Vietnam’s on-the-spot export and import customs procedures, regulated by Article 35, Decree No. 08/2015/NDCP (“Decree 08”) dated 21 January 2015, have been commonly used and play an important part in the
processing trade models and manufacturing ecosystem of many Vietnamese manufacturers and foreign
However, the General Department of Customs (“GDC”), in its Official Letter No. 2588/TCHQ-GSQL recently
issued to the Ministry of Finance and local customs departments, has proposed to abolish all regulations
relating to the on-the-spot export and import procedures provided by Article 35 of Decree 08, and suggested
that other relevant authorities to study and consider amending relevant regulations to treat such transactions as
domestic transactions. The GDC’s proposal, if approved, will have significant impacts on those whose
processing trade models rely on the on-the-spot export and import procedures of Decree 08, e.g. raw material
imported by Vietnamese manufacturers for toll or contract manufacturing arrangements with foreign principals
will no longer be eligible for duty exemption or duty refund if the processed/manufactured goods are delivered
locally to another Vietnamese entity.
KPMG will closely monitor and keep you updated if there is any development on this matter. In the meantime,
if you have on-the-spot export and import activities in Vietnam, we recommend you to review your current
business model, understand the potential impacts of the GDC’s proposal, and have a proactive and costeffective plan with minimal supply chain disruptions ready in case the GDC’s proposal is approved. Please
contact KPMG if you need our assistance.