Circular No. 05/2008/TT-BCT amending and supplementing Circular No. 09/2007/TT-BTM dated July 17, 2007 of the Ministry of Trade guiding the implementation of Decree No. 23/2007/NĐ-CP dated February 12, 2007 detailing the Law on Trade regarding activities of buying and selling goods and related activities directly connected to buying and selling goods of foreign-invested enterprises in Vietnam.

CIRCULAR

Amending and supplementing Circular No. 09/2007/TT-BTM dated July 17, 2007 of the Ministry of Trade.

Guiding the implementation of Decree No. 23/2007/NĐ-CP dated February 12, 2007 detailing the Law on Commerce regarding trading activities and other activities directly related to trading activities.

Concerning trading activities and other activities directly related to trading activities of foreign-invested enterprises in Vietnam.

of foreign-invested enterprises in Vietnam

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Pursuant to Decree No. 189/2007/ND-CP dated December 27, 2007, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 23/2007/NĐ-CP dated February 12, 2007 of the Government detailing the Law on Commerce regarding trading activities and other activities directly related to trading activities of foreign-invested enterprises in Vietnam;

The Ministry of Industry and Trade amends and supplements certain contents of Circular No. 09/2007/TT-BTM dated July 17, 2007 of the Ministry of Trade (now the Ministry of Industry and Trade) guiding the implementation of Decree No. 23/2007/NĐ-CP dated February 12, 2007 detailing the Law on Commerce regarding trading activities and other activities directly related to trading activities of foreign-invested enterprises in Vietnam (hereinafter referred to as Circular No. 09/2007/TT-BTM) as follows:

I. Amending and supplementing Clause 3 Section I as follows:

"3. Implementing the right to import

3.1. Foreign-invested enterprises that have been granted permission to implement the right to import but not yet the right to distribute shall implement the right to import as follows:

a) They are allowed to import goods not included in the list of prohibited imports (Section II Appendix No. 01 Decree No. 12/2006/NĐ-CP), goods not included in the list of temporarily suspended imports (if any), and goods not included in the list of goods not permitted to be imported (Clause A Section II Appendix No. 03 Decision No. 10/2007/QĐ-BTM);

b) For goods listed in the Catalogue of Goods Subject to Specialized Management (Appendix No. 03 Decree No. 12/2006/NĐ-CP), foreign-invested enterprises shall implement the importation according to the regulations on specialized management;

c) For goods listed in the Catalogue of Goods for Import under a Phased Plan (Clause B Section II Appendix No. 03 Decision No. 10/2007/QĐ-BTM), foreign-invested enterprises may implement importation according to the phased plan already stipulated;

d) They are directly responsible for completing import procedures at customs authorities in accordance with Vietnamese law;

đ) Foreign-invested enterprises that have been granted permission to implement the right to import may sell imported goods to traders who have the right to distribute such goods.

3.2. Foreign-invested enterprises that have been granted permission to implement the right to import but not yet the right to distribute shall not establish a distribution base for imported goods."

II. Amending and supplementing Point b Clause 4 Section II as follows:

"b) Amending and supplementing the License to Establish Retail Outlets

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

+ The application for amending and supplementing the License to Establish Retail Outlets shall be carried out according to Model MD5 issued together with Circular No. 09/2007/TT-BTM;

+ A copy of the License to Establish Retail Outlets to be amended and supplemented.

The competent authority issuing the License to Establish Retail Outlets shall issue a new License with the amended and supplemented content while revoking the previously issued License. In cases where the amendment and supplementation of the License to Establish Retail Outlets relate to the activities of the retail outlet and its address, the competent authority issuing the License shall amend and supplement the License after receiving approval from the Ministry of Industry and Trade."

III. Amending and supplementing Section IV as follows:

"IV. REPORTING REGIME

1. Foreign-invested enterprises operating in trading activities and other activities directly related to trading activities must comply with financial reporting and statistical reporting regimes as prescribed by Vietnamese law.

2. Quarterly, before the 15th day of the first month of the next quarter, foreign-invested enterprises that have been granted permission to implement the right to import but not yet the right to distribute must prepare a report on traders purchasing imported goods and submit it to the competent authority issuing the license according to Form BC 1 of this Circular.

3. Quarterly, before the 15th day of the first month of the next quarter, the competent authority issuing the license must compile and report to the Ministry of Industry and Trade on the issuance, reissuance, amendment, supplementation, and revocation of licenses issued for investment projects in trading activities and other activities directly related to trading activities, and provide recommendations and proposals according to the Form BC of Circular No. 09/2007/TT-BTM."

This Circular takes effect 15 days after its publication in the Official Gazette.

V. During the implementation process, if any difficulties arise, organizations and individuals concerned should reflect them to the Ministry of Industry and Trade for prompt resolution./.