Circular No. 10-KTĐN/XNK guiding the implementation of Decree No. 64-HĐBT dated June 10, 1989 of the Council of Ministers on the regime and organization of managing import and export business activities.

 

CIRCULAR

DIRECTIVE NO. 10-KTĐN/XNK OF AUGUST 7, 1989 OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS GUIDING THE IMPLEMENTATION OF DECREE NO. 64/HĐBT OF JUNE 10, 1989 OF THE STATE COUNCIL ON REGIME AND ORGANIZATION FOR MANAGING FOREIGN TRADE ACTIVITIES

Pursuant to Article 27 of the Regulations issued together with Decree No. 64-HĐBT dated June 10, 1989 of the State Council on issuing regulations on regime and organization for managing foreign trade activities, relevant ministries and state agencies will explain and guide the implementation of specific provisions according to their functions and tasks based on Circular No. 1348/KTĐN dated July 8, 1989 of the Office of the State Council.
The Ministry of Foreign Economic Relations guides the implementation of specific issues within its functional scope as follows:

1. The guidance part of the Ministry of Foreign Economic Relations mainly consists of provisions that have not been detailed; for those issues already clear and specific in the regulations, they must be implemented based on the Regulations of the State Council accompanying Decree No. 64/HĐBT dated June 10, 1989, while other ministries only provide specific guidance and clarification to facilitate implementation. Therefore, all levels, sectors, and foreign trade business units must primarily base their implementation on Decree No. 64/HĐBT and the Regulations of the State Council accompanying Decree No. 64/HĐBT dated June 10, 1989.

2. The objects and scope of application of this Regulation include the production, business, and service activities of state-owned and non-state-owned economic units in foreign trade, specifically as follows:

a) Exporting and importing goods through purchasing, selling, exchange, economic cooperation, scientific and technological cooperation, international processing.

b) Temporary import for re-export, temporary export for re-import, transshipment.

- Temporary import for re-export refers to goods from abroad brought into Vietnam and then exported out of Vietnam, such as goods from abroad brought into Vietnam for display at exhibitions, fairs, advertising, and then exported out of Vietnam.

- Temporary export for re-import refers to goods from Vietnam sent abroad for repair, and once repaired, returned to Vietnam for use.

- Transshipment refers to goods purchased by Vietnam from one country and sold to another country without going through the formalities of importing into Vietnam.

c) Export and import services including: Repairing, producing unfinished goods for foreign countries, foreign taxes in repair and production services, agency sales for foreign countries in Vietnam, commissioning exports and imports for foreign countries.

d) Trading and exchanging goods and economic cooperation between domestic economic units and neighboring countries' economic units.

Other services such as tourism, marine transportation, air transportation, sea transportation, banking, insurance, postal services, and the exchange of goods between residents on both sides of the border and neighboring countries are managed under separate regulations.

3. The State manages the export and import of goods through the issuance of quotas for certain important export and import items during specific periods and by issuing export and import permits for goods according to Decision No. 305/CT dated November 30, 1988 of the Chairman of the State Council and Circular No. 03/TTLB/KTĐN-TCHQ dated February 4, 1989 of the Joint Ministry of Foreign Economic Relations and General Customs Department guiding the implementation of this Decision.

After the implementation period of Decision 305/CT, there have been positive impacts on the situation of export and import, while also generating many shortcomings affecting the production and living conditions domestically. The Chairman of the State Council has issued instructions to review the implementation of Decision 305/CT to make necessary supplements. In the short term, attention should be paid to rectifying the following specific issues in the issuance of export and import permits. a) Export and import permits for individual shipments can only be issued to economic units that have been registered for regular direct foreign trade operations by the Ministry of Foreign Economic Relations. When applying for permits, units must present their registration for foreign trade operations.

b) For export and import items listed in the quota regulation, permits for export and import shall only be issued within the quota approved for each item by the Ministry of Foreign Economic Relations. Absolutely no permits exceeding the quota for each item shall be issued unless additional quotas are granted by the Ministry of Foreign Economic Relations.

c) Comrades Ministers, Chairmen of Provincial People's Committees, municipalities, and centrally-administered cities may delegate officials at the Bureau level or departmental leadership to sign export and import permits for individual shipments, but the Ministers, Chairmen of Provincial People's Committees, municipalities, and centrally-administered cities still bear responsibility for the permits issued. Those authorized to issue permits must register their signatures with the General Customs Department and the Ministry of Foreign Economic Relations. Individuals who have not registered their signatures and have not been delegated authority must not sign export and import permits.

Export permits for goods exceeding quotas or not signed by authorized persons are invalid and will be handled according to current laws.

4. The State encourages production units exporting goods to directly participate in foreign trade activities in appropriate forms to access foreign customers, expand market outlets, develop export production, and improve the quality of exported goods.

a) For production units, regardless of management level and economic sector, if they meet the following conditions, the Ministry of Foreign Economic Relations will grant registration for regular foreign trade operations:

a.1. Export products produced by the unit or joint ventures, investment cooperatives, and comply well with state policies and laws.

a.2. Have a stable market and effective exports.

a.3. Have staff knowledgeable about foreign trade operations, particularly proficient in negotiating and concluding export and import contracts and foreign payments.

a.4. Achieve an annual export turnover of 5 million R/USD or more.

b) For commercial trading units, in addition to conditions (a.2, a.3), strictly adhering to state policies and laws as required for production units, only state-owned economic organizations managed by central, provincial, city, special zone, or district and county levels may participate in import and export activities. If export products are collected, they must be approved by the provincial, city, or central-level special zone authorities of the two localities to conclude contracts and must achieve an export turnover of at least 20 million R/USD annually. Specifically, northern mountainous provinces and the Central Highlands will have separate guidelines.

If production and commercial trading units do not meet the above conditions, they may be entrusted with exports or imports, or be granted a business registration with a time limit, or be issued an export or import permit on a voyage-by-voyage basis. A voyage-by-voyage export or import permit is a permit issued for a specific quantity of goods or a particular commodity according to a single or multiple delivery contract.

For service units engaged in foreign currency collection, annual applications for import business registration will be considered. The application for direct import and export business is attached as Appendix Number 1.

5. Regarding organizational guidance implementation:

- Units currently engaged in import and export business (as listed in Appendix Number 01) shall submit their files to the Ministry of Foreign Economic Relations to obtain continued business registration for import and export activities.

- Units granted import and export business licenses must strictly comply with monthly, quarterly reporting and statistical systems, and submit mid-year and annual progress reports on plan implementation according to prescribed regulations. Specifically:

+ Monthly reports shall be submitted to the Ministry of Foreign Economic Relations by the 5th day of the following month.

+ Quarterly reports shall be submitted to the Ministry of Foreign Economic Relations by the 10th day of the first month of each quarter.

+ Mid-year reports shall be submitted to the Ministry of Foreign Economic Relations by the 15th day of July.

+ Annual reports shall be submitted to the Ministry of Foreign Economic Relations by the 15th day of January of the following year.

For units that fail to submit reports within three months as stipulated above, the Ministry of Foreign Economic Relations will notify the revocation of the import and export business license or the non-renewal of additional quotas or annual registrations.

During the implementation of the Regulations on Organizational Management Systems for Import and Export Business Operations issued together with Decree No. 64/HĐBT, the Ministry of Foreign Economic Relations will supplement and provide further guidance on specific issues raised by the practical import and export business operations of units.

 

APPENDIX NUMBER I

Issued together with Circular No. 10/KTĐN-XNK dated August 7, 1989 of the Ministry of Foreign Economic Relations regarding the establishment of files for direct import and export business applications

The file for direct import and export business application includes:

- Application for direct import and export business.

- Charter on organization and operation of import and export business of the unit.

I - CONTENT OF APPLICATION FOR DIRECT IMPORT AND EXPORT BUSINESS

1. Name of enterprise or company...

2. Direct supervising authority...

3. Address...

Telephone number...

4. Decision on establishment number... date... month... year... signed by which level. Tasks defined...

5. Export turnover up to the end of the previous year and planned for the next year (in Roubles and US Dollars)...

Quantity and value of goods entrusted for export or sold to other units for export...

a) Part of exported goods produced by the unit itself (analyze the value of each foreign currency item in Roubles and US Dollars).

b) Part of exported goods produced through joint ventures or cooperation with other economic units (record according to the content of (a) above).

c) Part of exported goods purchased from the market (record according to the content of (a) above).

6. Goods requested for export and import:

- Export: List the goods requested for export, clearly stating the quantity and value in Roubles if exported to socialist markets or in US Dollars if exported to non-socialist markets.

- Import: Clearly list the goods requested for import, stating the quantity and value as for export goods.

7. Legal capital (including fixed and circulating capital in Vietnamese Dong and foreign currencies).

8. Markets requested for transactions (specify the countries).

9. Organizational structure of the unit:

- Number of subordinate organizations (stations, farms, workshops, stores, etc.), including:

a) Number of subordinate organizations (workshops, enterprises, farms, forest farms, etc.) producing export goods. Value of export goods from each organization and business accounting system of each organization.

b) Export-import business organization of the unit (whether it is a company, enterprise, or department).

- Leadership of the unit: director, how many deputy directors, division of responsibilities among deputy directors.

10. Professional expertise in foreign trade, including language proficiency of foreign trade staff.

- How many people have graduated from foreign trade schools (university, college)?

- How many people have worked in foreign trade and for how many years?

- Number of staff proficient in languages, how many know Russian, English, French, etc., with university, college degrees or level B, C.

11. Analysis of economic efficiency if allowed to engage in direct import and export business (financial benefits, utilization of production capacity, equipment, labor potential, resources, etc.)

Date... month... year 19...
Credit organization branch in province/city and basic credit cooperative…
(signature, stamp)

Opinion of the Ministry or Provincial People's Committee on the proposals made by the unit in the application.

II - CHARTER ON ORGANIZATION AND OPERATION OF DIRECT IMPORT AND EXPORT BUSINESS:

a) For economic units accepted by the Ministry of Foreign Economic Relations to engage in regular or time-limited direct import and export business, they must establish a charter on organization and operation of direct import and export business, submit it to the Ministry or the provincial People's Committee for approval after obtaining the agreement of the Ministry of Foreign Economic Relations. These units must register their charters with the Ministry of Foreign Economic Relations to obtain a direct import and export business registration.

b) For economic units permitted by the Council of Ministers to engage in direct import and export business, they must establish a charter according to the above provisions for the Ministry of Foreign Economic Relations to issue a direct import and export business registration.

c) For economic units currently directly trading in import and export without a charter, they must establish a Charter in accordance with the above provisions for the Ministry of Foreign Economic Relations to issue a business registration for direct import and export. As of September 30, 1989, if a unit does not submit its Charter to the Ministry of Foreign Economic Relations for issuance of a business registration for direct import and export, it shall be considered as ceasing to engage in direct import and export activities.

d) Business registration for direct import and export is issued annually. Units engaged in direct import and export wishing to obtain a business registration for the following year must complete and submit the necessary documentation to the Ministry of Foreign Economic Relations, including:

1. The business registration for direct import and export from the previous year.

2. A report on the situation and figures of exports and imports in the previous year, analyzing each product category, each market region, the portion of direct exports or imports, and the portion of entrusted exports or imports. Specifically, for exports, analyze the portion produced by the unit itself, the portion purchased from the market or through joint production with other units, and the portion entrusted for export by other units. For imports, analyze the portion serving the production and business operations of the unit and the portion accepted for entrusted import by other units.

Analyze the economic efficiency of import and export activities:

- Average exchange rate for exported goods (specific exchange rates for major product categories).

- Average exchange rate for imported goods (specific exchange rates for major product categories).

- Profit from foreign currency.

- Situation of self-balancing in foreign currency (foreign currency debt).

- Profit or loss in Vietnamese currency.

- Total amount of payments to the State (taxes, central government budget contributions, local government budget contributions).