“On-the-spot customs” is often misunderstood as “customs officers coming to the factory”. In reality, it is the on-the-spot import/export regime — goods delivered and received right in Vietnam as designated by a foreign trader, never leaving Vietnamese territory, yet still subject to full customs procedures. This article analyzes the current legal framework, effective from 1 July 2025, from the perspective of foreign-invested enterprises (FDI).
Statutory definition: on-the-spot import/export goods
Article 47a of the Customs Law 2014 (added by Clause 3, Article 3 of Law 90/2025/QH15, issued 25 June 2025, effective 1 July 2025) provides: “On-the-spot exported and imported goods are goods delivered and received in Vietnam as designated by foreign traders under sale, processing, lease or loan contracts between Vietnamese enterprises and foreign traders. On-the-spot exported and imported goods must undergo customs procedures and customs inspection and supervision.”
The core point: the goods never leave Vietnam, but are legally treated as “exported” by the delivering party and “imported” by the receiving party — so both sides must complete customs procedures.
Is there a separate procedure for FDI companies?
No. The law provides no separate on-the-spot customs procedure for FDI companies — foreign-invested enterprises apply the same on-the-spot import/export mechanism as any Vietnamese enterprise. In practice, FDI companies use this mechanism extensively, typically where a foreign parent designates deliveries between factories and suppliers in Vietnam — especially transactions with export-processing enterprises (EPEs).
Categories of on-the-spot import/export goods
Decree level — Clause 1, Article 35 of Decree 08/2015/ND-CP (amended by Clause 19, Article 1 of Decree 167/2025/ND-CP, effective 15 August 2025; items 5, 6 and 19 of Article 1 effective 1 July 2025):
- Goods processed in Vietnam and sold or transferred by the foreign processing principal to organizations or individuals in Vietnam;
- Goods traded, leased or borrowed between Vietnamese enterprises and foreign traders, designated by the foreign trader for delivery to and receipt by enterprises in Vietnam.
Principle: goods may be delivered/received before procedures are completed, or procedures completed before delivery/receipt; goods are deemed to have completed procedures when both the on-the-spot export and on-the-spot import declarations have completed customs procedures.
Circular level — Clause 1, Article 86 of Circular 38/2015/TT-BTC (amended by Clause 58, Article 1 of Circular 39/2018/TT-BTC), covering common practical cases:
- Processed products; leased/borrowed machinery and equipment; surplus materials; scrap and waste under processing contracts;
- Goods traded between domestic enterprises and export-processing enterprises (EPEs) or enterprises in non-tariff zones — the most common FDI case;
- Goods traded between Vietnamese enterprises and foreign organizations or individuals with no presence in Vietnam, designated by the foreign trader for delivery to and receipt by another enterprise in Vietnam.
Place and deadline for procedures
Place: under Clause 2, Article 86 of Circular 38/2015/TT-BTC, the customs declarant may choose a convenient Customs Sub-department, in accordance with each customs procedure type.
Importer’s deadline: under Clause 4, Article 86, the on-the-spot importer must complete customs procedures within 15 working days from the date of clearance of the exported goods. (Checked against Circular 121/2025/TT-BTC — no amendment to Article 86 found.)
The counterpart-declaration mechanism: responsibilities of both parties
Under Clause 5, Article 86 (amended by Circular 39/2018/TT-BTC):
- The exporter declares the export declaration, entering the code of the Customs Sub-department handling the import procedure in the “destination for duty-free transport” box and “#&XKTC” in the “enterprise internal management number” box;
- The importer declares “#&NKTC#&corresponding on-the-spot export declaration number”;
- Both parties notify each other upon completing procedures; imported goods may only be put into production or consumption after clearance.
Customs dossier
The dossier follows Article 16 of Circular 38/2015/TT-BTC. For trade between domestic enterprises and EPEs/enterprises in non-tariff zones, a VAT invoice or sales invoice is used instead of a commercial invoice (Clause 3, Article 86).
Tax policy: 0% VAT and import/export duties
0% VAT: on-the-spot exported goods are subject to 0% VAT — point a, Clause 1, Article 9 of the VAT Law 2024 (48/2024/QH15), amended by Article 4 of Law 90/2025/QH15 (effective 1 July 2025), which added “on-the-spot exported goods” to the list of 0%-rated exports. Detailed conditions (cleared on-the-spot declarations, payment via bank, 0% VAT invoice) follow the principles of Decree 181/2025/ND-CP guiding the VAT Law 2024.
Note the distinction: the “0% VAT rate” for on-the-spot exports differs from the “not subject to VAT” mechanism (which applies to temporarily imported goods for re-export) — two entirely different tax mechanisms.
Import/export duties: under Clause 1, Article 1 of Decree 18/2021/ND-CP. Import duty on on-the-spot imports is declared and paid according to the duty rate and dutiable value at the time of declaration registration (point h, Clause 2, Article 10 and point h, Clause 2, Article 12 of Decree 134/2016/ND-CP as amended by Decree 18/2021/ND-CP — see Official Letter 22303/CHQ-GSQL dated 5 September 2025 of the Customs Authority).
Transitional provisions
On-the-spot import/export goods under declarations registered but not yet completed before 1 July 2025 are governed by Clause 3, Article 3 of Law 90/2025/QH15 (Official Letter 3651/HQKV3-NVHQ dated 4 July 2025).
Frequently asked questions
Does on-the-spot customs mean officers come to the factory?
No. “On-the-spot customs” is the on-the-spot import/export regime: goods delivered and received in Vietnam as designated by a foreign trader (Article 47a of the Customs Law), still subject to full customs procedures.
Do FDI companies have a separate on-the-spot procedure?
No. The law applies uniformly without distinguishing FDI; FDI companies use the same mechanism as Vietnamese enterprises.
What is the importer’s deadline?
15 working days from the date of clearance of the exported goods (Clause 4, Article 86 of Circular 38/2015/TT-BTC).
What VAT rate applies to on-the-spot exports?
0%, under point a, Clause 1, Article 9 of the VAT Law 2024 (amended by Article 4 of Law 90/2025/QH15, effective 1 July 2025), subject to cleared declarations, bank payment and a 0% VAT invoice.
Legal references
- Customs Law 2014 (54/2014/QH13), Article 47a added by Law 90/2025/QH15 (effective 1 July 2025);
- Decree 08/2015/ND-CP (amended by Decree 167/2025/ND-CP, effective 15 August 2025);
- Circular 38/2015/TT-BTC (amended by Circular 39/2018/TT-BTC);
- VAT Law 2024 (48/2024/QH15), Article 9 amended by Article 4 of Law 90/2025/QH15;
- Decree 181/2025/ND-CP; Decree 18/2021/ND-CP; Decree 134/2016/ND-CP.
This information is for reference only and does not constitute legal advice. Businesses should check the current legal texts and consult counsel before acting.
If your business needs support with on-the-spot customs procedures or a review of related tax obligations, contact FLAT Law Firm for advice.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.