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THE MINISTRY OF TRADE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.07/1999/TT-BTM
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Hanoi, April 20, 1999
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CIRCULAR
PROVIDING GUIDELINES TO THE IMPLEMENTATION OF
PRIME MINISTERIAL DECISION NO.254/1998/QD-TTg DATED DECEMBER 30, 1998
CONCERNING THE MANAGEMENT OF IMPORT-EXPORT ACTIVITIES IN 1999 REGARDING THE
IMPORT-EXPORT ACTIVITIES OF FOREIGN-INVESTED ENTERPRISES
In
accordance with the Law on Foreign Investment in Vietnam dated November 12,
1996, Governmental Decree No.12/ND-CP dated February 18, 1997 providing
concrete regulations on the implementation of the Law on Foreign Investment in
Vietnam, and Governmental Decree No.10/1998/ND-CP dated January 23, 1998
concerning a number of measures to encourage and ensure foreign direct
investment activities in Vietnam;
In accordance with Governmental Decree No.57/ND-CP dated August 28, 1998
concerning the import-export, processing and sale agent activities involving
foreign elements;
-In accordance with Document No.154/CP-KTTH dated February 13, 1999 of the
Government;
In implementing Prime Ministerial Decision No.254/1998/QD-TTg dated December
30, 1998 concerning the management of import-export activities in 1998, the
Ministry of Trade hereby provides guidelines to the import-export of goods of
foreign-invested enterprises, and partners in business co-operation contracts
(BCCs) established and operating in accordance with the Law on Foreign
Investment in Vietnam (hereafter referred to as enterprises):
In addition to having to abide by the Law on Foreign Investment in Vietnam
dated November 12, 1996, Governmental Decree No.12/ND-CP dated February 18,
1997, Governmental Decree No.10/1998/ND-CP dated January 23, 1998, Decision
No.0321/1998/QD-BTM dated March 14, 1998 of the Ministry of Trade concerning
the guidelines provided to the implementation of Governmental Decree
No.12/ND-CP, Governmental Decree No.10/1998/ND-CP, other legal documents
related to foreign investment activities in Vietnam and the investment licence,
the import-export of goods of these enterprises must also conform with
regulations provided in Prime Ministerial Decision No.254/1998/QD-TTg dated
December 30, 1998, which concerns the management of import-export activities in
1999.
I. EXPORT
1. Enterprises are not allowed to export goods
included in the list of goods prohibited to be exported and imported in I of
Appendix 1 attached to this Circular. The export of goods managed by
specialised bodies in accordance with the list approved by the Prime Minister
must be in accordance with regulations provided in Governmental Decree
No.57/1998/ND-CP dated July 31, 1998, and Prime Ministerial Decision
No.254/1998/QD-TTg dated December 30, 1998.
2. The export of rice by foreign-invested
enterprises specialising in rice production, processing and trade in accordance
with the investment licence must abide by Item b of Article 2 in Prime
Ministerial Decision No.250/1998/QD-TTg dated December 30, 1998, and Article 4
of Chapter I in Circular No.22/1998/TT-BTM dated December 30, 1998 of the
Ministry of Trade. Specifically:
- The allocation and adjustment of the quotas
granted to foreign-invested enterprises specialising in rice production,
processing and trade will be considered and decided by the Minister of Trade
based on the principle of instructions from the Prime Minister as stipulated in
Document No.1182/CO-KTTH dated October 6, 1998, and Document 304/VPCP-QHQT
dated November 6, 1998;
- Rice export quotas are granted to enterprises
directly by the Ministry of Trade;
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3. The export of textiles and garments to quota
markets in 1999 will conform with regulations provided in Document No.1126/CP-KTTH
dated September 21, 1998 of the Governmental Office and Inter-Ministerial
Circular No.20/1998/TTLB-BTM-BKHDT-BCN dated October 12, 1998 of the Ministries
of Trade, Planning and Investment and Industry.
4. Apart from goods prohibited to be exported,
goods exported according to quotas and goods exported under specialised
management of ministries, enterprises are allowed to freely export goods in
accordance with regulations in Decision No.0321/1998/QD-BTM, dated March 14,
1998 of the Ministry of Trade.
II. IMPORT
1. Enterprises are not allowed to import goods
included in II of Appendix 1, which concerns the list of goods prohibited to be
imported and exported attached to this Circular.
2. Regarding goods listed in Appendix 2
concerning goods allowed to be imported under certain conditions which is
attached to this circular, enterprises must prioritise local purchase if
similar technical and trade conditions are required.
The import of these goods must be licensed by
the Ministry of Trade or bodies assigned by the Ministry of Trade according to
management decentralisation regulations.
The import petition must be interpreted in the
following aspects:
- The technical specifications of the goods to
be imported compared to similar items produced in the country (including a
verification copy regarding the quality norm certified by a quality assessment
organisation regarding goods produced domestically);
- The after-tax import price of the goods (which
is equal to the CFI (Cost-Freight-Insurance) price plus the import tax and
VAT), and the offering price of this kind of goods of some domestic enterprises
(including the copy of the offering price).
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4. Import of IKD automobile and motorbike
components: After having completed the investment in machinery and equipment
according to the feasibility study, foreign-invested enterprises which
specialise in assembling and producing IKD automobiles and motorbikes are
allowed to import components to produce and assemble in accordance with the
investment licence as well as the feasibility study.
III. BARTER TRADE
Foreign-invested enterprises are allowed to
import and export according to the barter trade method in accordance with the
following regulations:
1. Import goods:
- Goods to be imported under the barter trade
method must be materials serving the production of the importing enterprises in
accordance with the investment licence as well as the feasibility study.
- The materials to be imported under the barter
trade method must be included in the approved annual plan.
2. Export goods: Goods to be exported
under the barter trade method must be products of the exporting enterprises and
be in accordance with the investment licence and products enterprises purchase
inside the country for export in line with regulations in Article 7 of Decision
No.0321/1998/QD-BTM dated March 14, 1998 of the Ministry of Trade.
3. Import-export under the barter trade
method must be conducted on the basis of trade contracts.
IV. Implementation
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PP MINISTER OF TRADE
DEPUTY MINISTER
Mai Van Dau
APPENDIX 1
LIST OF GOODS PROHIBITED TO BE IMPORTED AND
EXPORTED
(Attached to Circular No.07/1999/TT-BTM dated April 20, 1999 of the Ministry
of Trade)
I. GOODS PROHIBITED TO BE EXPORTED
1. Weapons, ammunition, explosives, army
technical equipment
2. Antiques
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4. Toxic chemicals
5. Round wood, sawn wood, wood derived from
natural forests in the country; firewood, coal derived from wood or firewood;
products and bi-products derived from wood from natural forests in the country
which have been prohibited to be exported in Decision No.65/1998/QD-TTg dated
March 24, 1998 of the Prime Minister
6. Wild animals and animals, rare and precious
natural flora.
II. Goods prohibited to be imported
1. Weapons, ammunition, explosives (excluding
industrial explosives in accordance with separate regulations of the Prime
Minister), army technical equipment
2. Antiques
3. Drugs of all kinds
4. Pornographic and reactionary publications
5. Fireworks of all kinds (excluding signal
fireworks used for navigation safety and other demands in accordance with
separate regulations of the Prime Minister), children's toys which have bad
impacts on the dignity education and social security and order
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7. Used consumer goods (except for transferred
properties including goods serving the demands of individuals belonging to
diplomatic corps of other countries, international organisations and personal
luggage in the regulated volume)
8. Right-handed automobiles (including those
dissembled and those having been converted into left-handed facilities before
being imported into Vietnam). Self-dumping specialised vehicles which are
right-handed to be used in small areas such as cranes, canal digging vehicles,
dumping vehicles, sprinklers, road construction vehicles, airport buses and
folk-lifts in ports and stores can be imported with the permission from the
Ministry of Trade in case of necessity.
9. Used components of automobiles, two and three
wheel motorised vehicles, as well as chassis with used automobile engines of
all kinds.
10. Material containing asbestos belonging to
amphobile group.
11. Used combustion engines with a capacity of
less than 30HP.
APPENDIX 2
GOODS TO BE IMPORTED UNDER CERTAIN CONDITIONS
(Attached to Circular No.07/1999/TT-BTM dated April 20, 1999 of the Ministry
of Trade)
1. Petroleum (as long as an import agent is
assigned)
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3. Civil electric fan
4. Ceramic and granite floor and wall tiles
5. Ceramic consumer goods (including sanitary
ware), glass and porcelain
6. Packages in plastic product
7. Incomplete engines and chassis of two and
three wheel motorised vehicles
8. NaOH
9. Bicycles
10. Refined vegetable oil
11. DOP plastic
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13. Black cement
14. Refined and raw sugar
15. Automobiles:
- Automobiles of less than 15 seats
- Passenger and freight automobiles
- Used emergency cars
- Trucks of less than five tonnes
16. The following types of steel:
- Round plain construction steel 6-40mm
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- V and L steel ( 20-100mm)
- C, I and H steel (less than 120mm)
- Welding rods: ferrous, galvanised (14-115mm)
- Bridge iron pipes
- Galvanised iron sheet (0.25-0.55mm in
thickness and 3,500mm in length), corrugated galvanised iron sheet and iron sheet
coated with other non-ferrous metals
- Barbed wire: soft black, hard black,
galvanised wire, barbed wire and B40 wire
17. paper:
- Newsprint
- Writing paper (without surface processing)
with a weight of 50-80g/sq.m
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18. White glass of 1.5-7mm: 300,000sq.m (the
Ministry of Construction will direct the Vietnam Glass and Ceramic for
Construction Corporation to import this volume so that to maintain a balance
between the demand and supply in the country and provide to glass and
reflective mirror production units in the country at reasonable price).