Circular No. 26/1999/TT-BTM supplements Circular No. 18/1998/TT-BTM dated August 28, 1998 of the Ministry of Trade guiding the implementation of 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.

CIRCULAR

Supplementing Circular No. 18/1998/TT-BTM dated August 28, 1998 of the Ministry of Trade guiding the implementation

of the DecreeNo. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Law on Commerceconcerning

export, import, processing, and agency purchase and sale of goods with foreign countries

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To implement the provisions at Section II Chapter III of Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government detailing the implementation of the Law on Commerce concerning export, import, processing, and agency purchase and sale of goods with foreign countries.

Pursuant to Circular No. 18/1998/TT-BTM dated August 28, 1998 of the Ministry of Trade guiding the implementation of Decree No. 57/1998/NĐ-CP dated July 31, 1998 of the Government concerning export, import, processing, and agency purchase and sale of goods with foreign countries;

The Ministry of Trade supplements Clause 6 (outsourcing production of goods abroad) in Part II (on outsourcing with foreign traders) of the aforementioned Circular No. 18/1998/TT-BTM as follows:

6. Outsourcing production of goods abroad:

a) Vietnamese traders from all economic sectors are permitted to outsource production of goods abroad in accordance with Vietnamese law and the law of the outsourcing country.

b) Products outsourced for production abroad are primarily intended for export or consumption in the outsourcing country. In cases where outsourced products are imported back to Vietnam, traders may only outsource production stages that Vietnam cannot perform or does not meet quality requirements.

c) Goods exported to be outsourced for production abroad (including machinery, equipment, materials, raw materials, auxiliary materials), if they fall under the list of prohibited exports or require a permit from the Ministry of Trade for export, must obtain written approval from the Ministry of Trade before signing the outsourcing contract.

d) Goods temporarily exported to fulfill outsourcing contracts (including machinery, equipment, materials, raw materials, auxiliary materials) and re-imported into Vietnam as outsourced products are exempt from export tax and import tax. If the outsourced products mentioned above are not re-imported into Vietnam, the exported goods for outsourcing shall be subject to export tax.

đ) In cases where outsourced products imported back into Vietnam include materials, raw materials, and auxiliary materials purchased abroad for outsourcing, these materials, raw materials, and auxiliary materials must be subject to import tax.

This Circular takes effect fifteen days from the date of signature./.