Circular No. 4/TM-XNK guiding the implementation of Decision No. 78-TTg dated February 28, 1994 of the Government Prime Minister.

 

CIRCULAR

OF THE MINISTRY OF TRADE

Guidelines for implementing Decision No. 78/TTg dated February 28, 1994 of the Government Prime Minister

On February 28, 1994, the Government Prime Minister issued Decision No. 78-TTg on managing export-import activities in 1994. On March 17, 1994, the Government Office issued Document No. 1319-KTTH announcing the Prime Minister's opinion on the list of goods for export and import according to the guiding plan.

After reaching consensus with the General Department of Customs, the Ministry of Trade issued a document announcing List No. 1: List of goods prohibited from export and import (Decision No. 238-TM/XNK dated March 24, 1994). The Ministry of Trade now provides guidelines for state management of export and import goods according to the remaining lists as follows:

PART I

MANAGEMENT AND BUSINESS MECHANISMS FOR EXPORT AND IMPORT GOODS

ACCORDING TO EACH LIST

 

A. LIST OF EXPORT GOODS MANAGED BY QUOTA

(List No. 2)

In general, the aim is to reduce as much as possible the number of goods subject to quota management. It only applies to goods for which Vietnam has committed under trade agreements with foreign countries. Specifically, there are only two export goods:

Textiles and garments exported to the EU, Canada, and Norway,

Cassava chips exported to the EU.

1. Management and business mechanisms are as follows: Textiles and garments exported to the EU, Canada, and Norway shall be implemented according to the Joint Circular of the Ministry of Trade and the Ministry of Light Industry No. 8-TBLB dated December 3, 1993. Cassava chips exported to the EU shall be implemented according to Document No. 6236-KTTH dated December 4, 1993 of the Government Office.

2. If textiles and garments are exported to markets outside the EU, Canada, and Norway, they are free from quota restrictions (including textiles and garments exported to Norway outside the quota list), cassava chips if exported to markets outside the EU are also free from quota restrictions.

B. LIST OF GOODS FOR EXPORT AND IMPORT ACCORDING TO THE GUIDING PLAN

(List No. 3)

Export:

1. Crude oil,

2. Rice,

3. Wood products.

Import:

1. Petroleum (excluding lubricating oil),

2. Fertilizers: UREA, DAP,

3. Steel,

4. Black cement,

5. Explosives,

6. Fibers (types not yet produced domestically or already produced but not meeting demand),

7. Cloth (types not yet produced domestically or already produced but not meeting demand),

8. Jute bags,

9. Paper (types not yet produced domestically or already produced but not meeting demand),

10. Raw materials and auxiliary materials for cigarette production,

11. Sugar,

12. Milk,

13. Household electronics and spare parts for assembly,

14. Two-wheeled motor vehicles and spare parts for assembly,

15. Passenger cars under 12 seats and spare parts for assembly.

Management and business mechanisms are as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Five groups of goods: Export includes crude oil and rice; import includes petroleum (excluding lubricating oil), fertilizers (UREA, DAP), steel, explosives, which are types of goods related to major economic balances, thus being managed by the State through designation of some enterprises capable of undertaking such trading. These enterprises are referred to as key enterprises.

Key enterprises are those holding permits for trading in specific commodity sectors, having overseas markets, established business partners, and proven capabilities and experience in export and import trading, selected by the Ministry of Trade together with the relevant sectoral management ministry and the competent authority (at the ministerial or provincial level). These key enterprises are assigned by the State to conduct approximately 50% to 70% of the total volume decided by the Prime Minister for the year (except for crude oil, which has its own regulations).

To avoid monopoly due to concentration among key enterprises, while respecting the right to trade, other enterprises holding permits for trading in specific commodity sectors and capable of conducting business under similar commercial conditions as key enterprises are allowed to conduct approximately 30% to 50% of the remaining volume.

These ratios are understood as guiding plans, not quotas or fixed targets, and are adjusted based on the actual performance capabilities of the enterprises. If key enterprises have sufficient business partners and good commercial conditions, they can exceed the 50% to 70% allocated to them. Conversely, other enterprises, if they have business partners and good commercial conditions, after completing their allocated volumes, can take over the portion intended for key enterprises if it remains unutilized. In cases where all types of enterprises have completed (or not completed) the volume approved by the Prime Minister at the beginning of the year, but the market still has demand (or surplus), the Ministry of Trade will jointly with the relevant sectoral management ministry and the State Planning Commission propose to the Prime Minister to increase (or decrease) the guiding plan.

2. Enterprises meeting the following conditions will be considered for allocation of import volumes for groups and items within the guiding plan list:

Holding a permit for trading in specific commodity sectors.

Directly importing the full volume allocated by the Ministry of Trade in 1993 (without entrusting another enterprise).

Submitting a dossier (as guided below) to the Ministry of Trade within the specified timeframe.

If an enterprise has a need to conduct business and believes it meets the above conditions, it should submit a dossier to the Ministry of Trade, including:

A letter stating the import requirements for the period from April 1, 1994 to March 31, 1995.

A copy of the permit for trading in specific commodity sectors.

3. The Ministry of Trade will allocate volumes to import enterprises in two rounds: Round 1 in April and Round 2 in September 1994. Both rounds will not exceed the total volume decided by the Prime Minister for 1994.

The Ministry of Trade does not require export-import enterprises to directly visit the Ministry of Trade to request approval of import volumes but only needs to submit the dossier to the Ministry for processing.

4. During the supervision of import activities by enterprises, the Ministry of Trade has the right to adjust volumes from enterprises unable to fulfill their obligations to those with import needs and capabilities.

II. SPECIFIC PROVISIONS

For exports:

1. Crude oil: The sole exporter is Petechim, operating according to special regulations.

2. Rice: Operating according to special regulations.

3. Wood products, however: Implemented according to Consolidated Document No. 624-CP dated December 29, 1993 of the Government and guiding documents of the two Ministries of Forestry and Trade (the Prime Minister has decided that wood products, however, shall be considered goods under the plan-oriented management category, not included in the quota management category as stated in Consolidated Document No. 624-CP dated December 29, 1993).

For imports:

1. Petroleum products (excluding lubricating oil): In 1994, continue to designate five previous agents as Petrolimex, Petechim, Saigon Petro, Kerogazimex, Airimex (Airimex continues to act as an agent for importing aviation fuel until the Civil Aviation Administration designates another enterprise with import/export business license). These agents directly sign import contracts for 100% of the planned quantity, including 70% of the planned quantity allocated for themselves and 30% of the planned quantity allocated for non-agent enterprises on commission.

Non-agent enterprises wishing to import petroleum products must apply to the Ministry of Trade when they meet the following conditions:

Having the function of trading in petroleum products (recorded in the establishment decision).

Having specialized transportation means.

Having storage tanks and reservoirs.

Having accurate weighing and dispensing systems.

Having at least one gas station selling petroleum products in each province or centrally administered city.

Having fire prevention, explosion prevention, firefighting equipment and facilities ensuring safety.

Having a staff knowledgeable about the technical aspects of petroleum product trading.

Upon approval, the enterprise may choose any of the five agents above to handle the importation on commission.

The quantities assigned to the five agents in Document No. 11376-TM/KH dated December 11, 1993 are only indicative plans.

Regarding re-export: The planned import quantity of petroleum products in 1994 does not include the re-export quantity. Only agent enterprises and enterprises meeting the conditions for trading in petroleum products are allowed to re-export petroleum products. The Ministry of Trade will consider and decide on the quantity of petroleum products for re-export based on export contracts signed with foreign customers.

2. Fertilizers (Urea, DAP): The mechanism for implementing imports is as follows:

Initially, the Ministry of Agriculture and Food Industry will direct. The Central Agricultural Supplies Corporation (Vegecam) will directly import 60% of the planned quantity, ensuring timely fertilizer supply needs. The Ministry of Trade and the Ministry of Agriculture and Food Industry will designate additional enterprises to join Vegecam in importing this 60%.

The remaining 40%, enterprises capable of self-funding imports, ensuring correct type, seasonality, and regional demand, and bearing responsibility for business effectiveness, may engage in trade.

3. Steel:

Assign the Vietnam Metal Corporation (Vinametal) to directly import approximately 50% of the planned quantity. The remaining 50%, enterprises able to sign foreign trade contracts meeting favorable trade conditions set by Commerce, may engage in trade.

Special steel (for railway tracks, bridges, canned food packaging, water pipes, springs, coil springs, steel for special construction projects, etc.), enterprises may trade in quantities corresponding to their usage needs.

4. Black cement clinker:

For clinker: Only assign the importation of clinker to cement production enterprises. Specific quantities for each enterprise will be proposed by the Ministry of Construction.

For black cement: Enterprises able to sign foreign trade contracts meeting favorable trade conditions may engage in trade.

5. Explosives: The sole importer is Coalimex (Ministry of Energy), which will implement imports according to specific regulations.

6. Fibers: Enterprises may import fibers that domestic production cannot yet produce, specifically:

Synthetic fibers, artificial fibers.

Wool fibers.

Enterprises wishing to import the following types of fibers must submit requests to the Ministry of Trade beforehand:

Medium-quality cotton fibers with a diameter below 50% of the world Uster statistics for 1989.

Medium-quality blended fibers with a diameter below 25% of the world Uster statistics for 1989.

Imports of fibers that domestic production can already produce but do not fully meet demand must first be approved by the Ministry of Light Industry regarding type and quantity.

7. Fabrics: Enterprises may import fabrics that domestic production cannot yet produce, specifically:

Blended wool fabrics,

Microfiber synthetic fabrics, acetate fabrics...

High-grade cotton fabrics with fiber counts of Nm 102 or higher.

High-grade blended fabrics with fiber counts of Nm 102 or higher,

Specialty fabrics.

Imports of fabrics that domestic production can already produce but do not fully meet demand must first be approved by the Ministry of Light Industry regarding type and quantity.

Export-import enterprises with garment factories may import fabrics according to quotas specified in their export contracts. Along with the application for fabric import, there must be an export contract for garment products.

8. Jute bags: Temporarily not imported for now, except in cases where jute bag manufacturing enterprises fail to meet export rice enterprises' requirements, individual contracts will be reviewed.

9. Paper: Enterprises may import paper types that domestic production cannot yet produce, specifically:

Cement packaging paper.

Various printing papers, cardboard with surface processing (coated paper, offset paper, duplex paper).

Thin papers (under 50 grams/square meter) that domestic production can produce but have low quality.

Special priority given to newsprint for enterprises with printing facilities.

10. Raw materials for cigarette production: Enterprises with cigarette production facilities are allocated import quantities consistent with their equipment capacity.

Enterprises with import/export licenses for this commodity may also be allocated import quantities to supply cigarette manufacturers based on economic contracts.

11. Sugar:

Raw sugar, allocate the quantity for import to refining facilities under the Ministry of Agriculture and Food Industry. The specific quantity for each facility shall be proposed by the Ministry of Agriculture and Food Industry. Refining facilities have the right to entrust import if they do not have an import-export business license or if they find it more advantageous to do so.

Refined sugar, allocate the quantity for import to enterprises capable of ensuring the correct quantity and time of importation, delivered to the designated port.

12. Milk: For now, do not import condensed milk with sugar. Enterprises are allowed to import raw milk powder (for producing condensed milk with sugar and milk powder) or high-quality milk powder.

13. Two-wheeled motor vehicles and CKD components for assembly:

a) For CKD components for assembly: Allocate the importation to the following entities:

Vietnamese enterprises with an import-export business license for the relevant commodity category, having an assembly facility confirmed by the agency issuing the establishment decision or permission to establish ownership of the assembly facility, and certified by the General Bureau of Standards-Measurement-Quality (Ministry of Science, Technology, and Environment) as having the necessary conditions for assembly.

Enterprises with assembly facilities meeting the above conditions but lacking an import-export business license, if they need to import CKD components for assembly, shall be considered on a case-by-case basis by the Ministry of Trade.

Enterprises established under the Law on Foreign Investment in Vietnam are permitted to import up to the quantity that can be sold domestically.

Enterprises (including Vietnamese enterprises and those established under the Investment Law) with export contracts for two-wheeled motor vehicles and the ability to fulfill these contracts are allowed to import corresponding quantities of CKD components.

Enterprises requiring imports must submit the following documents to the Ministry of Trade:

For Vietnamese enterprises, including:

Confirmation of ownership of the assembly facility issued by the agency issuing the establishment decision or permission to establish.

Certificate of the facility's qualification for assembly issued by the General Bureau of Standards-Measurement-Quality (Ministry of Science, Technology, and Environment).

Decision establishing the assembly facility.

Economic and technical justification.

For enterprises established under the Law on Foreign Investment in Vietnam, including:

Investment permit.

Domestic consumption plan and export plan.

b) For new complete units: Allocate the importation to enterprises with an import-export business license for the relevant commodity category in reasonable quantities.

14. Passenger cars under 12 seats and CKD components for assembly; consumer electronics and CKD components for assembly: Apply the principle of allocating quantities similar to those for two-wheeled motor vehicles and CKD components for assembly.

Specifically, for electronic components, if it is necessary to import SKD components, prior approval from the Ministry of Trade must be obtained.

C. LIST OF EXPORT AND IMPORT COMMODITIES ACCORDING TO GUIDELINES FROM SECTORAL MANAGEMENT AUTHORITIES

(List No. 4)

There are 11 categories of commodities subject to comments from 7 sectoral management authorities before the Permit Office (Ministry of Trade) issues export and import permits.

1. Ministry of Agriculture and Food Industry (for imports):

Live animals and plants used as breeding stock.

Veterinary and plant medicines.

2. Ministry of Health (for imports):

Medicines and raw materials for human medicines.

3. Ministry of Heavy Industry (for exports):

Minerals.

Scrap iron and non-ferrous metals.

4. Ministry of Culture and Information (for exports and imports):

Books, newspapers, paintings, and other products related to printing and engraving.

Artworks.

5. State Bank (for exports and imports):

Pearls, precious stones, semi-precious stones, precious metals, jewelry, metallic money.

6. General Post Office (for exports and imports):

Radio wave transmission and reception equipment.

Radar equipment and remote control devices using radio waves for maritime use.

7. Ministry of Forestry (for exports): Wild animals.

Management and business mechanisms are as follows:

1. Enterprises wishing to export or import goods listed here must first submit their orders to the relevant sectoral management authority. After receiving written approval from the sectoral management authorities, enterprises can obtain export and import permits from the Permit Office without going through the Ministry of Trade.

2. The importation of complete sets of equipment and production lines funded by the state budget shall be carried out according to Decision No. 91-TTg dated November 13, 1992, of the Prime Minister and Circular No. 4-TM/DT dated July 30, 1993, of the Ministry of Trade.

PART TWO

IMPORTATION OF GOODS OUTSIDE THE LISTS

STATED IN PART ONE

Based on the opinion of the Prime Minister: "Imported goods that consume a large amount of foreign currency and do not directly serve production needs should be managed based on achieving an export value to avoid excessive trade deficits" (Document No. 1319-KTTH dated March 17, 1994).

The Minister of Trade authorizes the Heads of the Permit Offices (under the Ministry of Trade) to issue import permits for goods not included in the lists mentioned above according to the following principles:

1. For production materials: Enterprises with an import-export business license for the relevant commodity category may import according to their production and business needs.

2. For consumer goods outside List 3: To save foreign currency, the state does not encourage the importation of foodstuffs, fresh or processed fruits and vegetables, alcohol, beer, clothing, cosmetics, household appliances, which are already adequately supplied by domestic production. In cases where imports are made for foreign exchange earnings or to fulfill swap contracts (where the exported goods are encouraged by the state), the Ministry of Trade will consider such requests.

For certain essential consumer goods, enterprises with an import-export business license for the relevant commodity category may import up to a maximum value equal to 7-10% of the export turnover achieved six months prior.

PART THREE

PROCEDURES FOR EXPORT AND IMPORT

In 1994, the Ministry of Trade further simplified the export procedures as follows:

Enterprises with an import-export business license for the relevant commodity category exporting goods under Lists 2, 3, and 4 shall apply the mechanism described above.

For all remaining items, enterprises are no longer required to obtain permits but only need to submit a customs declaration form, sending one copy to the Ministry of Trade for monitoring.

When the General Department of Customs completes the SYNDONIA program and finishes setting up the information network, the Ministry of Trade will present to the Government a proposal to further simplify export and import permit procedures.

The Ministry of Trade requests that Ministries, agencies at the level of ministries, government agencies, People's Committees of provinces and centrally governed cities, and central bodies of social organizations inform their respective enterprises about this Circular so they can properly follow its guidelines.