THE MINISTRY
OF TRADE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No: 11/1999/TT-BTM
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Hanoi, May 11, 1999
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CIRCULAR
GUIDING THE IMPLEMENTATION OF THE PRIME
MINISTER’S DECISION No. 219/1998/QD-TTg OF NOVEMBER
12, 1998 PROMULGATING THE REGULATION ON THE ECONOMIC AND TRADE DEVELOPMENT
PROMOTION AREA OF LAO BAO, QUANG TRI PROVINCE
In furtherance of the Prime Minister’s Decision No. 219/1998/QD-TTg of November 12, 1998
promulgating the Regulation on the economic and trade development promotion
area of Lao Bao, Quang Tri province, hereafter referred to as the Regulation on
Lao Bao Trade Area, the Ministry of Trade hereby guides matters related to the
commercial activities in Lao Bao Trade Area, as follows:
I.
SUBJECTS AND SCOPE OF COMMERCIAL ACTIVITIES IN LAO BAO TRADE AREA
1. Subjects of commercial activities:
a/ Vietnamese traders of all economic sectors
that have their head offices located in Lao Bao Trade Area, and Vietnamese
traders’ branches in Lao Bao Trade
Area, which have been granted business registration certificates by the
Management Board of Lao Bao Trade Area, hereafter referred to as the Vietnamese
traders in Lao Bao Trade Area.
b/ Foreign-invested enterprises, which have been
licensed for investment in Lao Bao trade area by the competent agency(ies), and
branches of foreign-invested enterprises in Vietnam, which are located in Lao
Bao Trade Area, hereafter referred to as the foreign-invested enterprises in
Lao Bao Trade Area.
c/ The foreign traders’
branches, which have been licensed by the competent agency(ies) to be set up in
Lao Bao Trade Area under the provisions of Vietnamese legislation on foreign
traders’ branches in Vietnam,
hereafter referred to as the foreign traders’
branches in Lao Bao Trade Area.
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2. Scope of commercial activities:
The Lao Bao Trade Area enterprises shall be
entitled to conduct commercial activities according to the provisions of
Chapter II of the Commercial Law and Article 3 of the Regulation on Lao Bao
Trade Area, more concretely:
a/ The Vietnamese traders in Lao Bao Trade Area
shall be entitled to conduct commercial activities according to the contents of
their business registration certificates and this guiding Circular.
b/ The foreign-invested enterprises in Lao Bao
Trade Area shall be entitled to conduct commercial activities according to the
contents of their investment licenses and this guiding Circular.
c/ The foreign traders’
branches in Lao Bao Trade Area shall be entitled to conduct commercial
activities according to their establishment licenses and this guiding Circular.
II.
COMMERCIAL ACTIVITIES IN LAO BAO TRADE AREA
1. Goods export and import:
a/ The Lao Bao Trade Area enterprises shall be
entitled to export and/or import goods according to their business demand,
except for those on Vietnam�s
list of goods banned from export or import.
b/ For goods on the list of goods subject to the
conditional export and/or import (export and/or import goods regulated by
quotas or requiring permits of the Ministry of Trade or the branch-managing
ministries), the Lao Bao Trade Area enterprises must be allocated quotas or
granted permits by the competent agencies.
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c/ The Lao Bao Trade Area enterprises which
export and/or import types of goods not banned by Laos and other foreign
countries but on Vietnam’s list of goods
banned from export or import must obtain the Vietnamese Prime Minister’s permission.
d/ Vietnamese traders in Lao Bao Trade Area
shall be entitled to purchase goods from inland Vietnam for export or sale in
Vietnam, and to import goods from foreign countries into inland Vietnam for
trading like inland Vietnamese enterprises according to provisions of
Vietnamese law.
e/ Foreign-invested enterprises in Lao Bao Trade
Area shall be entitled to purchase from inland Vietnam for export to foreign
countries like foreign-invested enterprises located in inland Vietnam according
to provisions of Vietnamese law.
f/ Foreign traders’
branches in Lao Bao Trade Area shall be entitled to purchase goods from inland
Vietnam for export to foreign countries, and import goods from foreign
countries for sale in inland Vietnam according to the list of goods in which
foreign traders’ branches are allowed
to trade in Vietnam and the Vietnamese law’s
regulations on foreign traders’
branches in Vietnam.
g/ The Lao Bao Trade Area enterprises and
residents shall be entitled to purchase and bring goods from inland Vietnam
into Lao Bao Trade Area for their daily use; the procedures therefor shall be
prescribed by the General Department of Customs.
2. Business by mode of temporary import for
re-export of goods
a/ All Lao Bao Trade Area enterprises shall be
entitled to conduct the temporary import for re-export of goods of different
kinds as their business activities.
The temporary import for re-export of goods
being on the list of goods banned from export or import must be approved in
writing by the Ministry of Trade.
b/ Goods temporary import for re-export business
covers:
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- The import of goods from inland Vietnam for export
to foreign countries or the import of goods from foreign countries for export
into inland with the procedures for importing goods into Lao Bao Trade Area and
the procedures for exporting such goods out of Lao Bao Trade Area being carried
out.
c/ The temporary import-re-export business shall
comply with the Regulation on business activities by mode of temporary import
for re-export, issued together with the Trade Minister’s
Decision No. 1311/1998/QD-BTM of October 31, 1998, except for the provisions at
Articles 3 and 4 and the provisions on dossiers for filling in the customs
procedures related to the said articles of such Regulation.
3. Cross-bordergate goods transshipment business
a/ All Lao Bao Trade Area enterprises shall be
entitled to conduct cross-bordergate goods transshipment business.
b/ The cross-bordergate goods transshipment
business covers:
- The purchase of goods from one foreign country
for sale to another foreign country without filling in the procedures for
importing such goods into Lao Bao Trade Area;
- The purchase of goods from foreign countries
for sale into inland Vietnam without filling in the procedures for importing
such goods into Lao Bao Trade Area;
- The purchase of goods from inland Vietnam for
sale to foreign countries without filling in the procedures for importing such
goods into Lao Bao Trade Area.
c/ The cross border-gate transshipment business
shall comply with the Regulation on business activities by mode of border-gate
transit issued together with the Trade Minister’s
Decision No.1311/1998/QD-BTM of October 31, 1998, except for the provisions in
Articles 3 and 4 and the provisions on dossiers for filling in the customs
procedures related to the said articles of such Regulation.
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a/ Lao Bao Trade Area’s
enterprises specialized in the provision of goods forwarding or transporting
services shall be entitled to provide services of transporting goods on transit
through Lao Bao Trade Area.
b/ The transit of goods from foreign countries
through Lao Bao Trade Area to other foreign countries shall comply with the
provisions of Vietnamese law.
c/ Goods of domestic Vietnamese enterprises
transported through Lao Bao Trade Area for export to foreign countries or for
import into inland Vietnam shall be subject to the customs procedures at the
first border-gate into Lao Bao Trade Area.
5. Goods processing:
a/ The Lao Bao Trade Area traders shall be
entitled to undertake processing for foreign parties or inland Vietnamese
parties and to order processing in foreign countries or inland Vietnam.
b/ The processing of goods on the list of goods
banned from export or import shall comply with the provisions in Section 2,
Part II of the Trade Ministry’s
Circular No.18/1998/TT-BTM of August 28, 1998 guiding the implementation of the
Government’s Decree
No.57/1998/ND-CP of July 31, 1998 the goods import, export, processing, as well
as purchase and sale agency activities with foreign countries.
The Lao Bao Trade Area traders engaged in goods
processing may temporarily cease their export and/or import activities without
needing any written approval of the Ministry of Trade.
6. Lao Bao Trade Area’s
markets:
Lao Bao Trade Area’s
markets include the Lao Bao border market and markets in Lao Bao Trade Area.
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- Subjects entitled to conduct trading
activities in the Lao Bao border market include:
+ The Lao Bao Trade Area enterprises which have
their trading places in the Lao Bao border market arranged by the market
management board;
+ Residents with permanent or temporary
residence registration in Huong Hoa district, including Lao Bao Trade Area,
Quang Tri province, who have their trading places in the Lao Bao border market
arranged by the market management board and have made business registration
according to regulations.
+ Traders from Sepol district, Savanakhet
province of Laos, who have their trading places in the Lao Bao border market
arranged by the market management board and their business books granted by the
Management Board of Lao Bao Trade Area.
- The Management Board of Lao Bao Trade Area
shall be authorized to establish and dissolve the Lao Bao border market; set up
and dissolve the management board of the Lao Bao border market; define the
functions and tasks of the management board of the Lao Bao border market after
reporting to and getting approval from the People’s
Committee of Quang Tri province in conformity with the Regulation on
organization and management of Vietnam-Laos border markets issued together with
the Trade Minister’s Decision
No.0807/1998/QD-BTM of July 15, 1998.
b/ Markets in Lao Bao Trade Area:
The markets in Lao Bao Trade Area shall be
organized and managed according to the Ministry of Trade’s
Circular No.15/TM-CSTNTN of October 16, 1996 guiding the organization and
management of markets. Particularly, the planning and establishment of markets
of grades 1 and 2, including the decision on setting up management boards of
such markets, shall be assigned to the Management Board of Lao Bao Trade Area.
III.
GOODS CIRCULATED IN LAO BAO TRADE AREA AND THE APPLICATION OF THE POLICY ON
PREFERENCES FOR MOUNTAINOUS TRADE DEVELOPMENT
1. Circulated goods:
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b/ The Lao Bao Trade Area’s
enterprises may trade in goods subject to business restrictions as specified in
Section 1 of the list of goods and commercial services restricted from to
business (List 2) issued together with the Government’s
Decree No.11/1999/ND-CP of March 3, 1999 only after they are granted business
licenses by the branch managing ministries.
c/ The Lao Bao Trade Area enterprises may trade
in goods or provide commercial services subject to conditional business as
specified in Section 1 of the list of goods and commercial services subject to
conditional business (List 3), issued together with the Government’s Decree No.11/1999/ND-CP of March 3, 1999, only
after they are granted certificates of business qualifications by the
provincial/municipal branch managing services.
2. The application of the policies on
preferences for mountainous trade development
The Lao Bao Trade Area enterprises shall be
entitled to preference policies provided for in the Government’s Decree No.20/1998/ND-CP of March 31, 1998 on
trade development in mountainous regions, offshore islands and ethnic minority
regions.
IV.
IMPLEMENTATION PROVISIONS
This Circular takes effect 15 days after its
signing.
THE MINISTRY OF TRADE
Mai Van Dau
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