Joint Circular No. 10-TTLB/TN-HQ guiding the regime for accepting agency in export and import of goods for Cambodian economic units

 JOINT CIRCULAR

GUIDELINES ON THE REGIME OF RECEIVING AGENTSHIP FOR EXPORT AND IMPORT OF GOODS FOR ECONOMIC UNITS OF CAMBODIA ISSUED BY THE MINISTRY OF TRADE - GENERAL DEPARTMENT OF CUSTOMS NO. 10-TTLB/TN-HQ ON NOVEMBER 13, 1990

On November 3, 1990, the Ministry of Trade of the Socialist Republic of Vietnam and the Ministry of Trade of the State of Cambodia signed the "Regulations on Certain Basic Principles for Managing Goods Exchange and Implementing Commercial Services between the Socialist Republic of Vietnam and the State of Cambodia." Part I of these regulations sets forth certain principles regarding the regime of receiving agency for export and import of goods.

The Ministry of Trade and the General Department of Customs provide guidance as follows:

I. GENERAL PROVISIONS

1. The Ministry of Trade shall be responsible for determining the maximum of ten Vietnamese foreign trade business units permitted to receive agency for export and import of goods for Cambodian economic units; and shall notify the General Department of Customs of this list at the end of each year.

The Ministry of Trade shall base its determination on the following criteria to identify the units entitled to receive agency for export and import of goods for Cambodia:

- Having been granted a business license for export and import within the scope of business appropriate to the scope of agency.

- Being a unit under a ministry or province.

- If subordinate to a province, it must be a province with a sister-city relationship with Cambodia or sharing a border with Cambodia.

- Having effective and reputable traders, markets, exports, and imports both domestically and internationally.

- Submitting an application for agency to export and import goods for the partner, clearly stating the relationship with which unit, what type of goods, quantity, export market, import market, and trading history with Cambodia.

2. Vietnamese foreign trade business units (hereinafter referred to as Vietnamese units) may only accept agency for exporting and importing goods that are not prohibited from export and import by the governments of Vietnam and Cambodia.

3. Goods received under agency for export and import for Cambodian economic units (hereinafter referred to as agency goods) shall transit through Vietnam's territory under the temporary import regime, to be re-exported intact and in original packages (except for cases specified in Point 2, Section V of this Circular); and shall be exempt from export duties and import duties on commercial goods.

4. Agency goods shall enter and exit Vietnam's territory based on the import permit (temporary import) and export permit (re-export) issued by the Vietnamese Ministry of Trade, strictly according to the designated ports, routes, and means of transport specified on the permits.

At the Vietnam-Cambodia border, agency goods are only allowed to pass through the following ports:

Agency goods are only allowed to pass through the following ports:

+ Saigon Port

+ Vung Tau Port

Agency goods must complete all customs procedures when entering and exiting Vietnam; and shall be subject to inspection and supervision by customs authorities in accordance with the Vietnamese Customs Law.

5. Absolutely no sale of agency goods on the Vietnamese market without permission from the Vietnamese Ministry of Trade and the Cambodian Ministry of Trade.

II. AGENCY RELATIONSHIPS

1. The agency relationship and acceptance of agency must be reflected in an agency contract, specifying clearly the obligations and rights of each party involved.

2. The agency contract must include at least the following provisions:

- Name of goods, specifications, quality.

- Quantity.

- Unit price and total value.

- Payment method.

- Commission fee, agency costs, and methods of payment for commission fees and agency costs.

- Method of delivery (delivery conditions, time, and place of delivery).

- Resolution of disputes.

3. The agency contract must be approved by the Vietnamese Ministry of Trade and the Cambodian Ministry of Trade to become effective.

4. The commission fee and agency costs shall be calculated in foreign currency converted and paid by the Cambodian economic unit to the Vietnamese unit through the Vietnam Foreign Trade Bank. Payment of commission fees and agency costs in goods is only allowed with permission from the Vietnamese Ministry of Trade.

III. PROCEDURES FOR IMPORT (TEMPORARY IMPORT)

1. Documents for applying for an import permit (temporary import) for agency goods include:

- An agency contract already approved by the Vietnamese and Cambodian Ministries of Trade.

- A contract or equivalent document signed by the Vietnamese unit with a third country for exporting or importing agency goods. Accompanying this contract is a Letter of Credit (L/C) or equivalent documents.

2. The import permit (temporary import) must specify "agency goods for Cambodia" and indicate the temporary import port, route, and mode of transport.

3. After obtaining the import permit, the Vietnamese unit shall proceed with all necessary customs procedures in accordance with general regulations to import the goods into Vietnam.

4. In cases where the goods are not immediately re-exported, temporarily stored or processed, the Vietnamese unit must obtain prior permission from the provincial customs authority for customs supervision and implementation of customs sealing procedures.

IV. PROCEDURES FOR EXPORT (RE-EXPORT)

1. Documents for applying for an export permit (re-export) include:

- An agency contract already approved by the Vietnamese and Cambodian Ministries of Trade.

- A contract or equivalent document signed by the Vietnamese unit with a third country for exporting or importing agency goods. Accompanying this contract is a Letter of Credit (L/C) or equivalent documents.

- The import permit (temporary import) already settled or the customs declaration form for imported goods confirmed by the customs authority at the port of entry.

2. The validity period of the re-export permit shall not exceed the period during which the goods are allowed to remain on Vietnamese territory (Article 1, Section V of this Circular). The permit must specify "agency goods for Cambodia" and clearly state the port, route, and mode of transport for re-export.

3. After obtaining the re-export permit, the Vietnamese unit shall proceed with all necessary customs procedures in accordance with general regulations to export the goods out of Vietnam.

4. The Vietnamese unit must return the settled re-export permit to the issuing authority of the Vietnamese Ministry of Trade within thirty days from the date of settlement.

V. OTHER PROVISIONS

1. Goods entrusted for export shall be retained on the territory of Vietnam not exceeding forty-five days from the date of actual importation into Vietnam. For goods entrusted for importation, this period is thirty days.

2. Entrusted goods may be exported in quantities less than the quantity actually imported and not in original packages in the following cases:

- Goods produced in Cambodia, which are recycled or processed during the retention period on the territory of Vietnam, resulting in allowable losses.

- Goods damaged at temporary import checkpoints or during transportation through the territory of Vietnam.

In both of these cases, the relevant competent authorities' confirmation documents (port, Vinacontrol, temporary import customs checkpoint, provincial customs) must be presented to the licensing organization of the Ministry of Trade and Vietnam Customs.

3. Entrusted goods for export shall not obtain a certificate of origin from Vietnam. If the contract signed with a third country (or Letter of Credit opened by a third country) requires presentation of a certificate of origin in the set of payment documents, the Vietnamese entity must request the Cambodian economic entity to obtain a certificate of origin from Cambodia.

VI. VIOLATION HANDLING

Violations of the provisions of this Circular shall be handled according to the Customs Law and current laws of the Socialist Republic of Vietnam.

This Circular takes effect from January 1, 1991.