Decree on guidelines for the law on foreign trade management

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THE GOVERNMENT
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 69/2018/ND-CP

Hanoi, May 15, 2018

DECREE

ON GUIDELINES FOR THE LAW ON FOREIGN TRADE MANAGEMENT

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Commerce dated June 14, 2005;

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

Pursuant to the Law on Investment dated November 26, 2014 and the Law on the amendments to Article 6 and Appendix 4 in terms of the list of conditional lines of business of Law on Investment;

At the request of the Minister of Industry and Trade;

The Government promulgates a Decree on guidelines for the Law on Foreign Trade Management.

Decree on guidelines for the law on foreign trade management

Chapter I GENERAL PROVISIONS

Article 1. Scope
  1. This Decree provides guidelines for the Law on Commerce and the Law on Foreign Trade Management in terms of:
  2. a) international exchange of goods in the forms of the export and import; temporary importation; temporary exportation temporary exportation; merchanting trade; transit and other activities related to the international exchange of goods in accordance with regulations of Vietnam law and international treaties to which the Socialist Republic of Vietnam is a signatory.
  3. b) dealing with disputes related to the imposition of measures for foreign trade management.
  4. Personal belongings; baggage; goods serving the need of individuals with diplomatic status; gifts, donations, sample goods shall be regulated by the Government and the Prime Minister.
Article 2. Regulated entities
  1. Regulatory authorities.
  2. Traders engaging in foreign trade activities.
  3. Other relevant domestic and foreign individuals and organizations.

Chapter II MANAGEMENT OF EXPORT AND IMPORT

Article 3. Freedoms to export and import
  1. A Vietnamese trader which is not a foreign-invested business entity may export, import and carry out other relevant activities without any dependence on its registered business lines except for the goods under the lists of prohibited exports and/or imports as prescribed in this Decree; other prohibited exports and/or imports as per the law; and goods temporarily ceased from export or import.

A branch of a Vietnamese trader shall carry on/conduct foreign trade according to the authorization of the trader.

  1. Foreign-invested business entities, branches of foreign traders in Vietnam, when exporting or importing regulated by this Decree, shall carry out undertakings of Vietnam in treaties to which the Socialist Republic of Vietnam is a signatory, tariff nomenclature and road map laid down by the Ministry of Industry and Trade and comply with this Decree and relevant law provisions.
  2. Export and import of foreign traders without presence in Vietnam and other relevant organizations and individuals of countries and territories (hereinafter referred to as “countries”) that are members of World Trade Organization (WTO) and countries signing bilateral agreements with Vietnam shall be regulated by the Government.
Article 4. Procedures for export and import
  1. For goods requiring export or import license, the exporter or importer shall obtain such a license issued by the involved Ministry or ministerial-level agency.
  2. For goods only be exported or imported under given conditions, the exporter or importer must meet certain conditions as per the law.
  3. For exports and imports subject to inspection prescribed in Article 65 of the Law on Foreign Trade Management, the exporter or importer shall have its goods inspected by the competent authorities as per the law.
  4. For goods not prescribed in Clauses 1, 2, 3 hereof, the trader is only required to follow export or import procedures at the customs authority.
Article 5. Prohibited exports and imports
  1. Prohibited exports and imports are regulated in legislative documents in force and the list of prohibited exports and imports in Appendix I thereto.
  2. Pursuant to Appendix I thereto, Ministries and ministerial-level agencies shall publish details of prohibited exports and imports and HS headings with mutual consent of the Ministry of Industry and Trade in terms of the list of goods and with mutual consent of the Ministry of Finance in terms of HS headings.
  3. The Prime Minister shall consider allowing export of goods prohibited from export; allowing import of goods prohibited from import to serve the special purposes, warranty, analysis, testing, scientific research, medicine, pharmaceutical production and national defense and security.
Article 6. The designation of exporters and importers
  1. A list of goods exported or imported under form of designation of exporter and importer is issued together with Appendix II hereof.
  2. The designation of exporters or importers shall be regulated by competent authorities prescribed in Appendix II hereof.
Article 7. Goods requiring export or import licenses, goods only be exported or imported under given conditions
  1. A list of goods requiring export or import licenses, goods only be exported or imported under given conditions is issued together with Appendix III hereof.
  2. Pursuant to Appendix III thereto, Ministries and ministerial-level agencies shall publish details of goods and HS headings with mutual consent of the Ministry of Industry and Trade in terms of the list of goods and with mutual consent of the Ministry of Finance in terms of HS headings.
  3. Pursuant to Appendix III thereto, Ministries and ministerial-level agencies shall promulgate or request the competent authorities to promulgate guidelines for export or import licensing as per the law and grant license as prescribed.
  4. According to administrative objectives in each period, the Minister of Industry and Trade shall determine the application of automatic import licenses or automatic import licenses as to certain goods.
Article 8. Certain goods exported or imported under particular regulations
  1. Re-export of mainly-imported materials that the state guaranteed the foreign currency balance for import: If materials that are imported under state’s guarantee of foreign currency balance, they may only be re-exported if the payment is made in freely convertible foreign currency or a license issued by the Ministry of Industry and Trade is available. The Ministry of Industry and Trade shall publish the list of goods requiring license upon re-export for each period and apply it.
  2. The Ministry of Industry and Trade shall provide guidelines for import of wood of all kinds from Vietnam’s neighbor countries in accordance with Vietnam’s and their laws and regulations and related agreements or direction documents of the Prime Minister.
  3. The export or import of goods serving national defense and security purposes shall be regulated by the Prime Minister. Pursuant to decisions made by the Prime Minister, Ministers of the Ministry of National Defense and the Ministry of Public Security shall govern the export or import licensing.
  4. Goods to be imported, under the list prescribed in Appendix IV thereto, which likely exert a direct effect on national defense and security but not for the national defense and security purposes, shall require a given license issued by the Ministry of Industry and Trade with reference to the Ministry of National Defense and the Ministry of Public Security.
  5. The import of used machinery, equipment, and technology lines shall be regulated by the Prime Minister.
Article 9. Application and procedures for export or import licensing

Regulations on application and procedures for export or import licensing prescribed in Clause 3 Article 7, Clause 4 Article 8 hereof and Clause 1 Article 14 of the Law on Foreign Trade Management are elaborated as follows:

  1. Required application documents:
  2. a) An application form for licensing: 1 original.
  3. b) Investment certificate or business registration certificate, business registration certificate: 1 copy bearing the trader’s stamp.
  4. c) Relevant documentation as per the law.
  5. Procedures for licensing:
  6. a) The trader shall submit a set of required documents prescribed in Clause 1 hereof, in person, by post or online (if applicable), to the licensing ministry or ministerial-level agency.
  7. b) If the required documents are incomplete or invalid or representations thereto are additionally required, the Ministry or ministerial-level agency shall, within 3 working days from the date on which the application is received, notify the trader of deficiencies and allow the trader to correct the deficiencies.
  8. c) Unless the time limit for licensing is otherwise prescribed by law, within 10 working days from the date on which complete and valid required documents are received, Ministry or ministerial-level agency shall send a written response to the trader.
  9. d) If it is required by law that the licensing ministry or ministerial-level agency must send advisory opinion requests to relevant agencies, the time limit for processing documents commences from the date on which the advisory opinion responses from relevant agencies are received.
  10. dd) Approval for application for amendments to license, replacement license due to loss:

– Only documents relevant to changes need approval.

– The validity period of the amended license or replacement license may not last longer than that of the former license.

– If the application for amendment or replacement is refused, the competent authority must provide explanation in writing.

  1. Ministries and ministerial-level agencies shall, based on the regulation laid down in this Decree and relevant law provisions, promulgate or request competent authorities to promulgate guidance on licensing applications and recipients of licensing applications.
Article 10. Certificate of Free Sale for imported goods
  1. A list of goods is issued and the power to manage CFS are provided for in Appendix V hereof.
  2. According to management requirements in every period and to the extent required in the list of goods prescribed in Clause 1 hereof, Ministries and ministerial-level agencies shall publish a detailed list of imported goods requiring CFS enclosed with HS headings.
  3. A CFS must at least contain:
  4. a) Name of CFS issuing authority.
  5. b) CFS number and date of issue.
  6. c) Goods eligible for CFS.
  7. d) Type or category of goods eligible for CFS.
  8. dd) Manufacturer’s name and address.
  9. e) The CFS clearly indicates that the goods are produced and freely sold in the market or the country of production or the country by which the CFS is issued.
  10. g) Full name and signature of the CFS signatory and seal of the CFS issuing authority.
  11. Competent ministries and ministerial-levels shall provide guidelines for the circumstance that CFS is applicable to multiple shipments.
  12. In certain circumstances, subject to requirement of Ministries and ministerial-levels, the CFS must be consularly legalized as per the law, unless it is eligible for consular legalization exemption as provided for in international treaties to which Vietnam is a signatory or in reliance on principle of reciprocity.
  13. If there is reasonable doubts as to the authenticity of CFS or the imported goods do not match with the CFS contents, the competent authority shall send a request for verification to the CFS issuing authority.
Article 11. CFS for exported goods
  1. Ministries and ministerial-level agencies empowered to issue CFS for exported goods shall issue a CFS when:
  2. a) Receiving an application for CFS submitted by an exporter; and
  3. b) Considering that goods have applied standards as per the regulations and laws in force.
  4. The CFS for exported goods must be expressed in English and at least contain information prescribed in Clause 3 Article 10 hereof.

If an importing country requires the trader to submit a CFS using a form regulated by its regulations and laws, the CFS issuing authority shall issue the CFS according to such required form.

  1. Procedures for issuance of CFS for exported goods
  2. a) The trader shall send an application, in person, by post or online (if applicable) to the CFS issuing authority, including required documents below:

– An application form for CFS, stating description and HS head of the good, number of certificate of conformity with standards or registration number, standard number (if any), content of compounding materials (if any), and importing country: 1 original, expressed in Vietnamese and English.

– Investment certificate or business registration certificate, business registration certificate: 1 copy bearing the trader’s stamp.

– List of manufacturing facilities (if any), including name and address of facilities, products manufactured for export: 1 original.

– A document of applied standards for the good enclosed with display (on label or packages or packaging manual thereto): 1 copy bearing the trader’s stamp.

  1. b) If the required documents are incomplete or invalid, the CFS issuing authority shall, within 3 working days from the date on which the application is received, notify the trader of deficiencies and allow the trader to correct the deficiencies.
  2. c) If the required documents are complete and valid, the issuing authority shall issue the CFS within 3 working days from the receipt date. If the application is rejected, the CFS issuing authority shall provide explanation in writing.
  3. d) The CFS issuing authority may undertake a verification visit to the facility if the verification of application gives insubstantial grounds for issuing a CFS or any breach of regulations associated with the former CFS is found.
  4. dd) The trader may request number of CFS to be issued.
  5. e) If the trader wishes to amend the CFS or have the CFS which is lost replaced, it shall send an application for amendment or replacement and required documents to the CFS issuing authority. Within 3 working days from the date on which a complete and valid application is received, the CFS issuing authority shall consider amending the CFS or grant a duplicate to the trader.
  6. The Ministry or ministerial-level agency shall revoke the CFS if:
  7. a) The exporter falsifies the documentary evidence or documents; or
  8. b) CFS is issued for goods that are not conformable to applied standards.

Chapter III TEMPORARY IMPORTATION, TEMPORARY EXPORTATION AND MERCHANTING TRADE

Section 1. GENERAL PROVISIONS
Article 12. Prohibition and suspension of temporary importation and merchanting trade
  1. A list of goods prohibited from temporary importation and merchanting trade is provided in Appendix VI thereto.
  2. The list of goods prescribed in Clause 1 hereof shall not apply to the case of merchanting trade transaction where goods move from the exporting to the importing country, without going through Vietnam’s checkpoints.
  3. In order to prevent environmental pollution, epidemics, effects on human health or life, illegal transshipment and the risk of commercial fraud, the Minister of Industry and Trade shall publish details of goods subject to the suspension of temporary importation and merchanting trade and publish the list of those goods together with HS headings.
Article 13. Temporary importation
  1. A Vietnamese trader is entitled to do temporary importation regardless of its lines of business that are registered, in particular:
  2. a) The trader must meet conditions prescribed in Section 2 of this Chapter if the goods to be temporarily imported must qualify certain conditions.
  3. b) The trader must obtain a license to trade in temporary importation issued by the Ministry of Industry and Trade if the goods to be temporarily imported are included in the list of prohibited or suspended exports and imports, goods not be freely sold and used in Vietnam; goods subject to export and import quotas, tariff-rate quotas or requiring export or import licenses, Except for automatic export or import license. Required documents and procedures for licensing application are provided in Article 19, Article 20 hereof.
  4. c) The trader will only carry out the procedures for temporary importation at the customs authority if the goods are not mentioned in Point a or Point b of this Article.
  5. Foreign-invested business entities may only do temporary importation as prescribed in Article 15 hereof and are not allowed to do other types of temporary importation.
  6. Goods being temporarily-imported shall be subject to the inspection and supervision of the customs authority from the importation until they are re-exported out of Vietnam.

Avoid subdividing goods transported by containers during the course of transportation of goods from the temporary import checkpoint to the area subject to customs supervision, the re-export place at the checkpoint, and the border crossings as prescribed.

If, subject to transport requirements, goods to be transported by containers must be changed or subdivided for re-export as regulated by customs authority.

  1. The temporarily-imported goods may stay at Vietnam within 60 days from the date on which the customs procedures for temporary importation are completed. A trader, seeking for extension, may submit an application for extension to the Sub-department of Customs of district where the procedures for temporary import are processed; each extension period may not exceed 30 days and each temporarily imported shipment is only extended up to twice.

Upon expiry of such time limit, the trader must re-export the goods out of Vietnam or destroy them. If the goods then are imported in Vietnam, the trader must comply with regulations on management of import and taxation.

  1. The temporary importation shall be undertaken in reliance on two separate contracts: The export contract and import contract signed with the trader of exporting country and importing country.  The export contract may be signed either before or after the import contract.
  2. The payment, under temporary importation, must comply with regulation on foreign exchange and guidelines of the State bank of Vietnam.
Article 14. Regulation of temporary importation
  1. When goods are stuck at ports and checkpoints in a province, the People’s Committee of province shall direct specialized agencies shall adopt measures for releasing and regulation in the province and cooperate with the customs authority at the temporary import checkpoint in imposing measures for regulating temporarily imported goods from the temporary import checkpoint to the re-export checkpoint.
  2. If the goods remain stuck at the ports and checkpoints regardless of application of the measures prescribed in Clause 1 hereof, In exceptional circumstances, the Ministry of Industry and Trade shall take charge and cooperate with the People’s Committee of province, the General Department of Customs and Border Guard Command in regulating the temporarily imported goods as follows:
  3. a) Issuing a document that requests traders to suspend temporary importation in Vietnam.
  4. b) Suspending issuance of licenses to trade in temporary importation for goods prescribed in Point b Clause 1 Article 13 hereof.
Article 15. Other forms of temporary importation
  1. Except for prohibited exports or imports; suspended exports or imports, a trader may temporarily import goods to Vietnam under a contract concluded with a foreign party for the purposes of the warranty and maintenance, lease, borrowing, use or other purposes for a specified period and re-export them out of Vietnam, in particular:
  2. a) The trader shall obtain the temporary importation license if the goods have not been sold and used in Vietnam or are managed by export and import quotas, tariff-rate quotas or requiring export or import licenses, except that it obtained an automatic export or import license. Required documents and procedures for licensing application are provided in Article 19 and Article 20 hereof.

The Ministry of Industry and Trade shall issue temporary importation licenses for goods permitted to be sold and used freely in Vietnam in reliance on the written approval of the competent Ministry or ministerial-level agency in charge of such goods.

  1. b) When putting goods prescribed in Point a Clause 1 of this Article into use in Vietnam, they must comply with regulations of the Ministry or ministerial-level agency in charge.
  2. c) For goods not specified in Point a Clause 1 hereof, the trader will only carry out the procedures for temporary importation at the customs authority without requiring a temporary importation license.
  3. The trader may temporarily import the good that was exported for recycling or warranty at the request of the foreign trader, and then re-export it to the foreign trader Procedures for temporary importation shall be carried out at the customs authority without requiring a temporary importation license.
  4. Temporary importation of goods for displays, exhibition in trade fairs and exhibition.
  5. a) The trader is entitled to temporarily import goods for the purpose of display or exhibition in trade fairs and exhibition, except for prohibited exports and imports; suspended exports and imports.
  6. b) Procedures for temporary importation shall be carried out at the customs authority without requiring a temporary importation license.
  7. c) The trader must comply with regulations on display in trade fairs and exhibition as provided in Section 3 and Section 4 Chapter IV of the Law on Commerce.
  8. Except for prohibited exports and imports or suspended exports and imports, the trader shall follow the procedures for temporary importation at the customs authority without requiring a temporary importation license.
  9. a) Temporarily importing goods for testing.
  10. b) Temporarily importing spare parts under no contract for substitution or repairs purposes associated with foreign seagoing ships and aircrafts; temporarily importing spare parts for repairing seagoing ships and aircrafts under a contract concluded between a foreign ship-owner and a shipyard in Vietnam.
  11. c) Temporarily importing vehicles that contain exported goods and imported goods according to the rotation method (Empty container with or without hanging hook and soft tray liner in container for liquid cargo).
  12. Procedures for temporary importation of healthcare machinery and equipment from foreign organizations for healthcare delivery in Vietnam for humanitarian purpose; temporary importation of performance equipment, equipment for training and competition of art troupes, sports tournament and performance troupes shall be carried out at the customs authority without requiring a temporary importation license.

If healthcare machinery and equipment; performance equipment, equipment for training and competition to be temporarily imported are under the list of prohibited exports and imports; suspended exports and imports, or exports and imports requiring license or under given conditions, apart from customs dossiers as prescribed, following documents are also required:

  1. a) A written permission of the competent authority giving reception of the healthcare group or the event group.
  2. b) A written undertaking that the machinery and equipment will be used with proper purposes and as regulated by the competent authority giving the reception.
  3. The Ministry of National Defense or the Ministry of Public Security shall consider permitting temporary importation of weapons and military equipment being in service to national defense and security.
Article 16. Temporary import checkpoint
  1. Goods shall be temporarily imported through international checkpoints and main checkpoints.
  2. Goods shall be re-exported through secondary checkpoints and border crossings as follows:
  3. a) The goods only are re-exported through secondary checkpoints or border crossings in a border-gate economic zone and through secondary checkpoints beyond the border-gate economic zone if a specialized authority as prescribed and infrastructure meeting state management requirements. The aforesaid checkpoints and border crossings shall be published by the People’s Committee of bordering provinces as those eligible for re-export of goods with mutual consent of the Ministry of National Defense, the Ministry of Finance, the Ministry of Industry and Trade, and the Ministry of Agriculture and Rural Development.
  4. b) The People’s Committee of bordering province shall, according to the infrastructure of the secondary checkpoints and border crossings prescribed in Point a Clause 2 of this Article and loading and unloading capacity there, promulgate a Regulation on selection of traders eligible for re-export of temporarily imported goods under given conditions as prescribed in Article hereof and temporarily imported goods requiring license as prescribed in Point b Clause 1 Article 13 hereof.
  5. c) The trader may have goods not mentioned in Point b Clause 2 hereof re-exported through secondary checkpoints or border crossings which are published as eligible for re-export of goods. The re-export procedures at customs authority.
  6. Required application documents and procedures for selection of trader prescribed in Point b Clause 2 hereof:
  7. a) The trader shall submit an application, in person, by post or online (if applicable), to the Service of Industry and Trade of bordering province where the secondary checkpoint or border crossing is located. Required application documents:

– An application for registration of goods to be re-exported through the secondary checkpoint or border crossing, stating the type of goods and the secondary checkpoint or border crossing: 1 original.

– A business registration certificate or a business registration certificate: 1 copy bearing the trader’s stamp.

– Relevant documentation as regulated by the People’s Committee of bordering province (if any).

  1. b) If the required documents are incomplete or invalid, the Department of Industry and Trade of bordering province shall, within 3 working days from the date on which the application is received, notify the trader of deficiencies and allow the trader to correct the deficiencies.
  2. c) Within 7 working days from the date on which complete and valid applications are received, the Department of Industry and Trade shall submit a list of traders eligible for re-exporting goods through the secondary checkpoint or border crossing to the People’s Committee of bordering province for approval.
  3. d) Within 10 working days from the receipt of the list from the Department of Industry and Trade, the People’s Committee of bordering province shall publish the list of traders eligible for re-exporting goods through the secondary checkpoint or border. If the application is refused, the People’s Committee of bordering province must provide explanation in writing.
  4. dd) The People’s Committee of bordering province shall forward the aforementioned list to the Ministry of Industry and Trade for management.
  5. e) Each President of People’s Committee of bordering province shall initiate and manage re-export of goods through secondary checkpoints and border crossings as prescribed in this Article and prevent smuggling and seepage (bring goods illegally into a country little by little and very difficult to control). The President of People’s Committee of bordering province shall be held accountable to the Prime Minister for any smuggling or seepage case and the re-export of goods through secondary checkpoints and border crossings in the province shall be suspended.
  6. g) Annually, the People’s Committees of bordering provinces shall inspect to the extent that the traders adhere to laws and regulations for further revisions and remove names of traders committing violations against temporary importation from the list; and send a final report to the Ministry of Industry and Trade for management.
  7. The temporary importation at other checkpoints or locations shall be regulated by the Prime Minister.
  8. If foreign goods are sent to bonded houses for export or re-export through bordering provinces, the temporary import checkpoint for retention at the bonded house and export/re-export checkpoint shall follow regulations laid down in this Article.
Article 17. Temporary exportation
  1. The trader is entitled to export goods temporarily for manufacture, execution, lease, borrowing or other purposes as follows:
  2. a) The trader must obtain the license for temporary exportation issued by the Ministry of Industry and Trade if the goods to be temporarily exported are included in the list of prohibited or suspended exports and imports, goods subject to export and import quotas, tariff-rate quotas or requiring export or import licenses, except for automatic export or import license. Requirement documents and procedures for licensing application are provided in Article 19, Article 20 hereof.
  3. b) For goods not specified in Point a Clause 1 hereof, the trader will only carry out the procedures for temporary exportation at the customs authority without requiring a temporary exportation license.
  4. A trader, for the purpose warranty and maintenance, is entitled to temporarily export goods which are within the warranty period under an import contract or a warranty agreement concluded with a foreign party. Procedures for temporary exportation shall be carried out at the customs authority without requiring a temporary exportation license.
  5. A trader, for the purpose warranty and maintenance, is entitled to temporarily export goods which are beyond the warranty period under an import contract or a warranty agreement concluded with a foreign party as follows:
  6. a) The trader must obtain the license for temporary exportation issued by the Ministry of Industry and Trade if the goods to be temporarily exported are included in the list of prohibited or suspended exports and imports, goods subject to export and import quotas, tariff-rate quotas or requiring export or import licenses, except for automatic export or import license. Requirement documents and procedures for licensing application are provided in Article 19, Article 20 hereof.
  7. b) Used consumables and used spare parts mentioned in the list of prohibited imports may not be temporary exported for the purpose of warranty or maintenance.
  8. c) For goods not specified in Point a and Point b of this Clause, the trader will only carry out the procedures for temporary exportation at the customs authority without requiring a temporary exportation license.
  9. The trader is entitled to temporarily export goods for trader fairs and exhibition. Procedures for temporary exportation shall be carried out at the customs authority without requiring a temporary exportation license.

Those goods prohibited from export may only be joined in trade fairs and exhibition abroad with the approval of the Prime Minister.

  1. The movement of relics, antiques, and national treasures abroad for exhibition, display, research or preservation is regulated in the Law on Cultural Heritage.
  2. The Ministry of National Defense or the Ministry of Public Security shall consider permitting temporary exportation of weapons and military equipment being in service to national defense and security for repairs.
Article 18. Merchanting trade
  1. A Vietnamese trader is entitled to conduct merchanting trade transactions as follows:
  2. a) The trader must obtain the license for merchanting transaction issued by the Ministry of Industry and Trade if the goods to be temporarily imported are included in the list of prohibited or suspended exports and imports, goods not be freely sold and used in Vietnam; goods subject to export and import quotas, tariff-rate quotas or requiring export or import licenses, except for automatic export or import license. If the goods move from the exporting country to the importing country, without entering the Vietnam’s checkpoints, the trader is not required to obtain a license for merchanting trade.
  3. b) If the goods are not mentioned in Point a Clause 1 hereof, the trader is not required to obtain a license for merchanting trade issued by the Ministry of Industry and Trade.
  4. Foreign-invested business entities may not conduct merchanting trader transactions.
  5. The merchanting trade transaction will be conducted according to two separate contracts: A purchase contract and a sales contract concluded with the foreign trader. The purchase contract may be concluded before or after the sales contract.
  6. The goods under merchanting trade transaction must be brought in and brought out of Vietnam at the same checkpoint area and subject to the inspections and supervisions carried out by the customs authority throughout such process.
  7. The payment, under merchanting trade, must comply with regulation on foreign exchange and guidelines of the State bank of Vietnam.
Article 19. Application for license to trade in temporary importation; temporary importation license, temporary exportation license; merchanting trade license
  1. Required application documents for temporary importation of goods prescribed in Point b Clause 1 Article 13 hereof:
  2. a) An application for license to trade in temporary importation, stating the goods to be traded (description, HS headings, quantity, and value); import and export checkpoint: 1 original.
  3. b) A business registration certificate or a business registration certificate: 1 copy bearing the trader’s stamp.
  4. c) An import contract and export contract concluded with the foreign trader: 1 copy bearing the trader’s stamp each.
  5. d) A report related to the license for temporary importation, indicating quantity of goods that was temporarily imported and exported: 1 original.
  6. Required application documents for temporary importation of goods prescribed in Point a Clause 1 Article 15 hereof:
  7. a) An application for license for temporary importation, stating the goods to be temporarily imported (description, HS headings, quantity, and value); purposes for temporary importation, import and export checkpoint: 1 original.
  8. b) An investment certificate or a business registration certificate: 1 copy bearing the trader’s stamp.
  9. c) An agreement on lease or borrowing concluded with the foreign trader: 1 copy bearing the trader’s stamp.
  10. Required application documents for temporary exportation of goods prescribed in Point a Clause 1 and Point a Clause 3 Article 17 hereof:
  11. a) An application for license for temporary exportation, stating the goods to be temporarily exported (description, HS headings, quantity, and value); purposes for temporary importation, import and export checkpoint: 1 original.
  12. b) An investment certificate or a business registration certificate: 1 copy bearing the trader’s stamp.
  13. c) An agreement on repairs and warranty concluded with the foreign partner or agreement on lease or borrowing: 1 copy bearing the trader’s stamp.
  14. Required application documents for merchanting trade of goods prescribed in Point a Clause 1 Article 18 hereof:
  15. a) An application for license for merchanting trade, stating the goods to be traded (description, HS headings, quantity, and value); import and export checkpoint: 1 original.
  16. b) A business registration certificate or a business registration certificate: 1 copy bearing the trader’s stamp.
  17. c) A purchase contract and a sales contract concluded with the foreign trader: 1 copy bearing the trader’s stamp each.
  18. d) A report related to the merchanting trade license, indicating quantity of goods which were brought in and brought out of Vietnam: 1 original.
Article 20. Procedures for application for license to trade in temporary importation; temporary importation license, temporary exportation license; merchanting trade license
  1. The trader shall submit a set of required documents prescribed in Article 19 hereof, in person, by post or online (if applicable), to the Ministry of Industry and Trade.
  2. If the required documents are incomplete or invalid, the Ministry of Industry and Trade shall, within 3 working days from the date on which the application is received, notify the trader of deficiencies and allow the trader to correct the deficiencies.
  3. Within 5 working days from the date on which a complete and valid application is received, the Ministry of Industry and Trade shall issue the license to the trader. If the application is refused, the Ministry of Industry and Trade shall provide explanation in writing.

A temporary importation license for goods not be freely sold and used in Vietnam prescribed in Point a Clause 1 Article 15 hereof shall be issued within 3 working days from the date on which the Ministry of Industry and Trade receives an approval from the competent Ministry or ministerial-level agency.

  1. If the trader wishes to amend the license or have the license which is lost replaced, it shall send an application for amendment or replacement and required documents to the Ministry of Industry and Trade. Within 3 working days from the date on which a complete and valid application is received, the Ministry of Industry and Trade shall issue an amended license or a duplicate license.
Section 2. TRADING IN TEMPORARY IMPORTATION UNDER GIVEN CONDITIONS
Article 21. List of goods associated with trading in temporary importation under given conditions

Lists of c are issued thereto.

  1. A list of frozen food associated with trading in temporary importation under given conditions in Appendix VII thereto.
  2. A list of goods liable to special excise duty associated with trading in temporary importation under given conditions in Appendix VIII thereto.
  3. A list of used goods associated with trading in temporary importation under given conditions in Appendix IX thereto.
Article 22. Specific regulations associated with trading in temporary importation under given conditions
  1. A Vietnamese trader incorporated under Law on Enterprises (hereinafter referred to as Enterprise) is entitled to trade in temporary importation under given conditions when it meets requirements in Article 23, 24 or 25 hereof and obtains a temporary importation code granted by the Ministry of Industry and Trade.
  2. Apart from regulations on trading in temporary importation in Articles 12, 13, 14 and 16 hereof, the Enterprise eligible for trading in temporary importation under given conditions shall comply with regulations below:
  3. a) The Enterprise may not entrust or accept to act as a trustee to trade in temporary importation under given conditions.
  4. b) The Enterprise may not have goods associated with trading in temporary importation under given conditions imported for domestic use
  5. c) Regulations on bill of lading for goods associated with trading in temporary importation under given conditions:

– The bill of lading is nominative and non-transferrable.

– The bill of lading bears the temporary importation code.

– The bill of lading shall bear number of license for temporary importation issued by the Ministry of Industry and Trade against used goods mentioned in Appendix IX thereto.

Article 23. Conditions for trading in temporary importation of frozen food

An Enterprise must meet following conditions to trade in temporary importation of frozen food in Appendix VII thereto:

  1. It posts a bond of VND 10 billion at a credit institution in province where the Enterprise’s warehouse or storage yard is located as prescribed in Clause 2 hereof.
  2. It has warehouses and storage yards in service to trading in temporary importation of frozen food:
  3. a) Each warehouse or storage yard has capacity of at least 40-feet frozen containers and at least 1.500 m2, separated by railings, at least 2.5m high, has roads for semi-trailers to move in and out of the warehouse or storage yard; has entrance gate and signs  of companies using it.
  4. b) Each warehouse or storage yard has adequate electricity source (including electrical grid and electricity generator with equivalent capacity) and dedicated equipment to operate frozen containers according to the capacity of the warehouse or storage yard.
  5. c) Each warehouse or storage yard must be owned by the Enterprise or leased under a lease agreement; located in a planned area for system of warehouses and storage yards serving trading in temporary importation of frozen food or an area regulated by the People’s Committee of bordering province with mutual consent of the Ministry of National Defense, the Ministry of Finance and the Ministry of Industry and Trade.
Article 24. Conditions for trading in temporary importation of goods liable to special excise duty

An Enterprise wishing to trade in temporary importation of goods liable to special excise duty included in Appendix VII thereto must post a bond of VND 7 billion at a credit institution in the province where the Enterprise is issued with a business registration certificate.

Article 25. Conditions for trading in temporary importation of used goods

An Enterprise wishing to trade in temporary importation of used goods included in Appendix IX thereto must post a bond of VND 7 billion at a credit institution in the province where the Enterprise is issued with a business registration certificate.

Article 26. Temporary importation code
  1. The Ministry of Industry and Trade shall grant temporary importation code to an Enterprise meeting conditions prescribed in Article 23, 24 or 25 hereof.
  2. A temporary importation code prescribed in this Article is a separate code for every category of goods. The holder of temporary importation code for a specific category may only trade in temporary importation of goods within that category.
  3. A warehouse or storage yard which is declared to prove that the Enterprise meets business conditions to enable the temporary importation code to be issued may not be leased to another Enterprise for the application for temporary importation code of frozen food.
  4. If foreign goods are sent to a bonded warehouse for export or re-export through Northern bordering provinces, only an Enterprise obtaining the temporary importation code for that category of goods  Good sent at bonded warehouses shall be regulated by laws and regulations on customs.
  5. If an Enterprise does not re-export goods prescribed in Appendix VII, VIII, and IX hereof through Northern checkpoints, it will not be considered as trading in temporary importation under given conditions and no temporary importation code is required. In exceptional circumstances and in compliance with management requirements, the Ministry of Industry and Trade reports cases in which temporary importation codes are granted to Enterprises trading in temporary importation of goods sent at bonded houses for export or re-export through checkpoints not in Northern area to the Prime Minister.
Article 27. Application and procedures for issuance of temporary importation code
  1. An Enterprise seeking for a temporary importation code shall submit an application, in person, by post or online (if applicable) to the Ministry of Industry and Trade. Required application documents:
  2. a) An application for temporary importation code: 1 original.
  3. b) A business registration certificate or a business registration certificate: 1 copy bearing the Enterprise’s stamp.
  4. c) A document made by a credit institution confirming that the Enterprise posted a bond as prescribed in Clause 1 Article 23, 24 or 25 hereof: 1 original.
  5. d) A document proving that the Enterprise owned a warehouse or storage yard or lease agreement of warehouse or storage yard in service of trading in temporary importation of frozen food as prescribed in Clause 2 Article 23 hereof: 1 copy bearing the Enterprise’s stamp.
  6. dd) A document made by the electricity authority in administrative division where the Enterprise’s warehouse or storage yard is located confirming that it has electrical grid capable of operating frozen containers by capacity: 1 original.

If the Enterprise applies for temporary importation code of goods liable to special excise duty or used goods, documents prescribed in Point d and dd Clause 1 hereof are not required.

  1. If the required documents are incomplete or invalid , the Ministry of Industry and Trade shall, within 3 working days from the date on which the application is received, notify the Enterprise of deficiencies and allow the Enterprise to correct the deficiencies.
  2. From the date on which a complete and valid application for temporary importation code of frozen food is received, within 7 working days, the Ministry of Industry and Trade shall examine the application and empower the Department of Industry and Trade  of province where the Enterprise’s warehouse or storage yard is located to undertake a verification visit to confirm its conditions. Within 7 working days from the date on which a document determining whether the warehouse or storage yard conditions are met, the Ministry of Industry and Trade shall consider issuing the temporary importation code of frozen food to the Enterprise.

From the date on which a complete and valid application for temporary importation code of goods liable to special excise duty or used goods is received, within 7 working days, the Ministry of Industry and Trade shall consider issuing the temporary importation code of frozen food to the Enterprise.

If the application is refused, the Ministry of Industry and Trade shall provide explanation in writing.

  1. If the Enterprise wishes to amend the temporary importation code or have the temporary importation code which is lost replaced, it shall send an application for amendment or replacement and required documents to the Ministry of Industry and Trade. Within 5 working days from the date on which a complete and valid application is received, the Ministry of Industry and Trade shall issue an amended license or a duplicate temporary importation code.
  2. If documents in the application for temporary importation code need further verification, the processing period prescribed in Clause 3 and Clause 4 hereof shall commence from the date on which the Ministry of Industry and Trade receives written responses from relevant agencies as to the verification.
Article 28. Revocation of temporary importation code
  1. The Ministry of Industry and Trade shall revoke temporary importation code at the request of an Enterprise according to confirmation of relevant agencies if:
  2. a) The Enterprise re-exported all of temporarily imported goods out of Vietnam.
  3. b) The Enterprise fulfilled obligations arising in the course of transport and retention of temporarily imported goods as prescribed in this Decree (if any).
  4. The Ministry of Industry and Trade shall revoke temporary importation code if the Enterprise:
  5. a) Falsified that it had met all conditions as prescribed in this Decree.
  6. b) Fails to maintain conditions prescribed in this Decree while using the temporary importation code.
  7. c) Fails to pay extra amount to the bond within 30 days from the date on which the Ministry of Industry and Trade gives a notice as prescribed in Clause 2 Article 30 hereof.
  8. d) Fails to comply with the request made by the competent authority in terms of regulation of temporarily imported goods prescribed in Article 14 hereof.
  9. dd) Trades in temporary importation without any license for temporary importation issued by the Ministry of Industry and Trade as prescribed.
  10. e) Trades in temporary importation of goods prohibited or suspended from temporary importation.
  11. g) Refuses obligation under the signed import contract against shipments arrived at the port or Vietnam’s checkpoint.
  12. h) Brings temporarily-imported goods into local market without any permission.
  13. i) Breaks the customs seal as to temporarily-imported goods without any permission.
  14. Enterprises having their temporary importation codes revoked prescribed in Points a, b, c, d, dd, h, I Clause 2 hereof may not be reissued with other temporary importation codes within 2 years from the date of revocation.
  15. Enterprises having their temporary importation codes revoked prescribed in Points e, g Clause 2 hereof may not be reissued with any temporary importation code.
Article 29. Suspending validity of temporary importation code
  1. The Ministry of Industry and Trade shall consider suspending validity of temporary importation code obtained by an Enterprise having its violation investigated by the specialized agency as prescribed in this Decree or at the request of such specialized agency.
  2. The temporary importation code shall have its validity period suspended within 3 month, 6 month or 1 year as the case may be or at the request of the specialized agency.
Article 30. Managing, using and refunding bond
  1. The credit institution where the Enterprise posted a bond shall manage the bond and keep the Ministry of Industry and Trade informed of any change in such amount or when the bond is set aside to cover expenses incurred based on a competent enforcement authority’s decision against the Enterprise’s violation, if any.
  2. If the Enterprise fails to pay the expenses prescribed in Clause 4 Article 31 hereof, the People’s Committee of province shall, according to the request and decision against Enterprise’s violation issued by the competent enforcement authority, send a request to the aforesaid credit institution to set aside an amount of bond to cover such expenses.

The abovementioned competent enforcement authority and People’s Committee of province shall notify the Ministry of Industry and Trade of the action against violation and the bond; the Ministry of Industry and Trade shall then request the Enterprise to pay extra amount to the bond as prescribed before resumption of trading in temporary importation.

  1. An Enterprise may be refunded all of bond or the amount remaining after payment of expenses prescribed in Clause 4 Article 31 hereof (if any) in any of the following cases:
  2. a) The Enterprise is not issued with a temporary importation code by the Ministry of Industry and Trade. The bond which was posted shall be refunded to the Enterprise in reliance on a written response made by the Ministry of Industry and Trade that temporary importation code may not be issued.
  3. b) The Ministry of Industry and Trade shall revoke temporary importation code at the request of the Enterprise as prescribed in Clause 1 Article 28 hereof.
  4. c) The Enterprise shall have its temporary importation code revoked as prescribed in Clause 2 Article 28 hereof.
  5. d) In the case of circumstances prescribed in Point b, Point c Clause 3 hereof, the bond posted by the Enterprise shall be refunded in reliance on a decision on revocation of temporary importation code issued by the Ministry of Industry and Trade.
Article 31. Responsibilities of Enterprise obtaining temporary importation code
  1. Maintain conditions prescribed in this Decree whilst the Enterprise uses the temporary importation code.
  2. Strictly releasing frozen good at ports and checkpoints and delivering them to its warehouse or storage yard as the request of competent authority in case of stucking.
  3. Collect and treat waste and sewage to prevent epidemic diseases and maintain environment hygiene at the warehouse or storage yard to serve the trading in temporary importation of frozen food.
  4. Pay all of following expenditures on (if incurred):
  5. a) Treatment of environment if the goods of Enterprise cause environment pollution while they are retained and temporarily imported in Vietnam
  6. b) Destruction of goods failing to be re-exported and temporarily imported goods inconsistent with declaration).
  7. c) Other expenses incurred upon the Enterprise’s violation against regulation on trading in temporary importation and bonded warehouses.
  8. Send quarterly reports on temporary importation of goods in Appendix VII, VIII and IX of this Decree using the form regulated by the Ministry of Industry and Trade.
Section 3. DESIGNATING MANAGEMENT OF TEMPORARY IMPORTATION; TEMPORARY EXPORTATION, MERCHANTING TRADE
Article 32. The Ministry of Industry and Trade
  1. Expedite and guide Ministries, regulatory bodies, and local governments to implement, inspect and cooperate with relevant organizations and traders in inspecting the temporary importation, temporary exportation, and merchanting trade in this Decree.
  2. Inspect and determine or empower the Department of Industry and Trade  to inspect and determine if Enterprises meet warehouse or storage yard conditions to trade in temporary importation of frozen food.
  3. Carry out regulation of goods in necessary cases as prescribed in this Decree.
Article 33. People’s Committee of province
  1. Initiate planning, invest in traffic infrastructure, the system of warehouse or storage yard, material handling, areas intended for gathering goods, areas intended for re-export and other conditions, facilitate the trading in temporary importation, merchanting trade, and storage of goods at the re-export area.
  2. Evaluate the need and potential development of trade in temporary importation of frozen food in the province; set forth areas where the system of warehouses and storage yards intended for trading in temporary importation of frozen food is located with the mutual consent of the Ministry of National Defense, the Ministry of Finance, the General Department of Customs, Border Guard Command and the Ministry of Industry and Trade.
  3. Take charge and cooperate with relevant Ministries and agencies in managing and administering the trading in temporary importation and merchanting trade in the province and be held accountable to the Government and the Prime Minister for that scope of management.
  4. Cooperate with relevant Ministries and agencies in forming inspecting forces and providing them facilities, sufficient to serve the inspection and supervision of temporarily-imported goods and merchanting trade goods in circulation in the province, meeting requirements pertaining to national defense and security, social order and security, preventing trade fraud, seepage, tax evasion, and environment pollution.
  5. Take charge and cooperate with relevant Ministries and agencies in adopting measures for regulation of temporarily-imported goods and merchanting trade goods in case of stucking in the province; notify the Ministry of Industry and Trade in a timely manner of delivery of goods in the province and propose measures against stucking at ports and checkpoints.
  6. Take charge and reach a consensus with Ministries and agencies on secondary checkpoints or border crossings in a border-gate economic zone and secondary checkpoints beyond the border-gate economic zone eligible for re-export of goods before publishing them when adequate specialized authorities and techniques are in place.
  7. Collect fees from temporarily-imported goods in accordance with guidance of the Ministry of Finance with a view to increase budget revenues, and in return, serve the investment and upgrade of traffic system, yards, protect environment and protect security and order at checkpoints.
  8. Communicate in a timely manner of changes in marine trade policy of neighbor countries to the Ministry of Industry and Trade and traders in order for them to plan regulation of temporarily imported goods and avoid stucking at ports and checkpoints.
  9. Direct the Department of Industry and Trade of province to:
  10. a) Regularly inspect Enterprises to determine whether they maintain meeting temporary importation conditions and notify the Ministry of Industry and Trade of those failing to meet conditions as prescribed in this Decree.
  11. b) Send quarterly reports to the Ministry of Industry and Trade on trading in temporary importation and the extent to which Enterprises adhere to regulations on trading in temporary importation and border checkpoint in the province.
  12. c) Under authorization of the Ministry of Industry and Trade, inspect warehouses or storage yards and verify required documents in terms of business requirements as prescribed in this Decree.
  13. d) Notify the Ministry of Industry and Trade of violations against regulations on trading in temporary importation and merchanting trade in the province for cooperation.
Article 34. General Department of Customs
  1. According to its duties as per the law, implement and inspect temporarily imported goods closely from bring them into Vietnam until they are actually re-exported out of Vietnam as prescribed in laws and regulations on customs.
  2. Send quarterly reports on information and statistics in terms of trading in temporary importation to the Ministry of Industry and Trade and send irregular reports to the Ministry of Industry and Trade, upon request.
  3. Notify the Ministry of Industry and Trade and People’s Committee of province of one of following cases:
  4. a) An Enterprise commits violations against regulations on trading in temporary importation and merchanting trade.
  5. b) Temporarily-imported goods or merchanting trade goods are stuck at ports or checkpoints.

Chapter IV TRANSIT OF GOODS

Article 35. General provisions of transit of goods
  1. Transit of goods
  2. a) The Ministry of Industry and Trade shall take charge and cooperate with the Ministry of Public Security and Ministry of National Defense in requesting the Prime Minister to consider giving permission for the transit of goods that are weapons, explosive materials, explosive precursors and combat gear.
  3. b) The Minister of Industry and Trade shall consider issuing the license for transit of goods under the list of prohibited or suspended exports and imports or goods prohibited from trading in accordance with regulations of law.
  4. c) For goods not mentioned in Point a, Point b Clause 1 hereof, procedures for transit of goods shall be carried out at the customs authority.
  5. Transshipment of goods

If the good prescribed in Point b Clause 1 hereof is delivered by seaway from a foreign country to the transshipment zone at a seaport, and sent to another foreign country afterwards or delivered to a transshipment zone at another wharf or seaport before sending it to another foreign country, the transshipment procedures is regulated by the Ministry of Finance, without requiring the license of the Ministry of Industry and Trade.

  1. In case of agreements on transit of goods through the territory of Vietnam between Vietnam and Vietnam’s neighbor countries, guidance of the Ministry of Industry and Trade shall prevail.
  2. The transport of goods under list of highly dangerous goods in transit within Vietnam’s territory shall be done in accordance with Vietnam’s regulations and laws on transport of dangerous goods and relevant international treaties to which the Socialist Republic of Vietnam is a signatory.
  3. Owner of goods in transit must pay customs fees and other fees for goods in transit as prescribed in Vietnam’s laws and regulations in force.
Article 36. Application and procedures for issuance of license for transit of goods
  1. If a good owner wishes to apply for transit of weapons, explosives, explosive precursors, or combat gear.
  2. a) Such good owner shall submit an application, in person, by post or online (if applicable), to the Ministry of Industry and Trade. Required application documents:

– An application for transit of goods (stating description, HS headings, quantity and value); means of transport; transport routes: 1 original.

– Transport agreement: 1 original.

– A written request which is sent by a designated competent authority of the country from which the goods are proposed for transit to the Minister of Industry and Trade: 1 original.

  1. b) If the required documents are incomplete or invalid , the Ministry of Industry and Trade shall, within 3 working days from the date on which the application is received, notify the good owner of deficiencies and allow the good owner to correct the deficiencies.
  2. c) Within 7 working days from the date on which the complete and valid application is received, the Ministry of Industry and Trade shall consult with the Ministry of National Defense and the Ministry of Public Security.
  3. d) Within 5 working days from the date on which the consultation request from the Ministry of Industry and Trade is received, the Ministry of National Defense and the Ministry of Public Security shall send a written response.
  4. dd) Within 5 working days from the date on which written responses from the Ministry of National Defense, the Ministry of Public Security are received, the Ministry of Industry and Trade shall submit the application to the Prime Minister for consideration.
  5. e) Within 5 working days from the date on which the response made by Prime Minister is received, the Ministry of Industry and Trade shall give a written reply to the good owner.
  6. If a good owner wishes to apply for transit of goods banned or suspended from export, import; goods banned from business as per the law:
  7. a) Such good owner shall submit an application prescribed in Point a Clause 1 hereof, in person, by post or online (if applicable), to the Ministry of Industry and Trade.
  8. b) If the required documents are incomplete or invalid , the Ministry of Industry and Trade shall, within 3 working days from the date on which the application is received, notify the good owner of deficiencies and allow the good owner to correct the deficiencies.
  9. c) Within 7 working days from the date on which a complete and valid application is received, the Ministry of Industry and Trade shall issue the license for transit to the good owner.
  10. d) If the application is refused, the Ministry of Industry and Trade shall provide explanation in writing.
  11. dd) If the good owner wishes to amend the license or have the license which is lost replaced, it shall send an application for amendment or replacement and required documents to the Ministry of Industry and Trade. Within 3 working days from the date on which a complete and valid application is received, the Ministry of Industry and Trade shall issue an amended license or a duplicate license.
Article 37. Good transit trader

A trader that had its freight forwarding and transport line of business registered is entitled to deliver goods to transit within Vietnam’s territory for a foreign good owner.

Chapter V PROCESSING OF GOODS INVOLVING FOREIGN ELEMENTS

Section 1. RECEIVING ORDER OF PROCESSING OF GOODS FOR FOREIGN TRADERS
Article 38. Processing of goods for foreign traders
  1. A trader may receive an order of processing legal goods for a foreign trader, except for goods under the list of prohibited or suspended exports and imports.
  2. In case of goods under list of lines of business under given conditions, the traders must satisfy these given conditions to receive order of outward processing.
  3. In case of goods to be imported where traders are designated under authority of the State bank of Vietnam, the processing of such goods is regulated by the State bank of Vietnam. 
  4. In case of exported goods and imported goods requiring license, a trader may only enter into a processing contract with a foreign trader after obtaining a license issued by the Ministry of Industry and Trade.

Application and procedures for licensing:

  1. a) The trader shall submit an application for processing license, in person, by post or online (if applicable), to the Ministry of Industry and Trade. Required application documents:

– An application for processing license, stating contents prescribed in Article 39 hereof: 1 original.

– An investment certificate or a business registration certificate: 1 copy bearing the trader’s stamp.

– A certificate of eligibility for business (if any): 1 copy bearing the trader’s stamp.

  1. b) If the required documents are incomplete or invalid , the Ministry of Industry and Trade shall, within 3 working days from the date on which the application is received, notify the trader of deficiencies and allow the trader to correct the deficiencies.
  2. c) Within 5 working days from the date on which the complete and valid application is received, the Ministry of Industry and Trade shall consult with Ministries or ministerial-level agencies.
  3. d) Within 5 working days from the date on which the consultation request from the Ministry of Industry and Trade is received, the Ministries and ministerial-level agencies shall send a written response.
  4. dd) Within 5 working days from the date on which written responses from the Ministry of Industry and Trade are received, the Ministry of Industry and Trade shall issue a processing license to the trader. If the application is refused, the Ministry of Industry and Trade shall provide explanation in writing.
  5. e) If a trader obtains a certificate of eligibility to manufacture the good that a foreign trader intends to place a processing order, the Ministry of Industry and Trade shall consider issuing a license to the trader within 5 working days from the date on which the complete and valid application is received without consultation with Ministries and ministerial-level agencies as prescribed in Point c Clause 3 hereof.
  6. g) If the trader wishes to amend the license or have the license which is lost replaced, it shall send an application for amendment or replacement and required documents to the Ministry of Industry and Trade. Within 5 working days from the date on which a complete and valid application is received, the Ministry of Industry and Trade shall issue an amended license or a duplicate license.
Article 39. Processing contract

The processing must be made in writing or another equivalent form as prescribed in the Law on Commerce and contain at least:

  1. Name and address of the contracting parties and processor.
  2. Name and quantity of processed products.
  3. Price.
  4. Payment period and methods of payment.
  5. A list of materials to be imported and locally produced materials  (if any) for processing, quantity and value thereof; amount of required material for each finished unit, quota for consumables and material wastage rate in processing.
  6. A list of machinery and equipment to be leased, borrowed or given for processing (if any) and value thereof.
  7. Actions against scrap, wreckage and rules for actions against leased or borrowed machinery and equipment, and oversupplied materials  after the processing contract finishes.
  8. Delivery place and time.
  9. Trademarks and geographical indications.
  10. The contract term.
Article 40. Amount of required material for each finished unit, required wastage for each finished unit and wastage rate
  1. The amount of required material for each finished unit, required portion of material lost in manufacturing process (hereinafter referred to as wastage) for each finished unit and wastage rate are agreed upon by contracting parties, taking into account of quotas and wastage rate formed in the manufacturing and processing industry at the contracting time.
  2. The legal representative of the processor shall take legal responsibility for use of imported materials  with proper processing purpose and determine correct amount of required material for each finished unit, required wastage for each finished unit, and wastage rate.
Article 41. Leasing, borrowing or importing machinery of ordering party to perform the processing contract

The processor is entitled to lease or borrow machinery of ordering party to perform the processing contract. The leasing, borrowing or giving of such machinery and equipment shall be agreed upon in the whose creditors cease to exist processing contract.

Article 42. Rights and obligations of the ordering party and processor
  1. The ordering party shall have rights and obligations to:
  2. a) Give the whole or a part of materials for processing purpose as specified in the processing contract.
  3. b) Receive the finished products; machinery and equipment leased or lent to the ordering party; and materials, ancillary materials, waste and scrap after the contract finalization, unless they are eligible for in-country export, destruction, donation or giving as prescribed in this Decree.
  4. c) Have experts come to Vietnam to provide guidance on production engineering and quality inspection of processed products as agreed upon in the processing contract.
  5. d) Take responsibility for right to use trademarks and geographical indications.
  6. dd) Comply with laws and regulations of Vietnam on processing activities and terms and conditions mentioned in the signed processing contract.
  7. e) Carry out in-country export of processed products; leased or borrowed machinery and equipment; oversupplied materials ; and scrap and waste according to agreements between involved parties, in accordance with regulations of law in force on management of export and import and fulfill tax liabilities and other financial obligations as per the law.
  8. The processor shall have rights and obligations to:
  9. a) Be eligible for export duty or import duty exemption in accordance with regulations of law on taxation associated with temporarily imported goods according to the given amount of required material for each finished unit and wastage rate to perform the processing contract and associated with processed exports.
  10. b) Have other traders to perform the processing.
  11. c) Receive partly or wholly materials  for processing as mentioned in the processing contract; pay export duty on locally-acquired materials  as prescribed in the Law on export and import duty.
  12. d) Receive payment in kind as processed products from the ordering party, other than goods under the lists of prohibited or suspended imports. In case of goods under list of imported goods requiring license or under given conditions, the regulations on such license and conditions shall apply.
  13. dd) Comply with laws and regulations of Vietnam on export or import processing, local good production and terms and conditions of the signed processing contract.
  14. e) Carry out procedures for in-country export of processed products, leased or borrowed machinery and equipment, oversupplied materials, waste and scrap as authorized by the ordering party.
  15. Conditions for in-country export or import of processed products, leased or borrowed machinery and equipment, oversupplied materials, waste and scrap prescribed in Point e Clause 1 and Point e Clause 2 of this Article:
  16. a) Compliance with regulations on management of export and import, taxation and other financial obligations as per the law.
  17. b) A contract concluded between the foreign trader or duly authorized person of foreign trader and the importer.
Article 43. Further processing

The trader is entitled to conduct further processing, in specific:

  1. The processed products of a processing contract will be used as materials for another processing contract in Vietnam.
  2. The processed products of the former processing contract shall be transferred to the trader according to designation of the ordering party for the latter processing product.
Article 44. Notification, completion, and final statement of processing contract
  1. Prior to performance of the processing contract, the involved party shall notify customs authority of the processing contract. When the processing contract terminates or expires, contracting parties shall finalize it and send a final accounts in terms of use of materials and exported products to the customs authority.

The Ministry of Finance shall provide guidelines for notification of processing contract and final accounts of processing to the customs authority.

  1. The processing contract shall be finalized according to quantity of imported materials and exported products according to the amount of required material for each finished unit and the required wastage for each finished unit and wastage rate as specified in the processing contract.

The processing contract shall be liquidated according to the imported materials and re-exported materials/products according to the amount of required material for each finished unit, the required wastage for each finished unit, and wastage rate in accordance with the contract.

  1. Machinery and equipment borrowed or leased under the contract; oversupplied materials, scrap and waste shall be treated under the processing contract in accordance with Vietnam’s law.
  2. The destruction of scrap and waste (if any) only be permitted following a written permission by Department of Natural Resources and Environment and under supervision of the customs authority. If they are not permitted to be destroyed in Vietnam, they must be re-exported according to designation of the ordering party.
  3. The giving of machinery and equipment, materials, scrap and waste shall be done as follows:
  4. a) The ordering party must make a document which confirms the giving.
  5. b) The recipient shall make the import declaration in accordance with regulations on import, pay import duty and other taxes (if any) and have the property registered in accordance with applicable regulations and laws.
  6. c) If the amount of scrap which is permitted for import is within the amount of required material for each finished unit and wastage rate, importation declaration is not required and import duty exemption is granted; but VAT and corporate income tax must be paid.
Article 45. Customs procedures

The Ministry of Finance shall provide guidelines for customs procedures and financial obligations as to outward processing products and monitor the export and import in conjunction with the processing contract.

Article 46. Other processing forms, repairs and recycling of machinery and equipment

The Prime Minister shall consider permitting the processing of goods prohibited or suspended from export or import for foreign trader.

Article 47. Contract manufacturing of military uniform
  1. Military uniforms, laid down in this Article, shall be understood as uniforms worn by members of foreign armed forces, manufactured according to single model and specifications, and worn in accordance with rules of foreign armed forces. The list of military uniforms for foreign armed forces is provided in Appendix X thereto.

The textile and apparel product under this list other than military uniforms for foreign armed forces does not require compliance with this Article.

  1. The military uniforms manufactured for foreign armed forces may not be sold in Vietnam.
  2. The raw materials used for manufacture of military uniforms for foreign armed forces are subject to supervision of customs authorities from their import until the finished military uniforms are exported out of Vietnam.
  3. Required application documents for license to manufacture military uniforms for foreign armed forces:
  4. a) An application for licensing, stating good description, quantity, value; port of destination: 1 original.
  5. b) business registration certificate or investment certificate: 1 copy bearing the trader’s stamp.
  6. c) An order or a proposal for concluding contract enclosed with 2 colored photos or a sample of finished product: 2 copies bearing the trader’s stamp.

The order or proposal for concluding contract must at least contain: Full name, address and telephone number of the ordering party and contracting manufacturer, product description, quantity, value or price, payment period and method, delivery place and time.

  1. d) Apart from required documents prescribed in Point a, Point b, Point c Clause 4 hereof, the trader must also submit one of the following documents:

– An agreement on procurement of military uniforms between the ordering party and the authority in charge of procurement and logistics for foreign armed forces.

– A document confirming the armed forces as end-user of the finished military uniforms manufactured in Vietnam made by the authority in charge of procurement and logistics for the foreign armed forces, or the authority of the country of ordering party, or diplomatic mission of the country that places the manufacturing order at Vietnam.

The document must contain at least: The importing country, name of armed force; name of ordering party; name of Vietnam’s trader receiving the manufacturing order.

The documents prescribed in Point d Clause 4 hereof must be consularly legalized as prescribed.

  1. dd) Particularly for United States market, the trader must submit a copy of manufacturer’s identification number of textile and garment exports to the US issued by the Ministry of Industry and Trade.
  2. Procedures for issuance of license to manufacture military uniforms for foreign armed forces
  3. a) The trader shall submit a set of required application documents as prescribed in Clause 4 hereof, in person, by post or online (if applicable), to the Ministry of Industry and Trade.
  4. b) If the required documents are incomplete or invalid, within 3 working days from the date on which the application is received, the Ministry of Industry and Trade shall notify the trader of deficiencies and allow the trader to correct the deficiencies.
  5. c) Within 7 working days from the date on which the complete and valid application is received, the Ministry of Industry and Trade shall send a consultation request to the Ministry of National Defense or the Ministry of Public Security.
  6. d) Within 5 working days, from the date on which the consultation request from the Ministry of Industry and Trade is received, the Ministry of National Defense or Ministry of Public Security shall send a written response.
  7. dd) Within 5 working days, from the date on which the written responses from the Ministry of National Defense or Ministry of Public Security are received, the Ministry of Industry and Trade shall issue a license to the trader. If the application is refused, the Ministry of Industry and Trade shall provide explanation in writing.
  8. e) If the trader wishes to amend the license or have the license which is lost replaced, it shall send an application for amendment or replacement and required documents to the Ministry of Industry and Trade. Within 5 working days from the date on which a complete and valid application is received, the Ministry of Industry and Trade shall issue an amended license or a duplicate license. If the application is refused, the Ministry of Industry and Trade shall provide explanation in writing.
  9. g) The Ministry of Industry and Trade shall revoke a license if the trader falsified the application or use the license improperly.
  10. Responsibilities of contracting manufacturer of military uniform
  11. a) Export the entire of finished military uniforms manufactured in Vietnam; do not use or sell finished military uniforms in Vietnam.
  12. b) Re-export or destroy all of redundant imported samples and scrap in accordance with applicable regulations and laws, under supervision of the Ministry of National Defense, the Ministry of Natural Resources and Environment, the Ministry of Industry and Trade and the General Department of Customs.
  13. c) Facilitate and provide documentation at request of licensing authority and relevant agencies when an inspection visit to the manufacturing facility is undertaken after obtaining the license.
  14. d) Take legal liability for accuracy and truthfulness of declaration in the application.
  15. The contract manufacturing shall be undertaken in accordance with this Article and regulations on contract manufacturing involving foreign elements prescribed in Chapter V hereof.
  16. Import of military uniform sample
  17. a) A trader obtaining a license to manufacture military uniform for foreign armed forces prescribed in Article 47 hereof is entitled to import the military uniform sample.
  18. b) If the trader has not issued with a license to manufacture military uniform, it may import the military uniform samples for examination in advance following the procedures below:

– The trader submits an application for registration of importing military uniform samples, stating description, quantity, ordering country, end-user, enclosed with 2 colored photos and a finished product sample, in person, by post or online (if applicable), to the Ministry of Industry and Trade.

– If the required documents are incomplete or invalid, within 3 working days from the date on which the application is received, the Ministry of Industry and Trade shall notify the trader of deficiencies and allow the trader to correct the deficiencies

– Within 7 working days from the date on which the complete and valid application is received, the Ministry of Industry and Trade shall send a consultation request to the Ministry of National Defense or the Ministry of Public Security.

– Within 5 working days, from the date on which the consultation request from the Ministry of Industry and Trade is received, the Ministry of National Defense or Ministry of Public Security shall send a written response.

– Within 5 working days, from the date on which the written responses from the Ministry of National Defense or Ministry of Public Security are received, the Ministry of Industry and Trade shall permit the trader to import the sample. If the application is refused, the Ministry of Industry and Trade shall provide explanation in writing.

  1. c) The number of imported military uniform sample prescribed in this Article is up to 5 samples per product code.
Section 2. PLACING ORDER TO PROCESS GOODS ABROAD
Article 48. Processing contract and customs procedures

Processing contract and customs procedures shall be done in accordance with Article 39 and Article 45 hereof.

Article 49. Rights and obligations of trader placing order to process goods abroad
  1. Comply with regulation on management of processing of goods abroad as prescribed in Article 52 of the Law on Foreign Trade Management.
  2. Take responsibility for right to use trademarks and geographical indications.
  3. Temporally export machinery and equipment, materials or conduct merchanting trade transactions of machinery, equipment or materials from a third country to the ordering party to perform the processing contract.
  4. Re-import the processed product. Upon contract termination, the redundant machinery, equipment and materials may be re-imported.
  5. Sell the processed products and exported machinery, equipment and materials for performing the processing contract in the market of country in which the processing is undertaken or another market and pay taxes in accordance with regulations in force.
  6. Be eligible for export duty or import duty exemption in accordance with regulations of law on taxation goods exported for processing, processed imports under the processing contract.
  7. Have experts and technicians go abroad to inspect processed products for acceptance.
  8. Fulfill tax liability against processed import for local consumption in accordance with instructions of the Ministry of Finance.

Chapter VI TRADE AGENTS FOR FOREIGN TRADERS

Section 1. TRADE AGENTS FOR FOREIGN TRADERS
Article 50. Traders acting as sale and purchase agents for foreign traders
  1. A trader may act as a trade agent for foreign traders, except for goods under the list of prohibited or suspended exports and imports. In case of exported goods and imported goods requiring license, the trader may only enter into an agency agreement after obtaining a license issued by the Ministry or ministerial-level agency.
  2. If, as required by laws and regulations, an agent and a principal may only enter into an agency agreement associated with given category of good or service, the trader must comply with such law or regulation.
  3. The purchase agent shall require the foreign trader to make a bank transfer payment in freely convertible foreign currency to purchase goods under the agency agreement
  4. The purchase agent shall register, declare and pay taxes and other financial obligations as to the goods under the agency agreement and related to the business as per the law.
Article 51. Tax liability
  1. Goods under agency agreement concluded with a foreign trader are liable to taxes and other financial obligations as prescribed in Vietnam’s law.
  2. The Vietnamese trader shall register, declare and pay taxes and other financial obligations as to the goods under the agency agreement and related to the business as per the law.
Article 52. Export or import procedures under agency agreement

Procedures for export or import of goods under agency agreement concluded with the foreign trader shall be done in accordance with regulations on exported goods and imported goods as prescribed in this Decree.

Article 53. Return of goods

Goods under an agency agreement for the foreign trader performed in Vietnam, if cannot be sold in Vietnam, shall be re-exported. The tax refund is regulated by the Ministry of Finance.

Section 2. ENGAGING FOREIGN TRADER TO ACT AS SALES AGENT ABROAD

Article 54. Engaging foreign trader to act as sales agent abroad
  1. A Vietnamese trader may engage a foreign trader to act as sales agent to sell goods abroad, except for the goods under the list of prohibited exports and imports or suspended imports.
  2. The principal shall enter into an agency agreement with a sales agent being foreign trader and transfer fund of proceeds from the sales contracts to Vietnam as prescribed in regulation on foreign exchange and guidelines of the State bank of Vietnam.
  3. In case of sale proceeds are received in kind, the principal shall comply with laws and regulations on import.
Article 55. Tax liability
  1. Goods under the agency agreement performed abroad are liable to taxes and other financial obligations as prescribed in Vietnam’s law.
  2. The principal shall register, declare and pay taxes and fulfill other financial obligations incurred upon engagement of foreign trader to act as sales agents abroad in accordance with instructions of the Ministry of Finance.
Article 56. Return of goods
  1. The exported goods under the agency agreement shall be re-imported to Vietnam if they cannot be sold abroad.
  2. The goods re-imported to Vietnam prescribed in Clause 1 hereof are eligible for import duty exemption and export duty refund (if any) in accordance with instructions of the Ministry of Finance.
  3. Procedures for export or re-import of goods to Vietnam under agency agreement concluded with the foreign trader shall be done in accordance with regulations on exported goods and imported goods as prescribed in this Decree.

Chapter VII COORDINATION IN SETTLEMENT OF DISPUTE OVER FOREIGN TRADE POLICY MEASURES ADOPTED

Section 1. GENERAL PROVISIONS
Article 57. Coordination rules
  1. The authority in charge and relevant entities shall coordinate in settling dispute over foreign trade policy measures adopted in an active, consistent, accurate, timely and effective manner in accordance with this Decree and Vietnam’s laws and regulations so as to protect Vietnam’s rights and legitimate interests to their best of competence.
  2. The coordination between the authority in charge and relevant entities in settling dispute over foreign trade policy measures adopted shall be carried out in accordance with regulations on settlement of disputes in international treaties to which the Socialist Republic of Vietnam is a signatory which set forth dispute settlement rules for foreign trade policy measures adopted that are considered as subject matters in the dispute cases (hereinafter referred to as international treaty on dispute settlement).
  3. The authority in charge and relevant entities shall take legal liability for any consequences following the non-coordination or unqualified coordination as prescribed in Clause 1 hereof.
  4. The  authority in charge and relevant entities shall protect the state’s secrets as prescribed by law, protect information on the dispute settlement process as prescribed in relevant international treaties on dispute settlement.
Article 58. Matters to be coordinated

The matters to be coordinated between the authority in charge and relevant entities in dispute settlement over foreign trade policy measures adopted:

  1. Dealing with claims, mediation, consultation against dispute or conflict between Vietnamese government and a foreign government over foreign trade policy measures adopted not in accordance with international treaty on foreign trade policy measures adopted.
  2. Formulating and implementing plan for dispute settlement over foreign trade policy measures adopted
  3. Furnishing information, documentation and evidence for the dispute settlement over foreign trade policy measures adopted.
  4. Having qualified persons to participate in dispute settlement over foreign trade policy measures adopted upon request by the authority in charge.
  5. Perform tasks for settling dispute over foreign trade policy measures adopted during the proceedings of the arbitral body or international jurisdiction agency).
  6. Implement and deal with the ultimate conclusion or decision of the arbitral body or international jurisdiction agency, review the adherence to such ultimate conclusion or decision.
Article 59. Authority in charge
  1. The authority in charge of dispute over foreign trade policy measures adopted is a regulatory agency empowered by the Government to manage and monitor such measures, unless otherwise prescribed by an international treaty on dispute settlement applicable to these foreign trade policy measures.
  2. If at least 2 regulatory agencies are empowered to manage and monitor the foreign trade policy measures adopted, being subject matter of a specific dispute, these two shall agree to choose one agency to act as the authority in charge; and then send a report to the Prime Minister and notify the Ministry of Industry and Trade in writing.
  3. If Vietnamese government has been complained against, within 3 working days from the date on which the consultation request is received but the authority in charge cannot be chosen, they must send a report to the Prime Minister and notify the Ministry of Industry and Trade in writing.
  4. In necessary circumstances, at the request of the Minister of Industry and Trade, the Prime Minister shall designate or replace the authority in charge.
  5. The authority in charge shall have responsibilities and power to:
  6. a) Receive and process information and documentation in respect of the dispute settlement over foreign trade policy measures adopted.
  7. b) Act as a contact point to facilitate communications with the foreign government which engages in the dispute and with the arbitral body or international jurisdiction agency.
  8. c) Take charge and cooperate with the designated contact point and relevant entities during the dispute settlement over foreign trade policy measures adopted at the arbitral body or international jurisdiction agency.
  9. d) Cooperate with the designated contact point and relevant entities in formulating plan for dispute settlement over foreign trade policy measures adopted.
  10. dd) Take charge and cooperate with the designated contact point and relevant entities to choose arbitrators if a arbitral body is established to settle the dispute over foreign trade policy measures adopted.
  11. e) Take charge and cooperate with the designated contact point to choose, engage and supervise the law-practicing organization (hereinafter referred to as lawyer) advising on the dispute settlement over foreign trade policy measures adopted.
  12. g) Take charge and cooperate with relevant entities in dealing with matters relating to dispute over foreign trade policy measures adopted, including engaging technical experts and witnesses for the dispute settlement.
  13. h) Attend hearings of the arbitral body or international jurisdiction agency.
  14. i) Report to the Prime Minister, the designated contact point and competent regulatory authorities on matters in respect of dispute over foreign trade policy measures adopted as prescribed in this Decree and other law provisions.
Article 60. Designated contact point
  1. The Ministry of Industry and Trade shall act as a designated contact point to assist the Government in dealing with disputes over foreign trade policy measures adopted.
  2. The designated contact point in dispute settlement over foreign trade policy measures adopted shall have duties and power to:
  3. a) Act as a focal point to assist the Government, the Prime Minister to give consistent direction to the dispute settlement over foreign trade policy measures adopted so as to protect Vietnam’s rights and legitimate interests.
  4. b) Cooperate with relevant entities and the hired lawyer prescribed in this Decree in advising the designated contact point of legal matters in conjunction with dispute settlement over foreign trade policy measures adopted at the request of the designated contact point.
  5. c) Cooperate with the authority in charge in engaging a lawyer to settle dispute specific foreign trade policy measures adopted.
  6. d) Cooperate with the designated contact point in choosing arbitrators if a arbitral body is established to settle the dispute over foreign trade policy measures adopted.
  7. dd) Cooperate with the designated contact point and relevant entities in formulating plan for dispute settlement over foreign trade policy measures adopted.
  8. e) Attend the hearings against dispute settlement over foreign trade policy measures adopted on behalf of Vietnamese government in necessary case or at the request of the designated contact point.
  9. g) Have representative attend hearings of the arbitral body or international jurisdiction agency.
  10. h) Cooperate with the authority in charge and relevant agencies, organizations, and individuals in implementing the ultimate judgment or decision of the arbitral body or the international jurisdiction agency.
  11. i) Formulate and update the list of experts qualified as arbitrators and the list of law-practicing organizations potentially defending Vietnamese government and Vietnam’s regulatory bodies in dispute settlement over foreign trade policy measures adopted.
Article 61. Relevant entities
  1. Relevant entities are regulatory bodies, organizations and individuals associated with dispute settlement over foreign trade policy measures adopted, which are invited or requested by the authority in charge to join the dispute settlement over foreign trade policy measures adopted.
  2. The relevant entities have duties and power to:
  3. a) Cooperate with the authority in charge and designated contact point in settling dispute over foreign trade policy measures adopted at their requests in conformity with its professional competence or line management.
  4. b) Provide information, documentation, evidence and representation at the request of the authority in charge and designated contact point.
  5. c) Request the authority in charge to provide information or additional information about the dispute over foreign trade policy measures adopted.
Section 2. Procedures for settling disputes that the foreign government files a complaint
Article 62. Receive and process information and documentation in respect of the dispute settlement over foreign trade policy measures adopted
  1. Entities empowered to adopt the foreign trade policy measures, upon receiving information about whether a foreign government may file a complaint or notice of complaint against dispute over foreign trade policy measures adopted sent by a arbitral body or international jurisdiction agency or a foreign government, shall forward it to its superior body and the designated contact point.
  2. If an entity which is not empowered to adopt the foreign trade policy measure prescribed in Clause 1 of this Article, upon receiving information about whether a foreign government may file a complaint or notice of complaint against dispute over foreign trade policy measures adopted sent by a arbitral body or international jurisdiction agency or a foreign government, shall send a written notice and copies of all documentation received to one of the following agencies, within 3 working days from the receipt of aforesaid notice:
  3. a) The entity empowered to adopt the foreign trade policy measure prescribed in Clause 1 hereof.
  4. b) The superior body and the designated contact point if the entity empowered to adopt the foreign trade policy measure is not identifiable as prescribed in Clause 1 hereof.
  5. Within 3 working days from the date on which the written notice prescribed in Clause 2 hereof or another written notice from other entity is received, the designated contact point shall forward it and copies of documentation received to one of the following agencies:
  6. a) The authority in charge prescribed in Clause 1 Article 59 hereof.
  7. b) Office of the Government, which requests the Prime Minister to choose the authority in charge as prescribed in Clause 2, Clause 3, Clause 4 Article 59 hereof.
  8. Within 5 working days from the date on which the written notice of the designated contact point is received as prescribed in Point b Clause 3 hereof, Office of the Government shall request the Prime Minister to assign an authority in charge.

Within 3 working days after the Prime Minister assigned an authority in charge, Office of the Government shall notify the authority in charge such assignment.

Article 63. Formulating and implementing plan for dispute settlement over foreign trade policy measures
  1. The designated contact point shall take charge and cooperate with the authority in charge, relevant entities and lawyers (if any) to formulate a plan for dispute settlement over foreign trade policy measures adopted, and then submit it to the Prime Minister for approval within 35 working days from the receipt of information about whether a foreign government may file a complaint as prescribed in Clause 1, Clause 2 Article 62 hereof.
  2. The plan for dispute settlement over foreign trade policy measures adopted includes:
  3. a) A summary of dispute.
  4. b) Legal proceedings against the dispute over foreign trade policy measures adopted as prescribed in treaties on dispute settlement; tasks to be performed to settle the dispute and corresponding milestones in conformity with the legal proceedings.
  5. c) Specific duties of the designated contact point, authority in charge, relevant entities and lawyers (if any).
  6. d) Analysis of strong and weak points of Vietnamese government and the foreign government.
  7. dd) Proposal of potential plan for settlement of dispute over foreign trade policy measures adopted, including mediation plan; matters need advisory opinion from the Prime Minister and other competent authorities.
  8. e) Estimate of expenses and funding for dispute settlement over foreign trade policy measures adopted.
  9. The designated contact point shall cooperate with the authority in charge, relevant entities and hired lawyers (if any) to implement the plan for dispute settlement over foreign trade policy measures adopted. In necessary cases and in conformity with reality, the designated contact point shall cooperate with the authority in charge, relevant entities and hired lawyers (if any) to implement the plan for dispute settlement over foreign trade policy measures adopted.
  10. The designated contact point shall send the plan for dispute settlement over foreign trade policy measures adopted and amendments (if any) as prescribed in Clause 2 and Clause 3 of this Article to the Prime Minister and the authority in charge.
  11. The authority in charge shall, monthly or quarterly depending on the complexity and progress of the dispute, notify the designated contact point of progress of the plan for dispute settlement over foreign trade policy measures adopted. The designated contact point shall monitor the plan for dispute settlement over foreign trade policy measures adopted of the authority in charge and deal with difficulties arising during the implementation of plan for dispute settlement over foreign trade policy measures adopted.
  12. The plan for dispute settlement over foreign trade policy measures adopted shall be kept as a secret document.
Article 64. Responsibilities for receiving and processing request for consultation
  1. The receipt and processing of request for consultation shall be done in accordance with treaties on dispute settlement.
  2. The entities empowered to adopt the foreign trade policy measures shall receive and process requests for consultations against foreign trade policy measures adopted upon the request of foreign governments in accordance with treaties on adoption of foreign trade policy measures.
  3. If a non-competent authority receives a request for consultation from a foreign government as prescribed in Clause 2 hereof, it shall guide the foreign government to send such a request to the competent authority and notify the competent authority of such request for consultation.
Article 65. Processing request for consultation in case of the measure in question showing sign of breach of undertaking in treaties on adoption of foreign trade policy measures
  1. During the consultation with the foreign government, the entity empowered to adopt the foreign trade policy measure shall send a report on measure subject to consultation to its superior body and the designated contact point if:
  2. a) The measure in question shows signs of breach of laws or regulations or treaties on adoption of foreign trade policy measures against foreign governments, with prejudice to rights and legitimate interests of Vietnam or foreign government; or
  3. b) Cannot reach a satisfactory solution to the request for consultation of the foreign government; or
  4. c) A dispute over foreign trade policy measures adopted appears likely to arise.
  5. The entity empowered to adopt the foreign trade policy measure, during the consultation with the foreign government, shall notify the designated contact point and competent authorities of the consultation development for further actions.
  6. During the consultation, if considered suitable, the entity empowered to adopt the foreign trade policy measure may enter into negotiation and mediation with the foreign government according to the plan approved by the superior body with reference to the designated contact point.
Article 66. Liability of entity which promulgated or adopted measure in breach of Vietnam’s international undertakings leading dispute over foreign trade policy measures adopted

Liability of entity which promulgated or adopted measure in breach of Vietnam’s international undertakings leading dispute over foreign trade policy measures adopted shall be identified in accordance with Vietnamese laws.

Section 3. PROCEDURES FOR SETTLING DISPUTES THAT VIETNAMESE GOVERNMENT FILES A COMPLAINT
Article 67. Responsibilities for proposing and processing consultation request
  1. The proposal and processing of request for consultation shall be done in accordance with treaties on dispute settlement.
  2. The entities empowered to adopt the foreign trade policy measures shall propose and process requests for consultations against foreign trade policy measures adopted upon detection or request of traders, industry unions in terms of foreign trade policy measures adopted by foreign governments likely prejudice to rights and interests of Vietnam in accordance with treaties on adoption of foreign trade policy measures.
Article 68. Processing request for consultation in case of the measure in question showing sign of breach of undertaking in treaties on adoption of foreign trade policy measures
  1. During the consultation with the foreign government, the entity empowered to adopt the foreign trade policy measure shall send a report on consultation case to its superior body and the designated contact point if:
  2. a) The measure in question adopted by foreign government shows signs of breach of laws or regulations or treaties on adoption of foreign trade policy measures against Vietnamese government, with prejudice to rights and legitimate interests of Vietnamese government; or
  3. b) Cannot reach a satisfactory solution to the request for consultation of Vietnamese government; or
  4. c) A dispute over foreign trade policy measures adopted appears likely to arise.
  5. Within 3 working days from the date on which the written notice prescribed in Clause 1 hereof or another written notice from other entity is received, the designated contact point shall forward it and copies of documentation received to one of the following agencies:
  6. a) The authority in charge prescribed in Clause 1 Article 59 hereof.
  7. b) Office of the Government, which requests the Prime Minister to choose the authority in charge as prescribed in Clause 2, Clause 3, Clause 4 Article 59 hereof.
  8. Within 5 working days from the date on which the written notice of the designated contact point is received as prescribed in Point b Clause 2 hereof, Office of the Government shall request the Prime Minister to assign an authority in charge.

Within 3 working days after the Prime Minister assigned an authority in charge, Office of the Government shall notify the authority in charge such assignment.

  1. The entity empowered to adopt the foreign trade policy measure, during the consultation with the foreign government, shall notify the designated contact point and competent authorities of the consultation development for further actions.
  2. During the consultation, if considered suitable, the entity empowered to adopt the foreign trade policy measure may enter into negotiation and mediation with the foreign government according to the plan approved by the superior body with reference to the designated contact point.
Article 69. Formulating and implementing plan for dispute settlement over foreign trade policy measures
  1. The designated contact point shall take charge and cooperate with the authority in charge, relevant entities and lawyers (if any) to formulate a plan for dispute settlement over foreign trade policy measures adopted, and then submit it to the Prime Minister for approval within 20 working days from the end of consultation as prescribed in Article 67 hereof.
  2. The formulation, amendment and implementation of plan for dispute settlement of foreign trade policy measures adopted shall be done in accordance with Clause 2, Clause 3, Clause 4, Clause 5 Article 63 hereof.
  3. The plan for dispute settlement over foreign trade policy measures adopted shall be kept as a secret document.

Chapter VIII IMPLEMENTATION

Article 70. Implementation
  1. Pursuant to this Decree, Ministries and ministerial-level agencies shall promulgate or request competent authorities to promulgate its guiding documents.
  2. The Ministry of Industry and Trade shall take charge and cooperate with Ministries and ministerial-level agencies and the People’s Committees of provinces and central-affiliated cities in inspecting implementation of this Decree; detecting and notifying relevant Ministries or ministerial-level agencies of amending regulations in contravention of this Decree (if any) in legislative documents promulgated by Ministries or ministerial-level agencies; or request the competent authorities to provide guidelines for this Decree.
  3. The Ministry of Finance shall direct customs authorities to provide data, regularly or irregularly, of enterprises trading in export, import, and temporary importation; types of business; export and import turnover according to the list of goods or markets to the Ministry of Industry and Trade and relevant Ministries and ministerial-level agencies in charge.
Article 71. Responsibilities of traders
  1. Take legal liability for accuracy and truthfulness of information and documentation submitted to the competent authorities.
  2. Comply with regulations and fulfill obligations and duties prescribed in the Law on Foreign Trade Management, the Law on Commerce, this Decree and relevant law provisions.
  3. Facilitate inspection and provide documentation at the request of licensing authorities and relevant agencies upon inspection visits undertaken by competent authorities as prescribed in laws and regulations on foreign trade.
Article 72. Transitional regulations
  1. Decisions of the Prime Minister on export or import of certain goods under the list of prohibited exports and imports promulgated before effective date of this Decree shall keep effective.
  2. Licenses issued by Ministries and ministerial-level agencies to traders as prescribed in the Government’s Decree No. 187/2013/ND-CP dated November 20, 2013 on guidelines for the Law on Commerce in respect of international trade of goods and activities of agency for sale and purchase, processing and transit of goods involving foreign parties and guiding documents before effective date of this Decree shall keep valid until their expiration date.
  3. Decisions of the People’s Committees of bordering provinces on announcement of secondary checkpoints, border crossings eligible for re-export of goods and selection of qualified traders undertaking re-export of goods before effective date of this Decree shall keep effective.
  4. Certificates of temporary importation code issued by the Ministry of Industry and Trade to enterprises before effective date of this Decree shall keep valid until their expiration date.
  5. The import of goods under the list of prohibited imports for scientific research, processing, recycling, or repairs shall keep effective in accordance with Decree No. 187/2013/ND-CP until December 31, 2018 inclusive.
  6. The import of used machinery, equipment, and technology lines shall keep effective in accordance with applicable regulations and laws of the Ministry of Science and Technology until December 31, 2018 inclusive.
  7. Legislative documents issued by Ministries and ministerial-level agencies on guidelines for the Government’s Decree No. 187/2013/ND-CP dated November 20, 2013 shall keep effective until December 31, 2018 inclusive.
Article 73. Implementation provision
  1. This Decree comes into force on the date of its signature.
  2. This Decree repeals:
  3. a) The Government’s Decree No. 187/2013/ND-CP dated November 20, 2013 on guidelines for the Law on Commerce in respect of international trade of goods and activities of agency for sale and purchase, processing and transit of goods involving foreign parties.
  4. b) Articles 2, 3, 4, 5, 6, 7 of Government’s Decree No. 77/2016/ND-CP dated July 1, 2016 on amendments to conditions for business in international trade of goods, chemicals, industrial explosives, fertilizers, gases, and food under management of the Ministry of Industry and Trade.
  5. c) Decision No. 10/2010/QD-TTg dated February 10, 2010 of the Prime Minister on Certificate of Free Sale for exported and imported goods.
  6. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the President of People’s Committees of provinces or central-affiliated cities shall implement and provide guidelines for this Decree./.
 

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER

Nguyen Xuan Phuc

 

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