Decision No. 17/2004/QD-NHNN on the issuance of the Payment Rules for the purchase and sale, exchange of goods and commercial services in the Vietnam-Cambodia border area.

 

Pursuant to …;

Regarding the issuance of the Payment Regulations for the purchase and sale, exchange of goods and commercial services in the Vietnam-Cambodia border area

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Articles of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;

Pursuant to the Trade Agreement between the Government of Vietnam and the Government of Cambodia signed on March 24, 1998;

Pursuant to the Purchase and Exchange of Goods and Commercial Services Agreement in the Border Area between the Government of Vietnam and the Government of Cambodia signed on November 26, 2001;

Pursuant to the guidance of the Prime Minister in Official Letter No. 6179/VPCP-KTTH dated November 6, 2002 of the Office of the Government;

At the proposal of the Director of the Foreign Exchange Management Department,

DECISION:

Article 1. The attached to this Decision is the "Payment Regulations for the purchase and sale, exchange of goods and commercial services in the Vietnam-Cambodia border area".

Article 2. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 3. The Heads of the Office, Heads of the Foreign Exchange Management Department, Heads of units under the State Bank, Governors of the State Bank Branches in provinces and centrally governed cities, General Directors (Directors) of commercial banks are responsible for implementing this Decision.

 

 

REGULATIONS
PAYMENT IN THE PURCHASE AND SALE, EXCHANGE OF GOODS AND COMMERCIAL SERVICES IN THE VIETNAM – CAMBODIA BORDER AREA
(Issued together with Decision No. 17/2004/QĐ-NHNN dated January 5, 2004 of the Governor of the State Bank of Vietnam).

Chapter 1:
GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. These regulations govern payment activities in transactions involving the purchase and sale, exchange of goods and commercial services between Vietnamese and Cambodian traders in the Vietnam-Cambodia border area.

Article 2. Payment activities for transactions involving the purchase and sale, exchange of goods and commercial services between Vietnamese and Cambodian traders that do not take place in the border area shall be conducted through bank transfers in freely convertible foreign currencies according to international practice and are not subject to these regulations.

Article 2. Applicability

This Regulation applies to the following entities:

1. Vietnamese traders, including:

a) Enterprises of all economic sectors established and operating in accordance with Vietnamese laws;

b) Individual households permitted to engage in import and export activities under Vietnamese laws;

c) Border residents;

2. Vietnamese commercial banks;

Article 3. Cambodian traders (including organizations and individuals) engaging in the purchase and sale, exchange of goods and commercial services in the border area with Vietnamese traders.

Article 3. Payment methods

Payment activities in transactions involving the purchase and sale, exchange of goods and commercial services between traders of the two countries in the border area shall be carried out in the following forms:

a) Payment through authorized banks of both countries using freely convertible foreign currencies, according to international practice (including banks located within or outside the province bordering Cambodia);

b) Payment in freely convertible foreign currencies or Vietnamese Dong (VND) through accounts of Cambodian traders opened at authorized banks in Vietnam (foreign currency accounts and VND accounts of non-residents in Vietnam);

c) Payment in VND and Cambodian Riel (KHR) through accounts at authorized foreign exchange banks in border provinces of Vietnam and Cambodian commercial banks according to the agency payment relationship agreement between the two banks;

d) Payment in cash in freely convertible foreign currencies;

e) Payment in cash in VND and KHR;

g) Barter payment method.

Article 4. Payment Currency

The payment currency for trade and exchange of goods and commercial services between the two countries shall be freely convertible foreign currencies (US Dollar, Euro, British Pound, and Japanese Yen), VND, and KHR. The businesses of both countries may choose the appropriate payment currency in accordance with the provisions of this Regulation and other relevant laws.

Chapter 2:
SPECIFIC PROVISIONS

Article 5. Payment in Freely Convertible Foreign Currencies through Banks in Accordance with International Practice

When using freely convertible foreign currencies as the payment currency in trade and exchange of goods and commercial services, Vietnamese and Cambodian businesses may select banks with headquarters within or outside the border provinces to conduct payments in accordance with international practice, consistent with each country's foreign exchange management regulations.

Article 6. Payment in Freely Convertible Foreign Currencies or VND through Accounts of Non-Resident Cambodians Opened at Vietnamese Banks

Cambodian businesses are permitted to open accounts in freely convertible foreign currencies or VND at authorized Vietnamese banks to facilitate the settlement of transactions involving the purchase and exchange of goods and commercial services in the border area between Vietnam and Cambodia. The establishment and use of these foreign currency and VND accounts by Cambodian businesses at authorized Vietnamese banks shall comply with foreign exchange management regulations applicable to non-residents' accounts.

Article 7. Payment in VND and KHR through Authorized Banks of Both Countries in the Border Area

1. The use of VND and KHR in the payment for trade and exchange of goods and commercial services between Vietnamese and Cambodian businesses shall be carried out in accordance with the following provisions:

a) Authorized Vietnamese banks in border provinces may negotiate with Cambodian banks to open VND or KHR accounts for each other to serve the payment needs of businesses from both countries.

b) Authorized banks on both sides may agree on the maximum balance in VND or KHR that can be maintained on the payment account opened by one side at the bank of the other side. In cases where the balance exceeds the agreed maximum, the banks of both sides may negotiate to convert the excess into freely convertible foreign currencies or the currency of each side for repatriation.

c) Based on the capacity of the banks and specific conditions of each area, authorized banks on both sides may negotiate to apply suitable payment methods to meet the transaction needs of businesses from the two countries.

d) The exchange rate between VND and KHR shall be determined by the General Directors (Directors) of authorized banks (or their authorized representatives) based on market rates and cross-rates via US Dollars or through negotiations between banks with agency payment relationships.

e) Authorized banks conducting trade and exchange of goods and commercial services between the two countries in VND and KHR may import and export cash in VND and KHR for business purposes without prior approval from the State Bank but must declare to customs when importing or exporting cash.

2. The verification of payment documentation according to agreements between banks on both sides shall comply with current foreign exchange management regulations.

Article 8. Payment in freely convertible foreign currency cash

1. The use of freely convertible foreign currency cash for payment in transactions involving the purchase and sale, exchange of goods and commercial services between Vietnamese traders and Cambodian traders in the border area shall only be applied when the traders from both sides cannot settle through banks, and it shall only apply to Vietnamese traders who receive payment in foreign currency cash through selling goods and providing services to Cambodian traders, not applying to Vietnamese traders using foreign currency cash to pay for imported goods and services from Cambodia.

When there is a need to collect foreign currency cash, Vietnamese traders must submit an application to the State Bank branch in the province (city) where their business is located. The application package includes:

- An application form for collecting foreign currency cash from export to Cambodia (according to Form 1 attached);

- A certified copy of the business registration certificate with the import-export enterprise code (for businesses applying for the permit for the first time);

- A copy of the document accepting the competent authority's approval for goods temporarily suspended from export and goods subject to conditions for export;

- A copy of the signed trade contract with Cambodian traders agreeing on payment in freely convertible foreign currency cash (with confirmation by the head of the enterprise).

After receiving the complete application package from Vietnamese traders requesting to collect foreign currency cash, the Governor of the State Bank branch in the province (city) will review and resolve the request. The Governor of the State Bank branch in the province (city) has the authority to issue permits for collecting amounts under 500,000 USD (five hundred thousand US dollars) or equivalent foreign currencies for each contract. For contracts valued at 500,000 USD or more, the State Bank branch in the province (city) will provide comments in writing and forward the application to the Department of Foreign Exchange Management - State Bank for consideration and resolution.

Within seven working days from the date of receipt of a complete and valid application package, the Governor of the State Bank branch in the province (city) or the Director of the Department of Foreign Exchange Management - State Bank, according to their authority, will issue or refuse to issue a permit for collecting foreign currency cash (according to the permit form attached in Form 2). In case of refusal, a written explanation of the reasons must be provided.

Vietnamese traders must deposit the collected foreign currency cash into their foreign currency deposit account at a permitted bank within three working days from the date the foreign currency cash is brought back into the country, as confirmed by the customs office.

When depositing foreign currency cash into the account, in addition to the permit for collecting foreign currency cash issued, Vietnamese traders must submit to the commercial bank the following documents:

- The original customs declaration form (confirmed by the customs office regarding the amount of foreign currency brought from abroad);

- A copy of the export goods declaration form (submitted after shipment).

2. Vietnamese traders receiving payment in freely convertible foreign currency cash in transactions involving the purchase and sale, exchange of goods and commercial services with Cambodian traders in the border area between Vietnam and Cambodia must bear full responsibility for ensuring safety and bearing all risks during the payment process.

Article 9. Payment in VND and KHR cash

Business entities of the two countries conducting trade transactions, exchange of goods and commercial services in the border area may carry out payment in VND cash or KHR cash in the following cases:

1. For Vietnamese traders exporting goods and services from Vietnam to Cambodia:

a) Receiving payment in VND or KHR cash on Cambodian territory: The representative of the Vietnamese trader selling goods to a Cambodian trader who brings VND or KHR cash into Vietnam must declare to the customs office at the border gate the amount of VND or KHR cash carried, presenting the sales contract for goods and the export declaration form for customs inspection and verification.

b) Receiving payment in VND or KHR cash on Vietnamese territory: Cambodian traders may use VND or KHR cash from the following sources to pay for the purchase and exchange of goods and commercial services with Vietnamese traders:

- VND cash withdrawn from a VND account opened at a permitted bank in Vietnam or VND obtained from lawful income in Vietnam;

- VND brought from Cambodia with confirmation by the customs office on the customs declaration upon entry;

- KHR cash brought from Cambodia with confirmation by the customs office or from lawful income in Vietnam.

2. For Vietnamese traders importing goods and services from Cambodia to Vietnam:

a) Payment in VND or KHR cash on Cambodian territory: Vietnamese traders may use VND, KHR cash revenue from selling goods or providing services to the Cambodian side on Cambodian territory or bring cash VND, KHR from Vietnam to Cambodia for payment to Cambodian traders. When bringing VND or KHR cash to Cambodia, Vietnamese traders must declare to the customs office at the border gate the amount of VND or KHR cash carried, presenting the sales contract for goods and the import declaration form for customs inspection and verification without having to present a permit for carrying foreign currency cash, VND cash abroad issued by a bank. The amount of VND or KHR cash must correspond to the payment amount stipulated in the signed sales contract.

b) Payment in VND or KHR cash on Vietnamese territory:

Cambodian traders may receive payment in VND or KHR cash from selling goods and providing services to Vietnamese traders. Cambodian traders bringing VND or KHR cash from Vietnam to Cambodia upon departure must declare to the customs office at the border gate the amount of VND or KHR cash carried, presenting the sales contract for goods and the import declaration form for customs inspection and verification without having to present a permit for carrying foreign currency cash, VND cash abroad issued by a bank. The amount of VND or KHR cash must correspond to the payment amount stipulated in the contract signed between the traders of the two countries.

Vietnamese and Cambodian traders making payments in VND or KHR cash in trade transactions, exchange of goods and commercial services in the border area between Vietnam and Cambodia must complete all customs procedures for declaring cash imports and exports and bear full responsibility for ensuring safety during transportation and all risks during the payment process.

Article 10. Payment by Barter Method

Vietnamese traders engaging in purchase and sale, exchange transactions of goods and commercial services with Cambodian traders may agree to settle payments under the barter method according to the following regulations:

1. Goods for purchase and exchange must comply with current laws of each country regarding export and import goods management.

2. The currency used for calculation or settlement of the difference in barter transactions shall be freely convertible foreign currency, VND, or KHR.

3. The difference in barter transactions shall be settled through the aforementioned methods. Payment documents for the difference shall be applied as for export and import settlements, consistent with each payment form.

Chapter 3:
IMPLEMENTING PROVISIONS

Article 11. Implementation Organization

The State Bank branch at the border province shall implement the provisions of this Regulation, seek guidance from the Party Committee and local authorities, organize and carry out information dissemination on mass media; disseminate guidelines to enterprises within its jurisdiction; coordinate with relevant agencies such as trade, finance, customs, police, border guards to organize and implement well the activities of export-import goods and commercial service settlements in the Border Area.

The State Bank branch (city) shall organize the implementation of licensing according to this Regulation, strengthen management and supervision of the implementation by licensed banks and organizations and individuals within its jurisdiction participating in border settlements.

The General Director (Director) of licensed banks shall instruct their branches in Vietnamese-Cambodian border provinces to proactively contact commercial banks in Cambodia to negotiate establishing agency relationships for settlement services for export-import goods in freely convertible foreign currency, VND, and KHR according to this Regulation, meeting the needs of settlements in purchase and sale, exchange transactions of goods and commercial services between traders of the two countries in the Border Area between Vietnam and Cambodia.

Article 12. Information Reporting System

1. Quarterly, no later than the fifth day of the first month of each quarter, banks or bank branches implementing settlements with Cambodia according to this Regulation shall compile settlement situations according to the provisions of this Regulation and report to the State Bank branch (city) in their jurisdiction (according to Form 3 attached).

2. Quarterly, no later than the fifth day of the first month of each quarter, enterprises conducting settlements with Cambodia in cash freely convertible foreign currency shall prepare reports on the collection and deposit of cash foreign currency into accounts and send them to the State Bank branch (city) in their jurisdiction (according to Form 4 attached).

3. Quarterly, no later than the tenth day of the first month of each quarter, the State Bank branch (city) shall compile settlement situations according to the provisions of this Regulation and report to the State Bank of Vietnam (Department of Foreign Exchange Management) (according to Form 5 attached).

4. During the implementation of this Regulation, if any difficulties arise, they must be reported immediately to the Governor of the State Bank for timely measures to be taken.

Article 13. Handling Violations

Organizations and individuals violating this Regulation shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation, and if damage is caused, compensation must be made in accordance with the law.

 

 

ANNEX 1

APPLICATION FOR PERMISSION TO COLLECT FOREIGN CURRENCY IN CASH

FROM EXPORT TO CAMBODIA

Respectfully submitted to: The State Bank branch (city)............

(or Department of Foreign Exchange Management - State Bank)

Name of Enterprise: ...

Main office address: …

Phone number: …Fax number: …

Business registration certificate number: …

Issuing authority: …date of issue…

Business field: …

...........................................................................................................................

.......................................................................……...................………….........

Foreign currency deposit account number: …

At Bank:…

Commercial contract signed with …number…date…Payment method agreed in the contract: payment in …(name of freely convertible foreign currency) in cash.

Reason for not settling through the bank: …

.................................................................................................……...…...........

.....................................................................................................................…

We request the authority to consider and grant permission for our company to collect foreign currency in cash from the export of …according to the signed contract.

We commit to comply with all current foreign exchange management regulations of the State and bear all related risks before depositing the said foreign currency in cash into the Bank.

HEAD OF ENTERPRISE

(Signature and stamp)

ANNEX 2

Unit: Equivalent USD: ...................................

After studying the letter number…dated…of…(Company name)…regarding the request to collect US dollars in cash from…, the State Bank branch (city)…has the following opinion:

Agree to allow…(Company name)…to collect freely convertible foreign currency in cash amounting to…(in words:…) from exporting…to Cambodia according to contract number…dated…

The said foreign currency in cash must have a source brought from abroad (confirmed by the Customs checkpoint) and must be deposited into the foreign currency account of…(Company name)…opened at Bank…within three working days from the date the foreign currency is declared on the Customs declaration form when entering the country…(Company name)…must bear full responsibility for ensuring safety and bear all risks that may occur during the payment process before depositing cash into the Bank.

When depositing foreign currency in cash into the account,…(Company name)…must present to the Bank…(Bank where foreign currency in cash is deposited)…the following documents:

1. Original Customs declaration form (with confirmation from the Customs checkpoint about the amount of foreign currency brought from abroad);

2. Copy of the export goods declaration form (submitted after shipment).

Bank…(Bank where foreign currency in cash is deposited)…shall be responsible for checking and supervising the deposit of the said foreign currency in cash into the account of…(Company name)…according to the provisions of this document.

Quarterly, no later than the fifth day of the first month of each quarter,…(Company name)…shall be responsible for reporting to the State Bank branch…on the situation of depositing into the account the foreign currency in cash collected from the export of…by…(Company name)…until the completion of this document.

This document shall be valid until…(the term of this document must be consistent with the export goods permit issued by the competent authority. In case of export without a permit, it must be consistent with the export-import contract).

Place of Receipt: DIRECTOR OF THE STATE BANK BRANCH PROVINCE…

- As above;

- Bank where foreign currency in cash is deposited;

- File.

ANNEX 3

REPORT ON THE SITUATION OF IMPLEMENTING PAYMENTS

WITH CAMBODIA

Year

Unit: Equivalent USD: State Bank Branch (city)………

Unit: USD

……, day . month . year .

Credit organization branch in province/city and basic credit cooperative…

(signature, stamp)

 

 

ANNEX 4

REPORT

SITUATION OF FUNDS DEPOSITED INTO ACCOUNT

AMOUNT OF FOREIGN CASH RECEIVED FROM EXPORTS

TO CAMBODIA

(Quarter …/Year…)

Unit: Equivalent USD: State Bank branch in province (city)…………

Unit: USD

..., date..., month..., year...

DIRECTOR

(Signature, stamp)

 

 

ANNEX 5

REPORT

SITUATION OF PAYMENTS WITH CAMBODIA

(Quarter …/Year…)

Unit: Equivalent USD: State Bank of Vietnam

(Department of Foreign Exchange Management)

1. Situation of depositing freely convertible foreign cash into the account

Unit: USD

2. Other forms

Unit: USD

..., date..., month..., year...

DIRECTOR

(Signature, stamp)