JOINT CIRCULAR No. 25/2001/TTLT-BTM-BKHĐT-BCN GUIDING THE IMPLEMENTATION OF QUOTA FOR TEXTILE AND GARMENT EXPORTS TO THE EU, CANADA, AND TURKEY IN 2002

JOINT CIRCULAR

Guidelines for Implementing Quotas on Textile and Garment Exports to the EU, Canada, and Turkey in 2002

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Pursuant to Decision No. 46/2001/QĐ-TTg dated April 4, 2001 of the Prime Minister on Export and Import Management during the Period 2001-2005;

Pursuant to Decision No. 908/QĐ-TTg dated July 26, 2001 of the Prime Minister on Strong Measures for Export Promotion and Import Management in the Last Six Months of 2001;

Pursuant to the Agreement on Textile and Garment Trade and Agreements with EU, Canada, and Turkey;

The Ministry of Trade, Planning and Investment, and Industry hereby provide guidelines for implementing textile and garment export quotas in 2002 as follows:

I. GENERAL PROVISIONS:

In 2002, automatic export licenses (E/L) will be issued for all types of textile and garment exports (Cat.) to the EU, Canada, and Turkey, including ASEAN quota transfers (if any).

The entities eligible for automatic issuance of export licenses (E/L) for textile and garment products include traders from all economic sectors holding Business Registration Certificates, having registered business codes for import and export, and enterprises holding Foreign Investment Licenses under the Law on Foreign Investment in Vietnam (collectively referred to as units).

The issuance of automatic export licenses (E/L) for textile and garment products shall be conducted at Regional Export-Import Management Departments of the Ministry of Trade based on valid documentation from the units (copies of customs declarations, copies of waybills, applications for export licenses).

II. SPECIFIC PROVISIONS ON QUOTA MANAGEMENT:

1. Implementation of Quotas:

To comply with the provisions of the Agreement and Agreements with the EU, Canada, and Turkey, quota management is regulated as follows:

- Quotas are divided into two groups: Group 1 and Group 2.

+ Group 1 includes 7 categories (Cat.) exported to the EU market:

Cat. 4, 5, 6, 7, 8, 15, 31.

+ Group 2 includes the remaining 22 categories (Cat.) exported to the EU market, as well as the entire quota for exports to the Canadian and Turkish markets.

- Units are granted automatic export licenses (E/L) for quotas in Groups 1 and 2 mentioned above. Automatic issuance of export licenses (E/L) will be suspended in the following cases:

+ For categories (Cat.) in Group 1, if the exported quantity (with E/L issued) reaches 50% in the first quarter, 70% before July 26, 2002, or 90% of the total quota after July 26, 2002.

+ For categories (Cat.) in Group 2, if the exported quantity (with E/L issued) reaches 90% of the total quota.

- After suspending the issuance of automatic export licenses (E/L), the remaining quota will be managed as follows:

+ The Ministry of Trade, Planning and Investment, and Industry will allocate the remaining quota to units and People's Committees of Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang based on their actual quota implementation in 2001 and 2002, prioritizing units that have produced goods awaiting export, imported raw materials, purchased raw materials for production, and signed export contracts (especially those signed with EU industrialists).

+ A portion of the quota in Group 1 will be auctioned.

2. Return of Quotas:

Units allocated quotas according to notifications from the Ministry of Trade or People's Committees of Hanoi, Ho Chi Minh City, Hai Phong, and Da Nang must return the quotas to the allocating authority by November 30, 2002, if they are unable to implement them; otherwise, they will not be allocated such categories in the following year.

3. Entrustment and Acceptance of Entrustment:

Entrustment and acceptance of entrustment shall be carried out in accordance with current regulations.

4. Quota Fees:

All shipments exported up to July 26, 2002, will be exempt from quota fees. Quota fees for shipments exported from July 27, 2002 (date of transport document issuance) will be specified later.

III. IMPLEMENTATION PROVISIONS:

The Joint Steering Committee of the Ministries is responsible for monitoring and supervising the implementation of quotas. Weekly, the Ministry of Trade will report on the issuance of export licenses (E/L) and the remaining quota quantities in newspapers such as Trade, Investment, Industry, the Ministry of Trade website (www.mot.gov.vn), and at Regional Export-Import Management Departments.

The Ministry of Trade will send related documents regarding the allocation and implementation of quotas to units via email. Units should register their email addresses with the Department of Import and Export - Ministry of Trade - 21 Ngo Quyen, Hanoi.

Units must strictly comply with the provisions of this Circular and the provisions of the Agreements on Textile and Garment Trade signed with the EU, Canada, and Turkey. Violations will result in penalties ranging from quota revocation to suspension of quota allocation, or as provided by law.

This Circular takes effect 15 days after its date of signature and replaces Circular Joint No. 19/2000/TTLT-BTM-BKHĐT-BCN dated October 16, 2000, of the Joint Ministries of Trade, Planning and Investment, and Industry.