Decree 122/2024/ND-CP amend Decree 14/2018/ND-CP prescribing in detail border trade activities

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018, providing in detail border trade activities^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

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

At the proposal of the Minister of Industry and Trade;

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018, providing in detail border trade activities.

Article 1. To amend and supplement a number of articles of the Government’s Decree No. 14/2018/ND-CP of January 23, 2018, providing in detail border trade activities

1. To amend and supplement Clause 3, Article 3 as follows:

“3. Border inhabitants regulated by this Decree include Vietnamese citizens that have places of permanent residence in communes, wards, townships or equivalent administrative areas with part of administrative boundaries coinciding with the national land borderline.”

2. To amend and supplement Clause 2, Article 4 as follows:

“2. Methods of payment

a/ Payment via bank; or,

b/ Clearing between exported goods and services and imported ones (with the difference paid via bank); or,

c/ Payment in cash, which is only applied for goods trading and exchange by border inhabitants.”

3. To add Article 4a below Article 4 as follows:

“Article 4a. Standards of goods in border trade activities

Goods in cross-border goods trading and exchange by traders and border inhabitants must fully meet the standard, quality, traceability regulations and other conditions prescribed by the laws of importing countries.”

4. To amend and supplement Clauses 1 and 2, Article 16 as follows:

1. Traders and citizens bearing Vietnamese citizenship and having registered for residence in border regions.

2. Traders and citizens bearing citizenships of bordering countries and having passports or valuable papers that are passport substitutes and visas, except cases eligible for visa waiver, and remain valid under treaties to which the Socialist Republic of Vietnam is a contracting party, and Law No. 47/2014/QH13 on Foreigners’ Entry into, Exit from, Transit through, and Residence in Vietnam, which had a number of articles amended and supplemented under Law No. 51/2019/QH14 and Law No. 23/2023/QH15; and traders, business households and individuals that have business registration certificates granted under the laws of bordering countries.”

5. To amend and supplement Clauses 1 and 3, Article 21 as follows:

a/ To amend and supplement Clause 1 as follows:

“1. Goods owners or persons authorized by goods owners, vehicle owners, cargo transport vehicle drivers and workers on board vehicles or vessels who are Vietnamese citizens shall comply with treaties to which the Socialist Republic of Vietnam is a contracting party, and Law No. 49/2019/QH14 on Exit and Entry of Vietnamese Citizens, which had a number of articles amended and supplemented under Law No. 23/2023/QH15.

Particularly for vehicle drivers, in addition to the above-mentioned papers, they must also have driver licenses suitable to the type of vehicles they operate.”

b/ To amend Clause 3 as follows:

“3. Vietnam’s vehicles, cargo transport vehicle drivers and businesspeople may travel through border gates and border crossings defined in this Decree into or out of border markets of bordering countries and shall submit to inspection and control by specialized management forces at these border gates and border crossings.”

6. To amend and supplement Clauses 1 and 3, Article 22 as follows:

a/ To amend and supplement Clause 1 as follows:

“1. Goods owners or persons authorized by goods owners, vehicle owners, cargo transport vehicle drivers and workers on board vehicles or vessels who are foreigners entering into or exiting from Vietnam across border gates shall comply with treaties to which the Socialist Republic of Vietnam is a contracting party, and Law No. 47/2014/QH13 on Foreigners’ Entry into, Exit from, Transit through, and Residence in Vietnam, which had a number of articles amended and supplemented under Law No. 51/2019/QH14 and Law No. 23/2023/QH15.”

b/ To amend Clause 3 as follows:

“3. Vehicles and citizens who are cargo transport vehicle drivers and businesspeople of bordering countries, when going into or out of border markets, border-gate markets and markets in border-gate economic zones of Vietnam for goods transportation, shall submit to inspection, control and quarantine by specialized management bodies at the border gates.”

7. To amend and supplement Clause 2, Article 24 as follows:

“2. The Ministry of Finance shall assume the prime responsibility for, and coordinate with related ministries and sectors and the People’s Committees of border provinces in:

a/ Guiding the implementation of tax, charge and fee policies;

b/ Carrying out customs examination, supervision and control procedures applicable to exported, imported and transited goods; and vehicles entering into, exiting from or transiting through Vietnam.”

Article 2. Implementation provisions

1. This Decree takes effect on December 1, 2024.

2. In 2029, the Ministry of Finance shall report to the Government for consideration and decision the adjustment of the number of times of grant of tax exemption and the amounts exempted for goods import in the form of goods trading and exchange by border inhabitants.

3. From January 1, 2029, when carrying out cross-border goods trading and exchange, border inhabitants shall be physically present to carry out import and export procedures.

4. From January 1, 2030, import and export procedures for goods shall only be carried out at international border gates, main border gates (bilateral border gates); secondary  border gates; border crossings, specialized freight transport routes in international border gates, main border gates (bilateral border gates); and border crossings for which the procedures for opening and upgrading of border gates and border crossings have been completed in accordance with current laws and bilateral agreements on import, export and goods exchange have been reached.

5. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related agencies and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
PHAM MINH CHINH