Joint Circular No. 29/1999/TTLT/BTM-BKHĐT-BCN stipulates the allocation of export quotas for textile and garment products to markets with quota regulations for the year 2000.

JOINT CIRCULAR

Regulations on the allocation of export quotas for textile and garment products to markets with quota regulations in 2000

Pursuant to the tasks assigned by the Prime Minister;

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Pursuant to the Agreement on Textile and Garment Trade with countries having quota regulations, the Joint Ministries of Industry, Planning and Investment stipulate the following regarding the allocation of textile and garment export quotas for 2000 with fees:

1. The allocation of quotas with fees shall be conducted based on the principles of transparency, non-discrimination, and encouragement of exports using domestic raw materials and to markets without quota restrictions.

I. GENERAL PROVISIONS:

2. The entities eligible for quota allocation are enterprises producing textile and garment products meeting technical standards for export, holding business registration certificates or investment licenses under the Law on Foreign Investment in Vietnam, and having engaged in quota utilization in 1999.

3. The basis for quota allocation is the actual quantity utilized by the enterprise in 1999 based on officially allocated quantities, excluding bonus, bidding, adjustment, and supplementary quotas due to urgent requirements.

4. For the European Union market, 30% of the total quota for each category of goods will be prioritized for allocation to enterprises that have directly signed contracts with European industrial customers introduced by the European Commission. This priority will be considered for contracts signed no later than March 31, 2000. Enterprises receiving quotas must ensure the aforementioned ratio, except for enterprises receiving small quantities: less than 50,000 units for categories 4, 5, 8, 28, and 31; less than 30,000 units for categories 6, 7, and 21; less than 10,000 units for categories 14, 26, 29, and 73; less than 5,000 units for category 15; less than 10.0 tons for categories 68, 161; and less than 3.0 tons for categories 78 and 83.

5. The Joint Ministries of Industry, Planning and Investment grant authority to the People's Committee of Hanoi City and the People's Committee of Ho Chi Minh City to directly allocate quotas to enterprises under their management. The allocation of quotas by the two city committees shall be carried out according to this Circular and the handover record between the Joint Ministries of Industry, Planning and Investment and the People's Committees of the two cities.

6. Approximately 5% of the textile and garment export quotas to the EU, specifically 10% for T-shirts and Polo shirts (category 4), will be reserved for priority and incentive awards:

- To enterprises exporting products made from domestically produced fabric to the EU in 2000.

- To enterprises exporting goods to markets without quota restrictions in 1999.

The provisions for incentives and awards are specified separately.

7. A portion of the textile and garment export quotas to the EU for categories 5, 6, 7, 15, 21, 26, and 73 will be set aside for bidding among enterprises nationwide. The quantities for each category put up for bidding will be drawn from supplementary and annual growth quotas.

The bidding for quotas will be conducted in accordance with the Regulation on Quota Bidding for Textile and Garment Exports to Markets with Quota Restrictions No. 1405/1998/QĐ/BTM dated November 17, 1998.

II. PROCEDURES FOR REGISTRATION OF QUOTAS:

Enterprises requiring the use of export quotas for textile and garment products to markets with quota restrictions must submit written applications (using attached forms) to the Ministry of Industry (Department of Import-Export) at 21 Ngo Quyen Street, Hanoi.

+ Commercial quotas: before October 10, 1999

Registration period:

+ Industrial quotas: before April 10, 2000

III. PROVISIONS ON ALLOCATION OF QUOTAS:

1. For industrial quotas:

By April 10, 2000, enterprises meeting the conditions stated in Section I, Point 4 must submit industrial contracts to the Ministry of Industry or the People's Committee of Hanoi City or the People's Committee of Ho Chi Minh City. Enterprises under the management of the two city committees will be allocated industrial quotas according to the prescribed ratio.

If industrial quotas are not fully allocated, they will be transferred to commercial quotas.

2. For commercial quotas:

The allocation of quotas will be divided into two phases:

a) Phase 1: In October 1999, allocate commercial quotas amounting to 100% of the actual quantity utilized in the first nine months of 1999 (excluding enterprises required to fulfill industrial quotas as stipulated in Point 4 of Section I).

b) Phase 2: In January 2000, allocate the remaining commercial quotas according to the principle stated in Point 2 of Section I.

Consider allocating preferential and incentive quotas to enterprises according to separate regulations.

3. After March 31, 2000, if industrial quotas are not fully signed, they will be transferred to commercial quotas for allocation to enterprises.

In addition to the quota allocation phases mentioned above (excluding enterprises under the management of the two city committees), during the implementation process, any issues arising will be reviewed and recommendations made by the joint steering committee to the leadership of the Ministry of Industry for resolution, followed by notification to the Ministry of Planning and Investment and the Ministry of Industry.

IV. IMPLEMENTATION PROVISIONS:

1. Refund:

After being allocated quotas, if an enterprise is unable to utilize them, it must return the quotas to the Ministry of Industry or the People's Committees of the two cities so that the cities and the Ministry of Industry can promptly reallocate them to other enterprises. Strictly prohibit the buying and selling of quotas.

Enterprises that do not use up their quotas and do not return them by September 30, 2000, will have their corresponding quota amounts deducted from the next year's quota.

2. Quota Fees:

Quota fees for each category of goods are listed in the attached annex.

Enterprises must pay quota fees either for a notice of permission to use quotas or for each export shipment. When obtaining an Export License (E/L) from the regional customs office, enterprises must present proof of payment of quota fees for the shipment to the account of the Ministry of Industry number 945-01-475 at the State Treasury of Hanoi City.

The latest deadline for paying the full quota fee is September 30, 2000. After this date, if an enterprise does not transfer funds to the aforementioned account, the quota will automatically become invalid. Enterprises allocated additional quotas after September 30, 2000, must pay the fees within 15 days of receiving the quota allocation notice.

The latest deadline for paying the fee for the entire quota allocated is September 30, 2000. After this deadline, if the enterprise does not transfer funds to the designated account, the quota will automatically become invalid. Enterprises allocated additional quotas after September 30, 2000 must pay the fee within fifteen days from the date of the quota allocation notification.

The management offices for import and export in regions under the Ministry of Commerce are responsible for urging and inspecting the payment of fees by enterprises and ensuring full collection.

3. Entrustment and Acceptance of Entrustment:

Enterprises allocated quotas, if they do not have customers or direct contracts are not effective, may entrust other qualified enterprises. The principle is that goods must be produced at the enterprise with the quota and confirmed in writing by the import-export management office under the Ministry of Commerce. Entrustment fees shall be agreed upon by the parties.

4. Reporting system: Enterprises must strictly comply with the reporting system on the implementation of quotas every quarter/year according to the forms attached to this Circular. The latest reporting date is the 10th day of the first month of each quarter.

V. IMPLEMENTATION PROVISIONS:

The Ministry of Commerce, the Ministry of Planning and Investment, and the Ministry of Industry are tasked by the Prime Minister to manage state affairs regarding the enforcement of textile and garment trade agreements with countries applying quota systems. They are responsible for organizing and guiding the proper implementation of the terms of signed agreements and issued regulations, coordinating with relevant domestic and foreign agencies to promptly address any issues arising during implementation.

Enterprises must strictly adhere to the current provisions of textile and garment trade agreements signed with markets implementing quota systems, preventing fraudulent trading activities.

Violating enterprises will be penalized from quota recovery to suspension of quota usage rights or legal proceedings, depending on the severity of the violation.

The inter-ministerial steering committee comprising the Ministries of Commerce, Planning and Investment, and Industry is responsible for inspecting, monitoring, and periodically reporting on implementation results, and informing the situation through the Trade Newspaper, Trade Magazine, Investment Newspaper, and Industry Newspaper so that enterprises can timely obtain necessary information.

This Circular takes effect from the date of signature and replaces Circular No. 20/1998/TTLT-BTM-BKHĐT-BCN dated October 12, 1998, jointly issued by the Ministry of Commerce, the Ministry of Planning and Investment, and the Ministry of Industry.