Circular No. 02/2020/TT-NHNN guiding payment and money transfer activities related to goods transshipment business

CIRCULAR

Guidelines on payment and remittance activities related to trade in re-exported goods liên quan đến kinh doanh

chuyển khẩu hàng hóa

 Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and the Law Amending and Supplementing Certain Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Foreign Exchange Decree dated December 13, 2005 and the Decree Amending and Supplementing Certain Articles of the Foreign Exchange Decree dated March 18, 2013;

Pursuant to Decree No. 70/2014/NĐ-CP dated July 17, 2014 of the Government detailing the implementation of certain provisions of the Foreign Exchange Ordinance and the Ordinance amending and supplementing certain provisions of the Foreign Exchange Ordinance;

Pursuant to Decree No. 16/2017/NĐ-CP dated February 17, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 69/2018/NĐ-CP dated May 15, 2018 of the Government detailing certain provisions of the Law on Management of Foreign Trade;

At the proposal of the Director of the Department of Foreign Exchange Management;

The Governor of the State Bank of Vietnam issues this Circular guiding payment and remittance activities related to trade in re-exported goods. 

Article 1. Scope of Regulation

This Circular guides payment and remittance activities related to current account transactions involving trade in re-exported goods conducted by Vietnamese traders.

Article 2. Applicability

1. Banks, branches of foreign banks permitted to operate and provide foreign exchange services (hereinafter referred to as permitted banks).

2. Vietnamese traders participating in trade in re-exported goods (excluding Vietnamese economic organizations with foreign investment capital) (hereinafter referred to as the trader).

3. Other agencies, organizations, and individuals involved in payment and remittance activities for trade in re-exported goods transactions.

Article 3. Principles of payment and remittance related to trade in re-exported goods

1. Payment and remittance related to trade in re-exported goods shall be carried out based on two separate payment and remittance transactions: the transaction of transferring funds to pay for the purchase contract of goods and the transaction of receiving funds from the sale contract of goods. The payment transfer transaction may be executed before or after the receipt transaction.

2. All payment and remittance activities related to trade in re-exported goods must be conducted through authorized banks.

3. The trader can only make payment and remittance within the same re-export trade transaction according to the purchase contract and the sale contract of the same goods at the same authorized bank.

4. The trader may use foreign currency on their foreign currency settlement account or foreign currency purchased from an authorized bank to transfer abroad to pay for purchase contracts.

Article 4. Responsibilities of authorized banks

1. Establish internal regulations, including provisions on simultaneously checking both the purchase contract and the sale contract of goods in the same re-export trade transaction when executing remittances abroad, monitoring the flow of foreign currency entering and exiting Vietnam in re-export trade through statistical and tracking of remittance and receipt figures in the same re-export transaction.

2. When performing foreign currency sales transactions, payment, and remittance activities related to re-export trade for customers, authorized banks have the responsibility to examine, check, and retain appropriate documents and certificates corresponding to actual transactions to ensure that foreign exchange services are provided in accordance with the purpose and relevant regulations set forth in this Circular and applicable laws.

3. Strictly implement and guide customers to comply with the provisions of this Circular.

Article 5. Responsibilities of traders

1. Present documents in accordance with the provisions of authorized banks when purchasing foreign currency, making payments, and transferring funds for cross-border trade in goods transactions and bear legal responsibility for the accuracy and honesty of the documents and certificates presented to authorized banks.

2. Provide information on the source of funds received from sales contracts so that authorized banks can compile and monitor the figures of funds transferred out and received within the same cross-border trade transaction and bear legal responsibility for the accuracy and honesty of the information provided to authorized banks.

3. Strictly comply with the provisions of this Circular and related laws.

4. Shall not use the file of documents of one cross-border trade in goods transaction to purchase foreign currency, make payments, and transfer funds at multiple authorized banks.

Article 6. Effectiveness

1. This Circular takes effect from May 15, 2020.

2. For purchase contracts and sales contracts for cross-border trade concluded before the date this Circular takes effect, traders may continue to perform payment and fund transfer according to the provisions of the signed purchase and sale contracts. Payments and transfers for purchase contracts and sales contracts for cross-border trade modified, supplemented, or extended after this Circular takes effect must comply with the provisions of this Circular.

Article 7. Implementation Organization

The Director of the Office, Heads of the Department of Foreign Exchange Management, Heads of relevant units under the State Bank of Vietnam, Governors of the State Bank of Vietnam Branches in provinces and centrally-administered cities, Chairmen of the Board of Directors, Chairmen of the Board of Members, General Directors (Directors) of authorized banks shall be responsible for organizing the implementation of this Circular./.