Pursuant to …;

Regarding the management of cross-border trade activities with neighboring countries

__________________

PRIME MINISTER

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

Pursuant to Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Trade regarding international goods purchase and sale activities and agency purchase, sale, processing, and transit activities with foreign countries;

Pursuant to Decree No. 149/2005/NĐ-CP dated December 8, 2005 of the Government detailing the implementation of the Law on Export Tax, Import Tax;

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

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

Considering the proposal of the Minister of Trade.

Pursuant to …;

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

Cross-border trade activities with neighboring countries (hereinafter referred to as cross-border trade) as stipulated in this Decision include:

1. Goods trading and exchange activities of border residents;

2. Trading at border markets, border gate markets, and markets within Border Economic Zones;

3. Cross-border import and export activities through border gates according to methods not following international trade practices agreed upon in bilateral trade agreements between the Socialist Republic of Vietnam and neighboring countries.

Article 2. Cross-border trade goods

Goods exchanged, purchased, exported, and imported under cross-border trade forms shall be carried out in accordance with the provisions detailed in Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Trade regarding international goods purchase and sale activities and agency purchase, sale, processing, and transit activities with foreign countries.

Article 3. Quality of cross-border trade goods

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

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 may not be imported through border gates without animal and plant quarantine points, health 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 in cross-border trade

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

2. Payment method: agreed upon by the buyer and seller in compliance with the regulations of the State Bank of Vietnam based on the Payment Agreement signed between Vietnam and neighboring countries; encouraging business entities to make payments through banks.

Article 5. Tax policy

1. Cross-border trade goods must be subject to taxes and other fees as prescribed by Vietnamese law and enjoy tax exemptions on export and import duties on goods crossing borders according to bilateral agreements between the Government of the Socialist Republic of Vietnam and the Government of neighboring countries.

2. Specifically, goods produced by residents of neighboring countries and imported into the Socialist Republic of Vietnam under the form of resident border trade purchases, sales, and exchanges are exempt from import duties if their value does not exceed 2,000,000 VND per person per day.

3. Other related tax policies shall be implemented in accordance with current state regulations.

4. The Ministry of Finance shall lead and coordinate with the Ministry of Trade to guide the implementation of this provision.

Chapter II

PURCHASE AND EXCHANGE OF GOODS BY BORDER RESIDENTS

Article 6. Subjects Entitled to Purchase and Sell Goods Across Borders

Citizens who are residents of border areas with permanent household registration in regions adjacent to borders with neighboring countries may purchase and sell goods in accordance with the regulations on border trade goods as stipulated in Article 2 of this Decision.

Article 7. Border Gates and Locations for Purchasing and Selling Goods Across Borders

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

2. Border gates and other points of clearance within Border Economic Zones shall be established upon permission granted by the Government of Vietnam.

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

4. Trails shall be determined through mutual agreement between local authorities of the two border provinces in accordance with current laws and relevant regulations of the Governments of both countries.

Chapter III

IMPORT AND EXPORT OF GOODS ACROSS THE BORDER

Article 8. Subjects Entitled to Import and Export Goods Across the Border

Vietnamese traders.

2. Business households located in border provinces shall be established and registered in accordance with Decree No. 88/2006/NĐ-CP dated August 29, 2006 of the Government on business registration.

Article 9. Border Gates for Importing and Exporting Goods Across the Border

1. International border gates shall be opened for persons, means of transport, and goods of Vietnam, the neighboring country, and third countries to cross the national border.

2. Main border gates shall be opened for persons, means of transport, and goods of Vietnam and the neighboring country to cross the national border.

3. Border gates and other points of clearance within Border Economic Zones shall be established upon permission granted by the Government of Vietnam.

4. Sub-border gates shall be opened for persons, means of transport, and goods of Vietnam and the neighboring country to cross the national border in border areas and border regions.

Chapter IV

PURCHASE AND SALE OF GOODS AT BORDER MARKETS, GATEWAY MARKETS, AND MARKETS IN BORDER ECONOMIC ZONES

Article 10. Border Markets, Gateway Markets, and Markets in Border Economic Zones

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

2. Gateway markets are markets established in border areas on land territory of Vietnam associated with gateway ports for the import and export of goods but not within Border Economic Zones.

3. Markets in Border Economic Zones are markets established in Border Economic Zones pursuant to Decision No. 53/2001/QĐ-TTg dated April 19, 2001 of the Prime Minister on policies for Border Economic Zones.

Article 11. Trading Subjects at Markets

1. Vietnamese enterprises and business households holding a business registration certificate issued by competent state agencies are permitted to organize trading activities at border markets, gateway markets, and markets in Border Economic Zones.

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

a) They are permitted to organize trading activities at gateway markets and border markets upon obtaining a business permit from the Provincial Department of Commerce.

b) They are permitted to organize trading activities at markets in Border Economic Zones upon obtaining a business permit from the Management Board of the Border Economic Zone.

3. Citizens of neighboring countries, when permitted to engage in business at border markets, gateway markets, and markets in Border Economic Zones and holding valid business permits at these markets, if they have a need to temporarily reside in Vietnam, will be considered for issuance of a temporary residence certificate or a temporary residence card by the competent Vietnamese authority in accordance with guidelines provided by the Ministry of Public Security.

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/ND-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 agency defined by the Head of the Border Economic Zone Management Board in accordance with the provisions of Decree No. 02/2003/ND-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 border economic zones not mentioned in this Decision shall be implemented in accordance with the provisions of Decree No. 02/2003/ND-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 border economic zones 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 between the two Governments.

Chapter V

CROSSING OF PERSONS AND MEANS OF TRANSPORTATION

Article 13. Persons and Means of Transportation of Vietnam

1. Means of transportation for goods are permitted to pass through the border gates specified in Clauses 1, 2, 3, and 4 of Article 9 of this Decision to cross into neighboring countries to deliver and receive goods in accordance with the regulations of those countries.

2. The consignor or person authorized by the consignor, the driver of the means of transportation for goods, and the service personnel on the means of transportation for goods are permitted to pass through the border gates specified in Clauses 1, 2, 3, and 4 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 transit permits issued by competent Vietnamese authorities.

Article 14. Persons and Means of Transportation of Neighboring Countries

1. Means of transportation for goods are permitted to pass through the border gates specified in Clauses 1, 2, 3, and 4 of Article 9 of this Decision to enter designated points for delivering and receiving goods as prescribed by Vietnamese competent authorities in the border area.

2. The consignor or person authorized by the consignor, the driver of the means of transportation, and the service personnel on the means of transportation for goods may accompany the means of transportation for goods through the border gates specified in Clauses 1, 2, 3, and 4 of Article 9 of this Decision to enter designated points for delivering and receiving goods using passports, seaman's books, border identity cards, or border transit permits issued by competent authorities of the neighboring country.

3. In cases where the means of transportation for goods and the subjects specified in Clauses 1 and 2 of this Article need to enter other locations outside the border area 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. Means of transportation and drivers of the means of transportation for goods of business entities of neighboring countries when entering and exiting border markets, customs clearance markets, and markets within border economic zones to transport goods are exempted from visa requirements for entry and exit to Vietnam and are subject to inspection and control by specialized state management agencies at the border gate; 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 means of transportation according to the relevant laws of Vietnam.

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 trade and other related 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 People's Committees of border provinces to guide and direct the management and operation of border trade activities.

2. The Minister of Commerce shall be authorized to establish a Steering Committee for Border Trade Activities, chaired by the Ministry of Commerce, with representatives from relevant ministries, sectors, and People's Committees of border provinces participating; to develop the content and operational regulations of the Committee (operating funds to be arranged by the Ministry of Commerce and the People's Committees of border provinces); and to establish an inter-sectoral coordination mechanism for managing and directing border trade activities in accordance with this Decision and current laws.

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

Article 17. Responsibilities of People's Committees of Border Provinces

People's Committees of border provinces shall be responsible for organizing the management and direction of all border trade activities within their jurisdiction; strictly implementing the inter-sectoral coordination mechanism for managing and directing border trade activities.

Article 18. Responsibilities of Relevant Ministries and Sectors

In accordance with their functions, tasks, and authorities, relevant ministries and sectors shall be responsible for coordinating with the Ministry of Commerce and People's Committees of border provinces to implement management work as stipulated in this Decision, creating maximum facilitation for the healthy, stable, and compliant development of border trade activities; and strictly implementing the inter-sectoral coordination mechanism for managing and directing border trade activities.

Article 19. This Decision shall take effect fifteen days after its publication in the Official Gazette. This Decision replaces Decision No. 252/2003/QĐ-TTg dated November 24, 2003 of the Government on the management of cross-border goods trade with neighboring countries; previous regulations on 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 agencies, Chairpersons of provincial and centrally-administered city People's Committees, and business entities engaged in border trade activities shall be responsible for guiding and implementing this Decision./.