Circular No. 20/2001/TT-BTM dated August 17, 2001 of the Ministry of Trade guiding the implementation of the Government’s Decree No. 44/2001/ND-CP of August 2, 2001 which amends and supplements a number of Articles of the Government’s Decree No. 57/1998/ND-CP of July 31, 1998 detailing the implementation of the commercial law regarding activities of goods export, import, processing and sale/purchase agency with foreign countries

CIRCULAR

GUIDING THE IMPLEMENTATION OF THE GOVERNMENT’S DECREE No. 44/2001/ND-CP OF AUGUST 2, 2001 WHICH AMENDS AND SUPPLEMENTS A NUMBER OF ARTICLES OF THE GOVERNMENT’S DECREE No. 57/1998/ND-CP OF JULY 31, 1998 DETAILING THE IMPLEMENTATION OF THE COMMERCIAL LAW REGARDING ACTIVITIES OF GOODS EXPORT, IMPORT, PROCESSING AND SALE/PURCHASE AGENCY WITH FOREIGN COUNTRIES

Pursuant to the Government’s Decree No. 44/2001/ND-CP of August 2, 2001 amending and supplementing a number of articles of the Government’s Decree No. 57/1998/ND-CP of July 31, 1998 which details the implementation of the Commercial Law regarding activities of goods export, import, processing and sale/purchase agency with foreign countries,

The Ministry of Trade hereby guides in detail a number of points for the implementation of Decree No. 44/2001/ND-CP as follows:

I. EXPORT AND IMPORT BUSINESS

1. For Vietnamese traders

1.1. Vietnamese traders mentioned in this Circular mean:

+ Enterprises, being established and having registered their business according to the Enterprises Law, the Law on State Enterprises and the Cooperatives Law;

+ Individual business households, being organized and having registered their business according to the Government’s Decree No. 02/2000/ND-CP of February 3, 2000 on business registration.

1.2. Vietnamese traders may export, entrust the export of, or undertake entrusted export of, goods of all kinds, regardless of the business lines and/or commodity lines stated in their business registration certificates, except goods on the list of those banned from export and goods prescribed in Item 1.3 below; import, entrust the import of, or undertake entrusted import of, goods according to the business lines and/or commodity lines stated in their business registration certificates.

1.3. For goods which are on the list of goods and commercial services restricted from business; or on the list of goods and commercial services subject to conditional business, traders must fully abide by the current law provisions on trading in such goods before conducting export and/or import or undertaking entrusted export and/or import thereof.

1.4. Traders’ branches may export and/or import goods according to traders’ authorization.

1.5. The export and import by foreign-invested enterprises shall comply with the Trade Ministry’s Circular No. 22/2000/TT-BTM of December 15, 2000 guiding the implementation of the Government’s Decree No. 24/2000/ND-CP of July 31, 2000 which details the implementation of the Law on Foreign Investment in Vietnam regarding export and import and other commercial activities of foreign-invested enterprises, and relevant legal documents.

2. For foreign traders’ Vietnam-based branches

Vietnam-based branches of foreign traders shall export and import goods according to the provisions of the Government’s Decree No. 45/2000/ND-CP of September 6, 2000 providing for Vietnam-based representative offices and branches of foreign traders and foreign tourist enterprises, Joint-Circular No. 20/2000/TTLT-BTM-TCDL of October 20,2000 of the Trade Ministry and the General Department of Tourism guiding the implementation of Decree No. 45/2000/ND-CP of September 6, 2000 and other relevant legal documents.

3. Registration of export/import business codes: Before conducting export/import business activities, the business subjects prescribed at Points 1 and 2, Part I of this Circular must register the export/import business codes at the provincial/municipal Customs Departments.

II. ON-THE-SPOT EXPORT/IMPORT OF PROCESSED GOODS AND LIQUIDATION OF PROCESSING CONTRACTS WITH FOREIGN TRADERS

1. Conditions and procedures for the on-the-spot export/import of processed goods

1.1. Both Vietnamese traders and foreign-invested enterprises (called FDI enterprises for short) may export on the spot processed products; leased or lent machinery and equipment; raw materials and auxiliary materials; redundant supplies; faulty products and discarded materials (called processed goods for short) to Vietnamese traders or other FDI enterprises that have the demand for the import thereof.

1.2. Two following separate contracts shall serve as legal grounds for the on-the-spot export/import of processed goods:

- The processing contract or contract appendix, signed between Vietnamese traders or FDI enterprises and processing-ordering foreign traders, which clearly states the names and addresses for goods delivery of Vietnamese traders or FDI enterprises that import on the spot processed goods under the ownership of the processing-ordering parties.

- The foreign trade contract signed between processing-ordering foreign traders and Vietnamese traders or FDI enterprises that import on the spot the processed goods.

1.3. Conditions for the on-the-spot export/import of processed goods:

- Processed goods are not on the list of goods banned from import;

- For goods imported under permits, traders must apply for the import permits from the competent agencies before signing contracts;

- Import goods on the list of goods subject to specialized management must meet the conditions on the import of goods subject to specialized management;

- Used goods after processing; discarded materials and faulty products imported on the spot must comply with the regulations of the Ministry of Science, Technology and Environment regarding the used import goods.

1.4. Procedures for the on-the-spot export/import of processed goods:

- Vietnamese traders or FDI enterprises authorized with the on-the-spot export of processed goods must carry out the procedures for the export of goods lots in strict accordance with the provisions of the customs offices and the procedures for contract liquidation with the customs offices that undertake the processing contract registration.

- Vietnamese traders or FDI enterprises conducting the on-the-spot import of processed goods must carry out the import procedures according to the provisions of the customs offices, pay import tax and fulfill other financial obligations (if any) as prescribed by law.

2. Liquidation of processing contracts

After completing part or the whole of a processing contract, the processed goods shall be dealt with as agreed upon by the contracting parties in compliance with law provisions. The procedures for the on-the-spot export/import, re-export, sale/purchase, donation, presentation, destruction or transfer thereof for the performance of other processing contracts shall be carried out at the customs offices. Sale/purchase, donation, presentation or destruction of the processed goods which are on the list of goods banned from import or the list of goods imported under permits must be approved in writing by the Trade Ministry.

III. THIS CIRCULAR TAKES EFFECT AS FROM SEPTEMBER 4, 2001. TO ANNUL THE PREVIOUS STIPULATIONS WHICH ARE CONTRARY TO THE PROVISIONS OF THIS CIRCULAR.