Decision No. 252/2003/QĐ-TTg On management of cross-border trade with neighboring countries

DECISION OF THE PRIME MINISTER

On cross-border trade management

with neighboring countries

_________________

PRIME MINISTER

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

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

Pursuant to Decree No. 02/2003/NĐ-CP dated January 14, 2003 on the development and management of markets;

Pursuant to bilateral agreements in economic and trade fields signed between the Socialist Republic of Vietnam and neighboring countries,

DECISION:

PART I

General Provisions

Article 1. Scope of Regulation

The cross-border trade activities regulated under this Decision include:

1. Purchase and sale, exchange of goods by border residents.

2. Trade at border markets, customs gate markets, and markets within Border Economic Zones.

3. Import and export of goods across borders through methods not following international trade practices agreed upon in bilateral trade agreements between the Socialist Republic of Vietnam and neighboring countries.

Article 2. Goods for cross-border trade

Except for goods prohibited from export and import, and goods subject to conditional business operations which must be implemented according to the provisions of Decision No. 46/2001/QĐ-TTg dated April 4, 2001 of the Prime Minister on managing export and import of goods during the period 2001-2005, other related decisions of the Prime Minister, and guiding documents of the Ministry of Trade and relevant specialized management agencies, other goods may be freely traded, sold, exported, and imported across borders.

Article 3. Quality of goods for cross-border trade

1. The quality of goods for cross-border trade must comply with the regulations of Vietnamese law on the management of quality of export and import goods.

2. For imported goods listed in the Catalogue requiring quality inspection and quarantine according to current regulations, they must be inspected for quality before clearance; they shall not be imported through border gates without animal and plant quarantine points and quality inspection points as prescribed by Vietnamese law.

3. The Minister of Trade is authorized, after consultation with the Ministry of Agriculture and Rural Development and the Ministry of Health, to consider and take specific measures to control the export and import of goods that do not meet food hygiene and safety requirements and consumer health standards.

Article 4. Payment

1. Goods for cross-border trade can be paid for in freely convertible foreign currencies or Vietnamese dong and the currency of neighboring countries.

2. Payment methods: agreed upon by the buyer and seller in accordance with the regulations of the State Bank of Vietnam based on the payment agreements signed between our country and neighboring countries; it is encouraged for business entities to make payments through banks using methods such as issuing letters of credit; barter; bank transfers in freely convertible foreign currencies or Vietnamese dong and the currency of neighboring countries.

Article 5. Tax Policy

1. Goods for cross-border trade must pay taxes and other fees as stipulated by Vietnamese law and enjoy tax exemptions on export and import duties according to bilateral agreements between the Government of the Socialist Republic of Vietnam and the Government of neighboring countries if applicable.

2. Specifically, goods produced by residents of neighboring countries imported into the Socialist Republic of Vietnam for the daily consumption needs of border residents through purchase and exchange transactions are exempted from import duties if their value does not exceed 500,000 VND/person/day.

3. Other related tax policies are implemented according to current regulations of the State.

4. The Ministry of Finance will coordinate with the Ministry of Trade to provide detailed guidance on implementation.

Chapter II

Purchase and exchange of goods by border residents

Article 6. Subjects eligible to purchase and exchange goods with border residents

Citizens with permanent residence registration in border districts adjacent to neighboring countries are permitted to purchase and exchange goods suitable for cross-border trade as specified in Article 2 of this Decision.

Article 7. Border gates, trading locations, and commodity exchange points for border residents

1. Border gates shall be opened upon agreement between the Government of Vietnam and the Government of neighboring countries.

2. Border gates and other customs clearance points within border economic zones shall be established with permission from the Government of Vietnam.

3. Border gates shall be opened upon agreement between provinces adjacent to the border of Vietnam and provinces adjacent to the border of neighboring countries, and permitted by the Ministry of Trade to conduct import-export commodity customs procedures.

4. Footpaths shall be determined according to current laws and relevant regulations of both governments through negotiation between provincial authorities of the two border regions.

Chapter III

Import and export of goods across the border

Article 8. Subjects eligible for import and export of goods across the border

- Enterprises and units under various economic sectors registered and established in accordance with Vietnamese law.

- Business households in border provinces registered in accordance with Decree No. 02/2000/NĐ-CP dated February 3, 2000 of the Government on business registration.

Article 9. Border gates for import and export of goods

1. Border gates shall be opened upon agreement between the Government of Vietnam and the Government of neighboring countries.

2. Border gates and other customs clearance points within border economic zones shall be established with permission from the Government of Vietnam.

3. Border gates shall be opened upon agreement between provinces adjacent to the border of Vietnam and provinces adjacent to the border of neighboring countries, and permitted by the Ministry of Trade to conduct import-export commodity customs procedures.

Chapter IV

Trading at border markets, gate markets,

markets within border economic zones

Article 10. Border markets, gate markets, markets within border economic zones

1. Border markets are markets established in border areas on land but not included in the markets mentioned in Clauses 2 and 3 below.

2. Gate markets are markets established in border areas on land associated with import and export gateways but not within border economic zones.

3. Markets within border economic zones are markets established within border economic zones pursuant to Decision No. 53/2001/QĐ-TTg dated April 19, 2001 of the Prime Minister regarding policies for border economic zones.

Article 11. Business subjects at markets

1. Vietnamese enterprises and business households holding business registration certificates issued by competent state agencies are permitted to organize business activities at border markets, gate markets, and markets within border economic zones.

2. Enterprises and business households of neighboring countries must comply with the provisions of Decree No. 34/2000/NĐ-CP dated August 18, 2000 on the Regulations of the Land Border of the Socialist Republic of Vietnam and related regulations on movement, residence, and business activities in border areas:

a) They are permitted to organize business activities at gate markets and border markets when granted a business license by the Commerce Department of border provinces.

b) They are permitted to organize business activities at markets within border economic zones when granted a business license by the Management Board of border economic zones.

3. Citizens of neighboring countries who are permitted to engage in business activities at border markets, gate markets, and markets within border economic zones and hold valid business licenses at these markets may apply to competent Vietnamese authorities for temporary residence certification or a temporary residence card in accordance with guidelines issued by the Ministry of Public Security if they have a need for temporary residence in Vietnam.

Article 12. Market Management

1. The decision to establish (or dissolve) and define the functions, duties, and powers of the market management agency for border markets and customs clearance markets shall be implemented according to the classification for each type of market as stipulated in Decree No. 02/2003/NĐ-CP dated January 14, 2003 of the Government on the development and management of markets.

2. Markets within economic zones at border gates shall be established (or dissolved) and the functions, duties, and powers of the market management agencies defined by the Head of the Border Economic Zone Management Board in accordance with Decree No. 02/2003/NĐ-CP dated January 14, 2003 of the Government on the development and management of markets.

3. Other contents related to border markets, customs clearance markets, and markets within economic zones at border gates not mentioned in this Decision shall be implemented in accordance with the provisions of Decree No. 02/2003/NĐ-CP dated January 14, 2003 of the Government on the development and management of markets.

4. Provisions regarding border markets, customs clearance markets, and markets within economic zones at border gates in this Decision, if they differ from bilateral agreements between the Government of the Socialist Republic of Vietnam and the Government of neighboring countries, shall be implemented according to the signed bilateral agreements.

Chapter V

Entry and Exit of Persons and Means of Transport

when importing and exporting goods across the border

Article 13. Vietnamese persons and means of transport

1. Permitting Vietnamese cargo transportation vehicles to pass through the border gates specified in Clauses 1, 2, and 3 of Article 9 of this Decision to cross into neighboring countries to deliver and receive goods in accordance with the regulations of that country.

2. Vietnamese consignors or their authorized representatives, drivers of Vietnamese cargo transportation vehicles, and crew members on Vietnamese cargo transportation vehicles are permitted to pass through the border gates specified in Clauses 1, 2, and 3 of Article 9 of this Decision to cross into neighboring countries to deliver and receive goods using passports, seaman's books, border identity cards, or border travel permits issued by competent Vietnamese authorities.

Article 14. Persons and Means of Transport of Neighboring Countries

1. Permitting cargo transportation vehicles of neighboring countries to pass through the border gates specified in Clauses 1, 2, and 3 of Article 9 of this Decision to enter designated delivery and receipt points in border areas as defined by Vietnamese competent authorities.

2. Consignors of neighboring countries or their authorized representatives, drivers, and crew members on cargo transportation vehicles of neighboring countries are allowed to accompany the cargo transportation vehicles through the border gates specified in Clauses 1, 2, and 3 of Article 9 of this Decision to enter designated delivery and receipt points in border areas using passports, seaman's books, border identity cards, or border travel permits issued by competent authorities of neighboring countries.

3. In cases where cargo transportation vehicles and the subjects specified in Clauses 1 and 2 of this Article need to enter locations other than border areas and border economic zones to deliver and receive goods, they must comply with the provisions of Agreements, Protocols, and other agreed documents signed between the Socialist Republic of Vietnam and neighboring countries concerning entry and exit and road transport.

4. Vehicles and drivers of business entities of neighboring countries entering and exiting border markets, customs clearance markets, and markets within border economic zones to transport goods shall be exempted from visa requirements for entry and exit to Vietnam and subject to inspection and control by specialized state management agencies at border gates; when there is a need to leave the border market, customs clearance market, and market within the border economic zone to enter deeper into the interior of Vietnam, they must follow the procedures for entry and exit for persons and vehicles as stipulated by Vietnamese laws.

Chapter VI

Implementation

Article 15. Handling Violations

Violations in cross-border trade activities will be handled based on the provisions of the Government's Decree on administrative penalties in the field of commerce and other relevant legal regulations of Vietnamese law.

Article 16. Responsibilities of the Ministry of Commerce

1. The Ministry of Commerce shall take the lead and coordinate with relevant ministries, sectors, and provincial people's committees along the border to guide and direct the management and operation of cross-border trade activities.

2. The Minister of Commerce is authorized to establish a Steering Committee for cross-border trade activities, chaired by the Ministry of Commerce, with representatives from relevant ministries, sectors, and provincial people's committees along the border participating; to develop the content and operational regulations of the Committee (operating costs to be arranged by the Ministry of Commerce and the provincial people's committees themselves) and the inter-sectoral coordination mechanism for managing and directing cross-border trade activities in accordance with this Decision.

The Ministry of Commerce and related agencies shall actively cooperate to address issues arising during implementation; report to the Prime Minister on matters exceeding their authority.

Article 17. Responsibilities of provincial people's committees along the border

Provincial people's committees along the border are responsible for organizing the management and direction of all cross-border trade activities within their jurisdiction; effectively implement the inter-sectoral coordination mechanism for managing and directing cross-border trade activities.

Article 18. Responsibilities of relevant ministries and sectors

In accordance with their functions, tasks, and authorities, relevant ministries and sectors shall cooperate with the Ministry of Commerce and provincial people's committees along the border to implement management work as prescribed in this Decision, creating maximum convenience for the healthy, stable, and lawful development of cross-border trade activities; effectively implement the inter-sectoral coordination mechanism for managing and directing cross-border trade activities.

Article 19. This Decision shall take effect fifteen days after its publication in the Official Gazette. Previous regulations on cross-border trade management that conflict with the provisions of this Decision are hereby abolished.

Article 20. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, chairpersons of provincial and centrally-administered city people's committees, and business entities engaged in cross-border trade activities are responsible for guiding and implementing this Decision./.