Following the approval of the amended Customs Law and Value-Added Tax Law, the management of on-spot export and import activities in Vietnam has experienced significant changes with clearer definitions and adjusted tax treatments. Additional guidance and policies are expected as ongoing legal reforms align with international standards, promoting fairness among different types of businesses.
On-spot or on-the-spot (OTS) export and import procedures help businesses streamline manufacturing and reduce cargo delivery times, ultimately lowering costs. In this model, export and import processes occur within the same country.
Essentially, goods are produced for export to a foreign trader but are then delivered back to the country where they were manufactured.
This article will guide businesses through Vietnam’s current regulations on this matter, as well as the latest legal updates that take effect by July 1, 2025.
Eligible products for on-spot export and import in Vietnam
On June 25, 2025, Vietnam’s National Assembly ratified the Law amending and supplementing eight laws, including the Customs Law and the VAT Law. Accordingly, the new law set a refined definition for OTS transactions as “goods delivered and received in Vietnam as designated by a foreign trader under contracts for sale, processing, leasing, or borrowing between Vietnamese enterprises and the foreign trader.” This amendment clears the way for many foreign traders by removing the previous requirement of not having a presence in Vietnam.
The revised law will also cover customs declarations that have been registered but are still awaiting clearance as of the date it becomes effective.
On-spot import and export activities are often seen as a legal “gray area” because of unclear customs regulations, which cause many difficulties and risks for businesses. The new regulation eliminates this ambiguity. It formalizes on-site import and export activities by requiring firms to submit customs declarations for both import and export, fully complete customs clearance procedures, and undergo customs supervision like regular cross-border goods.
New VAT treatment for on-spot export and import transactions
Article 9 of the VAT Law has been amended to broaden the definition of exported goods eligible for a 0-percent VAT rate, now covering on-spot export and import activities. This change provides a clear legal foundation for applying a 0-percent VAT to these goods, effective July 1, 2025.
However, there will still be additional discussions regarding previous shipments where the 0-percent VAT has been contested.
Carrying out on-spot export and import successfully
Carrying out on-spot export and import successfully involves several best practices.
First, businesses must identify the goods’ information for the procedure, ensuring that the goods intended for on-spot export and import meet local regulations regarding type, quantity, value, and other related requirements.
Next, businesses should prepare the relevant documents, such as sales contracts, invoices, and transportation documents, and register the export and import code with the customs authority to confirm their eligibility to operate in this field. Depending on the goods and destination country, businesses may also need to register with the customs authority and other relevant bodies, such as quarantine or tax authorities.
Once all preparations are in place, the transportation procedure can begin, moving the goods from the export to the import point. Upon arrival at the import point, businesses must ensure that the customs clearance process is properly completed by submitting accurate customs dossiers and meeting inspection requirements.
Lastly, all applicable customs taxes and fees related to the exports and imports must be paid.
Customs dossiers for on-spot export goods
Under Circular 38/2015/TT-BTC (hereinafter “Circular 38”) and Circular 39/2018/TT-BTC (hereinafter “Circular 39”), customs dossiers for on-spot export and import goods include:
- Export goods declaration;
- Commercial invoice or equivalent document in case the buyer must pay the seller;
- Export license;
- Notice of exemption from inspection, notice of specialized inspection results, or other documents as prescribed by law on specialized management and inspection (hereinafter, “Specialized Inspection Certificate”);
- Documents proving that the organization or individual is qualified to export goods as prescribed by law on investment; and
- Entrustment contract.
These circulars also stipulate that the on-spot importer must complete customs procedures within 15 working days from the date of customs clearance of exported goods.
Responsibilities of related parties in customs procedures
Clause 58, Article 1 of Circular 39 amends Clause 5, Article 86 of Circular 38 on customs procedures. Accordingly, the responsibilities of exporters, importers, and competent authorities are regulated.
The local exporter shall:
- Complete the declaration of exports and combined transport, specifying the destination code of the Sub-department of Customs where import procedures are followed and the enterprise identification number;
- Follow procedures for exporting goods as prescribed;
- Inform the local importer of the completion of export procedures and deliver the goods to the importer after the importer completes import procedures; and
- Receive information about the on-spot import declaration for which the local importer has completed customs procedures for further processing.
The importer shall:
- Complete the import declaration by the deadline, specifying the number of the declaration;
- Follow procedures for importing goods as prescribed;
- After import procedures are completed, request the local exporter to carry on the procedures; and
- Only sell or use imports for manufacturing after customs clearance is granted.
The customs authority where import procedures are followed shall:
- Complete the export procedures prescribed in Chapter II of Circular 39; and
- Monitor declarations of in-country exports that have completed customs procedures but have not completed import procedures and inform the Subdepartment of Customs where import procedures will be carried out, which will supervise the local importer following the procedures.
The customs authority where import procedures are followed shall:
- Carry out inspection according to the classification result given by the e-customs system. If physical inspection of goods is required and goods have undergone physical inspection at the Sub-department of Customs of Export, the Sub-department of Customs of Import shall not carry out a physical inspection;
- Compile monthly lists of indirect exports that have been granted customs clearance (Form No. 01/TB-XNKTC/GSQL in Appendix V) and send them to the supervisory tax authority of the local importer; and
- Cooperate with the Sub-department of Customs, where export procedures are carried out, to supervise the local importer in completing customs procedures.
Conclusion
The on-spot export and import regime in Vietnam will experience significant changes as the government is determined to patch the loopholes in its legislation. In this context, firms are advised to closely monitor potential amendments while complying with the current regulations to maximize their business benefits. Companies should quickly seek help from experts and professional advisors to address difficulties with compliance.
(This article was originally published October 16, 2024. It was last updated June 30, 2025.)
