(English – Tiếng Anh)

DECREE 69/2018/ND-CP

May 15, 2018

Detailing a number of articles of the Law on Foreign Trade Management^[i]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 14, 2005 Commercial Law;

Pursuant to the June 12, 2017 Law on Foreign Trade Management;

Pursuant to the November 26, 2014 Law on Investment and the Law Amending and Supplementing Article 6 of and Appendix 4 to the Law on Investment regarding the list of conditional investment and business lines;

At the proposal of the Minister of Industry and Trade;

The Government promulgates the Decree detailing a number of articles of the Law on Foreign Trade Management.

Chapter I. GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree details a number of articles of the Commercial Law and the Law on Foreign Trade Management regarding:

a/ International goods purchase and sale activities carried out in the forms of export and import; temporary import for re-export; temporary export for re-import; border-gate transfer; and transit, and other related activities under law and treaties to which the Socialist Republic of Vietnam is a contracting party;

b/ Settlement of disputes over the application of foreign trade management measures.

2. Personal effects; personal baggage; goods serving needs of persons with diplomatic status; and presents, gifts and sample goods must comply with the regulations of the Government or Prime Minister.

Article 2. Subjects of application

1. State management agencies.

2. Traders engaged in foreign trade activities.

3. Other related domestic and foreign organizations and individuals.

Chapter II. MANAGEMENT OF EXPORT AND IMPORT ACTIVITIES

Article 3. The right to freedom of export and import business

1. Vietnamese traders other than foreign-invested economic organizations may conduct export and import business and carry out other related activities regardless of their registered business sectors or trades, except the goods on the List of goods banned from export or import as prescribed in this Decree; other goods banned from export or import as prescribed by law; and goods suspended from export or import.

Branches of Vietnamese traders may carry out foreign trade activities as authorized by these traders.

2. Foreign-invested economic organizations and branches of foreign traders in Vietnam shall, when carrying out export and import activities regulated by this Decree, observe Vietnam’s commitments under treaties to which the Socialist Republic of Vietnam is a contracting party, lists of goods, and roadmaps announced by the Ministry of Industry and Trade and, at the same time, comply with this Decree and relevant regulations.

3. Export and import activities carried out by foreign traders without presence in Vietnam and other related organizations and individuals in the countries and territories that are members of the World Trade Organization and countries that have concluded bilateral agreements with Vietnam must comply with the Government’s regulations.

Article 4. Export and import procedures

1. For goods to be exported and imported under permits, traders shall obtain permits from related ministries or ministerial-level agencies.

2. For goods to be exported and imported under certain conditions, traders must satisfy the law-prescribed conditions.

3. For goods on the List of exported and imported goods subject to inspection under Article 65 of the Law on Foreign Trade Management, traders shall submit to inspection by competent agencies in accordance with law.

4. For goods other than those referred to in Clauses 1, 2 and 3 of this Article, traders are only required to carry out export and import procedures at customs offices.

Article 5. Goods banned from export or import

1. Goods banned from export or import must comply with current legal documents and the List of goods banned from export or import provided in Appendix I to this Decree.

2. Based on Appendix I to this Decree, ministries and ministerial-level agencies shall announce detailed lists of goods banned from export or import together with their HS codes after reaching agreement on the lists with the Ministry of Industry and Trade and on HS codes with the Ministry of Finance.

3. The Prime Minister shall consider and decide to permit the export of goods banned from export or the import of goods banned from import for special use purposes or for warranty, analysis, testing, scientific research, health care, pharmaceutical production, and national defense and security purposes.

Article 6. Designation of export or import traders

1. To promulgate the List of goods to be exported or imported by designated traders in Appendix II to this Decree.

2. The designation of export or import traders must comply with regulations of competent agencies in Appendix II to this Decree.

Article 7. Goods to be exported or imported under permits or certain conditions

1. To promulgate the List of goods to be exported or imported under permits or certain conditions in Appendix III to this Decree.

2. Based on Appendix III to this Decree, ministries and ministerial-level agencies shall announce detailed lists of goods together with their HS codes after reaching agreement on the lists with the Ministry of Industry and Trade and on HS codes with the Ministry of Finance.

3. Based on Appendix III to this Decree, ministries and ministerial-level agencies shall promulgate or submit to competent agencies for promulgation detailed regulations on the grant of export permits and import permits in accordance with law, and grant permits under these regulations.

4. Based on the administration objectives in each period, the Minister of Industry and Trade shall prescribe the application of automatic export permits or automatic import permits for certain types of goods.

Article 8. Goods to be exported and imported under separate regulations

1. Re-export of main supplies for the import of which the State ensures foreign currency: Imported goods for which the State ensures foreign currency may only be re-exported with payments made in freely convertible foreign currencies or under permits granted by the Ministry of Industry and Trade. The Ministry of Industry and Trade shall announce the list of goods to be re-exported under permits in each period and organize the implementation thereof.

2. The Ministry of Industry and Trade shall provide detailed guidance on the import of timber of different types from bordering countries in accordance with the laws of Vietnam and such countries as well as relevant agreements reached between Vietnam and these countries or written instructions issued by the Prime Minister.

3. The export and import of goods for national defense and security purposes must comply with the Prime Minister’s decisions. Based on these decisions, the Minister of National Defense and Minister of Public Security shall prescribe the grant of export permits and import permits.

4. The import of goods that directly affect national defense and security which are on the List in Appendix IV to this Decree but not for national defense and security purposes must comply with permits granted by the Ministry of Industry and Trade after consulting the Ministry of National Defense or Ministry of Public Security.

5. The import of used machinery, equipment and technological lines must comply with the Prime Minister’s regulations.

Article 9. Dossier and procedures for grant of export permits or import permits

The dossier and procedures for grant of export permits or import permits referred to in Clause 3, Article 7, and Clause 4, Article 8, of this Decree, and Clause 1, Article 14 of the Law on Foreign Trade Management, are prescribed below:

1. A dossier of application for a permit must comprise:

a/ A trader’s application for a permit: 1 original;

b/ The investment certificate or business registration certificate or enterprise registration certificate: 1 copy bearing the trader’s seal;

c/ Relevant papers and documents as prescribed by law.

2. The procedures for grant of a permit are prescribed below:

a/ A trader shall send 1 dossier set prescribed in Clause 1 of this Article directly or by post or online (if possible) to the ministry or ministerial-level agency competent to grant permits;

b/ If the dossier is incomplete or invalid, within 3 working days after receiving it, the ministry or ministerial-level agency shall notify such to the trader for completing the dossier;

c/ Unless otherwise prescribed by law, within 10 working days after receiving a complete and valid dossier, the ministry or ministerial-level agency shall issue a written reply to the trader;

d/ If the law requires the ministry or ministerial-level agency competent to grant permits to consult related agencies, the time limit for dossier processing shall be counted from the date of receiving opinions from the consulted agencies;

dd/ The modification of a permit or re-grant of a permit in case it is lost or misplaced is prescribed below:

– The trader is required to submit only the papers related to the to-be-modified contents.

– The time limit for modification or re-grant of a permit must not exceed the time limit for grant of an export permit or import permit.

– If refusing to modify or re-grant a permit, the ministry or ministerial-level agency shall issue a written reply, stating the reason.

3. Ministries and ministerial-level agencies shall, in pursuance to this Decree and relevant regulations, promulgate or submit to competent agencies for promulgation detailed regulations on dossiers of application for permits, and disclose information about agencies and organizations and addresses for receiving traders’ dossiers.

Article 10. Certificate of free sale (CFS) for imported goods

1. To promulgate the List of goods requiring CFS and competence to manage CFS in Appendix V to this Decree.

2. Based on the management requirements in each period and the List of goods referred to in Clause 1 of this Article, ministries and ministerial-level agencies shall announce the detailed Lists of imported goods requiring CFS together with their HS codes.

3. A CFS must have at least the following information:

a/ Name of the agency or organization granting the CFS;

b/ Serial number and date of grant of the CFS;

c/ Names of products and goods for which the CFS is granted;

d/ Types or categories of products and goods for which the CFS is granted;

dd/ Name and address of the manufacturer;

e/ Information showing that the products and goods are manufactured and permitted for free sale in the market of the country of manufacture or country granting the CFS;

g/ Full name and signature of the CFS signatory, and seal of the agency or organization granting the CFS.

4. Ministries and ministerial-level agencies competent to manage CFS shall specify cases in which a CFS is applied to different goods lots.

5. If requested by a ministry or ministerial-level agency competent to manage CFS, CFS shall be consularly legalized in accordance with law, unless it is exempted from consular legalization under treaties to which Vietnam is a contracting party or on the basis of reciprocity.

6. If having doubt about the authenticity of the CFS or in case of inconsistency of information on imported goods with the contents of their CFS, a competent agency shall send a request for inspection and verification to the agency or organization granting the CFS.

Article 11. CFS for exported goods

1. Ministries and ministerial-level agencies competent to manage CFS shall grant CFS for exported goods according to the following provisions:

a/ The export trader applies for CFS for the goods;

b/ The goods’ declared applicable standards comply with current law.

2. CFS for exported goods must be in English and have at least the information details provided in Clause 3, Article 10 of this Decree.

If an importing country requires the trader to submit a CFS made according to the form issued by such country, the CFS-granting agency shall grant a CFS made according to this form.

3. Procedures for grant of a CFS for exported goods

a/ The trader shall send 1 dossier set directly or by post or online (if possible) to the CFS-granting agency. The dossier must comprise:

– An application for a CFS, stating the names and HS codes of goods, product standard certification numbers or registration numbers or standard codes (if any), composition and content of compounds (if any), and importing country: 1 original, expressed in Vietnamese and English.

– The investment certificate or business registration certificate or enterprise registration certificate: 1 copy bearing the trader’s seal.

– A list of manufacturing establishments (if any) with their names and addresses and goods manufactured for export: 1 original.

– A list of declared applicable standards for products and goods, together with their expressions (on goods labels or packagings or documents accompanying the products and goods): 1 copy bearing the trader’s seal.

b/ If the dossier is incomplete or invalid, within 3 working days after receiving it, the CFS-granting agency shall notify such to the trader for completing the dossier;

c/ A CFS shall be granted within 3 working days from the date a trader submits a complete and valid dossier. If refusing to grant a CFS, the CFS-granting agency shall issue a written reply, stating the reason;

d/ The CFS-granting agency may carry out an inspection at the manufacturing establishment if seeing that the examination of the dossier is not enough for grant of a CFS or detecting signs of violation with respect to the previously granted CFS;

dd/ CFS shall be granted in a quantity requested by the trader;

e/ If wishing to have a CFS modified or re-granted because it is lost or misplaced, the trader shall send a written request for modification or re-grant of the certificate and relevant papers to the CFS-granting agency. Within 3 working days after receiving a complete and valid dossier, the CFS-granting agency shall consider modifying or re-granting a CFS to the trader.

4. Ministries or ministerial-level agencies shall revoke a CFS in the following cases:

a/ The export trader forges documents and papers;

b/ The CFS is granted for the goods unconformable with the declared applicable standards.

Chapter III. TEMPORARY IMPORT FOR RE-EXPORT, TEMPORARY EXPORT FOR
RE-IMPORT, AND BORDER-GATE TRANSFER OF GOODS

Section 1. GENERAL PROVISIONS

Article 12. Ban on temporary import for re-export or border-gate transfer business; suspension from temporary import for re-export or border-gate transfer business

1. To promulgate the List of goods banned from temporary import for re-export or border-gate transfer in Appendix VI to this Decree.

2. The List of goods referred to in Clause 1 of this Article does not apply to cases of doing business in border-gate transfer for goods transported directly from exporting countries to importing countries not via Vietnam’s border gates.

3. The Minister of Industry and Trade shall issue specific decisions on goods suspended from temporary import for re-export or border-gate transfer and announce the List of goods together with their HS codes, in order to prevent environmental pollution, epidemics, adverse impacts on human health or life, illegal transshipment or trade fraud.

Article 13. Temporary import for re-export business

1. Vietnamese traders may conduct the temporary import for re-export business regardless of their registered business lines according to the following provisions:

a/ For goods subject to conditional temporary import for re-export, traders must satisfy the conditions specified in Section 2 of this Chapter;

b/ For goods banned from export or import; goods suspended from export or import; goods not yet permitted for sale or use in Vietnam; or goods subject to management based on export quota, import quota, tariff quota, or export permit or import permit, except automatic export permit or import permit, traders shall obtain a license for temporary import for re-export business from the Ministry of Industry and Trade. The dossier and procedures for grant of such license are prescribed in Articles 19 and 20 of this Decree;

c/ For goods other than those referred to at Points a and b of this Clause, traders shall carry out temporary import for re-export procedures at customs offices.

2. Foreign-invested economic organizations may only temporarily import goods for re-export under Article 15 of this Decree, but may not conduct the temporary import for re-export business.

3. Goods for temporary import for re-export business are subject to customs inspection and supervision from the time of import to the time of actual re-export out of Vietnam. It is not permitted to divide containerized goods throughout the period they are transported from border gates of temporary import to areas subject to customs supervision or to re-export places within border gates or border crossings under regulations.

In case the transportation requires the change of containers or division of containerized goods for re-export, regulations of customs offices shall be complied with.

4. Goods for temporary import for re-export business shall be retained in Vietnam for no more than 60 days from the date of completion of customs procedures for temporary import. If wising to extend this retention period, traders shall send a written request for extension to the customs office which has carried out temporary import procedures; each extension must not exceed 30 days and no more than 2 extensions shall be granted per lot of temporarily imported goods.

Past the above time limit, traders shall re-export goods out of Vietnam or destroy them. If wishing to import the goods into Vietnam, traders shall comply with regulations on goods import management and taxes.

5. The temporary import for re-export business shall be carried out on the basis of two separate contracts: export contract and import contract signed with traders of the exporting country and importing country. The export contract may be signed before or after the import contract is signed.

6. The payment for goods for temporary import for re-export business must comply with regulations on foreign exchange management and the guidance of the State Bank of Vietnam.

Article 14. Regulating goods for temporary import for re-export business

1. In case goods are congested in a locality, the provincial-level People’s Committee shall direct related competent agencies to take measures to release and regulate the goods and coordinate with the customs office of the border gate of temporary import in regulating the quantity of temporarily imported goods from the border gate of temporary import to the border gate of export.

2. After taking the measures to release and regulate the quantity of goods as prescribed in Clause 1 of this Article, if the congestion of goods temporarily imported for re-export still continues at the ports or border gates, or when necessary, the Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the provincial-level People’s Committee, General Department of Customs and Border Guard Command in, regulating the quantity of goods by:

a/ Issuing a written request for traders to suspend transporting the goods into Vietnam;

b/ Suspending the grant of licenses for the temporary import for re-export business with regard to the goods specified at Point b, Clause 1, Article 13 of this Decree.

Article 15. Other forms of temporary import for re-export

1. Except goods banned from export or import; and goods suspended from export or import, traders may temporarily import goods into Vietnam under contracts signed with foreign partners for the purpose of warranty, maintenance, rent, or borrowing, or use for another purpose within a specified period then re-export such goods out of Vietnam according to the following provisions:

a/ For goods not yet permitted for sale or use in Vietnam; or goods subject to export quota, import quota or tariff quota or to export permit or import permit, except automatic export permit or import permit, traders shall obtain a license for temporary import for re-export from the Ministry of Industry and Trade. The dossier and procedures for grant of such license must comply with Articles 19 and 20 of this Decree.

Particularly for goods not yet permitted for sale or use in Vietnam, the Ministry of Industry and Trade shall grant a license for temporary import for re-export based on the written approval of the ministry or ministerial-level agency competent to manage such goods.

b/ The use of the goods specified at Point a, Clause 1 of this Article in Vietnam must comply with regulations of the ministry or ministerial-level agency competent to manage such goods.

c/ For goods other than those specified at Point a, Clause 1 of this Article, traders shall carry out temporary import for re-export procedures at customs offices and are not required to obtain a license for temporary import for re-export.

2. Traders may temporarily import the goods they have exported for reprocessing or warranty at the request of foreign traders and re-export such goods to foreign traders. Temporary import for re-export procedures shall be carried out at customs offices without requiring a license for temporary import for re-export.

3. Temporary import for re-export of goods for display at trade fairs or exhibitions

a/ Traders may temporarily import goods for display at trade fairs or exhibitions, except goods banned from export or import and goods suspended from export or import;

b/ Temporary import for re-export procedures shall be carried out at customs offices without requiring a license for temporary import for re-export;

c/ Traders shall comply with the provisions on display of goods at trade fairs and exhibitions in Sections 3 and 4, Chapter IV of the Commercial Law.

4. Except goods banned from export or import and goods suspended from export or import, traders may carry out temporary import for re-export procedures at customs offices without having to obtain a license for temporary import for re-export in the following cases:

a/ Temporarily importing goods for inspection or testing;

b/ Temporarily importing components and parts for re-export without contract to serve replacement or repair of foreign seagoing ships and aircraft; or components and parts to serve repair of seagoing ships and aircraft under contracts signed between foreign ship owners and repair factories in Vietnam;

c/ Temporarily importing rotational containers of exported and imported goods for re-export.

5. For foreign machinery, equipment, and tools used for medical examination and treatment temporarily imported for re-export for providing medical examination and treatment in Vietnam for humanitarian purposes; and performance instruments and sports training and competition equipment of arts performance groups and sports competition and performance groups, temporary import for re-export procedures shall be carried out at customs offices without requiring a license for temporary import for re-export.

For machinery, equipment, and tools used for medical examination and treatment; and performance instruments and sports training and competition equipment on the List of goods banned from export or import; goods suspended from export or import; or goods to be exported or imported under permits or certain conditions, when carrying out temporary import for re-export procedures, in addition to the customs dossier as prescribed, the following papers are required:

a/ The competent agency’s or organization’s written permission for the receipt of the group providing medical examination and treatment or organizing the relevant event;

b/ A written commitment to ensuring the proper and lawful use of the machinery, equipment, tools and instruments, made by the agency or organization permitted to receive the group providing medical examination and treatment or organizing the relevant event.

6. The Ministry of National Defense and Ministry of Public Security shall consider and permit the temporary import for re-export of weapons, ammunition, and military and security equipment for national defense and security purposes.

Article 16. Border gates for temporary import for re-export of goods

1. Goods may be temporarily imported for re-export via international border gates and main border gates.

2. The re-export of goods via secondary border gates or border crossings is prescribed below:

a/ The re-export may only be conducted via secondary border gates or border crossings within border-gate economic zones and via secondary border gates outside economic zones that have specialized control agencies as prescribed and technical facilities meeting state management requirements. The People’s Committees of border provinces shall announce these secondary border gates and border crossings as eligible for goods re-export after consulting and reaching agreement with the Ministries of National Defense; Finance; Industry and Trade; and Agriculture and Rural Development;

b/ Based on infrastructure conditions in secondary border gates and border crossings specified at Point a, Clause 2 of this Article and goods loading/unloading and delivery capacity at these secondary border gates and border crossings, the People’s Committees of border provinces shall issue regulations on selection of traders permitted to re-export temporarily imported goods under certain conditions prescribed in Article 21 of this Decree and goods put temporarily imported under permits prescribed at Point b, Clause 1, Article 13 of this Decree;

c/ For goods other than those referred to at Point b, Clause 2 of this Article, traders may re-export them via secondary border gates and border crossings announced as eligible for goods re-export. Re-export procedures shall be carried out at customs offices.

3. Dossier and procedures for selection of traders according to Point b, Clause 2 of this Article are prescribed below:

a/ A trader shall send 1 dossier set directly or by post or online (if possible) to the provincial-level Department of Industry and Trade of the border province with secondary border gates or border crossings. The dossier must comprise:

– A written registration for re-export of goods via secondary border gates or border crossings, stating the types of goods and border gates or border crossings for re-export: 1 original.

– The enterprise registration certificate or business registration certificate: 1 copy bearing the trader’s seal.

– Other relevant papers and documents (if any) as prescribed by the People’s Committee of the border province.

b/ If the dossier is incomplete or invalid, within 3 working days after receiving it, the provincial-level Department of Industry and Trade of the border province shall issue a written notice to the trader for supplementation of the dossier;

c/ Within 7 working days after receiving a complete and valid dossier, the provincial-level Department of Industry and Trade of the border province shall submit to the provincial-level People’s Committee a list of traders eligible to re-export goods via secondary border gates or border crossings;

d/ Within 10 working days after receiving the list submitted by the provincial-level Department of Industry and Trade of the border province, the provincial-level People’s Committee shall announce the list of traders permitted to re-export goods via secondary border gates or border crossings; if refusing to select traders, it shall issue a written reply, stating the reason;

dd/ The People’s Committee of the border province shall notify the list of traders permitted to re-export goods via secondary border gates or border crossings to the Ministry of Industry and Trade for coordinated administration;

e/ Chairpersons of the People’s Committees of border provinces shall organize and strictly manage the re-export of goods via secondary border gates or border crossings in accordance with this Article and prevent smuggling. If smuggling occurs, they shall take responsibility before the Prime Minister and the re-export of goods via secondary border gates or border crossings shall be suspended;

g/ Annually, the People’s Committees of border provinces shall inspect and review traders’ compliance with regulations on temporary import for re-export for making necessary adjustment, or remove traders that violate such regulations from the list of traders permitted to re-export goods via secondary border gates or border crossings; and summarize and report such to the Ministry of Industry and Trade for coordinated administration.

4. The temporary import for re-export of goods via other border gates and places must comply with the Prime Minister’s decisions.

5. For foreign goods consigned to bonded warehouses for export or re-export via border provinces, temporary-import border gates for consignment of goods to bonded warehouses and border gates for export or re-export of goods via border provinces must comply with this Article.

Article 17. Temporary export for re-import

1. Traders may temporarily export for re-import goods for the purpose of manufacture, construction, lease, or lending or for another purpose according to the following provisions:

a/ For goods banned from export or import; goods suspended from export or import; or goods subject to export quota, import quota or tariff quota, or export permit or import permit, except automatic export permit or import permit, traders shall obtain a license for temporary export for re-import from the Ministry of Industry and Trade. The dossier and procedures for grant of such license must comply with Articles 19 and 20 of this Decree;

b/ For goods other than those referred to at Point a, Clause 1 of this Article, traders shall carry out temporary export for re-import procedures at customs offices without having to obtain a license for temporary export for re-import.

2. Traders may temporarily export for re-import goods with unexpired warranty period under import contracts or warranty contracts or agreements signed with foreign partners for the purpose of warranty, maintenance or repair. Temporary export for re-import procedures shall be carried out at customs offices without requiring a license for temporary export for re-import.

3. For goods with expired warranty period under import contracts or warranty contracts or agreements, their temporary export for re-import abroad for the purpose of warranty, maintenance or repair must comply with the following provisions:

a/ For goods banned from export or import; goods suspended from export or import; or goods subject to export quota, import quota or tariff quota or export permit or import permit, except automatic export permit or import permit, traders shall obtain a license for temporary export for re-import from the Ministry of Industry and Trade. The dossier and procedures for grant of such license must comply with Articles 19 and 20 of this Decree;

b/ Used consumer goods; and used components and parts on the List of goods banned from import may not be temporarily exported abroad for the purpose of warranty, maintenance or repair;

c/ For goods other than those referred to at Points a and b of this Clause, traders shall carry out temporary export for re-import procedures at customs offices without  having to obtain a license for temporary export for re-import.

4. Traders may temporarily export for re-import goods abroad for display at trade fairs or exhibitions. Temporary export for re-import procedures shall be carried out at customs offices without requiring a license for temporary export for re-import.

Particularly, goods banned from export may only be displayed at overseas trade fairs or exhibitions after obtaining approval of the Prime Minister.

5. The bringing of relics, antiques and national treasures abroad for display at exhibitions, research or preservation must comply with the Law on Cultural Heritages.

6. The Ministry of National Defense and Ministry of Public Security shall consider and permit temporary export for re-import of weapons, ammunition and military and security equipment for repair for national defense and security purposes.

Article 18. Border-gate transfer business

1. Vietnamese traders may conduct the border-gate transfer business according to the following provisions:

a/ For goods banned from export or import; goods suspended from export or import; goods not yet permitted for sale or use in Vietnam; or goods subject to export quota, import quota, tariff quota or export permit or import permit, except automatic export permit or import permit, traders shall obtain a license for border-gate transfer business from the Ministry of Industry and Trade. For the border-gate transfer business by transporting goods directly from exporting countries to importing countries not via Vietnam’s border gates, traders are not required to obtain a license for border-gate transfer business.

b/ For goods other than those referred to at Point a, Clause 1 of this Article, traders are not required to obtain a license for border-gate transfer business from the Ministry of Industry and Trade.

2. Foreign-invested economic organizations may not conduct the border-gate transfer business.

3. Border-gate transfer of goods shall be carried out on the basis of two separate contracts: goods purchase contract and goods sale contract signed by enterprises with foreign traders. The goods purchase contract may be signed before or after the goods sale contract is signed.

4. Goods for border-gate transfer business shall be brought into and out of Vietnam via the same border gate and subject to customs inspection and supervision from the time they are brought into Vietnam to the time they are brought out of Vietnam.

5. The payment for goods for border-gate transfer business must comply with the regulations on foreign exchange management and the guidance of the State Bank of Vietnam.

Article 19. Dossiers of application for a license for temporary import for re-export business; license for temporary import for re-export; license for temporary export for re-import; and license for border-gate transfer business

1. In case of temporary import for re-export business for the goods specified at Point b, Clause 1, Article 13 of this Decree, a dossier must comprise:

a/ An application for a license for temporary import for re-export business, specifying goods for temporary import for re-export business (names, HS codes, quantity and value of goods); and border gates of import and export: 1 original;

b/ The business registration certificate or enterprise registration certificate: 1 copy bearing the trader’s seal;

c/ The import contract and export contract signed by the enterprise with the foreign customer: 1 copy bearing the trader’s seal, for each contract;

d/ A report on the compliance with the license for temporary import for re-export business, specifying the quantity of goods temporarily imported and quantity of goods actually exported: 1 original.

2. In case of temporary import for re-export in other forms prescribed at Point a, Clause 1, Article 15 of this Decree, a dossier must comprise:

a/ An application for a license for temporary import for re-export, specifying goods to be temporarily imported for re-export (names, HS codes, quantity and value of goods); purpose of temporary import for re-export; and border gates of import and export: 1 original;

b/ The investment certificate or business registration certificate or enterprise registration certificate: 1 copy bearing the trader’s seal;

c/ The goods lease or borrowing contract or agreement signed with the foreign customer: 1 copy bearing the trader’s seal.

3. In case of temporary export for re-import of the goods prescribed at Point a, Clause 1, and Point a, Clause 3, Article 17 of this Decree, a dossier must comprise:

a/ An application for a license for temporary export for re-import, specifying goods to be temporarily exported for re-import (names, HS codes, quantity and value of goods); purpose of temporary export for re-import; and border gates of import and export: 1 original;

b/ The investment certificate or business registration certificate or enterprise registration certificate: 1 copy bearing the trader’s seal;

c/ The repair or warranty contract or agreement signed with the foreign customer or the goods lease or borrowing contract or agreement: 1 copy bearing the trader’s seal.

4. In case of border-gate transfer business for the goods prescribed at Point a, Clause 1, Article 18 of this Decree, a dossier must comprise:

a/ An application for a license for border-gate transfer business, specifying goods for border-gate transfer business (names, HS codes, quantity and value of goods); and border gates of import and export: 1 original;

b/ The business registration certificate or enterprise registration certificate: 1 copy bearing the trader’s seal;

c/ The goods purchase contract and goods sale contract signed by the trader with the foreign customer: 1 copy bearing the trader’s seal, for each contract;

d/ A report on the compliance with the license for border-gate transfer business, specifying the quantity of goods brought into and out of Vietnam: 1 original.

Article 20. Procedures for grant of a license for temporary import for re-export business; license for temporary import for re-export; license for temporary export for re-import; and license for border-gate transfer business

1. A trader shall send 1 dossier set prescribed in Article 19 of this Decree directly or by post or online (if possible) to the Ministry of Industry and Trade.

2. If the dossier is incomplete or invalid, within 3 working days after receiving it, the Ministry of Industry and Trade shall issue a written request for the trader to complete the dossier.

3. Within 5 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall grant a license to the trader; in case of refusal, it shall issue a written reply, stating the reason.

Particularly, a license for temporary import for re-export of the goods not yet permitted for sale or use in Vietnam as prescribed at Point a, Clause 1, Article 15 of this Decree, shall be granted within 3 working days from the date the Ministry of Industry and Trade receives a written approval of temporary import for re-export from the ministry or ministerial-level agency competent to manage such goods.

4. If wishing to have a license modified, or re-granted because it is lost or misplaced, the trader shall send a written request for modification or re-grant of the license and relevant papers to the Ministry of Industry and Trade. Within 3 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall consider modifying and re-granting a license to the trader.

Section 2. CONDITIONAL TEMPORARY IMPORT FOR RE-EXPORT BUSINESS

Article 21. List of goods subject to conditional temporary import for re-export business

To promulgate together with this Decree:

1. The List of frozen foodstuffs subject to conditional temporary import for re-export business in Appendix VII to this Decree.

2. The List of excise tax-liable goods subject to conditional temporary import for re-export business in Appendix VIII to this Decree.

3. The List of used goods subject to conditional temporary import for re-export business  in Appendix IX to this Decree.

Article 22. Separate regulations on conditional temporary import for re-export business

1. Vietnamese traders established under the Law on Enterprises (below referred to as enterprises) may carry out conditional temporary import for re-export business activities when they satisfy the conditions specified in Article 23, 24 or 25 of this Decree and are granted codes for temporary import for re-export business by the Ministry of Industry and Trade.

2. In addition to complying with the provisions on the temporary import for re-export business of Articles 12, 13, 14 and 16 of this Decree, enterprises conducting conditional temporary import for re-export business shall abide by the following provisions:

a/ They may neither entrust, nor accept entrustment for, temporary import for re-export of goods subject to conditional temporary import for re-export business;

b/ They may not shift from temporary import for re-export to import for domestic consumption of goods subject to conditional temporary import for re-export business;

c/ The seaway bill of lading for goods subject to conditional temporary import for re-export business is prescribed below:

– It must be straight and non-negotiable.

– It must bear the enterprise’s code for temporary import for re-export business.

– For used goods listed in Appendix IX to this Decree, the bill of lading must bear the serial number of the license for temporary import for re-export business granted by the Ministry of Industry and Trade.

Article 23. Conditions for temporary import for re-export business for frozen foodstuffs

To conduct the temporary import for re-export business for frozen foodstuffs listed in Appendix VII to this Decree, an enterprise must satisfy the following conditions:

1. Having made a deposit of VND 10 billion at a credit institution located in the province or city where the enterprise has warehouses and storing yards as prescribed in Clause 2 of this Article.

2. Having warehouses and storing yards for the temporary import for re-export business for frozen foodstuffs, specifically as follows:

a/ A warehouse or storing yard has a capacity of at least one hundred 40-feet containers and an area of at least 1,500 m². It is separated from the outside by solid fences at least 2.5 m high; has roads for container vehicles to enter and leave the warehouse or storing yard; and has gates and signboards of the enterprises using the warehouse or storing yard;

b/ A warehouse or storing yard has sufficient electricity sources (including grid power and standby power generators of an equivalent capacity) and special-use equipment for operating refrigerated containers, depending on the capacity of the warehouse or storing yard;

c/ Warehouses and storing yards belong to the enterprise or are rented by the enterprise under contracts; are located in the area planned for the system of warehouses and storing yards for the temporary import for re-export business for frozen foodstuffs or in the area designated by the People’s Committee of the border province after reaching agreement with the Ministry of National Defense, Ministry of Finance and Ministry of Industry and Trade.

Article 24. Conditions for temporary import for re-export business for excise tax-liable goods

To conduct the temporary import for re-export business for excise tax-liable goods listed in Appendix VIII to this Decree, an enterprise shall make a deposit of VND 7 billion at a credit institution located in the province or city where the enterprise is granted the business registration certificate or enterprise registration certificate.

Article 25. Conditions for temporary import for re-export business for used goods

To conduct the temporary import for re-export business for used goods listed in Appendix IX to this Decree, an enterprise shall make a deposit of VND 7 billion at a credit institution located in the province or city where the enterprise is granted the business registration certificate or enterprise registration certificate.

Article 26. Codes for temporary import for re-export business

1. The Ministry of Industry and Trade shall grant codes for temporary import for re-export business to enterprises that satisfy the conditions specified in Article 23, 24 or 25 of this Decree.

2. A code for temporary import for re-export business prescribed in this Article is a separate code for each category of goods. An enterprise that is granted a code for temporary import for re-export business for a category of goods may conduct temporary import for re-export business for the goods items belonging to such category.

3. For warehouses and storing yards listed to prove their satisfaction of the conditions of and for the grant of codes for the temporary import for re-export business, enterprises may not sublease them to other enterprises for the purpose of application for a code for temporary import for re-export business for frozen foodstuffs.

4. For foreign goods consigned to bonded warehouses for export or re-export via the northern border provinces, only enterprises possessing codes for temporary import for re-export business for such goods may be named in the warehouse input declarations and warehouse output declarations for export or re-export. Goods consigned to bonded warehouses must comply with the customs law.

5. The temporary import for re-export business for the goods listed in Appendices VII, VIII and IX to this Decree while enterprises do not re-export the goods via the northern border gates shall not be considered a conditional one and a code for temporary import for re-export business is not required. When it is necessary to meet management requirements, the Ministry of Industry and Trade shall report to the Prime Minister the application of provisions on the grant of codes for temporary import for re-export business for enterprises engaged in the temporary import for re-export business that consign goods to bonded warehouses for export or re-export via border gates other than northern border gates.

Article 27. Dossier and procedures for grant of codes for temporary import for re-export business

1. An enterprise shall send 1 set of dossier of request for grant of a code for temporary import for re-export business directly or by post or online (if possible) to the Ministry of Industry and Trade. The dossier must comprise:

a/ A written request for grant of a code for temporary import for re-export business: 1 original;

b/ The business registration certificate or enterprise registration certificate: 1 copy bearing the enterprise’s seal;

c/ The credit institution’s written certification that the enterprise has made a deposit under Clause 1, Article 23, or Article 24 or 25, of this Decree: 1 original;

d/ Documents proving that the enterprise owns warehouses and storing yards or rents warehouses and storing yards under a contract to serve temporary import for re-export business for frozen foodstuffs as prescribed in Clause 2, Article 23 of this Decree: 1 copy bearing the enterprise’s seal;

dd/ The written certification issued by the electricity agency of the locality where the enterprise’s warehouses and storing yards are located, stating that such warehouses and storing yards have sufficient grid power sources for operating refrigerated containers according to their capacity: 1 original.

An enterprise that requests grant of a code for temporary import for re-export business for excise tax-liable goods or used goods is not required to submit the papers specified at Points d and dd, Clause 1 of this Article.

2. If the dossier is incomplete or invalid, within 3 working days after receiving it, the Ministry of Industry and Trade shall issue a written request for the enterprise to complete the dossier.

3. For a code for temporary import for re-export business for frozen foodstuffs, within 7 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall inspect, or authorize the provincial-level Department of Industry and Trade of the locality where the enterprise’s warehouses and storing yards are located to inspect and certify the conditions on warehouses and storing yards. Within 7 working days after obtaining the inspection result, the Ministry of Industry and Trade shall consider granting a temporary import for re-export business code for frozen foodstuffs for the enterprise.

For a code for temporary import for re-export business for excise tax-liable goods or for used goods, within 7 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall consider granting such a code to the enterprise.

If refusing to grant a code temporary import for re-export business, the Ministry of Industry and Trade shall issue a written reply, stating the reason.

4. If wishing to have its code for temporary import for re-export business modified, or re-granted because it is lost or misplaced, the enterprise shall send a written request for modification or re-grant of the code and relevant papers to the Ministry of Industry and Trade. Within 5 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall consider modifying or re-granting the code for the enterprise.

5. If it is necessary to verify the documents and papers in the dossier of request for grant of a code for temporary import for re-export business, the time limit for dossier processing prescribed in Clause 3 or 4 of this Article shall be counted from the time the Ministry of Industry and Trade receives written replies on the verification from related agencies.

Article 28. Withdrawal of codes for temporary import for re-export business

1. The Ministry of Industry and Trade shall withdraw a code for temporary import for re-export business at the request of an enterprise on the basis of certification given by related agencies which states that:

a/ The enterprise has wholly re-exported temporarily imported goods out of Vietnam;

b/ The enterprise has fulfilled the obligations (if any) arising in the course of transportation and retention of goods temporarily imported for re-export as prescribed by this Decree.

2. The Ministry of Industry and Trade shall withdraw a code for temporary import for re-export business when the code-holding enterprise:

a/ Commits fraud in declaring the conditions specified in this Decree;

b/ Fails to maintain the conditions specified in this Decree when using the code;

c/ Fails to make an additional deposit within 30 days from the date the Ministry of Industry and Trade issues a notice thereof as prescribed in Clause 2, Article 30 of this Decree;

d/ Fails to abide by the competent agency’s request concerning regulation of goods temporarily imported for re-export as prescribed in Article 14 of this Decree;

dd/ Conducts the temporary import for re-export business without a permit granted by the Ministry of Industry and Trade under regulations;

e/ Conducts the temporary import for re-export business for goods banned or suspended from temporary import for re-export;

g/ Shirks the responsibility to handle the goods lots that have arrived at Vietnam’s ports or border gates under the signed import contracts;

h/ Arbitrarily sells into the inland goods for the temporary import for re-export business;

i/ Arbitrarily breaks customs seals of goods for temporary import for re-export business.

3. Within 2 years from the date an enterprise has its code for temporary import for re-export business withdrawn under Point a, b, c, d, dd, h or i, Clause 2 of this Article, such code shall not be re-granted.

4. An enterprise that has its code for temporary import for re-export business withdrawn under Point e or g, Clause 2 of this Article will not be considered for re-grant of such code.

Article 29. Suspension of the effect of codes for temporary import for re-export business

1. The Ministry of Industry and Trade shall consider suspending the effect of a code for temporary import for re-export business in case an enterprise is subject to investigation of its violations as prescribed in this Decree or at the request of a competent agency.

2. The suspension period is 3 months, 6 months or 1 year on a case-by-case basis or at the request of a competent agency.

Article 30. Management, use and refund of deposits made by enterprises

1. The credit institution where an enterprise makes a deposit shall manage such deposit and immediately notify the Ministry of Industry and Trade of any change in such deposit or of the use of such deposit for payment of expenses as decided by the violation-handling agency.

2. If an enterprise fails to pay the expenses prescribed in Clause 4, Article 31 of this Decree, the provincial-level People’s Committee concerned shall, based on the proposal and decision issued by the violation-handling agency, issue a written request for the credit institution where the enterprise makes a deposit to deduct the deposit for paying these expenses.

The violation-handling agency and provincial-level People’s Committee concerned shall immediately notify the Ministry of Industry and Trade of the handling of the violation and use of the deposit for the latter to request the enterprise to make an additional deposit as prescribed before resuming the temporary import for re-export business.

3. The enterprise may be refunded the whole or rest of the deposit after paying the expenses (if any) prescribed in Clause 4, Article 31 of this Decree in the following cases:

a/ The enterprise’s request for grant of a code for temporary import for re-export business is rejected by the Ministry of Industry and Trade as stated in the Ministry’s written refusal to grant such code;

b/ The Ministry of Industry and Trade withdraws the code for temporary import for re-export business at the enterprise’s request as prescribed in Clause 1, Article 28 of this Decree;

c/ The enterprise has its code withdrawn under Clause 2, Article 28 of this Decree;

d/ For the cases specified at Points b and c, Clause 3 of this Article, the refund of the deposit shall be based on the Ministry of Industry and Trade’s decision withdrawing the code for temporary import for re-export business.

Article 31. Responsibilities of enterprises that are granted codes for temporary import for re-export business

1. To maintain the conditions specified in this Decree throughout the use of the codes for temporary import for re-export business.

2. To bring frozen foodstuffs at ports and border gates to their warehouses and storing yards at the request of competent agencies in case of goods congestion.

3. To collect and dispose of wastes and wastewater for preventing epidemics and ensuring environmental sanitation at warehouses and storing yards serving the temporary import for re-export business for frozen foodstuffs.

4. To pay expenses for the following activities (if any):

a/ Treating and cleaning the environment polluted by the goods during their retention and temporary import for re-export in Vietnam;

b/ Destroying in-stock goods which cannot be re-exported, and temporarily imported goods not the same as the declared ones, which are subject to destruction;

c/ Paying other arising expenses due to the enterprises’ violation of regulations on temporary import for re-export business and consignment of goods to bonded warehouses.

5. To make quarterly reports on temporary import for re-export of goods listed in Appendices VII, VIII and IX to this Decree according to the forms issued by the Ministry of Industry and Trade.

Section 3. ASSIGNMENT OF THE MANAGEMENT AND ADMINISTRATION OF TEMPORARY IMPORT FOR RE-EXPORT, TEMPORARY EXPORT FOR RE-IMPORT AND BORDER-GATE TRANSFER ACTIVITIES

Article 32. The Ministry of Industry and Trade

1. To urge and guide related ministries, sectors and localities to implement; inspect, and coordinate with related agencies, organizations and traders in inspecting the implementation of, regulations on the management of temporary import for re-export, temporary export for re-import and border-gate transfer activities prescribed in this Decree.

2. To inspect and certify the conditions on warehouses and storing yards of enterprises conducting the temporary import for re-export business for frozen foodstuffs or authorize provincial-level Departments of Industry and Trade to do so.

3. To take measures to regulate goods when necessary in accordance with this Decree.

Article 33. Provincial-level People’s Committees

1. To plan and build transport infrastructure facilities, warehouses and storing yards, loading/unloading areas, places for gathering goods, places for goods re-export, power sources, and other facilities, facilitating temporary import for re-export, border-gate transfer, retention and preservation of goods in places for goods re-export.

2. To assess the demands for and capacity of developing temporary import for re-export business for frozen foodstuffs in localities; to reach agreement with the Ministry of National Defense, Ministry of Finance, General Department of Customs, Border Guard Command, and Ministry of Industry and Trade to designate places for construction of warehouses and storing yards serving temporary import for re-export business for frozen foodstuffs in localities.

3. Pursuant to current regulations, to assume the prime responsibility for, and coordinate with related ministries and sectors in, managing and administering temporary import for re-export and border-gate transfer activities in their localities and take responsibility before the Government and Prime Minister for these activities.

4. To coordinate with related ministries and sectors in ensuring sufficient specialized inspection forces and physical foundations for inspecting and supervising goods for temporary import for re-export and border-gate transfer business in their localities, meeting the requirements on security, national defense, and social order and safety, and minimizing trade fraud, smuggling, tax evasion, and environmental pollution.

5. To assume the prime responsibility for, and coordinate with related ministries and sectors in, taking measures to regulate goods for temporary import for re-export and border-gate transfer business in case of goods congestion in their localities; to promptly inform the Ministry of Industry and Trade of the delivery of goods in localities and propose management measures in order to avoid goods congestion at ports and border gates.

6. To assume the prime responsibility for, and reach agreement with related ministries and sectors before announcing secondary border gates and border crossings within border-gate economic zones and secondary border gates outside border-gate economic zones which are eligible for goods re-export if they have sufficient specialized control agencies as prescribed and technical foundations serving state management work.

7. To collect charges for goods for temporary import for re-export business under the Ministry of Finance’s guidance in order to increase state budget revenues for investment in and upgrading of roads and wharves and for environmental protection and maintenance of security and order at border gates.

8. To promptly notify changes in border trade policies of neighboring countries to the Ministry of Industry and Trade and traders for them to prepare plans on regulating goods temporarily imported for re-export, preventing goods congestion at ports and border gates.

9. To direct provincial-level Departments of Industry and Trade to:

a/ Regularly monitor and inspect enterprises in maintaining the conditions for temporary import for re-export business and notify such to the Ministry of Industry and Trade for coordinating in handling enterprises which fail to maintain the conditions prescribed in this Decree;

b/ Quarterly report to the Ministry of Industry and Trade on temporary import for re-export and border-gate transfer business activities; and enterprises’ compliance with regulations on the temporary import for re-export and border-gate transfer business in localities;

c/ Inspect warehouses and storing yards or verify papers related to the business conditions prescribed in this Decree as authorized by the Ministry of Industry and Trade;

d/ Notify the Ministry of Industry and Trade of cases of violation of the regulations on the temporary import for re-export and border-gate transfer business in localities for coordinated handling.

Article 34. The General Department of Customs

1. Based on its assigned functions and tasks, to inspect, control and strictly supervise goods for temporary import for re-export from the time they are imported into Vietnam to the time they are actually exported out of Vietnam in accordance with the customs law.

2. To provide information and statistics on temporary import for re-export business activities on a quarterly basis to the Ministry of Industry and Trade and on an unscheduled basis to serve direction and administration work at the request of the Ministry of Industry and Trade.

3. To inform the Ministry of Industry and Trade and related provincial-level People’s Committees of the following cases for coordination:

a/ Enterprises violate the regulations on temporary import for re-export or border-gate transfer business;

b/ There appears congestion of goods for temporary import for re-export or border-gate transfer business at ports or border gates.

Chapter IV. TRANSIT OF GOODS

Article 35. General provisions on transit of goods

1. Transit of goods

a/ For goods being weapons, explosive materials, explosive precursors or supporting tools, the Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of National Defense and Ministry of Public Security in, proposing the Prime Minister to consider and decide to permit their transit;

b/ For goods banned from export or import; goods suspended from export or import; and goods banned from trading under law, the Ministry of Industry and Trade shall consider granting a transit permit;

c/ For goods other than those specified at Points a and b, Clause 1 of this Article, transit procedures shall be carried out at customs offices.

2. Transshipment of goods

In case the goods specified at Point b, Clause 1 of this Article are transported by sea from abroad into transshipment areas in seaports then brought abroad from such transshipment areas or brought to transshipment areas in other wharves or seaports before being transported abroad, transshipment procedures shall be carried out under the Ministry of Finance’s guidance without requiring a permit of the Ministry of Industry and Trade.

3. For agreements on goods transit via Vietnam’s territory signed between Vietnam and bordering countries, the Ministry of Industry and Trade’s guidance shall be complied with.

4. The transit of goods on the list of highly dangerous goods via Vietnam’s territory must comply with Vietnam’s law on transportation of dangerous goods and relevant treaties to which the Socialist Republic of Vietnam is a contracting party.

5. Owners of in-transit goods shall pay customs fees and other charges applicable to in-transit goods in accordance with Vietnam’s current regulations.

Article 36. Dossiers and procedures for grant of transit permits

1. In case of transit of goods being weapons, explosive materials, explosive precursors or supporting tools:

a/ A goods owner shall send 1 set of dossier of request for goods transit directly or by post or online (if possible) to the Ministry of Industry and Trade. The dossier must comprise:

– A written request for goods transit, specifying the names, HS codes, quantity and value of goods; vehicle; and route of transportation: 1 original.

– The transportation contract: 1 original.

– An official letter sent by the competent authority of the country requesting transit of goods to the Ministry of Industry and Trade: 1 original.

b/ If the dossier is incomplete or invalid, within 3 working days after receiving it, the Ministry of Industry and Trade shall issue a written request for the goods owner to complete the dossier;

c/ Within 7 working days after receiving a complete and valid dossier from the goods owner, the Ministry of Industry and Trade shall send a written request to the Ministry of National Defense and Ministry of Public Security for opinion;

d/ Within 5 working days after receiving the request from the Ministry of Industry and Trade, the Ministry of National Defense and Ministry of Public Security shall issue written replies;

dd/ Within 5 working days after receiving opinions from the Ministry of National Defense and Ministry of Public Security, the Ministry of Industry and Trade shall send a report thereon to the Prime Minister for opinion;

e/ Within 5 working days after receiving the Prime Minister’s opinion, the Ministry of Industry and Trade shall issue a written reply to the goods owner.

2. In case of transit of goods banned from export or import; goods suspended from export or import; or goods banned from trading under law:

a/ The goods owner shall send 1 set of dossier of request for goods transit as prescribed at Point a, Clause 1 of this Article directly or by post or online (if possible) to the Ministry of Industry and Trade;

b/ If the dossier is incomplete or invalid, within 3 working days after receiving it, the Ministry of Industry and Trade shall issue a written request for the goods owner to complete the dossier;

c/ Within 7 working days after receiving a complete and valid dossier from the goods owner, the Ministry of Industry and Trade shall grant a transit permit to the goods owner;

d/ In case of refusal to grant a transit permit, the Ministry of Industry and Trade shall issue a written reply to the goods owner, stating the reason;

dd/ If wishing to have a transit permit modified, or re-granted because it is lost or misplaced, the goods owner shall send a written request for modification or re-grant of the permit and relevant papers to the Ministry of Industry and Trade. Within 3 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall consider modifying or re-granting the permit.

Article 37. Traders providing goods transit services

Traders that register for doing the freight forwarding and transportation business may provide the service of transiting goods for foreign owners via Vietnam’s territory.

Chapter V. FOREIGN-INVOLVED GOODS PROCESSING

Section 1. ACCEPTING TO PROCESS GOODS FOR FOREIGN TRADERS

Article 38. Processing of goods for foreign traders

1. Vietnamese traders may accept to lawfully process goods for foreign traders, except goods banned from export or import and goods suspended from export or import.

2. For goods on the list of goods subject to conditional investment and business, only traders that fully satisfy the law-prescribed conditions on manufacture of and trading in such goods may conduct export processing for foreign partners.

3. For goods to be imported in the form of designation of traders and falling under the management by the State Bank of Vietnam, their processing must comply with the regulations of the State Bank of Vietnam.

4. For goods to be exported or imported under permit, traders may only sign contracts on processing of goods for foreign traders after obtaining a permit from the Ministry of Industry and Trade.

The dossier and procedures for grant of a processing permit are prescribed below:

a/ A trader shall send 1 set of dossier of application for a processing permit directly or by post or online (if possible) to the Ministry of Industry and Trade. The dossier must comprise:

– An application for a processing permit, specifying the contents specified in Article 39 of this Decree: 1 original.

– The investment certificate or business registration certificate or enterprise registration certificate: 1 copy bearing the trader’s seal.

– The certificate of eligibility for manufacture and business (if any): 1 copy bearing the trader’s seal.

b/ If the dossier is incomplete or invalid, within 3 working days after receiving it, the Ministry of Industry and Trade shall issue a written request for the trader to complete the dossier;

c/ Within 5 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall send a written request to related ministries and ministerial-level agencies for opinion;

d/ Within 5 working days after receiving the request from the Ministry of Industry and Trade, related ministries and ministerial-level agencies shall send written replies to the Ministry of Industry and Trade;

dd/ Within 5 working days after receiving the replies from related ministries and ministerial-level agencies, the Ministry of Industry and Trade shall grant a processing permit to the trader; in case of refusal to grant the permit, it shall issue a written reply stating the reason;

e/ If the trader possesses a certificate of eligibility for manufacture and business for the goods to be processed for foreign traders, the Ministry of Industry and Trade shall consider granting a processing permit to the trader within 5 working days after receiving a complete and valid dossier without having to consult related ministries and ministerial-level agencies as prescribed at Point c, Clause 3 of this Article;

g/ If wishing to have a processing permit modified, or re-granted because it is lost or misplaced, the trader shall send a written request for modification or re-grant of the permit and relevant papers to the Ministry of Industry and Trade. Within 5 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall consider modifying or re-granting the permit for the trader.

Article 39. Processing contracts

A processing contract shall be established in writing or in another form of equivalent legal validity under the Commercial Law and must have at least the terms below:

1. Names and addresses of the contracting parties and of the processing party.

2. Names and quantity of products to be processed.

3. Processing price.

4. Payment duration and method.

5. List, quantity and value of materials, auxiliary materials and supplies imported and home-made (if any) for processing; use norms of materials, auxiliary materials and supplies; shrinkage norms for supplies and shrinkage ratios for materials during processing.

6. List and value of machinery and equipment leased, borrowed or donated for processing (if any).

7. Methods of disposing of scraps, refuses and waste products, and principles of handling leased or borrowed machinery and equipment and surplus materials, auxiliary materials and supplies after the contract is completed.

8. Place and time of delivery.

9. Labels and origin of goods.

10. Validity term of the contract.

Article 40. Use norms, consumption norms and permissible loss ratios of materials, auxiliary materials and supplies

1. Use norms, consumption norms and permissible loss ratios of materials, auxiliary materials and supplies shall be agreed upon by the parties in a processing contract, taking into account norms and permissible loss ratios applied in related manufacture and processing industries of Vietnam at the time of signing the contract.

2. At-law representatives of traders that directly accept to conduct processing shall take responsibility before law for the use of imported materials, auxiliary materials and supplies for processing purposes and for the accuracy of use norms, consumption norms and permissible loss ratios of materials and auxiliary materials used for processing.

Article 41. Rent, borrowing and import of machinery and equipment of processing-ordering parties for performance of processing contracts

Processing-accepting parties may rent or borrow machinery and equipment of processing-ordering parties for performance of processing contracts. The rent, borrowing or donation of machinery and equipment shall be agreed upon in processing contracts.

Article 42. Rights and obligations of the processing-ordering party and processing-accepting party

1. For the processing-ordering party:

a/ To transfer the whole or part of materials and supplies used for processing as agreed upon in the processing contract;

b/ To receive back the whole processed products; machinery and equipment leased or lent to the processing-accepting party; and materials, auxiliary materials, supplies and scraps after liquidation of the processing contract, unless they are permitted to be exported on the spot, destructed or donated under this Decree;

c/ To send specialists to Vietnam for providing technical instructions on the manufacture and quality inspection of processed products as agreed upon in the processing contract;

d/ To take responsibility for the right to use trademarks and origin of goods;

dd/ To comply with Vietnam’s laws concerning processing activities and terms of the signed processing contract;

e/ To export on the spot processed products; machinery and equipment leased or lent; surplus materials, auxiliary materials and supplies; and waste products and scraps as agreed upon in writing by the involved parties in accordance with current regulations on management of goods export and import; to fulfill tax obligations and other financial obligations in accordance with law.

2. For the processing-accepting party:

a/ To be entitled to export duty and import duty exemption under the laws on taxes with regard to temporarily imported goods based on norms and permissible loss ratios for performance of the processing contract, and with regard to products processed for export;

b/ To hire other traders to conduct processing;

c/ To be supplied with part or the whole of materials, auxiliary materials and supplies for processing as agreed upon in the processing contract; to pay export duty on domestically purchased materials, auxiliary materials and supplies in accordance with the Law on Import Duty and Export Duty;

d/ To receive processed products as payments from the processing-ordering party, except products on the list of goods banned or suspended from import. For products on the list of goods to be imported under permits or certain conditions, to comply with the regulations on permits and conditions;

dd/ To comply with Vietnam’s laws concerning export processing, import, and domestic manufacture of goods, and terms of the signed processing contract;

e/ To carry out procedures for on-the-spot export of processed products; machinery and equipment rented or borrowed; surplus materials, auxiliary materials and supplies; and discarded products and scraps as authorized by the processing-ordering party.

3. Conditions for on-the-spot export or import of processed products; machinery and equipment rented or borrowed; surplus materials, auxiliary materials and supplies; and discarded products and scraps referred to at Point e, Clause 1, and Point e, Clause 2, of this Article are prescribed below:

a/ The regulations on management of goods export and import, taxes, and other financial obligations as prescribed by law shall be complied with;

b/ There must be purchase and sale contracts signed between foreign traders or their lawful authorized persons and importers.

Article 43. Subsequent processing

Traders may carry out subsequent processing, specifically as follows:

1. Processed products under a processing contract may be used as processing materials for another processing contract in Vietnam.

2. Processed products under a processing contract at a stage may be delivered to the trader designated by the processing-ordering party for processing under a processing contract at the subsequent stage.

Article 44. Notification, liquidation and finalization of processing contracts

1. Before performing a processing contract, organizations and individuals shall notify it to the customs office. When the processing contract is completed or expires, the contracting parties shall liquidate it and send a periodical report on finalization of the use of materials, supplies and exported products to the customs office.

The Ministry of Finance shall guide the procedures for notification and finalization of processing contracts to/with customs offices.

2. Bases for liquidation of a processing contract include volume of imported materials, auxiliary materials and supplies and exported products according to the use norms of materials and auxiliary materials and consumption norms of supplies and permissible loss ratios as agreed upon in the contract.

Bases for clearance of a processing contract include volume of imported and re-exported materials, auxiliary materials and supplies and exported products according to the use norms of materials and auxiliary materials and consumption norms of supplies and permissible loss ratios suitable to the actual performance of the contract.

3. Machinery and equipment rented or borrowed under contracts; surplus materials, auxiliary materials and supplies, discarded products and scraps shall be disposed of as agreed upon in processing contracts but must comply with Vietnam’s law.

4. Scraps and discarded products (if any) may only be destroyed after obtaining written permission from provincial-level Departments of Natural Resources and Environment and shall be destroyed under customs supervision. If they are not permitted to be destroyed in Vietnam, they shall be re-exported as designated by the processing-ordering party.

5. The donation of machinery, equipment, materials, auxiliary materials, supplies, scraps and discarded products is prescribed below:

a/ The processing-ordering party shall issue a document on donation;

b/ The donee shall carry out import procedures under regulations on import; and pay import duty and other taxes (if any) and register assets under current regulations;

c/ Scraps and discarded products within the use norms and permissible loss ratios which are permitted to be imported are not required to undergo customs procedures and are eligible for import duty exemption, but are subject to value-added tax and enterprise income tax.

Article 45. Customs procedures

The Ministry of Finance shall guide customs procedures and financial obligations for processed products for export and supervise export and import activities related to processing contracts.

Article 46. Other forms of processing, repair and recycling of machinery and equipment

The Prime Minister shall consider and decide on the processing of goods banned or suspended from export or import for foreign traders for sale abroad.

Article 47. Processing of military uniforms

1. Military uniforms referred to in this Article are uniforms of military personnel of foreign armed forces, which are manufactured according to uniform designs and specifications and worn according to the rules of foreign armed forces. The list of products of military uniforms for foreign armed forces is provided in Appendix X to this Decree.

Textiles and garments which are on this list but other than products of military uniforms for foreign armed forces are not regulated by this Article.

2. Military uniforms manufactured or processed for export for foreign armed forces may not be sold in Vietnam.

3. Materials and auxiliary materials used for the manufacture and export processing of military uniforms for foreign armed forces are subject to customs supervision from the time they are imported to the time the products of military uniforms are actually exported out of Vietnam.

4. A dossier of application for a permit to produce and process military uniforms for foreign armed forces must comprise:

a/ An application for a permit, specifying the names, quantity, value, and port of arrival of the products of military uniforms: 1 original;

b/ The business registration certificate or enterprise registration certificate or investment certificate: 1 copy bearing the trader’s seal;

c/ The order or a written request for contract signing, together with 2 color photos for each specimen military uniform product ordered to be manufactured or processed: 2 copies bearing the trader’s seal;

Such order or request must have at least the following details: names, addresses and telephone numbers of the parties ordering and accepting the manufacture or processing; names, quantity and payment value or processing prices, payment time limit and method, and place and time of delivery.

d/ In addition to the papers specified at Points a, b and c, Clause 4 of this Article, a trader shall enclose the dossier with one of the following documents:

– The contract or agreement on procurement of military uniforms, signed between the processing-ordering party and agency in charge of procurement and logistics for foreign armed forces;

– A written certification issued by the agency in charge of procurement and logistics for foreign armed forces or the competent authority of the country ordering the manufacture or processing, or by the Vietnam-based diplomatic representative mission of the country ordering the manufacture or processing, that the armed forces unit is the end user of military uniforms ordered to be manufactured or processed in Vietnam.

Such written certification must have at least the following details: importing country, and name of the armed forces unit; name of the party ordering the manufacture or processing; and name of the Vietnamese trader accepting the manufacture or processing.

The papers referred to at Point d, Clause 4 of this Article shall be consularly legalized under regulations.

dd/ Particularly for the US market, traders shall submit a copy of the paper with manufacturer identification (MID) numbers of textiles and garments exported to the US, issued by the Ministry of Industry and Trade.

5. Procedures for grant of a permit to produce and process military uniforms for export for foreign armed forces

a/ A trader shall submit 1 dossier set prescribed in Clause 4 of this Article directly, by post or online (if possible) to the Ministry of Industry and Trade;

b/ If the dossier is incomplete or invalid, within 3 working days after receiving it, the Ministry of Industry and Trade shall notify such to the trader for completing the dossier;

c/ Within 7 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall send a written request to the Ministry of National Defense or Ministry of Public Security for opinion;

d/ Within 5 working days after receiving the request from the Ministry of Industry and Trade, the Ministry of National Defense or Ministry of Public Security shall issue a written reply;

dd/ Within 5 working days after receiving the reply from the Ministry of National Defense or Ministry of Public Security, the Ministry of Industry and Trade shall grant a permit to the trader; in case of refusal, it shall issue a written reply, stating the reason;

e/ If wishing to have its/his/her permit modified, or re-granted because it is lost or misplaced, the trader shall send a written request for modification or re-grant of the permit and relevant papers to the Ministry of Industry and Trade. Within 5 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall consider modifying or re-granting the permit to the trader; in case of refusal, it shall issue a written reply stating the reason;

g/ The Ministry of Industry and Trade shall revoke a permit if detecting that its holder provided untruthful or inaccurate information in the dossier of application for permit or fails to abide by the permit.

6. Responsibilities of traders manufacturing or processing military uniforms for export

a/ To export all military uniform products manufactured or processed in Vietnam and not to use military uniforms and sell military uniform products in Vietnam;

b/ To re-export or destroy all imported specimen products, surplus materials and supplies, and scraps and discarded products according to current regulations under the supervision by the Ministry of National Defense, Ministry of Natural Resources and Environment, Ministry of Industry and Trade and General Department of Customs;

c/ To work with, and provide dossiers and documents at the request of, licensing agencies and related agencies that inspect manufacturing facilities after the trader is granted a permit;

d/ To take responsibility before law for the accuracy and truthfulness of information in the dossier of application for a permit.

7. In addition to the provisions of this Article, the processing of military uniforms must comply with the provisions on foreign-involved goods processing in Chapter V of this Decree.

8. Import of specimen military uniforms

a/ Traders that possess a permit for manufacture and processing of military uniforms for foreign armed forces under Article 47 of this Decree may import specimen military uniforms for manufacture and processing;

b/ If a trader has not yet been granted a permit for manufacture and processing of military uniforms, the import of specimen military uniforms for study, manufacture and processing is prescribed below:

– The trader shall submit 1 original of the written registration for import of specimen military uniform products, specifying the names, quantity, ordering country, and final user of the products, together with 2 color photos for each specimen, directly, by post or online (if possible) to the Ministry of Industry and Trade.

– If the dossier is incomplete or invalid, within 3 working days after receiving it, the Ministry of Industry and Trade shall notify such to the trader for completing the dossier.

– Within 7 working days after receiving a complete and valid dossier, the Ministry of Industry and Trade shall send a written request to the Ministry of National Defense or Ministry of Public Security for opinion.

– Within 5 working days after receiving the request from the Ministry of Industry and Trade, the Ministry of National Defense or Ministry of Public Security shall issue a written reply.

– Within 5 days after receiving the reply from the Ministry of National Defense or Ministry of Public Security, the Ministry of Industry and Trade shall issue a written permission for the trader to import specimen military uniform products; in case of refusal, it shall issue a written reply stating the reason.

c/ The quantity of specimen military uniform products to be imported under this Article must not exceed 5 for each product code.

Section 2. ORDERING OF OVERSEAS PROCESSING OF GOODS

Article 48. Processing-ordering contracts and customs procedures

Contracts to order overseas processing of goods and customs procedures for the export and import of goods ordered to be processed must comply with Articles 39 and 45 of this Decree.

Article 49. Rights and obligations of traders ordering overseas processing of goods

1. To comply with the provisions on management of overseas processing of goods of Article 52 of the Law on Foreign Trade Management.

2. To take responsibility for the right to use goods trademarks and origin of goods.

3. To temporarily export machinery, equipment, materials, auxiliary materials and supplies or transfer them from a third country to the processing-accepting party for performance of processing contracts.

4. To re-import processed products. To re-import surplus machinery, equipment, materials, auxiliary materials and supplies upon completion of processing-ordering contracts.

5. To sell processed products and machinery, equipment, materials, auxiliary materials and supplies already exported for performance of processing contracts in the market of the processing-accepting country or another market, and pay taxes under current regulations.

6. To be entitled to export duty or import duty exemption under the laws on taxes for goods exported for processing and processed products imported under processing contracts.

7. To send specialists and technicians abroad for inspection and pre-acceptance test of processed products.

8. To fulfill tax obligations for processed goods imported for domestic consumption under the guidance of the Ministry of Finance.

Chapter VI. GOODS PURCHASE AND SALE AGENTS WITH FOREIGN PARTNERS

Section 1. GOODS PURCHASE AND SALE AGENTS FOR FOREIGN TRADERS

Article 50. Traders acting as goods purchase and sale agents for foreign traders

1. Traders may act as purchase and sale agents for foreign traders for the goods outside the list of goods banned or suspended from export or the list of goods banned or suspended from import. For goods to be exported or imported under permits, traders may only sign agency contracts after obtaining a permit from their managing ministries or ministerial-level agencies.

2. If it is prescribed by a law that an agent may sign an agency contract with only one principal for a certain type of goods or service, traders shall comply with such law.

3. Traders acting as goods purchase agents shall request foreign traders to transfer money in freely convertible foreign currencies via bank for purchasing goods under agency contracts.

4. Traders acting as goods purchase agents shall register, declare and pay taxes and perform other financial obligations related to goods under goods purchase and sale agency contracts and their business activities in accordance with law.

Article 51. Tax obligations

1. Goods under contracts on goods purchase and sale agency for foreign traders are liable to taxes and other financial obligations in accordance with Vietnam’s law.

2. Vietnamese traders shall register, declare and pay taxes and perform other financial obligations related to goods under goods purchase and sale agency contracts and their business activities in accordance with law.

Article 52. Procedures for export and import of goods under agency contracts

When being exported or imported, goods under purchase and sale agency contracts with foreign traders must undergo procedures required for exported and imported goods prescribed in this Decree.

Article 53. Return of goods

Goods under agency contracts on sale of goods in Vietnam for foreign traders may be re-exported if they cannot be sold in Vietnam. The tax refund must comply with the Ministry of Finance’s regulations.

Section 2. HIRING OF FOREIGN TRADERS TO ACT AS OVERSEAS SALE AGENTS

Article 54. Hiring of foreign traders to act as overseas sale agents

1. Vietnamese traders may hire foreign traders to act as overseas sale agents for the goods outside the list of goods banned or suspended from export.

2. Traders that hire overseas sale agents shall sign agency contracts with foreign traders and transfer money amounts collected from sale contracts back to Vietnam under regulations on foreign exchange management and the guidance of the State Bank of Vietnam.

3. If receiving goods as payments, traders shall comply with the current regulations on goods import.

Article 55. Tax obligations

1. Goods under overseas sale agency contracts are liable to taxes and other financial obligations in accordance with Vietnam’s law.

2. Traders shall register, declare and pay taxes and perform other financial obligations related to the hiring of foreign traders to act as overseas sale agents under the guidance of the Ministry of Finance.

Article 56. Receipt back of goods

1. Goods exported under overseas sale agency contracts may be re-imported into Vietnam if they cannot be sold overseas.

2. Goods re-imported into Vietnam as referred to in Clause 1 of this Article are not liable to import duty and are eligible for refund of export duty (if any) under the guidance of the Ministry of Finance.

3. Goods exported under overseas sale agency contracts, when being exported and re-imported into Vietnam under this Article, must undergo the procedures for exported and imported goods prescribed in this Decree.

Chapter VII. COORDINATION IN THE SETTLEMENT OF DISPUTES OVER THE APPLICATION OF FOREIGN TRADE MANAGEMENT MEASURES

Section 1. GENERAL PROVISIONS

Article 57. Coordination principles

1. Responsible agencies and related agencies, organizations and individuals shall coordinate with each other in settling disputes over the application of foreign trade management measures in an active, comprehensive, accurate, prompt and effective manner in accordance with this Decree and Vietnam’s law in order to protect lawful rights and interests of Vietnam to the best.

2. Coordination between responsible agencies and related agencies, organizations and individuals in settling disputes over the application of foreign trade management measures must comply with the provisions on dispute settlement of the treaties to which the Socialist Republic of Vietnam is a contracting party, which prescribe the settlement of disputes over the application of foreign trade management measures being objects of the disputes (below referred to as treaties on dispute settlement).

3. Responsible agencies and related agencies, organizations and individuals shall take responsibility before law for the consequences from their non-coordination or unsatisfactory coordination as required in Clause 1 of this Article.

4. Responsible agencies and related agencies, organizations and individuals are obliged to protect state secrets in accordance with law, keep confidential information relating to the dispute settlement process under relevant treaties on dispute settlement.

Article 58. Coordination contents

Responsible agencies and related agencies, organizations and individuals shall coordinate in settling disputes over the application of foreign trade management measures as follows:

1. Settling petitions, and conducting negotiations, conciliations and consultations for differences and contradictions between the Vietnamese Government and foreign governments which are related to the application of foreign trade management measures not in compliance with relevant treaties.

2. Preparing and implementing plans on settlement of disputes over the application of foreign trade management measures.

3. Providing information, dossiers, proofs and relevant documents serving the settlement of disputes over the application of foreign trade management measures.

4. Assigning capable persons of their agencies or organizations to participate in settling disputes over the application of foreign trade management measures when requested by responsible agencies.

5. Performing tasks related to the settlement of disputes over the application of foreign trade management measures in the proceedings conducted by an arbitration or a competent international authority that is established and operates on the basis of treaties on dispute settlement (below referred to as arbitration or competent international authority).

6. Performing, coordinating in, and dealing with contents related to the enforcement of awards and decisions issued by the arbitration or competent international authority, and reviewing the compliance with such awards and decisions.

Article 59. Responsible agencies

1. Agencies responsible for disputes over the application of foreign trade management measures are state agencies assigned by the Government to manage and monitor such foreign trade management measures, unless otherwise provided by treaties on dispute settlement applicable to such measures.

2. In case two or more state agencies are assigned to manage and monitor foreign trade management measures involved in a specific dispute, these agencies shall reach agreement to select one of them to act as the responsible agency, then report such to the Prime Minister and send a written notice thereof to the Ministry of Industry and Trade.

3. In case the Vietnamese Government is sued, within 3 (three) working days after receiving a consultation request, if the involved agencies cannot reach agreement on the responsible agency, they shall report such to the Prime Minister and notify the Ministry of Industry and Trade thereof.

4. When necessary, at the request of the Minister of Industry and Trade, the Prime Minister shall decide to assign or replace the responsible agency.

5. A responsible agency has the following tasks and powers:

a/ To receive and process information and documents relating to the settlement of disputes over the application of foreign trade management measures;

b/ To act as the focal point for contact and exchange with foreign governments involved in disputes and with the arbitration or competent international body;

c/ To assume the prime responsibility for, and coordinate with the focal-point agency and related agencies, organizations and individuals in, settling disputes over the application of foreign trade management measures at the arbitration or competent international body;

d/ To coordinate with the focal-point agency and related agencies, organizations and individuals in formulating plans on settlement of disputes over the application of foreign trade management measures;

dd/ To assume the prime responsibility for, and coordinate with the focal-point agency and related agencies, organizations and individuals in, appointing an arbitrator in case of formation of an arbitration to settle disputes over the application of foreign trade management measures;

e/ To assume the prime responsibility for, and coordinate with the focal-point agency in, selecting, hiring and supervising lawyer practice organizations (below referred to as lawyers) in providing counseling on the settlement of disputes over the application of foreign trade management measures;

g/ To assume the prime responsibility for, and coordinate with related agencies, organizations and individuals in, settling matters related to disputes over the application of foreign trade management measures, including the hiring of technical experts and invitation of witnesses in the dispute settlement process;

h/ To attend hearings held by the arbitration or competent international body;

i/ To report to the Prime Minister, focal-point agency and competent state agencies on matters related to disputes over the application of foreign trade management measures in accordance with this Decree and relevant regulations.

Article 60. Focal-point agency

1. The Ministry of Industry and Trade is the focal-point agency that assists the Government in participating in the settlement of disputes over the application of foreign trade management measures.

2. The focal-point agency in the settlement of disputes over the application of foreign trade management measures has the following tasks and powers:

a/ To act as the focal point in assisting the Government and Prime Minister to provide instructions on the settlement of disputes over the application of foreign trade management measures with a view to protecting lawful rights and interests of Vietnam;

b/ To coordinate with related agencies, organizations and individuals and lawyers hired under this Decree in advising the responsible agency on legal matters related to the settlement of disputes over the application of foreign trade management measures when so requested by the latter;

c/ To coordinate with the responsible agency in hiring lawyers to settle disputes over the application of specific foreign trade management measures;

d/ To coordinate with the responsible agency in appointing an arbitrator in case of formation of an arbitration to settle disputes over the application of foreign trade management measures;

dd/ To assume the prime responsibility for, and coordinate with the responsible agency and related agencies, organizations and individuals in, preparing plans on the settlement of disputes over the application of foreign trade management measures;

e/ On behalf of the Vietnamese Government, to attend hearings on disputes over the application of foreign trade management measures when necessary or at the request of the responsible agency;

g/ To assign a representative to attend the hearings held by the arbitration or competent international body;

h/ To coordinate with the responsible agency and related agencies, organizations and individuals in, enforcing awards and decisions issued by the arbitration or competent international body;

i/ To make and update the list of specialists who can act as arbitrators and list of lawyers for the Government and state agencies of Vietnam in settling disputes over the application of foreign trade management measures.

Article 61. Related agencies, organizations and individuals

1. Related agencies, organizations and individuals include state agencies and organizations and individuals involved in the settlement of disputes over the application of foreign trade management measures that are invited or requested by the responsible agency to participate in settling disputes over the application of foreign trade management measures.

2. Related agencies, organizations and individuals have the following tasks and powers:

a/ To coordinate with the responsible agency and focal-point agency in settling disputes over the application of foreign trade management measures at the latter’s request according to their professional capacity or specialized management fields;

b/ To provide adequate, prompt and accurate information, dossiers and documents and explanations about relevant contents as requested by the responsible agency and focal-point agency;

c/ To request the responsible agency to provide or add information about disputes over the application of foreign trade management measures to serve performance of their tasks.

Section 2. COORDINATION IN THE SETTLEMENT OF DISPUTES INVOLVING LAWSUITS INITIATED BY FOREIGN GOVERNMENTS

Article 62. Receipt of information and documents relating to the settlement of disputes over the application of foreign trade management measures

1. Agencies, organizations and individuals assigned to perform the state management of foreign trade shall receive information about possible lawsuits and notices from the arbitration or competent international authority or notices from foreign governments of the initiation of lawsuits against disputes over the application of foreign trade management measures at the arbitration or competent international authority, and immediately report such to their superior agencies as well as the focal-point agency.

2. If receiving information about possible lawsuits and notices from the arbitration or competent international authority or notices from foreign governments of the initiation of lawsuits against disputes over the application of foreign trade management measures at the arbitration or competent international authority, state agencies, organizations or individuals not assigned to perform the state management of foreign trade as defined in Clause 1 of this Article shall, within 3 working days after receiving such information or notices, send written notices together with all the received information to one of the following agencies:

a/ Agencies, organizations or individuals assigned to perform the state management of foreign trade as defined in Clause 1 of this Article;

b/ Their superior agencies and focal-point agency, if it is impossible to identify the agencies, organizations or individuals assigned to perform the state management of foreign trade as defined in Clause 1 of this Article.

3. Within 3 working days after receiving written notices specified in Clause 2 of this Article or written notices from other sources, the focal-point agency shall send a document together with copies of all the received notices to one of the following agencies:

a/ The responsible agency defined in Clause 1, Article 59 of this Decree;

b/ The Government Office, for submission to the Prime Minister to decide on the responsible agency under Clauses 2, 3 and 4, Article 59 of this Decree.

4. Within 5 working days after receiving the document from the focal-point agency as prescribed at Point b, Clause 3 of this Article, the Government Office shall submit to the Prime Minister for the latter to decide to appoint the responsible agency.

Within 3 working days after the Prime Minister decides to appoint the responsible agency, the Government Office shall send a notice of this decision to the responsible agency for implementation.

Article 63. Making and implementation of plans on settlement of disputes over the application of foreign trade management measures

1. The focal-point agency shall assume the prime responsibility for, and coordinate with the responsible agency, related agencies, organizations and individuals, and lawyers (if any) in, preparing plans on settlement of disputes over the application of foreign trade management measures and submit them to the Prime Minister for approval within 35 working days after receiving information about possible lawsuits as prescribed in Clause 1 or 2, Article 62 of this Decree.

2. A plan on settlement of a dispute over the application of foreign trade management measures must have the following contents:

a/ Summary of the dispute;

b/ Presentation of the proceedings for the dispute under the relevant treaty on dispute settlement; tasks to be performed for settlement of the dispute and proposed deadlines for performing such tasks according to the proceeding process;

c/ Specific tasks of the focal-point agency, responsible agency, related agencies, organizations and individuals, and lawyers (if any);

d/ Analysis of advantages and disadvantages of the Vietnamese side and foreign governments;

dd/ Proposal of options for settling the dispute, including negotiation and conciliation; and issues in need of opinions of the Prime Minister and other related competent state agencies;

e/ Estimated expenses and funding sources for settlement of the dispute.

3. The focal-point agency shall coordinate with the responsible agency, related agencies, organizations and individuals, and lawyers (if any) in, organizing the implementation of plans on settlement of disputes over the application of foreign trade management measures. When necessary and to suit reality, the focal-point agency shall coordinate with the responsible agency, related agencies, organizations and individuals, and lawyers (if any) in, modifying these plans.

4. The focal-point agency shall send plans on settlement of disputes over the application of foreign trade management measures and modifications (if any) under Clauses 2 and 3 of this Article to the Prime Minister and responsible agency.

5. The responsible agency shall notify (on a monthly or quarterly basis or depending on the complexity and development of a dispute over the application of foreign trade management measures) the focal-point agency of the implementation of plans on settlement of disputes over the application of foreign trade management measures. The focal-point agency shall monitor the implementation of these plans by the responsible agency and coordinate in promptly handling problems arising during the implementation of such plans.

6. Plans on settlement of disputes over the application of foreign trade management measures shall be preserved as confidential documents.

Article 64. Responsibilities to receive and settle consultation requests

1. The receipt and settlement of consultation requests must comply with treaties on dispute settlement.

2. State agencies and organizations and individuals assigned to perform the state management of foreign trade shall receive and settle consultation requests on application of foreign trade management measures at the proposal of foreign governments under treaties concerning the application of foreign trade management measures.

3. In case having no competence to settle consultation requests received from foreign governments as prescribed in Clause 2 of this Article, the consulted state agencies or organizations or individuals shall ask foreign governments to send their consultation requests to competent agencies and notify such to these agencies.

Article 65. Handling of cases in which consulted measures show signs of violating treaties concerning application of foreign trade management measures

1. In the course of consulting foreign governments, state agencies and organizations and individuals assigned to perform the state management of foreign trade shall immediately report on the consulted disputes to their superior agencies and focal-point agency if deeming that:

a/ The consulted measures show signs of violating law or treaties concerning the application of foreign trade management measures to foreign governments, that are likely to affect lawful rights and interests of Vietnam or foreign partners; or,

b/ It is impossible to thoroughly settle the consultation requests of foreign governments; or,

c/ A dispute concerning the application of foreign trade management measures is likely to occur.

2. State agencies and organizations and individuals assigned to perform the state management of foreign trade shall, in the course of consulting foreign governments, regularly notify the consultation situation and results to the focal-point agency and competent state agencies for coordination according to the dispute settlement process.

3. In the course of consulting foreign governments, state agencies and organizations and individuals assigned to perform the state management of foreign trade shall, if deeming it appropriate, conduct negotiation and conciliation with foreign governments under plans approved by their superior authorities after consulting the focal-point agency.

Article 66. Identification of responsibilities of agencies, organizations and individuals that have issued or applied measures running against Vietnam’s international commitments, leading to disputes over application of foreign trade management measures

The identification of responsibilities of agencies, organizations and individuals that have issued or applied measures running against Vietnam’s international commitments, leading to disputes over application of foreign trade management measures occur, must comply with Vietnam’s law.

Section 3. COORDINATION IN THE SETTLEMENT OF DISPUTES INVOLVING LAWSUITS INITIATED BY THE VIETNAMESE GOVERNMENT

Article 67. Responsibilities to propose, and participate in settling, consultation requests

1. The proposal of, and participation in settling, consultation requests must comply with treaties on dispute settlement.

2. State agencies and organizations and individuals assigned to perform the state management of foreign trade shall propose, and participate in settling, consultation requests for the application of foreign trade management measures when detecting that foreign trade management measures of foreign governments are likely to affect or infringe lawful rights and interests of Vietnam under treaties concerning the application of foreign trade management measures, or when requested by traders or trade associations.

Article 68. Handling of cases in which the consulted measures show signs of violating commitments of treaties concerning application of foreign trade management measures

1. In the course of consulting foreign governments, state agencies and organizations and individuals assigned to perform the state management of foreign trade shall immediately report on the consulted disputes to their superior agencies and notify such to the focal-point agency if deeming that:

a/ The consulted measures show signs of violating foreign commitments toward Vietnam under treaties concerning the application of such foreign trade management measures, that are likely to affect lawful rights and interests of Vietnam; or;

b/ It is impossible to thoroughly settle the consultation requests of the Vietnamese Government; or,

c/ A dispute concerning the application of foreign trade management measures is likely to occur.

2. Within 3 working days after receiving a written notice prescribed in Clause 1 of this Article or a written notice from another source, the focal-point agency shall send a document together with copies of all the received dossiers, to one of the following agencies:

a/ The responsible agency defined in Clause 1, Article 59 of this Decree;

b/ The Government Office, for submission to the Prime Minister for the latter to decide to appoint the responsible agency under Clauses 2, 3 and 4, Article 59 of this Decree.

3. Within 5 working days after receiving the document from the focal-point agency as prescribed at Point b, Clause 2 of this Article, the Government Office shall propose the Prime Minister to decide to appoint the responsible agency.

Within 3 working days after the Prime Minister issues a decision to appoint the responsible agency, the Government Office shall notify this decision to the responsible agency for implementation.

4. State agencies and organizations and individuals assigned to perform the state management of foreign trade shall, in the course of consulting foreign governments, regularly notify the consultation situation and results to the focal-point agency and competent state agencies for coordination according to the dispute settlement process.

5. In the course of consulting foreign governments, state agencies and organizations and individuals assigned to perform the state management of foreign trade shall, if deeming it appropriate, conduct negotiation and conciliation with foreign governments under plans approved by their superior authorities after consulting the focal-point agency.

Article 69. Making and implementation of plans on settlement of disputes over the application of foreign trade management measures

1. The focal-point agency shall assume the prime responsibility for, and coordinate with the responsible agency, related agencies, organizations and individuals, and lawyers (if any) in, preparing plans on settlement of disputes over the application of foreign trade management measures and submit them to the Prime Minister for approval within 20 working days after the consultation process is completed under Article 67 of this Decree.

2. The preparation modification and implementation of plans on settlement of disputes over the application of foreign trade management measures must comply with Clauses 2 thru 5, Article 63 of this Decree.

3. Plans on settlement of disputes over the application of foreign trade management measures shall be preserved as confidential documents.

Chapter VIII. ORGANIZATION OF IMPLEMENTATION AND IMPLEMENTATION PROVISIONS

Article 70. Organization of implementation

1. Pursuant to this Decree, ministries and ministerial-level agencies shall promulgate, or submit to competent authorities for promulgation, documents detailing and guiding the implementation of this Decree.

2. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with other ministries, ministerial-level agencies and provincial-level People’s Committees in, inspecting the implementation of this Decree; detect provisions (if any) of legal documents promulgated by ministries or ministerial-level agencies which are contrary to this Decree and notify them to such ministries and agencies for amendment, or submit to competent authorities for promulgation regulations guiding the implementation of this Decree.

3. The Ministry of Finance shall direct the customs sector to make plans on provision of periodical and unscheduled data on enterprises engaged in export, import or temporary import for re-export business; business types; and export and import turnovers by commodity and market to the Ministry of Industry and Trade and related ministries and ministerial-level agencies engaged in management and administration of export, import and temporary import for re-export activities.

Article 71. Responsibilities of traders engaged in foreign trade activities

1. To take responsibility before law for the accuracy and truthfulness of information, documents and dossiers submitted or presented to competent agencies.

2. To comply with regulations and fully perform their responsibilities and obligations prescribed by the Law on Foreign Trade Management, Commercial Law, this Decree, and relevant laws.

3. To work with, and provide dossiers and documents at the request of, licensing agencies and related agencies when these agencies inspect the implementation of regulations on foreign trade activities.

Article 72. Transitional provisions

1. The Prime Minister’s decisions regulating the export and import of goods banned from export or import, which are promulgated before the effective date of this Decree will continue to be complied with.

2. Permits granted by ministries or ministerial-level agencies to traders under the Government’s Decree No. 187/2013/ND-CP of November 20, 2013, detailing the Commercial Law regarding international goods purchase and sale and goods purchase and sale, processing and transit agency with foreign partners, and guiding documents before the date this Decree takes effect will remain valid until their expiry dates.

3. Decisions promulgated before the effective date of this Decree by the People’s Committees of border provinces on announcement of secondary border gates and border crossings eligible for goods re-export and selection of traders eligible to re-export goods shall be complied with until they cease to be effective.

4. Certificates of codes for temporary import for re-export business granted by the Ministry of Industry and Trade to enterprises before the effective date of this Decree will remain valid until their expiry dates.

5. The import of goods banned from import for scientific research, processing, re-processing or repair must still comply with the Government’s Decree No. 187/2013/ND-CP through December 31, 2018.

6. The import of used machinery, equipment and technological lines must continue to comply with current regulations of the Ministry of Science and Technology through December 31, 2018.

7. Legal documents promulgated by ministries or ministerial-level agencies guiding the implementation of the Government’s Decree No. 187/2013/ND-CP of November 20, 2013, will continue to be complied with through December 31, 2018.

Article 73. Implementation provisions

1. This Decree takes effect on the date of its signing.

2. This Decree annuls:

a/ The Government’s Decree No. 187/2013/ND-CP of November 20, 2013, detailing the Commercial Law regarding international goods purchase and sale and goods purchase and sale, processing and transit agency with foreign partners;

b/ Articles 2 thru 7 of the Government’s Decree No. 77/2016/ND-CP of July 1, 2016, amending and supplementing a number of provisions on investment and business conditions in the fields of international goods purchase and sale, chemicals, industrial explosives, fertilizers, gas trading, and food trading within the scope of state management by the Ministry of Industry and Trade;

c/ The Prime Minister’s Decision No. 10/2010/QD-TTg of February 10, 2010, on certificates of free sale for exported and imported products and goods.

 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall guide the implementation of and implement this Decree.

* The appendices to this Decree are not translated.