Circular No. 13/2006/TT-BTM guiding the procedures for exporting and importing goods of domestic contractors and foreign contractors as stipulated in Decree No. 111/2006/NĐ-CP dated September 29, 2006 of the Government detailing the Law on Bidding and the selection of construction contractors under the Construction Law.

CIRCULAR

Guidelines for the export and import procedures of goods by domestic contractors and foreign contractors as stipulated in Decree No. 111/2006/NĐ-CP dated September 29, 2006 of the Government detailing the Law on Bidding and the selection of construction contractors under the Construction Law

Decree No. 111/2006/NĐ-CP dated September 29, 2006 of the Government detailing the Law on Bidding and the selection of construction contractors under the Construction Law

On the basis of Decree No. 29/2004/NĐ-CP dated January 16, 2004 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Trade;

On the basis of Decree No. 111/2006/NĐ-CP dated September 29, 2006 of the Government detailing the Law on Bidding and the selection of construction contractors under the Construction Law;

On the basis of Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Commerce regarding international trade activities and agency buying, selling, processing, and transiting goods with foreign countries;

The Ministry of Trade hereby issues guidelines for the export and import procedures of goods by domestic contractors and foreign contractors as follows:

I. OBJECTS AND SCOPE OF REGULATION

This Circular guides the export and import procedures of goods by domestic contractors and foreign contractors (collectively referred to as contractors) who have won bids for projects using state capital as prescribed in the Law on Bidding.

Activities of foreign contractors winning bids in Vietnam are not subject to regulation by this Circular but shall be implemented according to the provisions of Clause 4, Article 7 of the Construction Law and Decision No. 87/2004/QĐ-TTg dated May 19, 2004 of the Prime Minister on the Operation Regulations of Foreign Contractors in the Construction Sector in Vietnam.

II. PROCEDURES FOR EXPORT AND IMPORT OF GOODS

1. Imported Goods:

Except for goods listed in the Prohibited Import List as prescribed in Circular No. 04/2006/TT-BTM dated April 6, 2006 guiding the implementation of certain provisions of Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Commerce regarding international trade activities and agency buying, selling, processing, and transiting goods with foreign countries, contractors are permitted to import and temporarily import for re-export various types of goods for implementing investment projects using state budget funds. For cases where goods are imported under permits or are subject to specialized management, contractors may only be allowed to import and temporarily import for re-export goods after obtaining import permits from the Ministry of Trade or specialized management ministries or guidance on import procedures.

2. Import Contracts:

An import contract is a sales contract concluded between domestic contractors and foreign traders or between foreign contractors who have won bids and Vietnamese enterprises in accordance with the decision approving the results of contractor selection by the competent authority. The contents of the import contract must comply with the provisions of the law on contracts.

3. Import Procedures:

3.1. Import of machinery and equipment:

Winning contractors are directly responsible for handling the import procedures for machinery and equipment at customs checkpoints based on the following documents:

- Decision approving the investment project;

- Decision approving the bidding results;

- Import contract;

- Certified copy of the Business Registration Certificate and tax code of the contractor (for domestic contractors);

- Certified copy of the Business Registration Certificate or equivalent documents (for foreign contractors).

3.2. Leasing or borrowing imported machinery and equipment:

During the implementation of investment projects, contractors are permitted to lease or borrow machinery and equipment to serve construction work. After completing the project, contractors must re-export leased or borrowed machinery and equipment back to foreign traders. In cases where leased or borrowed machinery and equipment are liquidated in Vietnam, contractors must fulfill their financial obligations as prescribed by law. Machinery and equipment subject to liquidation must comply with the regulations of the law on imported second-hand machinery and equipment. Import and liquidation procedures are carried out directly at customs checkpoints.

3.3. Temporary Import for Re-Export, Temporary Export for Re-Import:

During the implementation of investment projects, contractors are allowed to:

- Temporarily import machinery, equipment, and mechanical means to serve construction work and then re-export them when the work is completed;

- Temporarily export parts, components, spare parts... belonging to imported machinery and equipment systems to foreign countries for repair or replacement and then re-import them.

Temporary import for re-export and temporary export for re-import procedures are carried out directly at customs checkpoints.

1. This Circular replaces Circular No. 04 TM/ĐT dated July 30, 1993 of the Ministry of Trade guiding the implementation of the Management Regulations on the Import of Machinery and Equipment with State Budget Funds issued together with Decision No. 91/TTg dated November 13, 1992 of the Prime Minister. From the date this Circular takes effect, all types of permits issued by the Ministry of Trade related to the import of machinery and equipment with state funds will be abolished.

3. During the implementation of this Circular, if any difficulties arise, contractors and relevant units should report to the Ministry of Trade for supplementation and amendment to ensure compliance./.

III. IMPLEMENTATION

1. This Circular replaces Circular No. 04 TM/DT dated July 30, 1993, of the Ministry of Trade guiding the implementation of the Regulations on the management of imports of machinery and equipment funded by the State budget issued together with Decision No. 91/TTg dated November 13, 1992, of the Prime Minister. From the date this Circular takes effect, all licenses issued by the Ministry of Trade related to the importation of machinery and equipment funded by State funds shall be abolished.

3. In the process of implementing this Circular, if any difficulties arise, contractors and relevant units shall report to the Ministry of Trade for supplementation and amendment to ensure appropriateness./.