In import-export activities, there are cases where goods do not leave the territory of Vietnam but are still considered exports. This special form of trade is known as on-the-spot export, a model widely used by manufacturers, processing enterprises, and export processing enterprises (EPEs). So, what is on-the-spot export? In which situations can it be applied? What documents and procedures are required? Let’s explore this export model with VinaOpen in the article below.
What Is On-the-Spot Export?
On-the-spot export is a special transaction model in import-export activities, commonly applied by manufacturing enterprises, processing companies, and export processing enterprises.
Definition of On-the-Spot Export
On-the-spot export refers to the sale of goods to a foreign trader, where the goods are delivered and received within Vietnam according to the instructions of the foreign buyer.
In other words, ownership of the goods is transferred to the foreign partner, but the goods themselves do not cross the national border.
The concept of on-the-spot export is commonly found in processing contracts, manufacturing activities, or situations where a foreign company instructs a supplier to deliver goods to another enterprise operating in Vietnam.
Although the goods are not physically exported out of the country, businesses are still required to complete all customs procedures in accordance with regulations.
Currently, on-the-spot export activities are governed by customs and foreign trade management regulations. Key legal documents related to on-the-spot export include:
- The Customs Law
- Decree No. 08/2015/NĐ-CP
- Decree No. 167/2025/NĐ-CP
- Circular No. 38/2015/TT-BTC
- And other related regulations
On-the-spot export is essentially a trade transaction with a foreign entity, even though the goods do not leave Vietnam’s territory.
What Is the Difference Between On-the-Spot Export and Conventional Export?
Although both are export activities, on-the-spot export and conventional export differ significantly in terms of delivery methods and the movement of goods.
| Criteria | On-the-Spot Export | Conventional Export |
|---|---|---|
| Delivery Location | Goods are delivered within Vietnam according to the foreign buyer’s instructions | Goods are delivered overseas |
| Goods Movement | Goods do not leave Vietnam | Goods cross national borders |
| Recipient | Designated enterprise in Vietnam or an Export Processing Enterprise (EPE) | Foreign buyer or importer |
| International Logistics Costs | Generally lower due to the absence of international transportation | Includes international freight and cargo insurance costs |
| Customs Procedures | Customs procedures are still required under on-the-spot export regulations | Standard export customs procedures apply |
| Common Applications | Processing activities, export-oriented manufacturing, delivery under foreign trader instructions | Direct sales to international customers |
Cases Eligible for On-the-Spot Export
After understanding what on-the-spot export is, it becomes clear that not all businesses or products are eligible for this export model.
According to current regulations, on-the-spot export can only be applied in specific cases where goods are delivered within Vietnam while a trading relationship with a foreign entity still exists, such as:
- Vietnamese enterprises selling goods according to the instructions of a foreign trader.
- Transactions involving Export Processing Enterprises (EPEs).
- Processing activities for foreign traders where goods are delivered to another entity in Vietnam as designated by the foreign party.
- Export-oriented manufacturing supply chains involving multiple factories and production partners in Vietnam.
- Other cases stipulated by law.
Enterprises engaged in processing or manufacturing goods for foreign traders may legally apply the on-the-spot export model.
Benefits of On-the-Spot Export
An increasing number of businesses choose on-the-spot export to optimize manufacturing operations and international trade activities. So, what are the benefits of this export model?
Reduce International Logistics and Transportation Costs
Since goods do not need to be shipped overseas, businesses can significantly reduce:
- International freight costs
- Cargo insurance expenses
- Warehousing costs
- Loading and unloading expenses
Shorten Delivery Time
Compared to conventional exports, transportation time is significantly reduced, helping businesses maintain production schedules and supply chain efficiency.
Simplify Goods Delivery Procedures
On-the-spot export eliminates several intermediary steps, reducing operational complexity and potential risks.
Support Participation in Global Supply Chains
Businesses can become part of international manufacturing networks and global supply chains without physically exporting goods overseas.
Improve Production and Business Efficiency
By:
- Reducing delivery times
- Lowering logistics costs
- Simplifying transportation processes
businesses can significantly improve operational efficiency.
On-the-spot export helps streamline business operations while optimizing costs.
What Documents Are Required for On-the-Spot Export?
According to Article 16 and Clause 3, Article 86 of Circular No. 38/2015/TT-BTC, as well as Clause 58, Article 1 of Circular No. 39/2018/TT-BTC, businesses must prepare a complete set of documents for on-the-spot export, including:
- Export customs declaration
- Sales contract
- Commercial Invoice
- Export license (if applicable)
- Specialized inspection or regulatory certificates
- Documents proving the organization or individual meets export eligibility requirements under investment regulations
- Export entrustment agreement (if applicable)
- Other supporting documents depending on the specific case
Read more: What Does an Export Documentation Set Include? A Complete Guide to Export Documents from A to Z
On-the-Spot Export Procedure
Although goods do not physically leave Vietnam, businesses are still required to complete customs procedures in accordance with regulations governing on-the-spot exports.
Step 1: Exporting Enterprise Declares On-the-Spot Export Customs Procedures
The exporting enterprise submits an on-the-spot export declaration through the customs system.
Step 2: On-the-Spot Importing Enterprise Completes Import Procedures
The designated receiving enterprise completes the corresponding import procedures as required.
Step 3: Customs Sub-Department Processes On-the-Spot Import Procedures
Customs authorities review the documentation and process the import transaction.
Step 4: Exporting Enterprise Finalizes the On-the-Spot Export File
The exporting enterprise supplements and completes all required export documents.
Step 5: Customs Sub-Department Completes On-the-Spot Export Procedures
After reviewing and approving the documentation, customs authorities officially complete the on-the-spot export process.
Although the goods do not leave Vietnam, all customs procedures must still be completed in accordance with regulations.
Read more: Detailed Procedures for On-the-Spot Export Customs Clearance
Taxes and Costs Related to On-the-Spot Export
Although goods are not physically exported abroad, businesses must still comply with applicable tax obligations and related costs.
So, what taxes and expenses apply to on-the-spot export activities?
According to the Law on Value Added Tax 2008 (as amended in 2013, 2014, and 2016), on-the-spot export transactions may qualify for:
- 0% VAT rate
provided that all conditions specified under current tax regulations are fully satisfied.
Therefore, eligible on-the-spot export transactions can still enjoy export tax incentives.
What Should Businesses Prepare Before Working with International Partners?
Although goods are delivered within Vietnam, on-the-spot export remains a transaction involving foreign partners.
As a result, businesses must prepare the necessary capabilities, documentation, and operating processes to meet the requirements of international buyers.
Standardize Supplier Profiles
Businesses should develop a comprehensive Supplier Profile that includes:
- Product information
- Production capabilities
- Business qualifications
- Relevant certifications
This helps build trust with international partners.
Prepare Professional Documentation
Company and product documentation should be standardized to ensure consistency and professionalism throughout business transactions.
Meet Quality and Compliance Requirements
Businesses should proactively comply with industry standards, certifications, and compliance requirements relevant to their products and target markets.
Proactively Connect with International Buyers
By participating in B2B platforms and building professional supplier profiles, businesses can increase their opportunities to reach international customers.
Conclusion
Hopefully, this article has helped businesses better understand what on-the-spot export is, the situations in which it can be applied, and the documents and procedures required to carry out this form of export.
To enhance export capabilities, connect with international buyers, and build a professional Supplier Profile, businesses can partner with VinaOpen. As an effective B2B networking platform, VinaOpen helps companies increase export opportunities and develop international markets sustainably.
Contact VinaOpen today for professional support in expanding your supply chain and manufacturing partnerships.
