Circular No. 03/TM-DT guiding the implementation of Chapter VII of Decree No. 18-CP on the organization of business operations for foreign-invested enterprises.

CIRCULAR

OF THE MINISTRY OF TRADE

Guidelines for implementing Chapter VII of the Decree

No. 18/CP on the organization of business operations of foreign-invested enterprises

Implementing Article 104 of Decree No. 18/CP dated April 16, 1993 of the Government. The Ministry of Commerce guides the implementation of Chapter VII on the organization of business operations of foreign-invested enterprises and the parties involved in joint venture contracts based on the Law on Foreign Investment in Vietnam.

In this Circular, the following terms shall be understood as follows:

"Enterprise" refers to a foreign-invested enterprise, including: Joint ventures or companies, wholly foreign-owned enterprises, and the parties involved in joint business operations based on contracts (referred to as joint venture parties).

"Import and product consumption plan" includes:

List of goods imported for construction of the enterprise.

List of goods imported for annual production activities.

List of products consumed annually in domestic and international markets by the enterprise.

"Export-import permit" is a document permitting the export or import of a single shipment (lot) within the approved export-import plan of the enterprise.

"Goods" refer to machinery and equipment, transportation means, raw materials, spare parts, components, and products produced by the enterprise.

Business operations of foreign-invested enterprises shall be carried out as follows:

I. REGISTRATION OF EXPORT-IMPORT RIGHTS

Within no more than 90 days from the date of signing the investment license or business license, enterprises must register their export-import activities with the Ministry of Commerce for confirmation of their export-import operating status.

The registration documents include:

1. Application for registration (Form No. 1 attached hereto).

For joint business operations based on contracts, the foreign joint venture party may authorize the Vietnamese joint venture party to submit the application for registration. In cases where the enterprise entrusts a Vietnamese export-import company to handle the registration, such company must have a direct export-import license and stand as the applicant. The entrusting party and the entrusted party must sign an agency agreement. When submitting the registration dossier, the agency agreement between the enterprise and the export-import company must be attached.

2. Copy of the investment license or business license issued by the State Committee for Cooperation and Investment.

II. REGISTRATION OF IMPORT PLAN AND PRODUCT CONSUMPTION PLAN

1. For goods imported using capital contributions from the parties or capital for constructing the enterprise: Based on the economic and technical justification or economic efficiency explanation approved by the State Committee for Cooperation and Investment, the enterprise prepares a list of goods for registering the import plan with the Ministry of Commerce (according to Form No. 2 attached hereto).

The aforementioned registration of the import plan can be done once for the entire basic construction period or divided into annual import plans consistent with the construction progress of the enterprise. This import plan can be supplemented or adjusted in accordance with the approved design.

2. For raw materials, equipment, and replacement parts used in annual production: The enterprise prepares a list of goods (according to Form No. 2 attached hereto) to register the import plan with the Ministry of Commerce no later than November of the previous year.

This import plan can be supplemented or adjusted to suit actual production and business conditions at the beginning of each quarter II, III, and IV annually. During the execution of export-import activities, if there is an urgent need to serve production and business promptly, the enterprise submits a request document for the Ministry of Commerce to consider and decide.

3. Product consumption of the enterprise.

Based on the provisions in the investment license or business license, together with the import plan registered above (no later than November of the previous year), the enterprise registers the product consumption plan for the following year (according to Form No. 3 attached hereto).

List of export products and turnover.

List of domestic consumption products and turnover (if applicable).

The aforementioned export and product consumption plan can be adjusted or supplemented in July each year.

4. Enterprises send the registration of import plans and product consumption plans, and the registration of export-import rights to the Ministry of Commerce (Investment Department) in two copies. The Ministry of Commerce is responsible for replying no later than 15 days from the date of receipt of the enterprise's dossier. This document of the Ministry of Commerce, in addition to being sent to the enterprise, will also be sent to the Ministry of Finance for tax processing and related agencies for monitoring.

5. Imported goods of enterprises are exempt from import duties according to Article 76 of Resolution No. 18-CP dated April 16, 1993. In cases where they are not fully utilized, they may only be sold to Vietnamese economic organizations after obtaining permission from the Ministry of Commerce and must fulfill current financial obligations.

The enterprise submits a request document to the Ministry of Commerce for consideration and decision (according to Form No. 3 attached hereto).

III. ISSUE OF EXPORT-IMPORT LICENSES

When there are goods for export or import (shipment, lot), enterprises contact the export-import license issuing offices of the Ministry of Commerce in Hanoi, Haiphong City, Da Nang, Nha Trang, Ho Chi Minh City, and Can Tho where the enterprise has registered for export or import to complete export or import procedures.

Documents presented for the procedures include:

Official document of the Ministry of Commerce approving the import and product consumption plan.

Copy of the investment license or business license.

List of goods requested for export or import.

IV. REPORTING SYSTEM

Every six months, enterprises submit reports on the implementation results of the import and product consumption plans to the Ministry of Commerce and the State Committee for Cooperation and Investment according to current regulations, as well as any recommendations.

If an enterprise fails to submit reports as required, the Ministry of Commerce has the right to refuse approval of subsequent import and product consumption plans.

This Circular takes effect from the date of signature. Relevant Departments and Export-Import License Issuing Offices of the Ministry of Commerce, and enterprises are responsible for strictly implementing the provisions of this Circular./.