Decision No. 1064-TM/PC Issuing the Business Regulations on Through Trade and the Business Regulations on Temporary Import for Re-export

Pursuant to …;

ISSUING REGULATIONS ON TRANSIT TRADE AND REGULATIONS ON TEMPORARY IMPORT FOR RE-EXPORT

THE MINISTER OF TRADE

Pursuant to Decree No. 95/CP dated December 4, 1993 of the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Commerce;

Pursuant to Decree No. 33/CP dated April 19, 1994 of the Government on state management of export and import goods.

Pursuant to …;

Article 1:Now hereby issuing along with this Decision the following two Business Rules:

- Regulations on transit trade.

- Regulations on temporary import for re-export.

Article 2:This Decision shall take effect from the date of signing.

All previous regulations that conflict with the provisions of this Decision are hereby abolished.

Article 3:The Heads of relevant Departments and Heads of Export and Import Permit Offices shall be responsible for guiding the implementation of these Regulations.

REGULATIONS

ON TRANSIT TRADE

(Annexed to Decision No. 1064-TM/PC dated August 18, 1994)

Pursuant to Article 26 of Decree No. 33/CP dated April 19, 1994 of the Government on state management of export and import activities and based on international commercial practices, the Ministry of Commerce stipulates the principles and procedures for conducting transit trade as follows:

I- GENERAL PROVISIONS:

Clause 4 of Article 6Transit (Switch Trade) is a form of export and import business commonly used in international trade relations and regulated by international law, international commercial practices, and the laws of countries involved.

Vietnamese enterprises permitted to conduct transit trade must comply fully with these regulations.

Article 2.In this regulation, the following terms are understood as follows:

2.1. Transit refers to purchasing goods from one country (the exporting country) to sell to another country (the importing country) without going through the procedures for importing into Vietnam and without going through the procedures for exporting from Vietnam.

2.2 Forms of transit include the following:

2.2.1 Goods are transported directly from the exporting country to the importing country via Vietnam.

2.2.2 Goods are transported to Vietnam but not processed for importation into Vietnam and are immediately transported to the importing country.

2.2.3 Goods are transported to Vietnam and temporarily placed in a bonded warehouse before being transported to the importing country, without processing for importation into Vietnam.

Article 3.The legal basis for the form of transit trade consists of two separate contracts: the purchase contract (signed by the Vietnamese enterprise with the exporting country's enterprise) and the sales contract (signed by the Vietnamese enterprise with the importing country's enterprise). The purchase contract may be signed before or after the sales contract, depending on specific conditions determined by the Vietnamese enterprise.

Article 4.Vietnamese enterprises permitted to conduct transit trade are enterprises granted permission to engage in export and import of goods by the Ministry of Commerce and approved to conduct such trade by the Ministry of Commerce.

II- CONDITIONS AND PROCEDURES FOR CONDUCTING TRANSIT TRADE

Article 5.Commodities traded:

5.1. The commodities traded depend on the commodity policy of the selling country and the buying country, according to international practice and custom.

5.2. The commodities traded depend on the scope of export and import operations recorded in the export and import trading license of the Vietnamese enterprise. Cases outside the scope of export and import operations must be reviewed by the Ministry of Commerce before signing the purchase and sale contracts.

Article 6.Enterprises conducting transit trade do not need to apply for individual export and import permits for each shipment, but operate based on the purchase contract (signed with the enterprise of the exporting country) and the sales contract (signed with the enterprise of the importing country).

Article 7. Payment for goods under transit trade must go through the bank where the enterprise has an account and must comply with the international payment regulations and guidelines of the State Bank of Vietnam.

Article 8. Documents and procedures for implementation, enterprises must:

8.1. Submit to the Export and Import Permit Office one copy of the purchase contract, one copy of the sales contract (photocopies certified). If these contracts are valid, within seven days from the date of receipt, the Export and Import Permit Office will stamp and sign on the original contract, confirming that the contract has been registered at the Export and Import Permit Office (date... month... year).

8.2. Submit to the Customs Office at the border gate a declaration form along with the following documents for customs procedures in cases mentioned in Clause 2.22 and 2.23...

8.2.1 Purchase contract, sales contract (photocopies certified) already signed and stamped by the Export and Import Permit Office confirming "registered".

8.2.2 Bill of lading (copy).

8.2.3 Commercial invoice issued by the foreign enterprise (selling) demanding payment from the Vietnamese enterprise and the commercial invoice issued by the Vietnamese enterprise (buying) demanding payment from the foreign enterprise (purchase), copies.

8.2.4 Packing list (copy).

Based on these documents, the Customs Office at the border gate will process necessary customs procedures.

8.3. Submit to the commercial bank one original purchase contract, one original sales contract (already signed and stamped by the Export and Import Permit Office confirming "registered") for payment procedures.

Article 9.Quarterly, enterprises conducting transit trade must report their situation and results to the Ministry of Commerce and the General Department of Customs.

III- FINAL PROVISIONS

Article 10.Any violation of these regulations shall be handled according to current laws.

Article 11.These regulations take effect from the date of signature and replace the Interim Provision No. 4914-TN-XNK dated August 3, 1991 of the Ministry of Commerce on conducting switch trade./.