Decision No. 1163/TM-XNK on goods of the Lao People's Democratic Republic transiting through the territory of Vietnam

Pursuant to …;

DECISION NO. 1163/TM-XNK OF SEPTEMBER 20, 1994 ISSUED BY THE MINISTER OF TRADE ON LAO DEMOCRATIC PEOPLE'S REPUBLIC GOODS TRANSITING THROUGH VIETNAMESE TERRITORY

Minister of Trade

WHEREAS, the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao Democratic People's Republic on the Transit of Goods was signed on April 23, 1994;

WHEREAS, Clause 3, Article 26, Chapter V of Decree No. 33/CP dated April 19, 1994 of the Government on State Management over Export and Import Activities;

After reaching consensus with the General Department of Customs, Ministry of Finance, and the Ministry of Transport.

Pursuant to …;

Article 1: ANNEXED TO THIS DECISION ARE THE REGULATIONS ON LAO DEMOCRATIC PEOPLE'S REPUBLIC GOODS TRANSITTING THROUGH VIETNAMESE TERRITORY.

Article 2: The functional departments of the Ministry of Trade shall be responsible for disseminating and guiding enterprises to implement these regulations.

Article 3: This Decision takes effect from the date of signature.

 

REGULATIONS

ON LAO DEMOCRATIC PEOPLE'S REPUBLIC GOODS TRANSITTING THROUGH VIETNAMESE TERRITORY

(Annexed to Decision No. 1163/TM-XNK dated September 20, 1994)
of the Minister of Trade)

 

PART I

GENERAL PROVISIONS

1. Lao Democratic People's Republic goods transiting through the Socialist Republic of Vietnam shall be transported by the Lao enterprise (hereinafter referred to as Lao enterprise) itself or by a Vietnamese enterprise hired by the Lao enterprise (hereinafter referred to as transport enterprise) for export to a third country, import from a third country, or transfer from one region to another within Laos.

2. The transit of goods must comply with the following requirements:

2.1. Be granted a "transit goods transportation permit" by the Ministry of Trade of Vietnam based on the Lao enterprise's application for transit goods. The Ministry of Trade of Vietnam authorizes the export-import permit offices of the Ministry of Trade in Da Nang and Hanoi cities (hereinafter referred to as permit office) to issue a "transit goods transportation permit" (according to form number 07) within seven days from the date of receipt of the Lao enterprise's application for transit goods.

Goods prohibited from export or import by Vietnam shall not be allowed to transit, except in special cases where the Prime Minister of the Government of Vietnam issues a document permitting such transit.

2.2. Comply with the following provisions:

- Must be transported strictly according to the time, border gate, and route specified in the transit goods transportation permit and be subject to supervision by the Vietnamese Customs.

- In case transit goods need to be stored in warehouses or yards, permission from the Vietnamese Customs is required, and they must be under the supervision of the Vietnamese Customs. - The quantity of goods exported must match the quantity imported in their original packaging.

- The maximum duration for transit goods to circulate within Vietnamese territory is thirty days, starting from the date of completing customs procedures at the entry border gate, except in cases of storage in warehouses or yards and/or emergencies.

3. Prohibition of consumption of transit goods on Vietnamese territory.

4. The transit of transport vehicles and escorts, as well as the transshipment and change of transport means, must comply with current Vietnamese regulations. For areas where there are joint agreements between the two governments, those agreements must be followed.

5. Lao goods transiting through Vietnam via road routes are permitted to pass through border gates that have been officially opened by both the Vietnamese and Lao Governments, currently including:

Name of Border Gate Route Through Name of Border Gate

Vietnam Side Border Laos Side

 

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- Lao Bao Route 9 Houei Kak

- Keo Nua (Suspension Bridge) Route 8 Keo Nua (Na Pe)

- Na Meo Route 217 Ban Loi

- Tay Trang Route 42 Xop Hun

- Pa Hang Route 43 So Pao

- Nam Can Route 7 Nam Can

- Cha Lo (Mu Gia Pass) Route 12 Thong Kharm

6. The transportation of transit goods and related procedures shall be handled in accordance with current Vietnamese regulations.

7. Any fees and costs arising from the transit activities under this regulation shall be settled in accordance with the payment agreement for the export and import of goods and services between the Socialist Republic of Vietnam and the Lao Democratic People's Republic for each period.

8. Disputes between enterprises during the implementation of contracts shall be resolved through negotiation by the enterprises. If no agreement is reached, the dispute shall be resolved by the International Chamber of Commerce Arbitration Center adjacent to the Vietnam Chamber of Commerce and Industry.

9. The Ministry of Trade shall determine the number of Vietnamese enterprises eligible to transport transit goods in accordance with the needs of Lao enterprises.

 

PART TWO

SPECIFIC PROVISIONS

 

I. PROVISIONS FOR LAO ENTERPRISES:

Lao enterprises requiring transit goods must:

1. Submit an application for transit goods to the Ministry of Trade of Vietnam (Permit Office). The application must be endorsed by the competent authority (Ministry leadership, provincial leadership, or an agency authorized by the Lao Ministry of Trade) requesting the Ministry of Trade of Vietnam to approve the transit of goods (according to form number 1).

2. Lao enterprises may only deliver goods to Vietnamese border gates and complete customs procedures for transit goods after receiving the "transit goods transportation permit."

3. When exporting goods to a third country or importing goods from a third country through Vietnam via land borders with a third country, Lao enterprises must hire a Vietnamese enterprise to transport the goods.

4. When hiring a Vietnamese enterprise to transport transit goods, Lao enterprises must sign a transit goods transportation contract (according to form number 3) with the enterprise authorized by the Ministry of Trade of Vietnam to transport transit goods.

5. Deliver and receive transit goods at international border gates of Vietnam and/or at the border gates listed in point 5 of the first part.

 

II. PROVISIONS FOR VIETNAMESE ENTERPRISES:

Enterprises eligible to be considered for permission to transport transit goods for Lao enterprises include:

1. Vietnamese enterprises that have been issued an export-import business license by the Ministry of Trade, and have not committed any violations in export-import activities in the past two years (1992, 1993), and meet one of the three criteria below:

1.1. Possess foreign trade transportation functions (recorded in the establishment decision signed before July 1, 1993). Or,

1.2. Designated by the People's Committee of provinces with border gates listed in point 5 of the first part, and the People's Committee of Quang Nam - Da Nang Province to exclusively transport transit goods (each province mentioned designates only one enterprise). Or,

1.3 - Has previously transported goods in transit for Laotian enterprises, with a value of at least 5 million USD in goods in transit over the two most recent years, and/or has previously exported goods to Laos under permits issued by the Permit Office, achieving a value of at least 1 million USD in the two years 1992 and 1993.

2 - The enterprise was established to transport goods in transit for Laos pursuant to a decision of the responsible authority.

Enterprises mentioned in Points 1/II and 2/II (Part II) must submit to the Ministry of Commerce an application file for transporting goods in transit, including: 1 - Application form for transporting goods in transit for Laotian enterprises (according to Form No. 04)

2 - Business license for export and import (photocopy certified true copy). For the entity mentioned in Point 2/II (Part II), this type of document is not required.

3 - Decision on establishment dated before July 1, 1993 (if it falls within the category mentioned in Point 1.1/II or Point 2/II above).

4 - Document from the People's Committee of the province or city designating the enterprise within its jurisdiction and requesting the Ministry of Commerce to approve the enterprise to transport goods in transit (if it falls within the category mentioned in Point 1.2/II above).

5 - Report on the process of transporting goods in transit for Laotian enterprises and the process of exporting goods to Laos (according to Form No. 05), if it falls within the category mentioned in Point 1.3/II above).

Within seven days from receiving a complete application, the Ministry of Commerce will issue a response document (according to Form No. 06).

 

PART THREE

PROCEDURES FOR TRANSPORTING GOODS IN TRANSIT

 

I - ENTERPRISES TRANSPORTING GOODS IN TRANSIT MUST SUBMIT THE FOLLOWING DOCUMENTS TO THE CUSTOMS AUTHORITY AT THE PORT OF ENTRY:

1 - Permit for transporting goods in transit (original).

2 - Transport document (photocopy).

3 - Goods packing list (photocopy).

4 - If the goods in transit are self-propelled vehicles (right-hand drive), an additional temporary permit for circulation issued by the provincial or centrally-administered municipal police (where the port of entry for goods in transit is located) (photocopy certified true copy) must be provided.

5 - If the goods in transit are prohibited from export or import by Vietnam, an additional permit from the Prime Minister of Vietnam must be provided. 6 - If the goods in transit are stored in warehouses or bonded areas, an additional document signed by the Director of the Customs Supervision and Management Department (under the General Customs Department) or the Director of the Provincial or Centrally-Administered Municipal Customs Department confirming permission for storage in warehouses or bonded areas (original) must be provided.

Based on these documents, customs officers will process the procedures for the enterprise to receive the goods, transport them out of Vietnam's territory according to the regulations of the General Customs Department.

Enterprises transporting goods in transit must pay customs fees as stipulated in Circular Jointly Issued by the Ministry of Finance and the General Customs Department No. 31/TTLB dated April 7, 1993.

 

II - ENTERPRISES TRANSPORTING GOODS IN TRANSIT NEED THE FOLLOWING DOCUMENTS TO PRESENT TO INSPECTION AND CONTROL AUTHORITIES DURING THE TRANSPORTATION PROCESS:

1 - Permit for transporting goods in transit (original).

2 - Customs declaration (original).

3 - Goods packing list (photocopy).

4 - If the goods in transit are self-propelled vehicles, an additional temporary permit for circulation as mentioned in Point I.4 (photocopy certified true copy) must be provided.

5 - If the goods in transit are prohibited from export or import by Vietnam, an additional permit from the Prime Minister of Vietnam must be provided.

6 - If the goods in transit are stored in warehouses or bonded areas, an additional document signed by the competent customs authority confirming permission for storage as mentioned in Point I.6 (photocopy certified true copy) must be provided.

 

PART FOUR

OTHER PROVISIONS

I - In case of objective reasons necessitating the return of goods to a third country's enterprise, the Laotian enterprise must handle all procedures as if the goods were being transported in transit through Vietnam for export to a third country.

II - In case of incidents (spillage, loss...) during transportation of goods in transit, the enterprise transporting goods in transit must jointly with customs escort personnel request the customs office (or local authorities from commune level upwards where there is no customs office) to establish a record confirming the condition of the goods.

For vehicles, after completing the record, if they can still operate independently, they may continue to do so; if not, they must be loaded onto another means of transport to be taken to the exit port.

III - Any organization or individual violating the provisions of this Regulation shall be subject to legal proceedings under current Vietnamese law.

IV - This Regulation replaces Circular Jointly Issued by the Ministry of Trade and the General Customs Department No. 01/TTLB/TN-HQ dated January 31, 1991 "Regarding Regulations on Transit and Borrowing Routes for Goods of the Lao People's Democratic Republic" and becomes effective from October 1, 1994.

 

FORM NO. 01: APPLICATION

...date...the...year...

APPLICATION FOR TRANSIT OF GOODS

No.../

To: Ministry of Trade

Socialist Republic of Vietnam

(Permit Office for Export and Import at...)

I - Owner of goods... (Laotian enterprise, clearly stating name, address, telephone, Telex, FAX, bank account number). Requests the Ministry of Trade (Permit Office) to grant permission for the transit of goods according to the following conditions:

1 - Name of goods:...

2 - Quantity (clearly state unit of measurement):...

3 - Value:...

4 - Packaging and marking code:...

5 - Port of entry:...

6 - Port of exit:...

7 - Route of transportation:...

8 - Means of transportation:...

9 - Time of transit (estimated date of arrival of goods in transit, estimated date of departure from Vietnam's border gate).

In case of force majeure causing goods to arrive at the entry port not as planned, the enterprise will submit a document to the Ministry of Trade explaining the reasons and proposing a new estimated time, this document is part of the application for transit permit.

II - Intends to sign a transportation contract for goods in transit with...

(Vietnamese enterprise, fully stated as in Part I)

III - Undertakes... (name of owner) undertakes to comply with Vietnamese laws regarding the transit of goods... (name of owner) respectfully thanks the Ministry of Trade.

Competent Authority Signature and Seal

(Head of the Ministry or Lao Province Leader (state position held))

(Or authorized agency by the Lao Ministry of Trade)

Confirms that Part I of this application is true, requests the Ministry of Trade

Vietnam to issue a transit permit for goods for the enterprise...

(name of Laotian enterprise)

If the application is written in English, Lao..., a Vietnamese translation must be attached. The translation has the same legal effect as the original.

FORM NO. 03:

Note: CONTRACT FOR TRANSPORTATION OF GOODS IN TRANSIT

 

 

No.../QC

Today, the...day of...month...year...at..., consisting of:

Party A (Laotian enterprise): (fully stated, international name, telegraphic address)

- Address: (stated according to postal address)...

Party A (Laotian enterprise): (full name, international name, telegraphic address)

- Address: (postal address)...

- Tel...Telex...

- Fax…

- Foreign currency account number:...

at Bank (include both name and address).

- By Mr./Ms.: (if not the director, must have a power of attorney from the director, and must add the phrase "in accordance with power of attorney number...dated...").

Party B: (Vietnamese enterprise): (full name, international name, telegraphic name).

- Address (according to postal address)…

- Tel...Telex...

3 - Foreign Currency Account

- Foreign currency account number:...

at Bank (include both name and address)

- By Mr./Ms.: (if not the director, must have a power of attorney from the director, and must add the phrase "in accordance with power of attorney number...dated...").

The parties have agreed to enter into a contract for the transportation of goods in transit under the following terms and conditions:

Article 1: Goods

Party A authorizes Party B to receive imported goods from...(third country) at the border gate...(and to hire Party B to transport these goods from the border gate...through the territory of Vietnam to the border gate...The goods include the following types:

Total value: 13,600,000.00 USD

Article 2: Import border gate:...Border gate where Party B delivers goods to Party A:...

Article 3: Transport route: ...

Article 4: Means of transport: ...

Article 5: Responsibilities of each party:

1- Responsibilities of Party A:

1.1- Purchase goods and deliver them to the border gate ...(Vietnam). Packaging must be suitable for the nature of the goods and appropriate for road and rail transport within the territory of Vietnam.

1.2- Provide Party B with full information about the goods, including the time of arrival at the Vietnamese border gate and the means of transport.

1.3- Send to Party B the following documents so that Party B can handle procedures related to receiving goods at the import border gate, transportation procedures, and delivery procedures at the export border gate.

+ Export-import contract signed with third-country customer or letter of credit (L/C).

+ Bill of lading (copy).

+ Commercial invoice issued by the third-country seller demanding payment from Party A (copy).

+ Packing list (original).

1.4- Pay Party B (on a cost-reimbursement basis or lump sum) all expenses related to unloading, inspection, appraisal (quantity, quality), storage, repair of goods and packaging, recycling, repackaging of damaged goods, claims for compensation, and transportation from...(import border gate) to...(delivery border gate).

1.5- Pay Party B freight charges for transporting goods in transit (either on an absolute amount basis or as a percentage of the value of the consignment).

2- Responsibilities of Party B:

2.1- Handle all necessary procedures in accordance with Vietnamese law to receive goods at...(import border gate) and transport them through the territory of Vietnam to deliver to Party A at...(delivery border gate), including matters mentioned in Point 1.4 of Article 5.

2.2- Ensure the safety of the goods from their arrival at...(import border gate) until their delivery at...(delivery border gate).

2.3- Take all necessary actions to minimize losses of goods and send to Party A relevant documents concerning claims for compensation (if any).

Article 6: Payment terms

- When the goods arrive at...(import border gate), Party A must prepay Party B...% of the expenses mentioned in Point 1.4 of Article 5, and prepay...% of the freight charges mentioned in Point 1.5 of Article 5.

- The remaining amount will be paid before loading the goods onto Party A's means of transport at...(delivery border gate).

- Currency for payment:...

- Method of payment:... (as directed by the State Bank of Vietnam).

Article 7: Settlement of disputes:

Any disputes shall be resolved through negotiation and mediation between Party A and Party B. In case the two parties cannot resolve the dispute through mediation, it shall be referred to the International Chamber of Commerce Arbitration Center attached to the Vietnam Chamber of Commerce and Industry for adjudication.

Article 8: Article 1: The parties commit to strictly implement the terms recorded in this Contract on the basis of equality and mutual benefit. Any occurrences during the implementation process will be resolved through supplementary documents, which are integral parts of the main contract.

This Contract is established in four copies, two in Lao language and two in Vietnamese language, all four copies having equal legal validity.

Representative of Party B Representative of Party A

Based on this model, enterprises may add or remove certain non-essential points depending on actual circumstances.

Note: MODEL NO. 04: APPLICATION

 

...day...month...year...

 

 

Socialist Republic of Vietnam

Independence - Freedom - Happiness

 

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APPLICATION FOR TRANSPORTING GOODS THROUGH TRANSIT

No.../...

Pursuant to the regulations stipulated in the Regulation issued together with Decision No. 01163/TM-XNK dated September 20, 1994 (referred to as Regulation No. 1163/TM-XNK of the Ministry of Trade), (enter the full name, address, telephone, telex, fax, bank account number of the enterprise).

To: Ministry of Trade

Upon self-assessment, it is found that all conditions have been met (specify whether all conditions or only certain conditions have been met).

We request the Ministry of Trade to permit (name of enterprise) to transport goods through transit for Laotian enterprises.

Enclosed with this application are the relevant documents (specify the names of the documents according to the regulation).

(Name of enterprise) hereby solemnly commits to comply with all provisions of Regulation No. 1163/TM-XNK of the Ministry of Trade and the laws of the State regarding the transportation of goods through transit and import/export of goods.

(Name of enterprise) sincerely thanks the Ministry of Trade.

(Specify the position of the signatory)

Signature and stamp

MODEL NO. 05:

 

REPORT ON RELATIONSHIP WITH LAOTIAN ENTERPRISES

(Name of enterprise) hereby reports on the process of transporting goods through transit for Laotian enterprises and the execution of foreign trade contracts up to the date of...month...year... as follows:

Socialist Republic of Vietnam

Independence - Freedom - Happiness

 

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APPLICATION FOR TRANSPORTING GOODS THROUGH TRANSIT

(Name of enterprise) hereby reports on the process of transporting goods through transit for Laotian enterprises and the execution of foreign trade contracts up to the date of...month...year... as follows:

Pursuant to the regulations stipulated in the Regulation issued together with Decision No. 01163/TM-XNK dated September 20, 1994 (referred to as Regulation No. 1163/TM-XNK of the Ministry of Trade), (enter the full name, address, telephone, telex, fax, bank account number of the enterprise).

To: Ministry of Trade

A/ Process of transporting goods through transit for Laotian enterprises:

1- Year... (report on the two most recent years).

2- Name of Laotian enterprise (with a value of goods through transit of US$1 million or more).

3- Goods name, quantity, value.

4- Entry customs checkpoint, exit customs checkpoint.

5- Means of transportation.

6- Transit goods transportation contract implemented from day, month, year to day, month, year.

B/ Process of exporting goods to Laos:

1- Year... (report on the two most recent years, including 1993).

2- Name of Laotian enterprise (with a value of exported goods of US$200,000 or more).

3- Goods name, quantity, value.

4- Terms of delivery.

5- Means of transportation.

6- Export contract implemented from day, month, year to day, month, year.

C/ Self-assessment of the situation and commitment to not have committed any violations recently.

(Specify the position of the signatory)

Signature and stamp

Enterprises may report both sections A and B if they have executed both.

Note: MODEL NO. 06:

 

DOCUMENT OF THE MINISTRY OF TRADE PERMITTING VIETNAMESE ENTERPRISES TO TRANSPORT GOODS THROUGH TRANSIT

Ministry of Trade of the Socialist Republic of Vietnam

No./TM-XNK...day...month...year...

 

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Independence - Freedom - Happiness

 

Regarding the transportation of goods

through transit.

To... (Vietnamese enterprise requesting permission to transport

goods through transit)
Pursuant to the Regulation "on goods of the Lao People's Democratic Republic transiting the territory of Vietnam" issued together with Decision No. 01163/TM-XNK dated September 20, 1994 (referred to as Regulation No. 1163/TM-XNK) of the Ministry of Trade;

Pursuant to the opinion expressed in Circular No...dated...month...year...regarding...Upon reviewing the application for transporting goods through transit No.../dated...month...year...of...(name of enterprise), the Ministry of Trade permits...(name of enterprise) to transport goods through transit in accordance with the documents of the Ministry of Trade permitting Laotian enterprises to transit goods.

...(name of enterprise) must comply with all provisions of Regulation No. 1163/TM-XNK of the Ministry of Trade and the laws of the State regarding the transportation of goods through transit and import/export of goods.

This document shall be valid until...month...year...199...

Minister of Trade

MODEL NO. 07:

(Signature and Seal)

 

LICENSE FOR TRANSPORTING GOODS THROUGH TRANSIT

No.../QC issued on.../.../199...valid until.../.../199.

Consignor (name, address) Transporting enterprise (name, address)

 

 

Document of the Ministry of Trade Permitting

transit of goods Transporting goods through transit

No.../TM-XNK dated / /19 No...TM-XNK, dated / /199..

Transportation contract No...QC signed on...month...year 199...

Entry customs checkpoint...Route...

Exit customs checkpoint...Transportation fee...

Transporting enterprise

 

Note: