Circular 02/2020/TT-NHNN guiding payment concerning border-gate transfer of goods

CIRCULAR

Guiding payment and money transfer activities concerning border-gate transfer of goods^[1]

Pursuant to the June 16, 2010 Law on the State Bank of Vietnam;

Pursuant to the June 16, 2010 Law on Credit Institutions and the November 20, 2017 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;

Pursuant to the December 13, 2005 Ordinance on Foreign Exchange and the March 18, 2013 Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 70/2014/ND-CP of July 17, 2014, detailing a number of articles of the Ordinance on Foreign Exchange and the Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government’s Decree No. 16/2017/ND-CP of February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 69/2018/ND-CP of May 15, 2018, detailing a number of articles of the Law on Foreign Trade Management;

At the proposal of the Director General of the Foreign Exchange Management Department;

The Governor of the State Bank of Vietnam promulgates the Circular guiding payment and money transfer activities concerning border-gate transfer of goods.

Article 1.Scope of regulation

This Circular prescribes payment and money transfer activities concerning current transactions being border-gate transfer of goods of Vietnamese traders.

Article 2.Subjects of application

1. Banks and foreign bank branches licensed for foreign exchange trading and providing foreign exchange services (below referred to as licensed banks).

2. Vietnamese traders engaged in border-gate transfer of goods (except foreign-invested economic organizations) (below referred to as traders).

3. Other agencies, organizations and individuals involved in payment and money transfer activities for transactions concerning border-gate transfer of goods.

Article 3.Principles of payment and money transfer concerning border-gate transfer of goods

1. Payment and money transfer activities concerning border-gate transfer of goods shall be conducted on the basis of 2 separate payment and money transfer transactions: the transaction of transferring money to pay for the goods purchase contract and the transaction of receiving money from the goods sale contract. The money transfer transaction may be conducted before or after the money receipt transaction.

2. All payment and money transfer activities concerning border-gate transfer of goods shall be conducted via licensed banks.

3. A trader may only make payment and transfer money for a border-gate transfer transaction under the goods purchase contract and the contract on sale of such goods at a single licensed bank.

4. Traders may use foreign currencies in their foreign-currency payment accounts and foreign currencies bought from licensed banks for transferring abroad to pay for goods purchase contracts.

Article 4.Responsibilities of licensed banks

1. To formulate their internal regulations with specific provisions on concurrent examination of the goods purchase contract and goods sale contract of each single border-gate transfer transaction when effecting money transfer abroad, supervision of foreign-currency inflows and outflows in transactions of border-gate transfer of goods by making statistics of and monitoring figures of money transferred and received in a single border-gate transfer transaction.

2. When selling foreign currencies and effecting payment and money transfer transactions concerning border-gate transfer of goods for customers, to consider, examine and retain papers and documents of practical transactions so as to ensure that foreign exchange services are provided for proper purposes in conformity with this Circular and relevant laws.

3. To strictly implement and guide customers to implement this Circular.

Article 5.Responsibilities of traders

1. To produce documents as prescribed by licensed banks when buying foreign currencies, making payment and transferring money serving border-gate transfer of goods and be held responsible before law for the accuracy and truthfulness of the produced papers and documents.

2. To provide licensed banks with information about the sources of money received from goods sale contracts for the latter to make statistics of and monitoring figures of money transferred and received in a single border-gate transfer transaction and be held responsible before law for the accuracy and truthfulness of the provided information.

3. To strictly comply with this Circular and other relevant laws.

4. To refrain from using the set of documents of a single border-gate transfer transaction to buy foreign currencies and making payment and money transactions at more than one licensed bank.

Article 6.Effect

1. This Circular takes effect on May 15, 2020.

2. For goods border-gate transfer transactions for which goods purchase contracts and goods sale contracts have been signed before the effective date of this Circular, traders may continue making payment and transfer money under the signed contracts.

The making of payment and money transfer for goods purchase contracts and goods sale contracts for border-gate transfer transactions which are revised or renewed after the effective date of this Circular must comply with this Circular.

Article 7.Organization of implementation

The Chief of the Office, Director General of the Foreign Exchange Management Department, and heads of related units of the State Bank of Vietnam, directors of the State Bank’s provincial-level branches, chairpersons of the Boards of Directors or Members’ Councils and directors general (directors) of licensed banks shall implement this Circular.-

For the Governor of the State Bank of Vietnam
Deputy Governor
NGUYEN THI HONG