DECREE NO. 187/2013/ND-CP provides detailed regulations on international trade activities and agency purchase, sale, processing, and transit of goods with foreign countries under the Commercial Law.

DECREE

||| Regulations detailing the implementation of the Commercial Law on international trade activities and agency activities related to purchasing, selling, processing, and transiting goods with foreign countries.

||| The Government issues a Decree detailing the implementation of the Commercial Law on international trade activities and agency activities related to purchasing, selling, processing, and transiting goods with foreign countries.

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Trade dated June 14, 2005;

At the proposal of the Minister of Industry and Trade;

||| The Government issues this Decree to detail the implementation of the Commercial Law on international trade activities, including export and import activities; temporary import for re-export, temporary export for re-import, transshipment; entrusted and entrusting export and import activities; agency activities related to purchasing, selling, processing, and transiting goods with foreign countries.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation

||| 1. This Decree details the implementation of the Commercial Law on international trade activities, including export and import activities; temporary import for re-export; temporary export for re-import; transshipment; entrusted and entrusting export and import activities; agency activities related to purchasing, selling, processing, and transiting goods with foreign countries.

||| 2. Goods are movable assets; goods serving the needs of individuals with diplomatic status and personal luggage according to the provisions of the law shall be implemented according to separate regulations of the Government and the Prime Minister.

Article 2. Applicability

||| Vietnamese traders; other organizations and individuals engaged in commercial activities as prescribed by the Commercial Law.

Chapter II

||| EXPORT AND IMPORT OF GOODS

||| Article 3. Right to engage in export and import business

||| 1. For Vietnamese traders without direct foreign investment (hereinafter referred to as traders):

||| Except for goods listed in the Prohibited Export List, Temporary Suspension of Export List, Prohibited Import List, and Temporary Suspension of Import List as stipulated in this Decree and other legal documents, traders may export and import goods regardless of their registered business operations.

||| Branches of traders may export and import goods under the authorization of the trader.

||| 2. For traders with foreign investment, foreign companies, and branches of foreign companies in Vietnam:

||| When conducting trade activities within the scope regulated by this Decree, in addition to complying with the provisions of this Decree, they must also comply with other relevant laws, Vietnam's commitments in international treaties to which the Socialist Republic of Vietnam is a member, and the roadmap announced by the Ministry of Industry and Trade.

||| 3. For goods subject to conditions when exporting and importing, in addition to complying with the provisions of this Decree, traders must also comply with the legal provisions regarding the conditions for exporting and importing such goods.

||| Article 4. Export and import procedures

||| 1. For goods exported and imported under permits, traders wishing to export and import must have permits from relevant ministries and sectors.

||| 2. Goods exported and imported must comply with relevant regulations on quarantine, food safety, and quality standards, and must undergo inspection by authorized agencies before clearance.

||| 3. Goods not listed in the Prohibited Export List, Temporary Suspension of Export List, Prohibited Import List, Temporary Suspension of Import List, and goods not covered by the provisions of Clause 1 and 2 of this Article, only need to complete export and import procedures at the Customs Sub-Department at the border gate.

||| Article 5. Prohibited exports and imports

||| 1. Prohibited exports and imports are carried out according to the provisions of current legal documents and the Prohibited Export and Import Goods List attached as Appendix I to this Decree.

||| 2. Permission to export and import goods listed in the Prohibited Export and Import Goods List attached as Appendix I to this Decree is decided by the Prime Minister, except in cases stipulated in Clause 3 of this Article.

||| 3. Goods listed in the Prohibited Import Goods List may be allowed to be imported by ministries and equivalent ministries in specific cases according to the following principles and regulations:

||| a) Importing goods for scientific research: Ministries and equivalent ministries examine and resolve according to the division of labor and regulations set forth in Appendix I attached to this Decree.

||| b) Importing humanitarian aid goods: The Ministry of Industry and Trade examines and resolves based on the request of the competent authority as provided by law.

||| c) Goods specified in Points a and b of this Clause must not cause environmental pollution, spread diseases, affect human health, traffic safety, national security, social order, and must not adversely affect Vietnamese morals and customs.

||| d) Based on the division of labor set forth in Appendix I attached to this Decree and relevant legal provisions, ministries and equivalent ministries issue regulations and specific lists of goods according to the correct HS code in the Export Tax and Import Tax Schedule.

Article 6. Goods for export and import under permits and subject to specialized management by Ministries and ministerial-level agencies

1. The List of goods for export and import under permits and subject to specialized management by Ministries and ministerial-level agencies shall be promulgated together with this Decree at Appendix II.

2. Ministries and ministerial-level agencies responsible for specialized management must publicly announce standards and conditions for obtaining export and import permits. Import permit procedures must comply with the Regulation on Import Permit Procedures issued by the Prime Minister.

Article 7. Goods for export and import must undergo quarantine, food safety inspection, quality control, and customs regulations

1. Goods for export and import that fall within the scope of animal, plant, and aquatic product quarantine must be quarantined before clearance according to the provisions of the law.

The Ministry of Agriculture and Rural Development shall publish the List of goods that must undergo quarantine before clearance; specify quarantine procedures, documents, and specific standards for goods listed.

2. Goods for export and import must ensure food safety; they must undergo medical quarantine and must meet quality and technical standards as prescribed by the Law on Product Quality, the Law on Standards and Technical Regulations, the Law on Food Safety, the Law on Prevention and Control of Infectious Diseases, and related implementing regulations.

Based on the provisions of laws on product quality, technical standards, food safety, and other relevant laws, Ministries and ministerial-level agencies shall, within their respective functions, publish the List of goods for export and import that must undergo quality and food safety checks before clearance and provide detailed guidance on the verification and confirmation of the quality of exported and imported goods.

3. To meet the requirements of managing and inspecting the quality of exported and imported goods, preventing illegal transshipment, protecting the reputation of Vietnamese exported goods, and combating commercial fraud, the Government assigns the Ministry of Industry and Trade to establish customs ports for exporting and importing certain types of goods during each period.

Article 8. Publication of the list of goods by HS code and adjustment of the list of goods specified in Appendices I and II

1. Ministries and ministerial-level agencies responsible for specialized management shall coordinate with the Ministry of Industry and Trade regarding the list of goods and coordinate with the Ministry of Finance regarding the HS code to publish the HS code of goods according to the HS code in the Export Tax Tariff and Import Tax Tariff for the list of goods specified in Appendices I and II promulgated together with this Decree.

2. Adjustments to the list of goods specified in Appendices I and II promulgated together with this Decree shall be decided by the Government based on the proposal of the Ministry of Industry and Trade after consulting with Ministries and ministerial-level agencies responsible for specialized management.

Article 9. Certain goods for export and import regulated separately

1. Import of automobiles:

a) Used automobiles of all kinds may only be imported if they meet the condition: being used for no more than 5 (five) years, calculated from the year of manufacture to the year of import.

b) Based on management requirements at different periods, the Government assigns the Ministry of Industry and Trade to regulate the import of passenger cars up to 9 (nine) seats.

2. Re-export of major imported materials for which the State ensures foreign exchange balance for import: Imported goods for which the State ensures foreign exchange balance for import needs can only be re-exported in freely convertible foreign currency or with permission from the Ministry of Industry and Trade. The Ministry of Industry and Trade shall publish the list of goods for re-export by permit for each period and organize its implementation.

3. Import of cigarette sticks and cigars: Based on current laws governing the production, business operation, and use of various types of cigarette sticks and related international commitments, the Ministry of Industry and Trade shall specifically regulate the import of these items.

4. Export and import of goods for security and defense purposes: The export and import of goods for security and defense purposes shall be carried out according to the decision of the Prime Minister. Based on the Prime Minister's decision, the Ministers of the Ministries of Public Security and Defense shall stipulate the issuance of permits to implement such activities.

5. The Ministry of National Defense and the Ministry of Public Security shall consider and approve temporary export and re-import of weapons, equipment, and military and security supplies for repair purposes for security and defense needs.

6. Import of unarmed aircraft not used in civil aviation, armored vehicles without military weapons; paintball guns, paintballs, and other items directly affecting national security and defense:

a) The import of these items shall be carried out according to the permit of the Ministry of Industry and Trade after receiving the recommendation of the Ministry of Public Security and the Ministry of National Defense.

b) The Ministry of Industry and Trade shall consult with the Ministry of National Defense and the Ministry of Public Security to publish the list and specify the detailed procedures for issuing permits for the import of these items.

7. Import of various types of timber from countries sharing borders: The Ministry of Industry and Trade shall provide detailed guidance on the importation process, appropriate customs ports, in accordance with Vietnamese law and the laws of the relevant countries, as well as related agreements between Vietnam and those countries, and directives from the Prime Minister.

8. Import of goods under tariff quotas: For goods managed under tariff quotas for import, the specialized management ministry shall decide the quota amount, the Ministry of Industry and Trade shall publish the details and regulate the import procedures for each item after consulting the Ministry of Finance and related specialized management ministries.

The determination of the import tariff rate within the quota and outside the tariff quota for each item shall be decided and published by the Ministry of Finance in coordination with related specialized management ministries and the Ministry of Industry and Trade according to the provisions of the law.

9. For goods exported under quotas specified by foreign countries, the Ministry of Industry and Trade shall coordinate with specialized management ministries and industry associations to determine the allocation method ensuring transparency, fairness, and reasonableness.

10. The importation of used machinery, equipment, and production lines must comply with the provisions of this Decree, other relevant legal documents, and regulations issued by the Ministry of Science and Technology pursuant to this Decree.

The Ministry of Science and Technology shall take the lead and coordinate with relevant ministries and sectors to issue specific regulations on the importation of used machinery, equipment, and production lines.

Article 10. Suspension of Export and Import of Goods

1. In cases of necessity, the Prime Minister may decide to temporarily suspend export and import activities with certain markets or specific goods to protect national security and interests, in accordance with Vietnamese law and international treaties to which the Socialist Republic of Vietnam is a party.

The Prime Minister's decision shall be publicly announced so that domestic and foreign organizations and individuals are aware.

2. The Ministry of Industry and Trade shall notify international economic organizations and related countries according to agreed procedures when the Prime Minister makes a decision to temporarily suspend export and import activities as stipulated in Clause 1 of this Article.

Chapter III

TEMPORARY IMPORTATION AND RE-EXPORT; TEMPORARY EXPORTATION AND RE-IMPORTATION; TRANSFER OF GOODS

Article 11. Temporary Importation and Re-export of Goods

Enterprises established in accordance with the Enterprise Law are entitled to engage in temporary importation and re-export of goods under the following conditions:

1. Temporary importation and re-export of goods listed in the Prohibited Export and Import Goods Catalogue attached as Appendix I to this Decree and goods prohibited from export, temporarily suspended from export, prohibited from import, or temporarily suspended from import as provided by law; goods subject to export and import licenses must have such licenses issued by the Ministry of Industry and Trade.

2. For goods not falling within the scope specified in Clause 1 of this Article, enterprises only need to complete temporary importation and re-export procedures at the Customs Sub-department at the port of entry.

3. Engaging in temporary importation and re-export of the following goods is a conditional business activity:

a) Goods prohibited from export, temporarily suspended from export, prohibited from import, or temporarily suspended from import as provided in Clause 1 of this Article.

b) Goods that can easily spread diseases or cause environmental pollution.

c) Goods subject to special consumption tax as published by the Ministry of Industry and Trade.

The Government assigns the Ministry of Industry and Trade to specify detailed conditions for enterprises to engage in temporary importation and re-export as provided in Clause 3 of this Article and the conditions for engaging in temporary importation and re-export of these goods.

4. Goods temporarily imported and re-exported may remain in Vietnam for no more than sixty days from the date of completion of temporary import customs procedures. If an extension is required, the enterprise must submit a request for extension in writing to the Customs Sub-department where the temporary import procedures were completed; each extension period shall not exceed thirty days and shall not exceed two extensions for each consignment of temporarily imported and re-exported goods.

Beyond the aforementioned period, the enterprise must re-export the goods out of Vietnam or destroy them. If the goods are imported into Vietnam, the enterprise must comply with import regulations and taxes.

5. Goods temporarily imported and re-exported must undergo customs procedures upon importation into Vietnam and be subject to customs supervision until they are exported out of Vietnam.

6. Payment for goods under temporary importation and re-export must comply with foreign exchange management regulations and guidelines issued by the State Bank of Vietnam.

7. Temporary importation and re-export shall be based on two separate contracts: an export contract and an import contract signed by Vietnamese traders with foreign traders. The export contract may be signed before or after the import contract.

8. Ports for temporary importation and re-export:

a) Goods for temporary importation and re-export may enter and exit through international border gates and main border gates in accordance with the law.

Temporary importation and re-export through other ports or locations shall be carried out in accordance with the regulations of the Prime Minister.

b) For temporary importation and re-export of timber with neighboring countries sharing borders, based on the provisions of this Decree and directives from the Prime Minister, the Ministry of Industry and Trade shall provide specific guidance on ports for temporary importation and re-export.

9. Goods temporarily imported and re-exported for domestic consumption must be managed in accordance with the current system for managing export and import goods.

Article 12. Other forms of temporary importation and re-export

1. Goods that are equipment, machinery, construction means, molds, samples not listed in the prohibited export, suspended export, prohibited import, suspended import goods list may be temporarily imported and re-exported under lease or loan contracts signed by Vietnamese traders with foreign parties for production, construction, implementation of investment projects. The procedures for temporary importation and re-export shall be handled at the Customs Sub-Department at the border gate.

2. Temporary importation and re-export of export and import goods subject to license management shall be carried out according to the licenses of the Ministry of Industry and Trade after obtaining the approval of the relevant ministries or agencies with specialized management.

3. The period of temporary importation and re-export shall be agreed upon between the trader and the partner and registered with the Customs Sub-Department at the border gate.

4. Traders may temporarily import goods they have exported for recycling, warranty purposes as requested by foreign traders and re-export them back to foreign traders. The procedures for temporary importation and re-export shall be handled at the Customs Sub-Department at the border gate.

5. The Ministry of Finance shall provide guidance on the procedures for temporary importation and re-export in the following cases:

a) Temporary importation and re-export of spare parts and components without contracts for replacement and repair of foreign ships and aircraft; spare parts and components for repairing ships and aircraft under contracts signed between foreign ship owners and repair factories in Vietnam.

b) Temporary importation and re-export of means of transport containing export and import goods through round-trip operations.

c) Temporary importation and re-export of performance tools, training and competition equipment of artistic groups; sports teams and performance groups.

d) Temporary importation and re-export of medical machines, equipment, and tools of foreign organizations for humanitarian medical examination and treatment in Vietnam.

Article 13. Temporary Exportation and Re-importation of Goods

1. Traders may temporarily export and re-import various types of machinery, equipment, and transportation means for repair, warranty, production, construction, and leasing under repair, warranty, production, construction, and leasing contracts with foreign parties. The procedures for temporary exportation and re-importation are stipulated as follows:

a) Prohibited export, suspended export, prohibited import, suspended import goods and export and import goods under licenses must have a license from the Ministry of Industry and Trade when temporarily exporting and re-importing.

b) For other goods not covered by the provisions of Point a of this Clause, traders only need to handle the procedures for temporary exportation and re-importation at the Customs Sub-Department at the border gate.

2. The period of temporary exportation and re-importation shall be agreed upon between the trader and the partner and registered with the Customs Sub-Department at the border gate.

3. Goods temporarily exported as stipulated in this Article may be sold, gifted, returned to foreign customers, or used as assets to contribute capital to overseas joint ventures according to agreements in the trader's contracts with foreign parties, except for goods temporarily exported and re-imported under Point a of Clause 1 of this Article which require a license from the Ministry of Industry and Trade before implementing agreements with foreign parties. The liquidation procedures for such temporarily exported consignments shall be handled at the Customs Sub-Department where the temporary export procedures were conducted.

4. Payment for the sale or use of machinery, construction equipment, and transportation means as assets to contribute capital to overseas joint ventures must comply with foreign exchange management regulations and guidelines issued by the State Bank of Vietnam or current regulations on overseas investment by Vietnamese traders.

5. Used consumer goods and used spare parts and components listed in the prohibited import, suspended import list may only be temporarily exported for repair and warranty if the goods are still within the warranty period according to the import contract. The procedures for temporary exportation and re-importation shall be handled at the Customs Sub-Department at the border gate.

6. When goods temporarily exported and re-imported are consumed abroad, they must be managed according to the current export and import goods management mechanism.

Article 14. Transfer of Goods

Merchants may engage in transfer of goods business according to the following provisions:

1. Except for goods specified in Clause 2 of this Article, all other types of goods are permitted to be traded through the transfer method; customs procedures for transferring goods through Vietnamese border gates shall be handled at the Border Gate Customs Sub-department.

2. For goods listed in the Catalogue of Prohibited Export Goods, Temporarily Suspended Export Goods, Catalogue of Prohibited Import Goods, Temporarily Suspended Import Goods, and export/import goods under permits, merchants can implement transfers through Vietnamese border gates after obtaining permission from the Ministry of Industry and Trade. In cases where the transfer does not go through Vietnamese border gates, merchants do not need to apply for permission from the Ministry of Industry and Trade.

3. Goods transferred through Vietnamese border gates are subject to customs supervision until they are actually exported out of Vietnam.

4. Payment for goods in transfer trade must comply with foreign exchange management regulations and guidelines issued by the State Bank of Vietnam.

5. The transfer of goods is based on two separate contracts: the purchase contract signed by the Vietnamese merchant with the exporting merchant and the sales contract signed by the Vietnamese merchant with the importing merchant. The purchase contract may be signed before or after the sales contract.

Article 15. Prevention of Illegal Transshipment

To prevent illegal transshipment, combat commercial fraud, and protect the reputation of Vietnamese export goods, in necessary cases, the Minister of Industry and Trade shall report to the Prime Minister before announcing the Catalogue of Prohibited Business Goods, Temporarily Suspended Business Goods under temporary import-export and transfer methods; specifying border gates for temporary import-export, conditions for certain goods, or issuing a list of goods that require a permit from the Ministry of Industry and Trade to conduct such transactions.

Chapter IV

TRUST AND ACCEPTANCE OF TRUST FOR EXPORT, IMPORT OF GOODS

IMPORT OF GOODS

Article 16. Trust and Acceptance of Trust for Export, Import of Goods

Merchants may entrust other merchants to export or import goods, or accept trust from other merchants to export or import goods, except for goods listed in the Catalogue of Prohibited Export Goods, Temporarily Suspended Export Goods, Catalogue of Prohibited Import Goods, Temporarily Suspended Import Goods.

Article 17. Trust and Acceptance of Trust for Export, Import of Goods under Permits

For goods exported or imported under permits, the entrusting party or the accepting party must have export or import permits before signing the trust contract or acceptance of trust.

Article 18. Trust for Export, Import of Goods by Organizations and Individuals Not Being Merchants

Vietnamese organizations and individuals who are not merchants, based on contracts signed in accordance with the law, may entrust the export or import of goods to meet their needs, except for goods listed in the Catalogue of Prohibited Export Goods, Temporarily Suspended Export Goods, Catalogue of Prohibited Import Goods, Temporarily Suspended Import Goods.

Article 19. Rights and Obligations of the Entrusting Party and the Accepting Party in Export, Import Trusts

The rights and obligations of the entrusting party and the accepting party in export and import trusts are agreed upon by the parties within the trust contract for export and import of goods.

Chapter V

AGENT PURCHASE AND SALE OF GOODS WITH FOREIGN COUNTRIES

Section 1

AGENT PURCHASE AND SALE OF GOODS FOR FOREIGN MERCHANTS

Article 20. Business entities acting as agents for purchasing and selling goods for foreign business entities

1. Business entities may act as agents for purchasing and selling various types of goods for foreign business entities, except for goods listed in the Prohibited Export List, the Temporary Suspension of Export List, the Prohibited Import List, and the Temporary Suspension of Import List. For goods listed in the Export and Import License List, business entities can only enter into agency contracts after obtaining permission from the competent authority.

2. In cases where specific laws stipulate that the agent can only conclude an agency contract with one principal for a particular type of goods or service, business entities must comply with such legal provisions.

3. Business entities can be paid in Vietnamese dong for goods sold through agency for foreign business entities present in Vietnam; they can transfer foreign currency abroad to pay foreign business entities according to foreign exchange management regulations and guidelines issued by the State Bank of Vietnam, or pay by goods not listed in the Prohibited Export List or the Temporary Suspension of Export List; in the case of payment by goods listed in the Export License List, permission from the competent authority is required.

4. Business entities acting as agents for purchasing goods must require foreign business entities to transfer freely convertible foreign currency through banks to purchase goods according to the agency contract.

Article 21. Tax Obligations

1. Goods under agency contracts for purchasing and selling goods for foreign business entities shall be subject to taxes and other financial obligations as prescribed by Vietnamese law.

2. Vietnamese business entities have the responsibility to register, declare, and pay various types of taxes and other financial obligations related to goods under agency contracts for purchasing and selling goods and their business activities as prescribed by law.

Article 22. Export and Import Procedures

Goods under agency contracts for purchasing and selling goods with foreign business entities when exported or imported must follow the procedures as prescribed for export and import goods under Article 4 of this Decree.

Article 23. Return of Goods

Goods under agency contracts for selling goods in Vietnam to foreign business entities may be re-exported if they cannot be consumed in Vietnam. Refund of tax shall be carried out in accordance with the regulations of the Ministry of Finance.

Section 2

ENGAGING FOREIGN BUSINESS ENTITIES AS AGENTS FOR SELLING GOODS ABROAD

Article 24. Engaging foreign business entities as agents for selling goods abroad

1. Vietnamese business entities may engage foreign business entities as agents for selling various types of goods abroad, except for goods listed in the Prohibited Export List and the Temporary Suspension of Export List. For goods listed in the Export License List as prescribed in this Decree, business entities can only enter into agency contracts for selling goods abroad after obtaining permission from the Ministry of Industry and Trade.

2. Business entities engaging foreign agents for selling goods abroad must enter into agency contracts with foreign business entities and must transfer proceeds from sales contracts back to the country according to foreign exchange management regulations and guidelines issued by the State Bank of Vietnam.

3. In cases where payment for sales is made in kind, business entities must comply with current legal regulations on importing goods.

Article 25. Tax Obligations

1. Goods under foreign sales agency contracts shall be subject to taxes and other financial obligations as prescribed by Vietnamese law.

2. The trader shall be responsible for registering, declaring, paying various types of taxes, and fulfilling other financial obligations related to engaging foreign traders as agents for sales abroad, in accordance with the guidance of the Ministry of Finance.

Article 26. Receiving Goods Back

1. Exported goods under foreign sales agency contracts may be re-imported into Vietnam if they cannot be sold abroad.

2. Goods re-imported into Vietnam as mentioned in Clause 1 of this Article shall not be subject to import duties and shall have export duties refunded (if applicable), in accordance with the guidance of the Ministry of Finance.

Article 27. Export and Import Procedures

Goods under foreign sales agency contracts that are exported and re-imported into Vietnam according to Article 26 of this Decree must follow the procedures stipulated for exports and imports as provided in Article 4 of this Decree.

Chapter VI

PROCESSING GOODS WITH FOREIGN FACTORS

Section 1

ACCEPTING COMMISSION WORK FOR FOREIGN TRADERS

Article 28. Acceptance of Commission Work for Foreign Traders by Domestic Traders

Except as provided in Article 36 of this Decree, domestic traders, including those with foreign investment capital in Vietnam, may accept commission work for foreign traders, except for goods listed in the Prohibited Export List, Temporary Suspension of Export List, Prohibited Import List, and Temporary Suspension of Import List. For goods subject to permit for export and import, traders may only enter into contracts after obtaining permission from the Ministry of Industry and Trade.

Article 29. Processing Contracts

Processing contracts must be established in writing or in another form having equivalent legal validity as prescribed by the Commercial Law and must include at least the following terms:

1. Name and address of the parties entering into the contract and the direct processor.

2. Name and quantity of processed products.

3. Processing fee.

4. Payment deadline and payment method.

5. List, quantity, and value of imported raw materials, auxiliary materials, and supplies, as well as domestically produced raw materials, auxiliary materials, and supplies (if any) for processing; usage quotas for raw materials, auxiliary materials, and supplies; consumption quotas for supplies and raw material loss rate during processing.

6. List and value of machinery and equipment leased, borrowed, or donated for processing purposes (if any).

7. Measures for handling waste, scrap, and surplus materials, and principles for handling leased, borrowed machinery and equipment, surplus raw materials, auxiliary materials, and supplies after the completion of the processing contract.

8. Delivery location and time.

9. Product trademark and country of origin name.

10. Contract duration.

Article 30. Usage Quotas, Consumption Quotas, and Raw Material Loss Rates

1. Usage quotas, consumption quotas, and raw material loss rates in processing contracts shall be agreed upon by the parties, taking into account the quotas and loss rates formed in relevant production and processing industries in Vietnam at the time of contract signing.

2. The legal representative of the direct processor shall be legally responsible for using imported raw materials, auxiliary materials, and supplies strictly for processing purposes and for the accuracy of the usage quotas, consumption quotas, and raw material loss rates for processed raw materials and auxiliary materials.

Article 31. Leasing, borrowing, importing machinery and equipment from the party placing work for processing to implement the processing contract

The party receiving work for processing may lease, borrow machinery and equipment from the party placing work for processing to implement the processing contract. The leasing, borrowing, or gifting of machinery and equipment must be agreed upon in the processing contract.

Article 32. Rights and obligations of the parties placing and receiving work for processing

1. For the party placing work for processing:

a) Delivering all or part of the raw materials and processing materials according to the agreement in the processing contract.

b) Receiving back all finished products from processing; machinery and equipment leased or borrowed by the party receiving work for processing; remaining raw materials, auxiliary materials, processing materials, and waste after the processing contract has been settled, except where permitted for immediate export, destruction, gift, or donation in accordance with this Decree.

c) Being allowed to send experts to Vietnam to provide technical guidance on production and quality control of processed products as agreed in the processing contract.

d) Bearing responsibility for the use of trademarks and origin names of goods.

đ) Adhering to relevant Vietnamese laws governing processing activities and the terms of the signed processing contract.

e) Being able to immediately export processed products; machinery and equipment leased or borrowed; surplus raw materials, auxiliary materials, processing materials; by-products, waste, in accordance with the agreements of the relevant parties, consistent with current regulations on managing exports and imports of goods, and fulfilling tax and other financial obligations as prescribed by law.

2. For the party receiving work for processing:

a) Being exempted from import duties on machinery and equipment, raw materials, auxiliary materials, processing materials temporarily imported within the quota and loss rate to fulfill the processing contract; being exempted from export duties on processed products.

b) Being allowed to subcontract processing to another merchant.

c) Being allowed to supply part or all of the raw materials, auxiliary materials, processing materials for processing according to the agreement in the processing contract; paying export duties as stipulated by the Law on Export Tax, Import Tax for domestically purchased raw materials, auxiliary materials, processing materials.

d) Being allowed to receive payment from the party placing work for processing in the form of processed products, except for products listed in the Prohibited Imports and Temporary Suspension of Imports List. For products listed in the Import Goods License List and goods under specialized management, they must comply with licensing and specialized management regulations.

đ) Adhering to Vietnamese laws regarding export processing, import, domestic production of goods, and the terms of the signed processing contract.

e) Processing immediate export of processed products; leased or borrowed machinery and equipment; surplus raw materials, auxiliary materials, processing materials; by-products, waste, upon authorization by the party placing work for processing.

3. Conditions for immediate export and import of processed products; leased or borrowed machinery and equipment; surplus raw materials, auxiliary materials, processing materials; by-products, waste specified in Point e Clause 1 and Point e Clause 2 of this Article are as follows:

a) Adhering to regulations on managing exports and imports of goods, taxes, and other financial obligations as prescribed by law.

b) Having a sales contract signed between foreign merchants or their legally authorized representatives and the importing merchants.

Article 33. Subcontracting Processing

Businesses have the right to subcontract processing. Accordingly:

1. The processed products from this processing contract shall be used as raw materials for another processing contract within Vietnam.

2. The processed products from the previous processing stage shall be handed over to the business designated by the party commissioning the processing for the subsequent processing stage.

Article 34. Liquidation and Settlement of Processing Contracts

1. When the processing contract ends or becomes ineffective, the parties to the processing contract must liquidate the contract and complete the settlement procedures with the Customs Authority.

The Ministry of Finance shall guide the settlement procedures for the processing contract between the receiving party and the Customs Authority.

2. The basis for liquidating the processing contract is the quantity of imported raw materials, auxiliary materials, and supplies, the quantity of exported products according to the usage quota of raw materials, auxiliary materials, and supplies, the consumption quota of supplies, and the agreed loss rate in the processing contract.

The basis for settling the processing contract is the quantity of imported raw materials, auxiliary materials, and supplies, re-exported raw materials, auxiliary materials, and supplies, the quantity of exported products according to the usage quota of raw materials, auxiliary materials, the consumption quota of supplies, and the actual loss rate consistent with the implementation of the contract.

3. Machinery and equipment leased or borrowed under the contract; surplus raw materials, auxiliary materials, supplies, waste products, scrap, and waste shall be handled according to the agreement in the processing contract but must comply with Vietnamese law.

4. The destruction of scrap, waste products, and waste (if any) may only be carried out after obtaining permission from the Department of Natural Resources and Environment and must be supervised by the Customs Authority. In cases where destruction is not permitted in Vietnam, they must be re-exported according to the designation of the party commissioning the processing.

5. The donation of machinery and equipment, raw materials, auxiliary materials, supplies, scrap, and waste products is regulated as follows:

a) The party commissioning the processing must provide a donation or gift document.

b) The recipient of the donation or gift must complete import procedures in accordance with import regulations; pay import duties and other taxes (if applicable) and register assets according to current regulations.

c) Scrap and waste products within the usage quota and loss rate, if included in the list of scrap materials allowed for import, do not need to go through customs procedures; are exempt from import duties; must pay value-added tax and corporate income tax.

Article 35. Customs Procedures

The Ministry of Finance shall guide customs procedures and financial obligations for exported processed goods and monitor related export and import activities under the processing contract.

Article 36. Other Forms of Processing

1. Processing, recycling, and repairing machinery and equipment for foreign countries listed in the Prohibited Export and Import Goods List can only be carried out if the following conditions are met:

a) There must be a plan and measures for handling waste and waste products during the processing process, ensuring no environmental pollution, approved by the Department of Natural Resources and Environment.

b) All products and goods must be re-exported abroad and cannot be sold domestically.

c) Must be approved by the specialized management ministry assigned in Appendix I issued together with this Decree.

2. Based on the division of responsibilities in Appendix I issued together with this Decree, specialized ministries and agencies at the level of ministries shall provide specific guidance on this form of processing.

Section 2

COMMISSIONING PROCESSING OF GOODS OUTSIDE THE COUNTRY

Article 37. General Provisions

1. Businesses are permitted to have goods processed abroad that have been authorized for circulation on the Vietnamese market for business activities in accordance with the provisions of the law.

2. The export of machinery, equipment, raw materials, auxiliary materials, and supplies for processing and the import of processed products must comply with the regulations governing export and import management.

3. Contracts for having goods processed abroad and customs procedures for exporting and importing goods for processing shall be carried out in accordance with Articles 29 and 35 of this Decree.

Article 38. Rights and Obligations of Businesses Processing Goods Abroad

1. They are entitled to temporarily export machinery, equipment, raw materials, auxiliary materials, and supplies or transfer such items from a third country to the party performing the processing contract.

2. They are entitled to re-import processed products. Upon completion of the processing contract, they may also re-import surplus machinery, equipment, raw materials, auxiliary materials, and supplies.

3. They are entitled to sell processed products and machinery, equipment, raw materials, auxiliary materials, and supplies exported to perform the processing contract in the market of the processing country or another market and must pay taxes according to current regulations.

4. They are exempted from export tax and import tax on machinery, equipment, raw materials, auxiliary materials, and supplies temporarily exported and re-imported; if not re-imported, they must pay the export tax as stipulated by the Law on Export Tax and Import Tax.

5. They are entitled to send experts and technical workers abroad to inspect and accept processed products.

6. They are responsible for the right to use trademarks and origin names of goods.

7. The Ministry of Finance shall guide the implementation of tax obligations for imported processed products serving domestic consumption.

Chapter VII

TRANSIT GOODS THROUGH VIETNAMESE TERRITORY NUMBER: 16/2025/TT-BVHTTDL

Article 39. Businesses Engaging in Transit Transport Services

Businesses registered to operate in the cargo handling and transportation sector are allowed to provide transit transport services for foreign shippers through Vietnamese territory.

Article 40. Transit of Goods Through Vietnamese Territory

1. Types of goods owned by organizations and individuals from foreign countries, except weapons, ammunition, explosives, highly dangerous goods, and goods listed in the Catalogue of Prohibited Business Operations, Prohibited Exports, Temporarily Suspended Exports, Prohibited Imports, and Temporarily Suspended Imports, are allowed to transit through Vietnamese territory. Transit procedures are handled at the Customs Sub-department at the border gate.

2. Weapons, ammunition, explosives, and highly dangerous goods can only transit through Vietnamese territory after obtaining permission from the Prime Minister.

The transportation of goods listed in the Catalogue of Highly Dangerous Goods transiting through Vietnamese territory must comply with Vietnamese laws on dangerous goods transportation and relevant international treaties to which the Socialist Republic of Vietnam is a member.

3. Goods listed in the Catalogue of Prohibited Business Operations, Prohibited Exports, Temporarily Suspended Exports, Prohibited Imports, and Temporarily Suspended Imports; goods exported and imported under permits, are allowed to transit through Vietnamese territory after obtaining permission from the Ministry of Industry and Trade, except where international treaties to which the Socialist Republic of Vietnam is a member provide otherwise, in which case the provisions of those treaties shall apply.

4. Goods transiting through Vietnamese territory are subject to supervision by Vietnamese Customs throughout their movement within Vietnamese territory; entering and exiting Vietnam via designated border gates and routes; the quantity of goods exported must match the quantity imported, intact and in original packaging.

5. The shipper of transiting goods must pay customs fees and other applicable fees for transiting goods according to current Vietnamese regulations.

6. Transiting goods are not allowed to be consumed within Vietnamese territory. In cases where consumption is necessary, permission from the Ministry of Industry and Trade must be obtained.

7. The Ministry of Industry and Trade shall guide the procedures for implementing the transit of goods through Vietnamese territory for transit agreements that differ from the provisions of this Article.

8. The Ministry of Finance shall guide procedures for warehousing and storing transiting goods, procedures for transferring goods between vessels, changing modes of transport for transiting goods, and extending the period for transiting goods.

9. The Ministry of Transport shall guide transit routes.

Chapter VIII

IMPLEMENTATION AND EFFECTIVE PROVISIONS

Article 41. Implementation Organization

1. The Ministry of Finance shall direct the Customs Service to provide the Ministry of Industry and Trade and related ministries and sectors participating in the management and operation of import and export activities with periodic and ad hoc data on businesses engaged in import and export operations and types of business as prescribed by this Decree; data on export and import turnover by commodity category and market, and relevant export and import data for the Ministry of Industry and Trade.

2. The Ministry of Industry and Trade shall take the lead and coordinate with related ministries and sectors and provincial People's Committees directly under the central government to supervise the implementation of the provisions of this Decree; identify and notify relevant ministries and sectors to adjust any provisions contrary to this Decree (if any) in guiding regulations issued by these ministries and sectors to implement this Decree.

Article 42. Implementation Clauses

1. This Decree takes effect from February 20, 2014, replacing Government Decree No. 12/2006/NĐ-CP dated January 23, 2006 detailing the implementation of the Law on Commerce regarding international trade activities and related agency purchase, sale, processing, and transit activities with foreign countries.

2. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities shall be responsible for guiding and implementing this Decree./.