JOINT CIRCULAR No. 04/1999/TTLT/BTM-BKHĐT-BCN ON PRIORITY AND QUOTA INCENTIVES FOR EXPORT OF TEXTILE AND GARMENT PRODUCTS TO THE EU

JOINT CIRCULAR

Regarding Priority and Reward for Export Quotas of Textile and Garment Products

Implementing the directive of the Prime Minister in Circular No. 1126/CP-KTTH dated September 21, 1998, and continuing to implement Joint Circular No. 20/1998/TTLT/BTM-BKHĐT-BCN dated October 12, 1998;

To encourage enterprises to increase exports of textile and garment products made from domestically produced fabrics and exports to markets without quota restrictions;

Based on available quota resources, the Ministry of Trade, the Ministry of Planning and Investment, and the Ministry of Industry have agreed to stipulate the priority and reward for textile and garment product quotas as follows:

I. GENERAL PROVISIONS:

- Reward for 1998 and priority for 1999 for enterprises exporting textile and garment products to the EU made from domestically produced fabrics.

- Reward quotas for enterprises exporting textile and garment products to markets without quota restrictions in 1998.

The source of the reward and priority quotas will be drawn from the total quota for textile and garment product exports to the EU in 1999. The specific quantities are detailed in the list provided below this Circular.

II. REWARD AND PRIORITY FOR QUOTAS FOR ENTERPRISES EXPORTING TEXTILE AND GARMENT PRODUCTS TO THE EU MADE FROM DOMESTICALLY PRODUCED FABRICS IN 1998 AND 1999:

The reward and priority for enterprises exporting textile and garment products made from domestically produced fabrics are stipulated as follows:

a) Reward for enterprises that exported textile and garment products to the EU made from domestically produced fabrics in 1998 at a rate of 10% of the quantity of the same type of quota made from domestically produced fabrics realized in 1998.

b) Priority for enterprises exporting textile and garment products to the EU in 1999 made from domestically produced fabrics with a maximum of 10,000 items, for category 15: 5,000 items, category 73: 5,000 items; specifically for category 4: 30,000 items, and only for enterprises with knitting fabric production machines (for contracts with quantities below the specified level, they will be granted according to the contract; for contracts with higher quantities, the maximum level will be granted).

c) The sources of the reward and priority quotas are as follows:

1/ T-shirt (Cat.4): 910,000 pieces

2/ Sweater (Cat.5): 130,000 pieces

3/ Suit pants (Cat.6): 575,000 pieces

4/ Women's blouse (Cat.7): 90,000 pieces

5/ Men's shirt (Cat.8): 500,000 pieces

6/ Women's jacket (Cat.15): 23,000 pieces

7/ Jacket (Cat.21): 660,000 pieces

8/ One-piece dress (Cat.26): 100,000 pieces

9/ Knit pants (Cat.28): 140,000 pieces

10/ Women's suit (Cat.29): 35,000 sets

11/ Suit set (Cat.73): 50,000 sets

12/ Other garments (Cat.78): 41 tons

d) Application documents for reward and priority:

- For enterprises applying for quota reward assessment in 1998, the application includes: customs declaration forms, transport documents, invoices for fabric purchases...

- For enterprises applying for quota priority assessment in 1999, the application includes: export contracts, domestic fabric purchase contracts, fabric purchase invoices. Applications should be submitted to the Department of Import-Export of the Ministry of Trade during the first months of each quarter.

If an enterprise fails to comply, it must return the quota by September 30, 1999, to be reallocated to other enterprises, and provide a report on implementation by year-end.

The reward assessment will be conducted in the first quarter of 1999, and the priority assessment will be conducted every three months.

III. REWARD FOR QUOTAS FOR ENTERPRISES THAT HAVE EXPORTED TEXTILE AND GARMENT PRODUCTS TO MARKETS WITHOUT QUOTA RESTRICTIONS IN 1998:

a) Reward criteria: Enterprises in Hanoi and Ho Chi Minh City that exported textile and garment products to markets without quota restrictions with a value of FOB $400,000 or more, and enterprises in other areas with a value of $200,000 or more, will all be eligible for quota rewards.

b) Sources of the reward quotas are allocated as follows:

1/ T-shirt (Cat.4): 390,000 pieces

2/ Sweater (Cat.5): 130,000 pieces

3/ Suit pants (Cat.6): 246,000 pieces

4/ Women's blouse (Cat.7): 90,000 pieces

5/ Men's shirt (Cat.8): 205,000 pieces

6/ Women's jacket (Cat.15): 23,000 pieces

7/ Jacket (Cat.21): 1,000,000 pieces

8/ One-piece dress (Cat.26): 43,000 pieces

9/ Knit pants (Cat.28): 140,000 pieces

10/ Women's suit (Cat.29): 35,000 sets

11/ Suit set (Cat.73): 50,000 sets

12/ Other garments (Cat.78): 17 tons

c) Reward rate: For every $1,000 exported to non-quota markets in 1998, a reward of 3 pieces of Jacket (Cat.21) or equivalent quantities of other products will be given.

The allocated quotas will be consistent with the production and export requirements of the enterprises. In cases where there are no suitable product types to meet the needs, enterprises can accept quotas of other product types, based on the corresponding conversion ratios stipulated in the Agreement between Vietnam and the EU.

d) Application documents for reward:

Enterprises eligible for quota reward applications should submit relevant documents to the Ministry of Trade before March 1, 1999, for consolidation and submission to the joint ministries. The application includes: export contracts, delivery documents (customs declarations, commercial invoices, and transport documents).

The reward assessment will be conducted in the first quarter of 1999.

To facilitate the reward assessment as stated in Section II and III, it is requested that the directors of enterprises base their applications on the attached model and take responsibility for the data compiled in the table.

IV. IMPLEMENTATION PROVISIONS:

The Ministry of Trade, the Ministry of Planning and Investment, and the Ministry of Industry request that all Ministries, agencies equivalent to Ministries, agencies under the Government, People's Committees of provinces and centrally governed cities, and mass organizations inform enterprises under their management about the contents of this Circular and implement it, while providing feedback to the joint ministries regarding any issues arising during implementation for timely adjustment.

This Circular takes effect fifteen days from the date of issuance.

1. Enterprise name (full Vietnamese name and abbreviation)

2. Business registration certificate number: Issued date:

3. Telephone 4. Fax:

4. Business address

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Document number: ..., day month year 1999

Respectfully submitted to: Department of Import-Export - Ministry of Trade

REGARDING THE REWARD OF EXPORT QUOTAS FOR TEXTILE AND GARMENT PRODUCTS TO MARKETS WITHOUT QUOTA RESTRICTIONS IN 1998

- Based on the Joint Circular on priority and reward for export quotas of textile and garment products ...

- The company ... submits the export application documents for textile and garment products to markets without quota restrictions in 1998 according to the following list, requesting the joint ministries to consider granting the reward quota as stipulated.

Total export turnover to non-quota markets in 1998: ... USD

The company guarantees that the declared data is correct; if incorrect, the enterprise will bear full responsibility.

Director of the Company

Place of receipt: (Sign and stamp)

- As above

1. Enterprise name (full Vietnamese name and abbreviation)

2. Business registration certificate number: Issued date:

3. Telephone 4. Fax:

4. Business address

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Document number: ..., day month year 1999

Respectfully submitted to: Department of Import-Export - Ministry of Trade

REGARDING THE GRANT OF ADDITIONAL QUOTA FOR EXPORTING TEXTILE PRODUCTS TO THE EU MARKET MADE WITH DOMESTIC PRODUCED FABRIC IN 1998

- Based on the Joint Circular on priority and reward for export quotas of textile and garment products ...

- Company ... submits the export documentation for textile products to the EU market made with domestically produced fabric in 1998 as listed below, requesting the relevant ministries to consider granting additional quota according to regulations.

The company guarantees that the declared data is correct; if incorrect, the enterprise will bear full responsibility.

Director of the Company

Place of receipt: (Sign and stamp)

- As above

1. Enterprise name (full Vietnamese name and abbreviation)

2. Business registration certificate number: Issued date:

3. Telephone 4. Fax:

4. Business address

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Document number: ..., day month year 1999

Respectfully submitted to: Department of Import-Export - Ministry of Trade

REGARDING THE PRIORITY GRANT OF QUOTA FOR EXPORTING TEXTILE PRODUCTS TO THE EU MARKET MADE WITH DOMESTICALLY PRODUCED FABRIC IN 1999

- Based on the Joint Circular on priority and reward for export quotas of textile and garment products ...

- Company ... submits the export documentation for textile products to the EU market made with domestically produced fabric in 1999 as listed below, requesting the relevant ministries to consider granting priority quota according to regulations.

The company guarantees that the declared data is correct; if incorrect, the enterprise will bear full responsibility.

Director of the Company

Place of receipt: (Sign and stamp)

- As above