Circular No. 04/2014/TT-BCT detailing the implementation of certain provisions of Decree No. 187/2013/NĐ-CP dated November 20, 2013 of the Government on detailed regulations under the Law on Trade regarding international trade activities and related activities of buying, selling, processing, and transiting goods with foreign countries.

CIRCULAR

Detailed Implementation Rules for Certain Articles of Decree No. 187/2013/NĐ-CP dated November 20, 2013

of the Government detailing the implementation of the Law on Trade regarding international goods trading activities

and related agency purchasing, selling, processing, and transit activities with foreign countriesi

_______________________

Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 187/2013/NĐ-CP dated November 20, 2013 of the Government detailing the implementation of the Law on Trade regarding international goods trading activities and related agency purchasing, selling, processing, and transit activities with foreign countries;

Pursuant to Decision No. 41/2005/QĐ-TTg dated March 2, 2005 of the Prime Minister promulgating the Import Permit Issuance Regulation;

At the proposal of the Director of the Department of Import-Export;

The Minister of Industry and Trade issues this Circular detailing the implementation of certain articles of Decree No. 187/2013/NĐ-CP dated November 20, 2013 of the Government detailing the implementation of the Law on Trade regarding international goods trading activities and related agency purchasing, selling, processing, and transit activities with foreign countries.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Circular details the implementation of certain articles of Decree No. 187/2013/NĐ-CP concerning export, import, processing, and transit of goods.

2. This Circular applies to Vietnamese traders; other organizations and individuals involved in trade activities as prescribed in the Law on Trade.

Article 2. Export and Import Trading Rights

1. Domestic traders (hereinafter referred to as traders) include:

a) Enterprises established under the Enterprise Law, Cooperative Law, and Investment Law;

b) Individual business households established and registered for business under Decree No. 43/2010/NĐ-CP dated April 15, 2010 of the Government on enterprise registration, which may engage in export, import, processing, and agency purchasing and selling of goods according to the provisions of the law and within the scope of Decree No. 187/2013/NĐ-CP without being restricted by the industry or profession listed in their Business Registration Certificate/Enterprise Registration Certificate.

2. Foreign-invested enterprises in Vietnam shall carry out export, import, and processing of goods in accordance with the provisions of Decree No. 108/2006/NĐ-CP dated September 22, 2006 of the Government detailing and guiding the implementation of certain articles of the Investment Law, Decree No. 23/2007/NĐ-CP dated February 12, 2007 of the Government detailing the Law on Trade regarding trading activities and directly related activities of foreign-invested enterprises in Vietnam, guidance documents for these Decrees, implementation timelines announced by the Ministry of Industry and Trade, and other relevant laws.

Chapter II

MANAGEMENT OF EXPORT AND IMPORT GOODS

Article 3. Prohibited Export and Import Goods

1. Prohibited export and import goods shall be implemented according to the announcement by Ministries and agencies at the level of ministries guiding the List of Prohibited Export and Import Goods stipulated in Appendix I attached to Decree No. 187/2013/NĐ-CP and other relevant legal documents.

2. The Ministry of Industry and Trade shall issue the List of Used Goods Prohibited from Import in Appendix I attached to this Circular.

3. In cases where goods prohibited from import are imported for scientific research or humanitarian aid as provided for in Clause 3, Article 5 of Decree No. 187/2013/NĐ-CP, the procedures shall be carried out as follows:

a) For goods imported for scientific research: Scientific research organizations or traders who need to import for product development research (hereinafter collectively referred to as organizations) shall send one set of documents via postal service to the Ministry of Industry and Trade (Department of Import-Export), address: No. 54 Hai Ba Trung Street, Hoan Kiem District, Hanoi. The documents include:

- Decision on establishment, investment certificate, or business registration certificate, enterprise registration certificate: One copy, certified and stamped with a true copy seal by the organization.

- Request for importation from the organization specifying the name of the goods, HS code, quantity, purpose of each item, and confirming the authenticity of the contents: One original.

- Report on the implementation of previously issued permits (except for the first import): One original.

Within seven working days from the date of receipt of complete and compliant documents, the Ministry of Industry and Trade shall issue an import permit to the organization. If the import permit is not granted, the Ministry of Industry and Trade shall provide a written response stating the reasons.

b) For humanitarian aid goods: The Ministry of Industry and Trade shall consider and resolve based on the request from the competent authority specifying the name of the goods, HS code, quantity, purpose of each item, and committing to the authenticity of the contents.

Within seven working days from the date of receipt of complete and compliant documents, the Ministry of Industry and Trade shall provide a written response. If the application is rejected, the Ministry of Industry and Trade shall provide a written response stating the reasons.

Article 4. Import of goods affecting national security and defense

1. The Ministry of Industry and Trade shall promulgate the List of goods affecting national security and defense as set out in Appendix II attached hereto.

2. Importers importing goods listed in Clause 1 of this Article shall submit application files via postal service to the Ministry of Industry and Trade (General Department of Import-Export), which shall include:

a) Investment certificate or business registration certificate, enterprise registration certificate: one (1) copy certified and stamped with an exact copy seal by the importer.

b) Import application letter from the importer specifying the name of the goods, HS code, quantity, and value of each item: one (1) original.

c) Approval letter from the Ministry of Public Security or the Ministry of National Defense regarding the importation of the consignment: one (1) original.

Within seven (7) working days from the date of receipt of the application file, the Ministry of Industry and Trade shall issue an import permit for the importer. In case of refusal to issue an import permit, the Ministry of Industry and Trade shall provide a written response stating the reasons.

3. For the importation of goods listed in Clause 1 of this Article for the purpose of national security and defense, the importation shall be carried out in accordance with the regulations of the Ministry of Public Security and the Ministry of National Defense.

Article 5. Goods imported under tariff quota regime

1. List of goods imported under tariff quotas

^(*) Note: Poultry eggs subject to import under tariff quotas do not include fertilized poultry eggs under HS codes: 04071100, 04071910, 04071990.

2. Decision and announcement of tariff quota volumes

a) The Ministry of Agriculture and Rural Development decides on the volume of tariff quotas for salt, poultry eggs, and refined sugar, raw sugar.

b) The Ministry of Industry and Trade decides on the volume of tariff quotas for tobacco leaves.

c) Based on international commitments related to annual tariff quota volumes and domestic supply and demand, the Ministry of Industry and Trade officially announces the annual tariff quota volumes for goods listed in the tariff quota import goods list and stipulates the import management methods for each item after consulting with the Ministry of Finance and relevant specialized ministries.

3. Principles of the tariff quota regime

a) Apply import permits to enjoy the tariff rate within the tariff quota for goods listed in the tariff quota import goods list.

b) Goods subject to tariff quotas without an import permit from the Ministry of Industry and Trade shall be subject to the outside tariff quota rate. Specifically, imported tobacco leaves outside the tariff quota for cigarette production shall follow the guidance of the Ministry of Industry and Trade.

c) The quantity, weight, and value of goods subject to tariff quotas for producing export goods and processing export goods shall not be included in the annual tariff quota volume announced by the Ministry of Industry and Trade.

4. Subjects eligible for import permits under the tariff quota regime The Ministry of Industry and Trade issues import permits to importers meeting the conditions for importing goods under the tariff quota regime, specifically as follows:

a) Salt: Importers with a need to use salt in production confirmed by the specialized management agency.

b) Tobacco leaves: Importers with a cigarette production license issued by the Ministry of Industry and Trade and a need to use a certain proportion of imported tobacco leaves for cigarette production confirmed by the Ministry of Industry and Trade.

The industry holding company is responsible for receiving quotas for its member companies.

c) Poultry eggs: Importers with a business registration certificate/Government Enterprise Registration Certificate who have a need to import.

d) Refined sugar, raw sugar: Follow the annual guidance of the Ministry of Industry and Trade after coordination with relevant ministries and sectors.

5. Procedures for issuing import permits under the tariff quota regime

a) The Ministry of Industry and Trade shall consider issuing import permits under the tariff quota regime based on the annual tariff quota volume decided by the specialized management ministry, the implementation status of imports in the previous year, and the importer's registration.

Importers wishing to apply for tariff quotas shall submit application files to the Ministry of Industry and Trade (General Department of Import-Export). The files shall include:

- Tariff quota import application form (as prescribed in Appendix III attached hereto).

- Business registration certificate and Tax Registration Certificate (or Government Enterprise Registration Certificate): one (1) copy certified and stamped with an exact copy seal by the importer according to regulations.

b) The time for considering the allocation of tariff quota volumes to importers is determined by the Ministry of Industry and Trade and relevant ministries and sectors.

The time limit for issuing import permits under the tariff quota regime for importers is ten (10) working days from the date of the agreed allocation.

In case of refusal to issue a permit, the Ministry of Industry and Trade shall respond in writing to the importer stating the reasons.

c) The import permit under the tariff quota regime or the Ministry of Industry and Trade's response letter shall be sent to the importer via postal service at the address stated on the importer's tariff quota import application form.

d) Importers shall present the import permit for goods under the tariff quota regime issued by the Ministry of Industry and Trade to the Customs Sub-Department at the port when handling import procedures. The quantity of goods imported under the permit shall enjoy the tariff rate within the tariff quota.

đ) Importers are responsible for reporting periodically every quarter or at any time upon request by the Ministry of Industry and Trade (General Department of Import-Export) according to the model prescribed in Appendix IV attached hereto.

Before September 30 each year, importers shall submit a report (in lieu of the third quarter report) to the Ministry of Industry and Trade assessing their import capacity for the entire year, requesting adjustments to increase or decrease the allocated import quota or reporting the quantity of goods they are unable to import for reallocation to other importers.

Article 6. Importation of Various Types of Motor Vehicles

1. Used motor vehicles of various types (including passenger cars, cargo trucks, combined passenger and cargo vehicles, and specialized vehicles) must meet the following conditions to be imported: they must not have been in use for more than 5 (five) years, calculated from the year of manufacture to the year of import (for example, vehicles manufactured in 2009 or later can only be imported in 2014). Other relevant provisions shall be implemented according to the guidance of the respective Ministries.

Specifically, the importation of passenger cars with fewer than 16 seats shall be carried out in accordance with Circular Joint No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA dated March 31, 2006, issued by the Ministry of Trade, the Ministry of Transport, the Ministry of Finance, and the Ministry of Public Security on guiding the importation of used passenger cars with fewer than 16 seats, and Circular No. 19/2009/TT-BCT dated July 7, 2009, issued by the Minister of Industry and Trade amending and supplementing Circular Joint No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA dated March 31, 2006, issued by the Ministry of Trade, the Ministry of Transport, the Ministry of Finance, and the Ministry of Public Security.

2. The importation of right-hand drive transportation vehicles (reverse steering) is prohibited, including disassembled forms and those that have been converted to right-hand drive before importation into Vietnam, except for specialized vehicles with right-hand drive operating in narrow areas such as cranes; trench diggers; street sweepers and water sprinklers; garbage and domestic waste transport vehicles; road construction vehicles; airport shuttle buses and warehouse and port cargo lifters; concrete pumps; vehicles limited to movement within golf courses and parks.

3. The importation of various types of motor vehicles and automobile assembly parts that have altered their structure, changed their function from the original design, or had their chassis and engine numbers tampered with in any form and under any circumstances is prohibited.

4. Disassembly of motor vehicles during transportation and importation is prohibited.

5. The importation of used ambulances is prohibited.

Article 7. Importation, Exportation, Temporary Importation for Re-exportation of Ozone-Depleting Substances

The importation, exportation, and temporary importation for re-exportation of ozone-depleting substances shall be carried out in accordance with the provisions set forth in Circular Joint No. 47/2011/TTLT-BCT-BTNMT dated December 30, 2011, issued by the Ministry of Industry and Trade and the Ministry of Natural Resources and Environment regarding the management of the importation, exportation, and temporary importation for re-exportation of ozone-depleting substances as stipulated in the Montreal Protocol on Substances that Deplete the Ozone Layer.

Article 8. Importation of Cigarettes and Cigars

1. The importation of cigarettes and cigars for domestic consumption shall be carried out in accordance with the provisions set forth in Circular No. 37/2013/TT-BCT dated December 30, 2013, issued by the Minister of Industry and Trade on the importation of cigarettes and cigars.

2. The importation of cigarettes and cigars for sale in duty-free shops shall be carried out in accordance with Circular No. 02/2010/TT-BCT dated January 14, 2010, issued by the Minister of Industry and Trade on the importation of tobacco products for duty-free sales, and Circular No. 10/2011/TT-BCT dated March 30, 2011, issued by the Minister of Industry and Trade amending and supplementing certain regulations on administrative procedures in the field of import and export in accordance with Resolution No. 59/NQ-CP dated December 17, 2010, of the Government on simplifying administrative procedures within the scope of the functions of the Ministry of Industry and Trade.

Chapter III

PROCESSING AND OVERSTAY OF GOODS

Article 9. Processing of goods with foreign elements

The processing of goods with foreign elements shall be carried out in accordance with the provisions of Chapter VI of Decree No. 187/2013/ND-CP and the following specific guidelines:

1. For goods imported under an experimental import permit and goods imported under the designated importer form of the Ministries and ministerial-level agencies managing specialized sectors as specified in Appendix II of Decree No. 187/2013/ND-CP, such goods shall not be processed for export to foreign countries.

2. For goods listed in the conditional business categories of the Ministries and ministerial-level agencies managing specialized sectors, only traders who meet the conditions stipulated in the specialized regulations on production and trading of such goods may process them for export to foreign countries.

3. For goods exported and imported under permits, traders may only enter into processing contracts with foreign traders after obtaining permission from the Ministry of Industry and Trade.

Traders submit a request for processing permit, specifying the contents prescribed in Article 29 of Decree No. 187/2013/ND-CP, along with confirmation opinions of the specialized management ministries sent via postal service to the Ministry of Industry and Trade (Department of Import-Export).

The Ministry of Industry and Trade will examine and issue the permit within ten working days from the date of receipt of the trader's request and the opinion of the specialized management ministry. In cases where a permit is not issued, the Ministry of Industry and Trade will send a reply letter to the trader detailing the reasons.

The processing permit or the reply letter from the Ministry of Industry and Trade will be sent via postal service to the address stated in the trader's request.

Article 10. Transit of goods through the territory of Vietnam

1. The transit of goods through the territory of Vietnam shall be carried out in accordance with the provisions of Chapter VII of Decree No. 187/2013/ND-CP.

2. The transit of goods of the People's Republic of China, the Lao People's Democratic Republic, and the Kingdom of Cambodia shall be implemented according to the following documents:

a) Decision No. 0305/2001/QD-BTM dated March 26, 2001, issued by the Minister of Trade (now the Ministry of Industry and Trade) promulgating the Regulations on goods of the People's Republic of China transiting through the territory of the Socialist Republic of Vietnam.

b) Circular No. 22/2009/TT-BCT dated August 4, 2009, issued by the Minister of Industry and Trade prescribing the transit of goods of the Lao People's Democratic Republic through the territory of the Socialist Republic of Vietnam.

c) Circular No. 08/2009/TT-BCT dated May 11, 2009, issued by the Minister of Industry and Trade prescribing the transit of goods of the Kingdom of Cambodia through the territory of the Socialist Republic of Vietnam.

Chapter IV

IMPLEMENTING PROVISIONS

Article 11. Transitional Provisions

Export permits and import permits for goods issued before the effectiveness of Decree No. 187/2013/ND-CP and this Circular shall continue to be valid until their expiration date or until they are extended by the competent authority.

Article 12. Effective Date

1. This Circular takes effect from February 20, 2014, and abolishes the following documents:

a) Circular No. 04/2006/TT-BTM dated April 6, 2006, issued by the Minister of Trade guiding certain contents prescribed in Decree No. 12/2006/ND-CP dated January 23, 2006, of the Government detailing the implementation of the Law on Trade regarding international trade activities and agency buying, selling, processing, and transiting goods with foreign countries.

b) Clause 1, Clause 2 of Article 1 and Appendices I and II issued together with Circular No. 10/2011/TT-BCT dated March 30, 2011, issued by the Minister of Industry and Trade amending, supplementing, and abolishing certain administrative procedures in the field of import and export according to Resolution No. 59/NQ-CP dated December 17, 2010, of the Government on simplifying administrative procedures within the scope of the Ministry of Industry and Trade's management functions.

2. During the implementation of this Circular, if any difficulties arise, relevant agencies, organizations, and traders shall report in writing to the Ministry of Industry and Trade for resolution./.