window exists between late November 2026 and potentially late February 2027.
• For long-term contracts involving Vietnamese-origin goods:
• Review and, where possible, include clauses addressing potential changes in customs duties (e.g., duty-change or force majeure provisions) for contracts extending beyond Q4 2026.

5.5 Broker and entry-level instructions

• At this time, brokers should:
• Continue to declare Vietnamese-origin goods under existing HTS classifications and duty rates.
• Not apply any new Section 301 Chapter 99 provisions for Vietnam (none exist yet for this action).
• Compliance teams should:
• Monitor USTR and Federal Register notices for any subsequent determination that specifies:
• Targeted HTS subheadings.
• Additional duty rates.
• Effective dates and any staging or exclusions.

6. Background – Issues driving the investigation (context for risk assessment)

The FRN outlines several IP-related deficiencies in Vietnam that underpin the investigation. While not directly changing import rules, they inform which sectors may be politically salient if tariffs are considered:

• Online piracy:
• Vietnam is described as a significant global source of online piracy, hosting popular English-language copyright infringement sites and services (movies, TV shows, mobile games).
• Stakeholders report Vietnam has the highest incidence of online piracy in the Asia-Pacific region and is ranked eighth globally for piracy of certain mobile video games.
• Criminal laws exist but enforcement outcomes (suspended sentences, low fines) are seen as non-deterrent.

• Counterfeiting:
• Widespread availability of counterfeit goods in physical markets and via e-commerce and livestreaming.
• Particular concern over counterfeit products with health and safety risks (e.g., counterfeit milk, food, supplements).
• Reported 50% decline in 2025 administrative enforcement actions involving IP-infringing goods and goods of unknown origin or inferior quality compared to 2024.

• Border enforcement:
• Vietnam’s customs has ex officio authority (since 2022 IP Law amendments) to suspend customs procedures for suspected pirated and counterfeit goods but reportedly rarely uses it.
• No ex officio authority over in-transit goods.

• Unlicensed software use:
• Widespread use of unlicensed software by corporate end users, with limited enforcement in the past three years.

• Signal theft:
• Gaps in criminal measures against cable and satellite signal theft despite amendments to the IP Law; corresponding criminal law provisions have not been updated.

These issues may influence which industries and product categories are highlighted in comments and, ultimately, which sectors could be targeted if USTR opts for tariff measures.

7. References and source documents

• USTR Press Release: “USTR Announces Section 301 Investigation of Vietnam’s Acts, Policies, and Practices Related to Intellectual Property Protection and Enforcement” (May 29, 2026).
• Federal Register Notice (FRN) – Initiation of Section 301 Investigation and Request for Public Comments: Vietnam’s Acts, Policies, and Practices Related to Intellectual Property Protection and Enforcement:
• PDF: https://ustr.gov/sites/default/files/files/Press/Releases/2026/USTR%20301%20Vietnam%20IP%20FRN.pdf
• 2026 Special 301 Report (basis for Vietnam’s Priority Foreign Country designation):
• PDF: https://ustr.gov/sites/default/files/files/Press/Releases/2026/2026%20Special%20301%20Report.pdf
• USTR Comment Portal:
• https://comments.ustr.gov/s/

8. Bottom-line for trade compliance

• No immediate change to U.S. import tariffs, HTS codes, or Chapter 99 requirements for Vietnamese-origin goods.
• High potential for future Section 301 tariffs or other measures targeting Vietnamese imports within a 6–9 month horizon.
• Importers with significant Vietnam exposure should:
• Map and quantify their Vietnam-origin import profile.
• Consider participating in the comment process by July 2, 2026.
• Prepare contingency plans for possible additional duties and monitor USTR communications closely for any proposed or final tariff actions.