Official letter No. 4146/TCHQ-GSQL dated August 8th, 2023 of the General Department of Vietnam Customs regarding issues relating to activities of import and export on the spot

According to opinions of the General Department of Vietnam Customs, with regard to activities of import and export on the spot under designation of foreign merchants regulated at point c clause 1 Article 35 of Decree No. 08/2015/ND-CP , the transaction nature is that goods are only sold and purchased domestically without the transport of goods out of Vietnam's border. Therefore, it should consider removing procedure for customs declaration with regard to this goods trading activity and transfer to tax authorities to manage as other domestic sale and purchase activity. When removing procedure for customs declaration with regard to this goods trading activity, enterprises shall reduce one administrative procedure in trading activities, goods delivery and receipt and thereby also reduce costs for the enterprises.

It is also required to note that in order to make customs declaration by the mode of import and export on the spot according to the regulation at point c clause 1 Article 35 of Decree No. 08/2015/ND-CP , foreign merchants that designate the goods delivery and receipt must satisfy the condition “having no presence in Vietnam”. In case a foreign merchant that designates the goods delivery and receipt had presence in Vietnam (such as representative offices, branches, investing in establishing economic organizations; investing in capital contribution, share purchase, purchase of contributed capital; executing investment projects, investing in the form of BCC contract; new forms of investment and economic organizations according to the Government's regulations) they are not eligible to perform import and export on the spot on spot.