Circular No. 06/2001/TT-BTM dated March 12, 2001 of the Ministry of Trade guiding the debt repayment to the Russian Federation in goods and services

CIRCULAR

GUIDING THE DEBT REPAYMENT TO THE RUSSIAN FEDERATION IN GOODS AND SERVICES

Pursuant to the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Russian Federation on handling the previously granted credit debts owed by the Socialist Republic of Vietnam to the Russian Federation and the Protocol between the Government of the Socialist Republic of Vietnam and the Government of the Russian Federation on modes of debt repayment to the Russian Federation by the Socialist Republic of Vietnam signed on September 13, 2000;

Pursuant to the Governments Decree No. 40/CP of July 3, 1995 on the repayment of foreign debts with goods and services exported for foreign currencies;

In furtherance of the Prime Ministers directing opinions in Official Dispatch No. 1019/CP-QHQT of November 9, 2000 on the mechanism of debt repayment in goods to the Russian Federation;

The Ministry of Trade hereby guides enterprises in the exportation of goods and service for debt repayment to the Russian Federation as follows:

1. Russian organizations authorized to receive debts may:

- Select their partners, goods items and types of services in accordance with current legislation of Vietnam;

- Export such goods to the third country and entrust the Vietnamese enterprises to export the goods based on the written agreement reached between the two parties to the signed contracts.

2. Vietnamese enterprises of all economic sectors, which have their business registration certificates in conformity with the current regulations on import/export, may export goods and provide services for debt repayment to the Russian Federation through the signing of contracts with Russian organizations authorized to receive debts within the debt repayment level and duration for each year, agreed upon by the two Governments.

3. The Vietnamese enterprises, which export goods and/or services for debt repayment may enjoy export encouragement regimes like other enterprises according to current legislation of Vietnam.

4. Contracts on the export of goods and/or services for debt repayment signed between Vietnamese enterprises and Russian organizations authorized to receive debts must ensure legal conditions and be compatible with the Vietnamese and Russian law as well as international trade practices.

5. In the contracts, there must be a clause stipulating that the exportation of goods and services aims to repay debts owed by Vietnam to the Russian Federation according to the Agreement and Protocol signed on September 13, 2000.

6. Goods under the contracts must be goods made in Vietnam and have certificates of Vietnamese origin.

7. The prices of goods and services exported for debt repayment shall be calculated in US dollar at current world prices.

8. The payment for goods and services under debt repayment contracts shall be effected on the basis of irrevocable letter of credit opened by the Soviet Union External Economic Bank via the Bank for Foreign Trade of Vietnam, and shall comply with the provisions in the uniform principles and practices on documentary credit No. 500-UCP 500.

9. The value of goods and services for debt repayment inscribed in the contracts shall not exceed the level prescribed for each Russian organization authorized to receive debts (for cases where one Russian organization authorized to receive debts signs contracts with several Vietnamese enterprises, the total value of all contracts must not exceed the level prescribed for such organization).

10. After signing contracts with Russian organizations authorized to receive debts, the Vietnamese enterprises shall have to send to the Ministry of Trade 01 valid copy of the contracts.

11. Enterprises exporting goods and services for debt repayment shall have to deliver goods with quantity, quality and technical standards strictly according to the signed contracts.

12. Enterprises exporting goods and services for debt repayment to the Russian Federation shall have to comply with Vietnams current regulations on import/export, the provisions of Circular No. 10/2001/TC-TT-BTC of January 31, 2001 of the Ministry of Finance guiding the mechanism of payment for goods and services exported for debt repayment to the Russian Federation, the Agreement between the Bank for Foreign Trade of Vietnam and the Soviet Union External Economic Bank signed on January 12, 2001, and this Circular.

13. Enterprises shall have to bear full responsibility for the performance of signed contracts on the exportation of goods and services for debt repayment and settle all arising disputes relating to the performance of such contracts with Russian organizations authorized to receive debts.

14. Annually, the Ministry of Trade shall provide the Russian Federation with information on the Vietnamese enterprises, goods items and services for debt repayment, and create favorable conditions for them to select goods and services.

15. In the course of implementation, if any problems relating to the debt repayment arise, enterprises are requested to timely report them in writing to the Ministry of Trade, the Ministry of Finance and the Bank for Foreign Trade for coordinated settlement.

16. This Circular takes effect 15 days after its signing.