Circular No. 04/2014/TT-BCT of the Ministry of Industry and Trade detailing the implementation of the Decree No. 187/2013/ND-CP dated November 20, 2013 of the Government detailing the implementation of the Commercial Law regarding international goods sale and purchase and goods sale, purchase, processing and transit agency activities with foreign countries

CIRCULAR

Detailing a number of articles of the Government’s Decree No. 187/2013/ND-CP of November 20, 2013, detailing the implementation of the Commercial Law regarding international goods sale and purchase and goods sale, purchase, processing and transit agency activities with foreign countries[1]

Pursuant to the Government’s Decree No. 95/2012/ND-CP of November 12, 2012, defining functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

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

Pursuant to the Prime Minister’s Decision No. 41/2005/QD-TTg of March 2, 2005, promulgating the Regulation on goods import licensing;

At the proposal of the director of Import and Export Department,

The Minister of Industry and Trade promulgates the Circular detailing a number of articles of the Government’s Decree No. 187/2013/ND-CP of November 20, 2013, detailing the implementation of the Commercial Law regarding international goods sale and purchase and goods sale, purchase, processing and transit agency activities with foreign countries.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Circular details a number of articles of Decree No. 187/2013/ND-CP regarding goods export, import, processing and transit activities.

2. This Circular applies to Vietnamese traders, and other organizations and individuals engaged in trade-related activities prescribed in the Commercial Law.

Article 2. The right to conduct import and export business

1. Vietnamese traders having no foreign direct investment capital (below referred to as traders) include:

a/ Enterprises established under the Enterprise Law, Law on Cooperatives and Investment Law;

b/ Individual business households established and registering their business under the Government’s Decree No. 43/2010/ND-CP of April 15, 2010, on enterprise registration, may export, import and process goods or act as goods purchase or sale agents in accordance with law and within the scope of Decree No. 187/2013/ND-CP, regardless of their commodity and business lines stated in the business registration certificates/enterprise registration certificates.

2. Foreign-invested Vietnamese traders may conduct goods import, export or processing activities under the Government’s Decree No. 108/2006/ND-CP of September 22, 2006, detailing and guiding a number of articles of the Investment Law, Decree No. 23/2007/ND-CP of February 12, 2007, detailing the Commercial Law regarding goods purchase and sale activities or goods purchase and sale- related activities of foreign-invested enterprises in Vietnam, guiding documents of these Decrees, and roadmaps for their implementation announced by the Ministry of Industry and Trade and other related legal documents.

Chapter II

MANAGEMENT OF GOODS IMPORT
AND EXPORT

Article 3. Goods banned from import and export

1. Goods banned from import and export shall comply with announcements of ministries and ministerial-level agencies guiding the list of goods banned from import and export specified in Appendix I to Decree No. 187/2013/ND-CP and other relevant legal documents.

2. The Ministry of Industry and Trade promulgates the list of used goods banned from import and export in Appendix I to this Circular.

3. In case of importing goods on the list of goods banned from import for scientific research and humanitarian aid as prescribed in Clause 3, Article 5 of Decree No. 187/2013/ND-CP; the dossier and procedures shall be carried out as follows:

a/ For goods imported for scientific research: Organizations with the scientific research function and traders wishing to import such goods for product research and development (below referred to as organizations) shall send 1 (one) set of dossier by post to the Ministry of Industry and Trade (the Import and Export Department), address: No. 54, Hai Ba Trung street, Hoan Kiem district, Hanoi. Such dossier comprises:

- An establishment decision, investment certificate, business registration certificate or enterprise registration certificate: 1 (one) copy, certified and bearing the true-copy mark of the organization.

- Application for import of the organization specifically stating the name, HS code, quantity and use purpose of each goods item, and the certification of and guarantee for the truthfulness of such information: 1 (one) original.

- A report on the implementation of the license already granted (except for the first-time import): 1 (one) original.

Within 7 (seven) working days from the date of receiving a complete and valid dossier, the Ministry of Industry and Trade shall grant an import permit to an organization. In case of refusal, it shall reply in writing, clearly stating the reason.

b/ For goods for use as humanitarian aid: The Ministry of Industry and Trade shall consider and handle them based on the written request of the competent agency clearly stating the name, HS code, quantity and use purpose of each goods item, and guarantee the truthfulness of such information.

Within 7 (seven) working days from the date of receiving a complete and valid dossier, the Ministry of Industry and Trade shall reply in writing. In case of refusal, it shall reply in writing, clearly stating the reason.

Article 4. Import of goods affecting security and national defense

1. The Ministry of Industry and Trade shall promulgate the list of goods affecting security and national defense specified in Appendix II to this Circular.

2. Traders importing goods on the list specified in Clause 1 of this Article shall send their application dossiers by post to the Ministry of Industry and Trade (the Import and Export Department), each comprising:

a/ Investment certificate, business registration certificate or enterprise registration certificate: 1 (one) copy, certified and bearing the true-copy mark by the trader.

b/ Application for import permit of the trader clearly stating the name, HS code, quantity and value of each goods item: 1 (one) original.

c/ A written approval of the Ministry of Public Security or the Ministry of National Defense for the import of the goods shipment: 1 (one) original.

Within 7 (seven) working days from the date of receiving an application dossier, the Ministry of Industry and Trade shall grant an import permit to a trader. In case of refusal, it shall reply in writing, clearly stating the reason.

3. In case of importing goods on the list specified in Clause 1 of this Article serving security and national defense purposes, the importation shall comply with regulations of the Ministry of Public Security and the Ministry of National Defense.

Article 5. Import of goods under tariff quotas

1. The list of goods imported under tariff quotas

^(*) Note: Poultry eggs imported under tariff quotas exclude fertilized eggs for incubation with HS codes of 04071100, 04071910 and 04071990.

2. Decision on and announcement of tariff quotas

a/ The Ministry of Agriculture and Rural Development shall decide on the tariff quotas for import of salt eggs, poultry eggs, and refined and crude sugar.

b/ The Ministry of Industry and Trade shall decide on the tariff quotas for import of material tobacco;

c/ Based on the relevant international commitments, the annually decided tariff quotas and domestic supply and demand, the Ministry of Industry and Trade shall officially announce the annual tariff quotas of goods on the list of goods imported under tariff quotas, and specify methods of management of import of each goods item after consulting the Ministry of Finance and related line ministries.

3. Principles of the tariff quota regime

a/ To apply import permits to enjoy import duty rates within tariff quotas for goods on the list of goods imported under such tariff quotas;

b/ Those on the list of goods subject to import tariff quotas without permits of the Ministry of Industry and Trade are eligible for duty rates beyond the tariff quotas. Particularly, material tobacco imported beyond the tariff quotas for production of cigarettes shall comply with the Ministry of Industry and Trade’s guidance.

c/ Quantity, volume and value of goods on the list of goods subject to import tariff quotas for export production or processing shall not be included in annual tariff quotas announced by the Ministry of Industry and Trade.  

4. Subjects eligible for grant of import permits under tariff quotas

The Ministry of Industry and Trade shall grant import permits to traders eligible for import of goods on the list of goods subject to tariff quotas, specifically:

a/ Salt: Traders that need to use salt in their production as certified by specialized management agencies;

b/ Material tobacco: Traders that have cigarette production permits granted by the Ministry of Industry and Trade and need to use a certain percentage of imported material tobacco certified by the Ministry of Industry and Trade for production of cigarettes;

Goods line corporations that act as focal units receiving quotas for their member companies.

c/ Poultry eggs: Traders that have a business registration certificate/enterprise registration certificate and need to import this goods item;

d/ Refined sugar, crude sugar: To comply with annual guidance of the Ministry of Industry and Trade after consulting related ministries and sectors.

5. Procedures for grant of import permits under tariff quotas

a/ The Ministry of Industry and Trade shall consider to grant import permits under tariff quotas based on annual tariff quotas decided by line ministries, the previous year’s importation and traders’ registration.

Traders that wish to register import tariff quotas shall send application dossiers to the Ministry of Industry and Trade (the Department of Import and Export). A dossier comprises:

- An application for import tariff quota registration (made according to a form in Appendix III to this Circular).

- Business registration certificate and tax identification number registration certificate (or enterprise registration certificate): 1 (one) copy certified and bearing the true-copy mark of the traders according to regulations.

b/ The time limit for consideration and assignment of tariff quotas to traders shall be agreed upon by the Ministry of Industry and Trade and related ministries and sectors.

The time limit for grant of an import permit under tariff quotas to a trader is 10 (ten) working days counted from the above-said time of quota assignment by ministries and sectors.

In case of refusal, the Ministry of Industry and Trade shall reply traders in writing, clearly stating the reason.

c/ Import permits under tariff quotas or written replies of the Ministry of Industry and Trade shall be sent to traders by post at the addresses stated in traders’ applications for import tariff quota registration;

d/ Traders shall produce the Ministry of Industry and Trade’s import permits under tariff quotas to border-gate Customs Branches upon carrying out import procedures. Import goods quantities stated in these permits are eligible for the import duty rate within tariff quotas;

dd/ Traders shall report quarterly or irregularly on the importation as required by the Ministry of Industry and Trade (the Department of Import and Export) according to a form specified in Appendix IV to this Circular;

Before September 30 every year, traders shall send reports (in replacement of reports of the third quarter) to the Ministry of Industry and Trade for evaluation of the importability of the whole year, requesting an increase or decrease in the assigned import quotas or reporting on quantity of unimportable goods in order to assign them to other traders.

Article 6. Import of automobiles of all kinds

1. To be imported, used automobiles of all kinds (including automobiles for transport of passengers, automobiles for transport of cargoes, automobiles for transport of both passengers and cargoes, and special-use automobiles) must ensure the condition that they have been used for no more than 5 (five) years, counting from the year of manufacture to the year of importation (for example, in 2014, only automobiles manufactured in 2009 onwards may be imported). Other relevant regulations shall comply with guidance of line ministries.

Particularly, the import of under 16-seat passenger automobiles shall comply with the Ministry of Trade, Ministry of Transport, Ministry of Finance and Ministry of Public Security’s Joint Circular No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA of March 31, 2006, guiding the import of used under 16-seat passenger automobiles and the Minister of Industry and Trade’s Circular No. 19/2009/TT-BCT of July 7, 2009, amending and supplementing Joint Circular No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA.

2. To ban the import of right-hand drive vehicles, including those in knocked-down forms and those with converted drive before being imported into Vietnam, excluding special-use right-hand drive vehicles operating within narrow spaces, including: crane trucks; canal diggers, street sweepers, street washers; garbage trucks; road builders; passenger cars in airports and lifting trucks in warehouses and ports; concrete-pumping vehicles; vehicles moving only within golf courses or parks.

3. To ban the import of automobiles of all kinds and their parts which have been transformed in structure compared with their original designs or have their frame or engine numbers modified or tampered with in all cases and in all forms.

4. To prohibit the knocking down of automobiles upon transportation and import.

5. To ban the import of used ambulances.

Article 7. Import, export and temporary import for re-export of ozone layer-depleting substances

The import, export and temporary import for re-export of ozone layer-depleting substances comply with the Ministry of Industry and Trade and Ministry of Natural Resources and Environment’s Joint Circular No. 47/2011/TTLT-BCT-BTNMT of December 30, 2011, on the management of import, export and temporary import for re-export of ozone layer-depleting substances under the Montreal Protocol on Substances that Deplete the Ozone Layer.

Article 8. Import of cigarettes and cigars

1. The import of cigarettes and cigars for domestic consumption must comply with the Minister of Industry and Trade’s Circular No. 37/2013/TT-BCT of December 30, 2013, on the import of cigarettes and cigars.

2. The import of cigarettes and cigars for sale at duty-free shops must comply with the Minister of Industry and Trade’s Circular No. 02/2010/TT-BCT of January 14, 2010, on the import of cigarettes for duty-free sale, and Circular No. 10/2011/TT-BCT of March 30, 2011, amending, supplementing and annulling a number of provisions on administrative procedures in the field of import and export under the Government’s Resolution No. 59/NQ-CP of December 17, 2010, on simplification of administrative procedures under the Ministry of Industry and Trade’s management.

Chapter III

PROCESSING AND TRANSIT OF GOODS

Article 9.  Goods processing involving foreign elements

Goods processing involving foreign elements must comply with Chapter VI of Decree No. 187/2013/ND-CP and the following specific guidance:

1. For goods imported under test permits and under designation of importers by line ministries and ministerial-level agencies provided in Appendix II to Decree No. 187/2013/ND-CP, traders may conduct export processing for foreign parties.

2. For goods on the lists of goods subject to conditional trading of line ministries and ministerial-level agencies, only traders fully meeting the conditions under specialized regulations on production and trading of these goods items may conduct export processing for foreign parties.

3. For goods imported or exported under permits, traders may sign contracts on processing for foreign traders only after obtaining permits of the Ministry of Industry and Trade.

Traders shall send by post their applications for permits for goods processing, specifying the contents provided in Article 29 of Decree No. 187/2013/ND-CP, and certification by line ministries, to the Ministry of Industry and Trade (the Department of Import and Export).

The Ministry of Industry and Trade shall consider and grant a permit within 10 (ten) working days after receiving an application of a trader and opinions of the line ministry. In case of refusal to grant a permit, the Ministry of Industry and Trade shall reply in writing, clearly stating the reason.

The permit or reply of the Ministry of Industry and Trade must be sent by post to the address stated in the application of the trader.

Article 10. Transit of goods through the Vietnamese territory

1. The transit of goods through the Vietnamese territory must comply with Chapter VII of Decree No. 187/2013/ND-CP.

2. The transit of goods of the People’s Republic of China, the People’s Democratic of Laos and the Kingdom of Cambodia must comply with the following documents:

a/ The Minister of Trade’s Decision No. 0305/2001/QD-BTM of March 26, 2001, promulgating the Regulation on transit of goods of the People’s Republic of China through the territory of the Socialist Republic of Vietnam;

b/ The Minister of Industry and Trade’s Circular No. 22/2009/TT-BCT of August 4, 2009, on transit of goods of the People’s Democratic of Laos through the territory of the Socialist Republic of Vietnam;

c/ The Minister of Industry and Trade’s Circular No. 08/2009/TT-BCT of May 11, 2009, on transit of goods of the Kingdom of Cambodia through the territory of the Socialist Republic of Vietnam.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 11. Transitional provision

Import and export permits granted before the effective dates of Decree No. 187/2013/ND-CP and this Circular may be further implemented according to the validity duration stated in these permits or their extensions granted by competent agencies.

Article 12. Effect

1. This Circular takes effect on February 20, 2014, and annuls the following documents:

a/ The Minister of Trade’s Circular No. 04/2006/TT-BTM of April 6, 2006, guiding a number of provisions of the Government’s Decree No. 12/2006/ND-CP of January 23, 2006, detailing the Commercial Law regarding international goods sale and purchase and good sale, purchase, processing and transit agency activities with foreign countries;

b/ Clauses 1 and 2, Article 1 and Appendices I and II to the Minister of Trade’s Circular No. 10/2011/TT-BCT of March 30, 2011, amending, supplementing and annulling a number of provisions on administrative procedures in import and export under the Government’s Resolution No. 59/NQ-CP of December 17, 2010, on simplification of administrative procedures under the Ministry of Industry and Trade’s management.

2. Any problem arising in the course of implementation should be reported to the Ministry of Industry and Trade for settlement.-

For the Minister of Industry and Trade
Deputy Minister
TRAN TUAN ANH

* All the appendices to this Circular are not translated.