Decision No. 1172-TM/XNK Issuing the Regulations on Entrusted Import and Export between Domestic Legal Entities

Pursuant to …;

OF THE MINISTER OF TRADE

Issuing the Rules on Entrusted Import and Export between Domestic Legal Entities

THE MINISTER OF TRADE

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

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

DECISION:

Article 1

Now hereby promulgating with this Decision the Rules on Entrusted Import and Export between Domestic Legal Entities.

Article 2

This Decision takes effect from the date of signature. All previous regulations contrary to those set forth in this Decision shall be abolished.

Article 3

The Heads of relevant Departments, Heads of Export and Import Permit Offices shall be responsible for guiding the implementation of these Rules.

REGULATIONS

RULES ON ENTRUSTED IMPORT AND EXPORT BETWEEN DOMESTIC LEGAL ENTITIES

(Issued together with Decision No. 1172-TM/XNK dated September 22, 1994)

of the Ministry of Trade)

1. Definitions:

Entrusted import and export is a commercial service activity conducted under the form of leasing and importing as a service for export or import. This activity is carried out based on entrusted export or import contracts between enterprises in accordance with the provisions of the Ordinance on Economic Contracts.

2. Subjects:

2.1. Entrusting subjects for export and import:

All enterprises with domestic business licenses and/or export and import business licenses are eligible to entrust export and import.

2.2. Accepting subjects for entrusted export and import:

All enterprises with export and import business licenses are permitted to accept entrusted export and import.

3. Conditions:

3.1. For the entrusting party:

Possess a domestic business license and/or an export and import business license.

Have quotas or budgets for export and import if entrusting the export and import of goods subject to quotas or guidance plans.

Obtain written approval from specialized agencies for specialized export and import goods.

Having the ability to settle payments for entrusted export and import goods.

3.2. For the accepting party:

Possess an export and import business license.

Have a suitable product line for the entrusted export and import goods.

4. Scope:

4.1. Entrusting and accepting entrusted export and import of goods not prohibited by the State for export and import.

4.2. The entrusting party may only entrust export and import of goods within the scope of business specified in their domestic business license or export and import business license.

4.3. The entrusting party has the right to choose the accepting party according to Article 3.2 above to sign the entrusted contract.

5. Obligations and Responsibilities:

The accepting party must provide the entrusting party with information about the market, prices, customers related to the entrusted export and import orders. The entrusting party and the accepting party negotiate and sign the entrusted contract. Rights, obligations, and responsibilities of both parties are agreed upon and recorded in the contract.

The entrusting party pays the accepting party the entrusted fee and other expenses incurred when performing the entrusted work.

6. Legal Liability:

Parties participating in entrusted import and export activities must strictly comply with the provisions of these Rules and the entrusted export and import contracts signed by the participating parties.

Violation of the aforementioned provisions will be handled according to the law and current regulations depending on the severity.

Any disputes between the parties signing the contract shall be resolved through negotiation and mediation by the parties. If negotiations fail to reach an agreement, the case shall be referred to the Commercial Court. The judgment of the Commercial Court is the final binding decision that the parties must enforce./.