Circular No. 56/2018/TT-BCT guiding the implementation of certain provisions of the Border Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic.

CIRCULAR

Guidelines for Implementing Certain Provisions of the Border Trade Agreementbetween the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic

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Pursuant to the Law on Treaties No. 108/2016/QH13 dated April 9, 2016;

Pursuant to the Border Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic signed on June 27, 2015;

Pursuant to Decree No. 14/2018/NĐ-CP dated January 23, 2018 of the Government detailing regulations on border trade activities;

Pursuant to Decree No. 98/2017/NĐ-CP dated August 18, 2017, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Considering the proposal of the Director of the Import-Export Department,

The Minister of Industry and Trade issues this Circular guiding the implementation of certain provisions of the Border Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic.

Article 1. Scope of Regulation

This Circular guides the implementation of certain provisions of the Border Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic signed on June 27, 2015 (hereinafter referred to as the Vietnam-Laos Border Trade Agreement).

Article 2. Applicability

1. Vietnamese traders operating in Vietnam who wish to register for border trade activities to enjoy preferential policies stipulated in the Vietnam-Laos Border Trade Agreement.

2. Vietnamese traders who have been granted investment production, breeding, and cultivation certificates by competent authorities of the Lao People's Democratic Republic in the border provinces of the Lao People's Democratic Republic with the Socialist Republic of Vietnam (hereinafter referred to as border provinces of Laos), and who wish to register for border trade activities to enjoy preferential policies stipulated in the Vietnam-Laos Border Trade Agreement.

3. Residents of border areas of the Socialist Republic of Vietnam and residents of border districts of the Lao People's Democratic Republic.

4. Other organizations and individuals related to Vietnam-Laos border trade activities.

Article 3. Documents and Procedures for Registering Traders Engaged in Border Trade Activities

1. Traders specified in Clause 1 and Clause 2 of Article 2 of this Circular, if they wish to enjoy preferential policies stipulated in the Vietnam-Laos Border Trade Agreement, shall submit directly or send via postal service one set of registration documents for Vietnam-Laos border trade activities to one of the Departments of Industry and Trade in the border provinces of Vietnam with the Lao People's Democratic Republic. The documents include:

a) A border trade activity registration form according to the model prescribed in Appendix I attached to this Circular.

b) Investment certificate or business registration certificate or business operation registration certificate or household business registration certificate or cooperative registration certificate or cooperative federation registration certificate: one copy, certified and stamped with a true copy seal by the trader.

2. Within three working days from the date of receipt of complete and compliant documents, the Department of Industry and Trade shall submit to the Chairman of the People's Committee of the border province for consideration and decision on announcing the trader as eligible to conduct Vietnam-Laos border trade activities.

3. Within two working days from the date of receipt of the proposal document from the Department of Industry and Trade, the Chairman of the People's Committee of the border province shall consider and issue or refuse to issue a decision on announcing the trader as eligible to conduct Vietnam-Laos border trade activities. In case of refusal of the trader's request, the Chairman of the People's Committee of the border province shall respond in writing to the trader or authorize the Department of Industry and Trade of the border province to respond in writing to the trader and specify the reasons.

Article 4. Notification of the List of Traders Engaged in Border Trade on the National Single Window Portal

1. The Chairman of the People's Committee of the border province shall instruct competent agencies within the province to perform the following tasks:

a) Notify the contents of the decision and the list of traders who have been announced to engage in border trade on the National Single Window Portal;

b) Send copies of the decision announcing the list of traders permitted to engage in border trade to the Ministry of Industry and Trade and the border provinces of Vietnam adjacent to the Lao People's Democratic Republic;

c) Notify the contents of the decision and the list of traders who have been announced to engage in border trade to the border provinces of Laos.

2. Within five (5) working days from the date of issuance of the decision announcing the traders permitted to engage in border trade, the competent agencies within the province shall perform the assigned tasks as stipulated in Clause 1 of this Article.

Article 5. Application of Preferential Policies under the Vietnam-Laos Border Trade Agreement for Imported Goods of Traders

1. Imported goods of traders specified in Clause 1 of Article 2 of this Circular, who have registered to engage in border trade as prescribed in Article 3 of this Circular, shall enjoy preferential import duties as stipulated in Clause 1 of Article 6 of the Vietnam-Laos Border Trade Agreement when they possess a Certificate of Origin (C/O) Form S issued by the competent authority of the Lao People's Democratic Republic.

2. Goods of traders specified in Clause 2 of Article 2 of this Circular, who have registered to engage in border trade as prescribed in Article 3 of this Circular, upon importing into Vietnam shall enjoy preferential treatment as stipulated in Article 7 and Clause 2 of Article 13 of the Vietnam-Laos Border Trade Agreement when they possess the following documents:

a) A document issued by the Department of Industry and Trade of the border province or the Industry and Trade Office of the border district of the Lao People's Democratic Republic confirming that the goods were produced at and by investment projects of Vietnamese investors.

b) A confirmation document from the competent authority of the Lao People's Democratic Republic regarding the inspection and compliance with quality, quarantine, and food safety requirements.

3. Traders who have been announced by the People's Committee of the border province of Vietnam to engage in Vietnam-Laos border trade shall be allowed to conduct border trade along the entire Vietnam-Laos border and shall enjoy preferential policies as stipulated in the Vietnam-Laos Border Trade Agreement and this Circular.

Article 6. Trading and Exchange of Goods by Border Residents

1. Border residents as defined in Clause 1 of Article 5 of the Vietnam-Laos Border Trade Agreement may engage in trading and exchanging goods across the border and enjoy tax exemption quotas as prescribed in Article 13 of Decree No. 14/2018/ND-CP and Circular No. 02/2018/TT-BCT dated February 27, 2018 of the Ministry of Industry and Trade detailing the Catalogue of Goods for Trading and Exchange by Border Residents.

2. Plants, livestock, and goods produced by residents in the border districts of Laos shall enjoy preferential treatment as stipulated in Clause 4 of Article 5 of the Vietnam-Laos Border Trade Agreement, and when importing into Vietnam, must submit the following documents:

a) Confirmation that the goods were produced by residents in the border districts of the Lao People's Democratic Republic issued by the Department of Industry and Trade of the border province or the Industry and Trade Office of the border district of Laos.

b) Confirmation from the competent authority of the Lao People's Democratic Republic regarding quarantine, quality inspection, and food safety.

Article 7. Implementation Organization

1. The Ministry of Industry and Trade, within its functions and responsibilities, shall guide and inspect relevant agencies, organizations, traders, and individuals in implementing the provisions of this Circular.

2. The People's Committees of the border provinces of Vietnam:

a) Shall organize the implementation and management of border trade activities of traders and border residents within their jurisdiction as prescribed in this Circular and other related legal documents; direct and coordinate among functional forces in managing, preventing smuggling, commercial fraud, and regulating goods at border gates to avoid congestion in the area.

b) Shall establish and implement a notification mechanism for traders permitted to engage in Vietnam-Laos border trade with the competent provincial authorities of the Lao People's Democratic Republic; direct competent agencies within the province to update the list of traders registered for border trade on the National Single Window Portal.

c) Direct competent agencies within the province to regularly monitor the border trade activities of traders and border residents within their jurisdiction; submit periodic quarterly or ad hoc reports as required by the Ministry of Industry and Trade on the border trade activities of traders and border residents according to the model prescribed in Appendix II attached to this Circular.

3. Traders permitted to engage in border trade shall be responsible for submitting quarterly reports to the Departments of Industry and Trade of the border provinces of the Socialist Republic of Vietnam where the traders conduct border trade activities according to the model prescribed in Appendix III attached to this Circular or submit ad hoc reports as required by relevant functional agencies.

4. Traders, relevant agencies, organizations, and individuals involved in Vietnam-Laos border trade shall strictly comply with the provisions of this Circular.

Article 8. Effective Date

1. This Circular takes effect from February 18, 2019.

2. Repeal Circular No. 10/2016/TT-BCT dated July 1, 2016 of the Ministry of Industry and Trade guiding the implementation of certain provisions of the Agreement on Border Trade between the Government of the Socialist Republic of Vietnam and the Government of the Lao People's Democratic Republic.

3. During the implementation process, if there are difficulties, obstacles, or new issues arising, relevant agencies, organizations, traders, and individuals shall report in writing to the Ministry of Industry and Trade for resolution.