Decision No. 0774/1998/QĐ-BTM Issuing the Interim Regulation on the Organization and Management of Markets in the Vietnam-China Border Area

Pursuant to …;

Regarding the issuance of the Interim Regulation on the organization and management of markets in border areas
Vietnam – China

THE MINISTER OF TRADE

Pursuant to Decree No. 95/CP dated December 4, 1993 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Commerce; Pursuant to document No. 177/KTTH-m dated June 9, 1997 of the Government Office regarding the notification of the Prime Minister's opinion delegating authority to the Minister of Commerce to issue the interim regulation on the organization and management of border markets between Vietnam and China;

To unify the organization and management of goods circulation activities in the border area of Vietnam in accordance with the Temporary Agreement on the settlement of matters in the Vietnam-China border region and the laws of each country, to promote production development, and contribute to improving the living standards of people in the border regions;

Pursuant to …;

Article 1. The Interim Regulation on the organization and management of markets in the border area between Vietnam and China is hereby issued together with this Decision.

Article 2. Chairmen of Provincial People's Committees, Directors of Commerce Departments of northern border provinces, heads of functional agencies under the Ministry of Commerce shall be responsible for implementing this Decision.

This Decision takes effect from the date of signature./.

INTERIM REGULATION
ON THE ORGANIZATION AND MANAGEMENT OF MARKETS IN BORDER AREAS
VIETNAM – CHINA

(Issued together with Decision No. 0774/1998/QĐ-BTM
dated July 4, 1998 of the Minister of Commerce)

PART I
GENERAL PROVISIONS

Article 1.- This Regulation applies to markets located within the land border area between Vietnam and China (hereinafter referred to as Vietnam-China border markets).

Article 2.- Vietnam-China border markets located within border economic zones are regulated separately according to specific provisions.

PART II
SUBJECTS AND CONDITIONS FOR CONDUCTING BUSINESS AT THE MARKET

Article 3.

3.1. Vietnamese citizens with permanent residence registration in the border area are permitted to enter the border market to exchange and sell goods. Vietnamese citizens with permanent residence registration outside the border area must comply with the Border Area Regulation promulgated together with Decree No. 99/HĐBT dated March 27, 1992 of the Council of Ministers (now the Government) when entering the border market to exchange and sell goods.

3.2. Chinese citizens residing in the border area of China, holding a border entry-exit permit issued by the competent authority of China, are allowed to enter the Vietnam border market to exchange and sell goods and must comply with the provisions set forth in Article 5 below.

Article 4.

4.1. Vietnamese traders who are approved by the border market management board to arrange a location for their shop or store may conduct business at the market.

4.2. Chinese traders who meet the following conditions will be considered for issuance of a business permit at the market:

They are Chinese citizens residing in the border area of China, holding a border entry-exit permit issued by the competent authority of China.

They have submitted an application to the competent state management agency of Vietnam for regular business at the Vietnam border market, including confirmation from the authorized level according to Chinese law (according to Form No. 1).

4.3. Based on the needs of the local market and the ability to arrange sales locations at the border market, the Director of the Commerce Department shall report to the Chairman of the Border Province People's Committee to decide on the number of Chinese traders permitted to trade at the Vietnam border market.

After being decided by the Chairman of the Provincial People's Committee, the Commerce Department of the border province of Vietnam shall issue a business permit at the border market (according to Form No. 2) and report to the Ministry of Commerce the list of Chinese citizens permitted by the Provincial People's Committee to trade at the market. The market management board shall arrange the business location.

CHAPTER III
EXCHANGE AND SALE OF GOODS AT THE MARKET

Article 5. Management of goods:

5.1. Goods sold at the market are those permitted to circulate in the market according to the regulations of Vietnamese law.

5.2. Goods transported through the border crossing point are carried out according to current regulations on export and import management of the Vietnamese State.

Article 6.

6.1. Chinese citizens mentioned in Point 3.2 of Article 3 of this Regulation are allowed to enter the Vietnam border market to exchange and sell goods for daily household needs without a commercial nature, with a value not exceeding 200,000 Vietnamese dong per person per day, exempted from all types of taxes.

In cases where the value of goods exceeds 200,000 Vietnamese dong per person per day (including whole animals and objects), approval from Customs and payment of export and import duties on the excess value of goods above the specified amount are required.

The tax-free value will be adjusted by the Ministry of Commerce depending on specific conditions at different times.

6.2. Chinese traders who have been issued a business permit at the Vietnam border market by the Commerce Department are only allowed to transport goods through the border crossing point and sell them at the border market with a monthly turnover not exceeding 100 million Vietnamese dong and according to the following provisions: when the turnover exceeds 50 million Vietnamese dong per month, the sales turnover must not exceed the purchase turnover.

The list of goods transported through the border crossing point must comply with Vietnamese regulations on export and import goods management, and pay various taxes and fees as prescribed by Vietnamese law.

Article 7. In the border market, Vietnamese dong and Renminbi can be used as means of payment.

PART IV
ORGANIZATION AND MANAGEMENT OF THE MARKET

Article 8. Authority to establish and dissolve markets.

Border markets are established or dissolved by the Chairman of the Border Province People's Committee based on the provisions of this Regulation, other relevant regulations, and the specific situation of the locality upon the proposal of the Director of the Commerce Department.

The Finance-Commerce Office assists the County People's Committee in organizing and managing the market.

Article 9. Market management machinery.

Each border market has a Market Management Board established and performs functions and tasks in accordance with Circular No. 15/TM-CSTTTN dated October 16, 1996 of the Ministry of Commerce.

Article 10. Obligations and rights of traders.

10.1. Compliance with Vietnamese state laws and other relevant regulations concerning trading at markets located in border areas. 10.2. Maintaining hygiene, ensuring environmental and order at the sales location.

10.3. Protection of legitimate business rights according to the provisions of the law.

10.4. Assistance and guidance in business practices to improve business efficiency.

10.5. The buyer and seller have the right to request the Market Management Board and relevant state management agencies to resolve disputes regarding quantity and quality of goods, as well as order and safety during trading at the market.

Article 11. Financial matters of the market:

The financial matters of the market and other management requirements not specified in this Regulation shall be implemented in accordance with the guidance provided in Circular No. 15 TM/CSTTTN dated January 16, 1996 issued by the Ministry of Trade.

CHAPTER V
IMPLEMENTATION

Article 12. When deciding to establish a market, the People's Committee of the border province:

12.1. Determines the location for setting up the market in compliance with Circular No. 1393/TT-LB dated May 25, 1992 issued by the Joint Office of the Ministries of Foreign Affairs, Interior, and Border Defense guiding the implementation of the Temporary Agreement on the Handling of Matters in the Border Areas between the Government of the Socialist Republic of Vietnam and the Government of the People's Republic of China.

12.2. Notifies the corresponding provincial authorities in China about the policy of opening border markets at border gates as agreed upon in the "Temporary Agreement on the Handling of Matters in the Border Areas between the Government of the Socialist Republic of Vietnam and the Government of the People's Republic of China."

12.3. Based on specific characteristics in the locality, directs the Department of Commerce, relevant sectors, and the People's Committees of counties with border markets to issue specific regulations on market management in accordance with this Regulation and Circular No. 15/TM-CSTTTN dated October 16, 1996 issued by the Ministry of Trade.

Local regulations must be publicly posted in a clear manner at the market in both Vietnamese and Chinese languages.

Article 13.- Responsibilities of the Department of Commerce of the border provinces of Vietnam-China: 13.1. Organizes the issuance of business registration books for the subjects mentioned in Clause 4.2, Article 4 above. The business registration book at the market is standardized by the Ministry of Trade.

13.2. Guides the Finance and Commerce Department to organize and manage the market in accordance with the guidance provided in Circular No. 15 TM/CSTTTN dated October 16, 1996 and the provisions of this Regulation.

13.3. Periodically reports every three months on the situation of trading goods at border markets according to the prescribed form (Form No. 3).

FORM NO. 1

APPLICATION FOR REGULAR BUSINESS AT BORDER MARKET...
TO: Director of the Department of Commerce of the Province...

(Through the Finance and Commerce Department of the County...)

1. Name:

Place of permanent residence registration:

2. Ethnicity: Nationality:

3. Address:

Main office address:

Telephone, Telex, Fax:

Vietnamese currency: At Bank:

4. Bank Account:

7. Request for permission to conduct business at the market:

Foreign Currency At Bank:

5. Account Holder:

6. Capital:

Of which: Fixed capital: Working capital:

8. Industry and products requested for permission to conduct business at the border market.

a. Goods from abroad brought in for sale:

Name of goods:

Estimated annual turnover:

b. Goods purchased from the Vietnamese border market taken out to abroad:

9. Border gate requested for permission to transport goods across (Vietnamese side):

Estimated annual turnover:

b. Goods purchased from the Vietnamese border market taken out to abroad:

10. Commitment: I solemnly declare that the contents recorded in this application are true.

If there is any falsification, I will bear full responsibility under Vietnamese law. Upon approval, I commit to comply with Vietnamese laws and regulations.

Confirmation by local authority Issued at...on.../.../199

of the Chinese base Applicant

Confirmation that the applicant is a citizen of China with full capacity under Chinese law

(clearly state the name, position of the signatory and affix seal)

PROVINCE/CITY…SOCIALIST REPUBLIC OF VIETNAM

MODEL NO. 2

DEPARTMENT OF COMMERCE

BUSINESS REGISTRATION BOOK FOR GOODS AT Independence - Freedom - Happiness

Number...XNKBG

BORDER MARKET
Imported from China (Import) or Exported from Vietnam (Export)

Market name:...

Note: PROVINCE/CITY…

MODEL NO. 3

DEPARTMENT OF COMMERCE SOCIALIST REPUBLIC OF VIETNAM

Statistics on trading activities of subjects Independence - Freedom - Happiness

..., day... month... year 199

QUARTERLY REPORT...

granted business registration books at border markets
(Requirement to compile accurately according to the model and within the time frame: once every three months)

II. Goods transported through border gates into Vietnam for sale at the market:

II. Goods transported through border gates into Vietnamese markets for sale (Imports):

III. Goods purchased from the Vietnamese market sold across the border:

IV. Amount of tax collected at border gates in each month: (million dong)

TM/DIRECTOR OF THE DEPARTMENT OF COMMERCE

TM/DIRECTOR DEPARTMENT OF COMMERCE

TM/DIRECTOR OF THE DEPARTMENT OF TRADE

(Signature, stamp)

1. Full name:
2. Ethnicity: Nationality:
3. Place of residence address:
4. Capital:
5. Permitted industry:
6. Business at market:
7. Goods taken through border gate:
8. Valid until:...
9. Day... month... year 199...
10. Director of the Department of Commerce
11. (Signature, stamp)
12. MONITORING OF GOODS FOR SALE