Circular No. 06/2001/TT-BTM guiding the repayment of debts to the Russian Federation with goods and services

 CIRCULAR

Guidelines for Repaying Russian Federation Debt with Goods and Services

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Based on the agreement between the Government of the Socialist Republic of Vietnam and the Government of the Russian Federation regarding the settlement of Vietnam's debt to the Russian Federation for previously granted credits and the Protocol between the Government of the Socialist Republic of Vietnam and the Government of the Russian Federation on the method of repaying Vietnam's debt to the Russian Federation signed on September 13, 2000;

Based on Decree No. 40/CP dated July 3, 1995 of the Government on repaying foreign debts with export goods and services that generate foreign currency;

Implementing the guidance of the Prime Minister in Circular No. 1019/CP-QHQT dated November 9, 2000 on the mechanism for repaying debt with goods to the Russian Federation;

The Ministry of Trade guides enterprises to implement the export of goods and services to repay debt to the Russian Federation as follows:

1. Organizations authorized to receive debt from the Russian Federation:

- Have the right to freely choose partners, products, and types of services in accordance with current Vietnamese laws;

- Are permitted to re-export goods to third countries and entrust Vietnamese enterprises to carry out the export of such goods based on a written agreement signed by both parties under the contract.

2. Vietnamese enterprises of all economic sectors registered in compliance with current regulations on import and export may export goods and provide services to repay debt to the Russian Federation through contracts signed with organizations authorized to receive debt from the Russian Federation within the agreed annual repayment limits and periods by the two governments.

3. Vietnamese enterprises implementing the export of goods and services to repay debt shall enjoy export incentives like other enterprises according to current Vietnamese laws.

4. Export contracts for goods and services to repay debt that Vietnamese enterprises sign with organizations authorized to receive debt from the Russian Federation must ensure legal conditions, comply with Vietnamese and Russian laws, and international trade practices.

5. In contracts, there must be a clause stipulating that the export of goods or services is for Vietnam's repayment of debt to the Russian Federation according to the Agreement and Protocol signed on September 13, 2000.

6. Goods in contracts must be Vietnamese-origin products with a Certificate of Origin (C/O) issued by Vietnam.

7. Prices of exported goods and services for debt repayment are calculated in US dollars and according to world market prices.

8. Payment for goods and services under debt repayment contracts shall be carried out based on Irrevocable Letters of Credit (L/C) opened by the Soviet Foreign Economic Bank through the Vietnam Bank for Foreign Trade and in accordance with the Uniform Customs and Practice for Documentary Credits (UCP 500) number 500.

9. The value of goods or services for debt repayment in contracts shall not exceed the permitted limit of each organization authorized to receive debt from the Russian Federation (in cases where one organization authorized to receive debt from the Russian Federation signs contracts with multiple Vietnamese enterprises, the total value of the contracts shall not exceed the permitted limit of that organization).

10. After signing contracts with organizations authorized to receive debt from the Russian Federation, Vietnamese enterprises must submit one copy of the valid contract to the Ministry of Trade.

11. Enterprises implementing the export of goods and services for debt repayment must deliver goods in quantities, quality, and technical standards consistent with the signed contracts.

12. Enterprises implementing the export of goods and services to repay debt to the Russian Federation must comply with current Vietnamese regulations on import and export, Circular No. 10/2001/TC-TT-BTC dated January 31, 2001 of the Ministry of Finance guiding the mechanism for payment of goods and services for debt repayment to the Russian Federation, and the Agreement between the Vietnam Bank for Foreign Trade and the Soviet Foreign Economic Bank signed on January 12, 2001, and this Circular.

13. Enterprises are fully responsible for the implementation of export contracts for goods and services to repay debt they have signed and resolving any disputes arising from the implementation of export contracts and provision of services for debt repayment with organizations authorized to receive debt from the Russian Federation.

14. Annually, the Ministry of Trade provides the Russian Federation with information about Vietnamese enterprises, goods, and services for debt repayment and facilitates their selection when purchasing goods and services for debt repayment.

15. During implementation, if any issues arise related to the repayment process, enterprises are requested to promptly notify the Ministry of Trade, the Ministry of Finance, and the Vietnam Bank for Foreign Trade in writing to coordinate in resolving them.

16. This Circular takes effect fifteen days from the date of signature./.