Circular No. 20/2001/TT-BTM guiding the implementation of Decree No. 44/2001/NĐ-CP dated August 2, 2001 of the Government on amending and supplementing certain articles of Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Commercial Law regarding export, import, processing, and agency trading of goods with foreign countries.

CIRCULAR

Guidelines for implementing Decree No. 44/2001/NĐ-CP dated August 2, 2001

of the Government on amending and supplementing certain articles of Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Commercial Law regarding export, import, processing, and agency sales of goods with foreign countries

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Pursuant to Decree No. 44/2001/NĐ-CP dated August 2, 2001 of the Government on amending and supplementing certain articles of Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Commercial Law regarding export, import, processing, and agency sales of goods with foreign countries;

The Ministry of Trade guides certain specific points for implementing Decree No. 44/2001/NĐ-CP as follows:

I. EXPORT AND IMPORT BUSINESS

1. For Vietnamese traders

1.1 Traders referred to in this Circular are understood to be:

+ Enterprises established and registered for business under the Enterprise Law, State Enterprise Law, and Cooperative Law;

+ Individual households organized and registered for business under Decree No. 02/2000/NĐ-CP dated February 3, 2000 of the Government on business registration.

1.2 Vietnamese traders have the right to export, consign, and accept consignment for export of all types of goods without regard to the industry or commodity categories listed in their Business Registration Certificate, except for goods listed in the Prohibited Export Goods List and those specified in Point 1.3 below; they may import, consign, and accept consignment for import of goods within the scope of industries and commodities listed in their Business Registration Certificate.

1.3 For goods listed in the Restricted Commerce Goods and Services List and the Goods and Services Commerce with Conditions List, traders must comply fully with current laws governing the sale of such goods before conducting exports, imports, and consigned exports and imports.

1.4 Branches of traders may export and import goods pursuant to the authorization of the trader.

1.5 The export and import activities of enterprises with foreign investment capital shall be carried out in accordance with Circular No. 22/2000/TT-BTM dated December 15, 2000 of the Ministry of Trade guiding the implementation of Decree No. 24/2000/NĐ-CP dated July 31, 2000 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam regarding export and import and other commercial activities of enterprises with foreign investment capital and related regulatory legal documents.

2. For branches of foreign traders in Vietnam

Branches of foreign traders in Vietnam shall conduct export and import of goods in accordance with the provisions of Decree No. 45/2000/NĐ-CP dated September 6, 2000 of the Government on Representative Offices and Branches of Foreign Traders and Foreign Tourism Enterprises in Vietnam, Joint Circular No. 20/2000/TTLT-BTM-TCDL dated October 20, 2000 of the Ministry of Trade - General Department of Tourism guiding the implementation of Decree No. 45/2000/NĐ-CP dated September 6, 2000 and other relevant regulatory legal documents.

3. Registration of export and import trading code: Prior to engaging in export and import business activities, the business entities stipulated in Points 1 and 2 of Part I of this Circular must register their export and import trading code at the Customs Office of the province or city.

II. EXPORT AND IMPORT AT THE PLACE OF PROCESSING AND SETTLEMENT OF CONTRACTS WITH FOREIGN TRADERS

1. Conditions and procedures for export and import at the place of processing

1.1. Vietnamese traders and enterprises with foreign direct investment (referred to as FDI enterprises) are both entitled to export at the place of processing products processed, machinery and equipment leased or borrowed, raw materials, auxiliary materials, surplus materials, waste products, and scrap (collectively referred to as processing goods) to Vietnamese traders or other FDI enterprises that require importation.

1.2 The legal basis for the export and import at the place of processing of processing goods is two separate contracts:

- A processing contract or an appendix to the contract signed between Vietnamese traders or FDI enterprises and foreign traders placing orders for processing, which clearly specifies the name and delivery address of the Vietnamese trader or FDI enterprise importing processing goods belonging to the party placing the order for processing.

- An international trade purchase contract signed between the foreign trader placing the order for processing and the Vietnamese trader or FDI enterprise importing processing goods at the place of processing.

1.3. Conditions for processing trade import and export in place:

- Processed goods must not be included in the List of Prohibited Import Commodities.

- For imported goods requiring permits, traders must obtain import permits from competent authorities before signing contracts.

- For imported goods subject to specialized management, they must meet the conditions for importing goods under specialized management.

Used processed goods, scrap materials, and waste products imported in place must comply with the regulations of the Ministry of Science, Technology, and Environment regarding imported used goods.

1.4. Procedures for processing trade import and export:

Vietnamese traders or foreign-invested enterprises authorized to export processed goods in place must complete export procedures according to the Customs regulations and settle contract clearance procedures with the customs authority registering the processing contract.

Vietnamese traders or foreign-invested enterprises importing processed goods in place must complete import procedures as prescribed by Customs, pay import duties, and fulfill other financial obligations as required by law.

2. Settlement of Processing Contracts

After the completion of part or all of the processing contract, processed goods shall be handled in accordance with the agreement of the parties involved, consistent with legal provisions. Procedures for processing trade import and export, re-export, sale, gift, destruction, and transfer to another contract shall be carried out at the customs office. In cases involving the sale, gift, or destruction of processed goods listed in the Prohibited Import List or the Import Permit List, written approval from the Ministry of Trade is required.

III. This Circular takes effect from September 4, 2001. Previous conflicting regulations are hereby abolished.