Official Letter 16900/BTC-CST: On-the-Spot Imports Under the Processing Import Type Are Duty-Exempt When Which Conditions Are Met

Official Letter 16900/BTC-CST of 22/10/2026 of the Ministry of Finance replies to HaNoi Sungho Electronics Co., Ltd. on identifying on-the-spot import products and tax policy. This article summarizes the cases it describes so that companies importing on the spot know what to check.

Quick answer: according to the letter, products imported on the spot and declared under the processing import type are exempt from import duty if there is a processing contract whose receipt number is declared on the declaration, and the taxpayer or the sub-processor holds ownership or use rights over the processing facility, machinery and equipment in Vietnam. Declared under another type, the importer pays tax at the rate and value on the date the declaration is registered, and may be refunded if the products are later actually exported or moved into a non-tariff zone. This is a reply to one company, not a legal normative document.

Note on sources: Thái Tín has not read the original letter. The content below is cross-checked against two independent sources, LuatVietnam and Tax and Customs Magazine of 02/11/2026; a company needs to check Decree 134/2016/NĐ-CP as amended. These sources cite Decree 69/2018/NĐ-CP on processing contracts, while that decree has been replaced by Decree 292/2026/NĐ-CP from 05/9/2026; Thái Tín has not read the full text of Decree 292, so this article does not state the new rules on processing contracts.

What does Official Letter 16900/BTC-CST say?

The letter asks the company to base itself on its actual situation and to contact the customs authority where it carries out procedures for guidance within its authority.

The two conditions stated

According to the sources read, an on-the-spot importer wanting the exemption needs:

1. A processing contract with the processing contract receipt number and contract appendix declared on the customs declaration (basis cited: Point h, Clause 2, Article 12 of Decree 134/2016/NĐ-CP, amended by Decree 18/2021/NĐ-CP; Decree 69/2018/NĐ-CP on processing contracts, now replaced by Decree 292/2026/NĐ-CP; a new or amended contract should be checked under the decree in force).
2. Facilities and machinery: the taxpayer or the sub-processor must hold ownership or use rights over the processing facility and the machinery and equipment in Vietnam; notification of the facility and the contract to customs follows customs law (basis cited: Points a and b, Clause 2, Article 10 of Decree 134/2016/NĐ-CP, amended by Clause 4, Article 1 of Decree 18/2021/NĐ-CP).

The sources read do not reveal the details of the asking company’s own situation. Other companies should not infer that every on-the-spot import is exempt; the conditions must be proved with documents.

What a company needs to do

1. Identify which type the transaction falls under: processing import or another type, since the tax treatment differs.
2. Check that the processing contract has been received in the system and that the receipt number and appendix are declared correctly on the declaration.
3. Prepare documents to prove ownership or use rights over the processing facility, machinery and equipment (lease, factory documents, machinery list); for sub-processing, add the sub-processor’s documents.
4. Notify the processing facility and the contract to the customs authority where procedures are carried out, under current customs law. For late notification, ask customs clearly, since customs penalty rules changed to Decree 169/2026/NĐ-CP from 01/7/2026.
5. If tax was paid and the products were later used for export goods, keep export documents or documents on moving them into a non-tariff zone, and ask the customs authority about the current refund file.
6. Companies new to import-export can see the registration conditions in the article on import-export business registration; FDI companies can also see FDI import and distribution.

Common misunderstandings

• Thinking on-the-spot imports are always duty-exempt: only when declared under the processing import type and the conditions are met.
• Leaving out the processing contract receipt number on the declaration: the letter states this is a condition.
• Not preparing documents for the facility and machinery: this is the second condition.
• Forgetting that a refund can be requested: if tax was paid and the products were actually exported or moved into a non-tariff zone.

How Thái Tín can help

Thái Tín is the point of contact that helps a company check its processing and on-the-spot import files and connects it with customs specialist partners:

• Check the processing contract, declarations and appendices in use.
• Prepare a list of documents proving the facility and machinery.
• Connect specialist partners to deal with the customs authority and prepare tax refund files.

Please send us your current processing model (with counterparty information removed) so that Thái Tín can prepare a list of what needs to be done.

Cross-check sources and date: LuatVietnam and Tax and Customs Magazine (articles of 02/11/2026), read on 02/11/2026; the original letter has not been read.

Questions and answers

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