When goods temporarily imported into Vietnam for re-export cannot be shipped out on time — or the trader decides to sell them on the domestic market instead — a formal customs procedure known as “conversion to domestic consumption” (chuyển tiêu thụ nội địa) or “change of use purpose” is required. This is not a matter of simply selling the goods; it is a mandatory customs procedure with full tax declaration and payment obligations.
The core rule: file a new customs declaration
Under Clause 5, Article 25 of Decree 08/2015/ND-CP (dated 21/01/2015; currently in force as amended by Decree 167/2025/ND-CP — dated 30/6/2025, effective 15/8/2025): goods that were temporarily imported/exported and have been released or cleared, and are subsequently converted to domestic consumption or change their use purpose, require the customs declarant to file a new customs declaration.
Two accompanying principles:
- Policies apply as of the new declaration: import-export goods management policies and tax policies apply at the time the new declaration is registered — except where the trader has fully complied with goods management policies at the time of the original declaration.
- Strict sequence: conversion to domestic consumption or change of use purpose may only take place after the customs procedures for the new declaration are completed (Clause 1, Article 21 of Circular 38/2015/TT-BTC dated 25/3/2015, as amended by Clause 10, Article 1 of Circular 39/2018/TT-BTC, effective 05/6/2018).
Update note: current customs procedures follow Circular 38/2015/TT-BTC (as amended by Circular 39/2018/TT-BTC), synchronized through Circular 121/2025/TT-BTC (dated 18/12/2025, effective 01/02/2026) to align with Decree 167/2025/ND-CP and the amended Customs Law 90/2025/QH15 (effective 01/7/2025). Traders should check the latest consolidated version of Circular 38/2015 before proceeding.
Licensing condition
For goods subject to import-export licensing, conversion to domestic consumption or change of use purpose requires written consent from the licensing authority (Point c, Clause 1, Article 21 of Circular 38/2015/TT-BTC, as amended by Circular 39/2018/TT-BTC). Without this consent, the new declaration cannot be finalized.
Required documents
Under Clause 2, Article 21 of Circular 38/2015/TT-BTC (as amended by Circular 39/2018/TT-BTC), the dossier includes:
- The new customs declaration;
- The ministry/sector permit allowing the change of use purpose — 01 original (for licensed goods);
- The agreement with the foreign party on the change of use purpose, or the commercial invoice — 01 copy (where ownership of the temporary-import goods is transferred).
Tax declaration and payment
The taxpayer must declare and pay all taxes and any fines in full, and record the old import-export declaration number and the form of use-purpose change/domestic conversion in the “Notes” box of the electronic declaration.
The tax payable is determined under the tax policy applicable at the time the new declaration is registered. Traders should check the current tariff schedule and tax administration rules for each product line rather than mechanically applying the old declaration’s tax treatment.
Exception — no tax payable: where the change of use takes the form of re-export, or the goods are transferred to a party not subject to tax or eligible for tax exemption, declaration is still required but no tax is payable.
Consequences of failing to self-declare
If the trader does not voluntarily declare and the violation is discovered through customs inspection, the tax payable will be assessed based on the original import declaration, and penalties will apply. The total liability includes: outstanding tax + late-payment interest + fines.
“Domestic conversion” vs “change of use purpose”
The two terms are often used interchangeably but differ in scope:
- Conversion to domestic consumption: temporarily imported goods enter circulation on the Vietnamese market for commercial purposes (domestic sale);
- Change of use purpose: a broader concept covering cases where temporarily imported goods are diverted to purposes other than re-export.
In principle, declaration and tax obligations are similar in both cases, but supporting documents may differ. Traders should identify the correct form to prepare the appropriate dossier.
FAQs
1. Can goods be sold first and the procedure completed later?
No. The law requires conversion to domestic consumption to take place only after the customs procedures for the new declaration are completed. Selling beforehand is a violation.
2. Can overdue re-export goods be converted to domestic consumption?
In principle, a new declaration must still be filed and all tax obligations fulfilled. However, exceeding the re-export deadline may additionally trigger administrative penalties under Decree 169/2026/ND-CP (effective 01/7/2026). Act early to avoid missing deadlines.
3. What about transferring temporary-import goods to another domestic enterprise?
This is a transfer of ownership of temporary-import goods — the dossier needs the agreement with the foreign party or the commercial invoice (01 copy), plus a new declaration and tax declaration as required.
The information in this article is for reference only and does not constitute legal advice. Customs and tax regulations change frequently; businesses should check current legal documents or consult a lawyer before applying.
Need help with customs and tax procedures for temporary imports? Contact FLAT Law Firm.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.