Decision No. 123/1999/QĐ-BTM On Supplementing the Business Regulations for Temporary Importation and Re-exportation Issued Together with Decision No. 1311/1998/QĐ-BTM dated October 31, 1998 of the Ministry of Trade

DECISION OF THE MINISTER OF TRADE

Regarding the supplementation of the Business Rules for Temporary Importation and Re-exportation

issued together with Decision No. 1311/1998/QĐ-BTM dated October 31, 1998 of the Ministry of Trade

 _____________________

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 Trade;

Pursuant to Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Law on Trade regarding export, import, processing, and agency sales of goods with foreign countries;

Considering the special nature of petroleum products;

DECISION:

Article 1. This Decision supplements the Business Rules for Temporary Importation and Re-exportation of Petroleum Products to be issued together with this Decision, to supplement the Business Rules for Temporary Importation and Re-exportation issued together with Decision No. 1311/1998/QĐ-BTM dated October 31, 1998 of the Ministry of Trade.

Article 2. This Decision shall take effect fifteen days from the date of signature and shall replace Decision No. 555/TM-XNK dated June 28, 1995 of the Minister of Trade on the supplementation of the Business Rules for Temporary Importation for Re-exportation.

Article 3. Enterprises engaged in temporary importation and re-exportation of petroleum products, Heads of relevant Departments shall be responsible for implementing this Decision./.

REGULATIONS

TEMPORARY IMPORTATION AND RE-EXPORTATION OF PETROLEUM PRODUCTS

(Issued together with Decision No. 0123/1999/QĐ-BTM dated February 4, 1999 of the Minister of Trade).

I - General Provisions:

Article 1. The petroleum products specified in these Rules include gasoline, diesel, fuel oil, aviation fuel (ZA1, TC1), and asphalt.

Article 2. Temporary importation and re-exportation of petroleum products as defined in these Rules means that Vietnamese enterprises purchase petroleum products from abroad to sell to enterprises of another country, with procedures for importing petroleum products into Vietnam and exporting them out of Vietnam being carried out.

Cases where petroleum products are purchased from abroad to sell to the following entities shall also be considered as temporary importation and re-exportation and must comply with the provisions of these Rules:

1. Enterprises located in export processing zones and export-oriented enterprises within industrial parks and high-tech zones.

2. Aircraft of Vietnamese airlines operating international routes and aircraft of foreign airlines landing in Vietnam.

3. Foreign ships docking at Vietnamese ports.

Article 3. Enterprises may carry out temporary importation and re-exportation of petroleum products upon obtaining a written permit from the Ministry of Trade.

1. Primary import enterprises of petroleum products may conclude import and export contracts for petroleum products before applying for permission from the Ministry of Trade.

2. Other enterprises with the function of trading in petroleum products as specified in their business registration certificate, if they have a need to engage in temporary importation and re-exportation of petroleum products, will be reviewed and resolved by the Ministry of Trade on a case-by-case basis.

II - Procedures for Applying for a Permit for Temporary Importation and Re-exportation of Petroleum Products:

Article 4: The Ministry of Trade issues permits for temporary importation and re-exportation of petroleum products to enterprises mentioned in Clause 1, Article 3 based on the following documents:

1. A letter requesting a permit for temporary importation and re-exportation of petroleum products, specifying: quantity, type of petroleum products to be temporarily imported and re-exported, buyer, port of temporary importation, port of re-exportation, time frame...

2. Purchase contract for petroleum products signed with foreign customers.

3. Sales contract for petroleum products signed with enterprises (if selling to foreign enterprises or entities specified in Clause 1, Article 2), signed with airlines (in cases of selling to entities specified in Clause 2, Article 2), and proposed sales plan by the enterprise's director (in cases of selling to entities specified in Clause 3, Article 2).

In cases of selling petroleum products to entities specified in Clause 1, Article 2, there must be a document from the competent authority approving the importation of petroleum products for production and business purposes of the enterprise.

The Ministry of Trade shall issue a permit for temporary importation and re-exportation of petroleum products to enterprises within seven working days from the date of receipt of complete and valid documents.

Article 5: Enterprises mentioned in Clause 2, Article 3, if they wish to engage in temporary importation and re-exportation of petroleum products, must submit a detailed explanation of their business plan and capability to ensure effectiveness, safety, and compliance with regulations to the Ministry of Trade.

Within seven working days from the date of receipt of the enterprise's request letter, the Ministry of Trade will issue a document permitting the enterprise to proceed with signing purchase and sale contracts or notify the reasons for not resolving the request.

III - Provisions on the Implementation of Temporary Importation and Re-exportation of Petroleum Products:

Article 6. Petroleum products for re-exportation must be settled through banks using freely convertible foreign currency in accordance with current State regulations on foreign exchange management.

Article 7. Enterprises permitted to temporarily import petroleum products may do so in large lots and re-export them in the original lot or in smaller lots from domestic warehouses according to the quantity and types already temporarily imported.

Article 8. For primary import enterprises of petroleum products, the volume of petroleum products actually re-exported may be less than the volume temporarily imported by up to 10%. Any excess volume must be subject to full tax and other charges applicable to imported petroleum products for domestic consumption and must be deducted from the annual import quota of the same type of petroleum product allocated to the enterprise by the Ministry of Trade. Enterprises mentioned in Clause 2, Article 3 must re-export the entire volume of petroleum products temporarily imported.

Documents submitted to customs authorities for temporary importation and re-exportation procedures for petroleum products include:

Article 9. 1. Purchase contract, sales contract (certified copy).

2. Written permit from the Ministry of Trade allowing the enterprise to temporarily import and re-export petroleum products (certified copy).

3. Relevant documents related to cargo delivery and receipt as prescribed by customs.

If an enterprise entrusts its branches or subsidiaries to handle temporary importation and/or re-exportation procedures for petroleum products based on a permit from the Ministry of Trade, such branches or subsidiaries must present a valid power of attorney specifying the quantity and type of petroleum products entrusted.

IV - Implementation Provisions:

Enterprises already permitted to engage in temporary importation and re-exportation of petroleum products are required to report periodically every three months, six months, nine months, and annually on the implementation status according to the attached form.

Article 10. Enterprises permitted to engage in temporary import for re-export of petroleum products shall be responsible for reporting periodically every three months, six months, nine months, and annually on the implementation situation according to the attached form.

Article 11. Matters not specified in this Regulation relating to temporary import for re-export shall be implemented in accordance with the provisions of the Regulation on business activities conducted through the temporary import for re-export method issued together with Decision No. 1311/1998/QĐ-BTM dated October 31, 1998 of the Minister of Trade.

Article 12. This Regulation shall take effect fifteen days from the date of issuance and replace the Regulation issued together with Decision No. 555/TM-XNK dated June 28, 1995 of the Minister of Trade regarding the supplementation of the Regulation on business activities conducted through the temporary import for re-export method.

…, day  month        year 199

REPORT ON THE IMPLEMENTATION OF TEMPORARY IMPORT FOR RE-EXPORT OF PETROLEUM PRODUCTS

…MONTH YEAR 199