MINISTRY OF TRADE	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ****
No. 0321-1998-QD-BTM	Hanoi, 14 March 1998

DECISION

Promulgating detailed Regulation for implementation of Decree No.12-CP dated 18 February 1997 and Decree No.10-CP dated 23 January 1998 of the Government with respect to importation, exportation and sale of goods in Vietnam and processing by foreign invested enterprises and parties to business co-operation contracts *****

The Minister of Trade

Pursuant to Decree 95-CP of the Government dated 4 December 1993 stipulating the functions, duties, powers and organizational structure of the Ministry of Trade;

Pursuant to the Law on Foreign Investment in Vietnam dated 12 November 1996;

Pursuant to Decree 12-CP of the Government dated 18 February 1997 providing detailed regulations for the implementation of the Law on Foreign Investment in Vietnam;

Pursuant to Decree 10-1998-ND-CP of the Government dated 23 January 1998 on a number of measures for encouragement and guarantee of foreign direct investment activities in Vietnam;

Decides:

Article 1

To issue herewith detailed regulations for the implementation of Decree 12-CP dated 18 February 1997 and Decree 10-1998-ND-CP dated 23 January 1998 with respect to importation, exportation and sale of goods in Vietnam and processing by foreign invested enterprises and parties to business co-operation contracts.Article 2

Related bodies of the Ministry of Trade, bodies authorized by the Ministry of Trade, foreign invested enterprises and parties to business co-operation contracts shall be responsible for the implementation of this Decision.Article 3

The Regulations issued in accordance with this Decision shall replace Circular 03-TM-DT of the Ministry of Trade dated 2 July 1993.Article 4

This Decision shall be of full force and effect after ten (10) days from the date of its signing.

 Article 1: Scope and subjects of application

DETAILED REGULATIONS FOR IMPLEMENTATION OF DECREE 12-CP DATED 18 FEBRUARY 1997 AND DECREE 10-CP DATED 23 JANUARY 1998 OF THE GOVERNMENT WITH RESPECT TO IMPORTATION, EXPORTATION AND SALE OF GOODS IN VIETNAM AND PROCESSING BY FOREIGN INVESTED ENTERPRISES AND PARTIES TO BUSINESS CO-OPERATION CONTRACTS(Issued in accordance with Decision 0321-1998-QD-BTM of the Ministry of Trade dated 14 March 1998)

1.1. These Regulations provide specific contents and procedures with respect to importation for capital construction to form fixed assets, importation of raw materials for production, exportation of products produced by enterprises, exportation of products not produced by enterprises, sale of products in Vietnam, and processing by foreign invested enterprises and parties to business co-operation contracts (hereinafter referred to as enterprises).

1.2. Enterprises shall, on the basis of these Regulations, prepare plans for importation, exportation, and sale of products in Vietnam in accordance with demands of production and business and then forward them to the Ministry of Trade or bodies authorized by the Ministry of Trade for consideration and approval of plans for importation, exportation, and sale of products in Vietnam and for registration of performance of processing contracts.

1.3. Related bodies of the Ministry of Trade and bodies authorized by the Ministry of Trade shall base the approval of plans for importation, exportation, and sale of products in Vietnam on the provisions of these Regulations and shall make timely registration of processing contracts for enterprises.

1.4. The plans for importation and exportation approved by the Ministry of Trade or its authorized bodies and the processing contracts registered with the Ministry of Trade or its authorized bodies shall be the basis for enterprises to complete necessary procedures at customs offices.

Article 2: Time-limit for approval of plans for importation, exportation, and sale of products in Vietnam and processing by enterprises

2.1. In respect of the Ministry of Trade:

No later than ten (10) days after the date of receipt of a full and proper application file as stipulated, the Ministry of Trade shall issue a written approval of the plan for importation, exportation, and sale of products in Vietnam by an enterprise (the date of receipt of the application file shall be the date of the seal for incoming correspondence of the Ministry of Trade).

2.2. In respect of bodies authorized by the Ministry of Trade:

Bodies authorized by the Ministry of Trade shall, subject to these Regulations, have responsibility to consider and approve in a timely manner plans for importation, exportation, and sale of products in Vietnam of enterprises within the scope of their delegated authority within fifteen (15) days as provided for in Decree 12-CP dated 18 February 1997 (the date of receipt of the application file shall be the date of the seal for incoming correspondence of the bodies authorized by the Ministry of Trade).

2.3. In respect of incomplete and improper application files:

Within three working days from the date of receipt of such application files, the Ministry of Trade or the bodies authorized by the Ministry of Trade shall inform enterprises directly or in writing of any amendments or adjustments required to be made to application files. The official date of receipt of a full and proper application file shall be the date of the seal for incoming correspondence of the Ministry of Trade or the bodies authorized by the Ministry of Trade on the final documents.

2.4. Time-limit for registration of processing contracts of enterprises:

Within three working days from the date of receipt of full and proper application files, the Ministry of Trade or the bodies authorized by the Ministry of Trade shall register processing contracts of enterprises.

2.5. Necessary application files to be sent to the Ministry of Trade or the bodies authorized by the Ministry of Trade shall be provided for in the relevant articles set out below.Article 3:

3.1. Based on investment licences, econo-technical explanatory statements and technical designs (where there have been changes to the econo-technical explanatory statements), enterprises shall prepare plans for importation of machinery, equipment, supplies, construction materials, and means of transportation for the purpose of construction to form fixed assets.

An import plan may be prepared for a whole project or divided into phases in accordance with the schedule of construction of the project.

Enterprises may request the Ministry of Trade or its authorized bodies to amend or adjust the above import plans.

3.2. Plans for importation of machinery, equipment, construction materials, and means of transportation which are inconsistent with investment licences and econo-technical explanatory statements must be certified by the investment licence-issuing body in the following cases:

3.2.1 Inconsistency with respect to import value:

The import value of any item of construction materials, machinery, and equipment exceeds ten (10) per cent in respect of items to which the capital allocated for importation is up to five million (5,000,000) United States dollars.

The import value of any item of construction materials, machinery, and equipment exceeds five hundred thousand (500,000) United States dollars in respect of items to which the capital allocated for importation is over five million (5,000,000) United States dollars.

3.2.2. The econo-technical explanatory statement does not stipulate the structure of capital to be allocated to each item of machinery, equipment, construction materials, means of transportation, office equipment, and so forth, to be imported.

3.2.3. The econo-technical explanatory statement does not include a specific list of machinery, equipment, construction materials, supplies and means of transportation or the list of machinery, equipment, construction materials, supplies and means of transportation has been changed, resulting in changes to production targets and capacity of production and business or technology processes or impacts on the environment.

3.2.4. The importation of used machinery, equipment, supplies, and so forth, fails to comply with the provisions of the investment licence.

(The time-limit for approval of a plan for importation of machinery, equipment and construction materials for the purpose of formation of an enterprise shall be as stipulated in article 2).3.3. The application file to be lodged with the Ministry of Trade or its authorized bodies shall include:

3.3.1. Application for importation accompanied by:

Brief report on the main features of the enterprise (in accordance with Form 1); (This report shall be submitted only once upon the establishment of the enterprise);

List of machinery, equipment, supplies, construction materials, means of transportation, and so forth, to be imported for the purpose of formation of fixed assets (in accordance with Form 2);

The proposed duration (duration contemplated in the econo-technical explanatory statement and the duration estimated by the enterprise on an actual basis) for completion of capital construction should be clearly stated in the application.

3.3.2. The investment licence, or business licence in the case of a business co-operation contract (copy).

3.3.3. The econo-technical explanatory statement.

3.3.4. The technical designs (where there are changes to the econo-technical explanatory statement).

3.3.5. The business co-operation contract (in respect of a business co-operation contract).

Article 4:

Additional importation of machinery, equipment, construction materials, supplies, means of transportation, and so forth, for purpose of production expansion or intensive investment

4.1 Additional importation of machinery, equipment, construction materials, supplies, means of transportation, and so forth, for purpose of production expansion or intensive investment belonging to the investment capital shall be dealt with on the basis of the investment licence amended due to an increase in the investment capital.

4.2 The time-limit for approval of plans for additional importation of machinery, equipment, construction materials for the purpose of production expansion shall be as stated in article 2.

4.3 The application file to be lodged with the Ministry of Trade or its authorized bodies shall include:

- Application for import;

- Econo-technical explanatory statement for capital increase submitted by the enterprise to the body issuing the amended investment licence; and the amended investment licence;

- List of equipment, machinery, construction materials, supplies, means of transportation, and so forth, to be imported (in accordance with Form 2). This list must be in accordance with the capital allocated for imports and the list stipulated in the above explanatory statement applying for capital increase.Article 5:

Based on the investment licence, the econo-technical explanatory statement and the implementation of the plan for importation and exportation of the previous year, an enterprise shall prepare the plan for importation of raw materials and sub-materials and submit to the Ministry of Trade or its authorized bodies for consideration and approval (in accordance with Form 3).

The plan for importation of raw materials and sub-materials may be amended or supplemented.

The time-limit for approval of the plan for importation of raw materials and sub-materials for production shall be as stated in article 2.Article 6:

An enterprise shall, on the basis of the provisions of its investment licence and its actual annual production capacity, prepare a plan for exportation and sale in Vietnam of products produced by the enterprise (in accordance with Form 3).

An enterprise is permitted to export directly, or to authorize the exportation of, products produced by the enterprise.

Where an enterprise fails to ensure the ratios stipulated in the investment licence due to difficulties in the export market, the enterprise shall report to the Ministry of Trade in order to have the annual plan for exportation and sale of products in Vietnam amended.

If the export ratio stipulated in the investment licence cannot be reached for three consecutive years, the enterprise shall make a request to the investment licence-issuing body for consideration of the amendment of the export ratio and the preferential treatment provided for in the investment licence or the revocation of the investment licence.Article 7:

Importation of products which are not produced by enterprises in accordance with the provisions of investment licences

7.1. Enterprises may purchase, directly or via other domestic enterprises, items of goods which they do not produce as provided for in their investment licences for the purposes of processing goods for export or exportation, except for the items included in the attached Appendix I. In particular, certification of the origin of any wood used as materials shall be required in accordance with the provisions of the Ministry of Agriculture and Rural Development in respect of handicrafts which are made from wood.

Amendment of this list shall be announced by way of a decision of the Government on management of imports and exports which is issued annually.

7.2. Plans for exportation of products which are not produced by enterprises shall be registered with the Ministry of Trade or its authorized bodies.

The time-limit for approval of export plans of enterprises shall be as stated in article 2.

7.3 Foreign invested enterprises shall be permitted to authorize the exportation or to be authorized to export items which are produced or not produced by enterprises as referred to in this article 7.

7.4 The above exportation and authorized exportation shall be carried out only after the enterprises complete capital construction and commence production.

Exportation and authorized exportation shall be carried out in accordance with the applicable regulations on management of imports and exports.Article 8:

Taxation in cases where enterprises import materials to produce products which are then sold to other enterprises as materials for direct production of finished products for export

8.1 An enterprise shall be entitled to sell the products produced by itself to other enterprises for the latter to use as materials for the production of products for export and the enterprise shall be entitled to exemption from import duties in respect of the amount of raw materials.

Purchases and sales under economic contracts shall be in accordance with prevailing legislation.

Exemptions from import duties shall be dealt with only when the last product has been exported.

The application file for and the consideration of exemptions from duties in respect of the corresponding quantity of raw materials shall be stipulated and dealt with by customs offices.

8.2 An enterprise which sells its products to another enterprise which does not directly produce products for export shall not be entitled to exemption from duties in respect of the corresponding quantity of raw materials.

8.3 The value of the products which are sold by an enterprise to another enterprise as raw materials for continuing the production of products for export shall not be included in the annual export turnover of the enterprise.

8.4 The abovementioned plan for sale of products shall form part of the overall plan for sale of products in Vietnam of the enterprise which has been approved annually by the Ministry of Trade or its authorized bodies.Article 9:

Stipulations on processing activities

9.1. Enterprises shall be entitled to perform product processing or re-processing in compliance with the objectives stated in their investment licences as follows:

- Processing for foreign countries;

- Processing for domestic organizations;

- Having a part of products or stages processed where such products or stages cannot be processed due to the capacity of the existing machinery, equipment or technological lines.

9.2. An application file for registration of processing contracts to be lodged with the Ministry of Trade or its authorized bodies shall include:

- Application of the enterprise;

- Investment licence, or business licence in respect of business co-operation contract (copy);

- Processing contracts and annexures attached thereto;

- Certificates of trademark registration and origin of goods which are currently valid;

- Limits of consumption of materials and supplies used for each product unit and an explanatory statement explaining the method of calculation of limits which shall be the basis for examination by the registering body prior to, during and after registration of performance of processing contracts.

The time-limit for registration of processing contracts shall be as stated in article 2.

9.3. The director of an enterprise shall bear responsibility before the law for the limits of consumption of materials and the wear and tear ratio in processing.Article 10:

Every quarter, enterprises shall be responsible to submit to the Ministry of Trade and the Ministry of Planning and Investment reports on the implementation of the plans approved by the Ministry of Trade in respect of:

- importation of machinery, equipment and materials for capital construction;

- importation of materials, sub-materials and supplies for production or business;

- direct exportation, authorized exportation, and authorization of export;

- sale of products in Vietnam (in which the sale of product to other enterprises for use as materials to produce products for export shall be kept separate);These reports shall state clearly the names, quantity and value of goods.

- other proposals (if any).

In cases of unexpected requirements, enterprises shall produce a report at the request of the Ministry of Trade or its authorized bodies.

Where an enterprise fails to send two consecutive periodical reports, the Ministry of Trade shall refuse to approve the following plans for importation and sale of products.Article 11:

People's committees of provinces and cities under central authority and industrial zone management committees shall be responsible to, as delegated by the Ministry of Trade, inform foreign invested enterprises of these Regulations for implementation and, at the same time, report to the Ministry of Trade any problem that arises during the process of implementation for timely adjustment.

Officials and employees of the Ministry of Trade and of bodies authorized by the Ministry of Trade shall be responsible for strict compliance with the provisions stipulated in this document. Any breach shall, depending on the level of seriousness, be prosecuted as prescribed by law.

For the Minister of Trade Deputy Minister MAI VAN DAU

 Appendix I

 

LIST OF GOODS WHICH ARE NOT PRODUCED BY ENTERPRISES IN ACCORDANCE WITH INVESTMENT LICENCES AND NOT ALLOWED TO BE EXPORTED IN 1998

List 1

GOODS PROHIBITED FROM EXPORT IN 1998(Issued in accordance with Decision 11-1998-QD-TTg of the Prime Minister dated 23 January 1998)

1. Weapons, ammunition, explosives, military technical equipment.

2. Antiques.

3. Drugs of all kinds.

4. Toxic chemicals.

5. Round timber, sawn timber, flat-sawn timber, firewood, charcoal made from timber or firewood, wooden products made from IA wood group and finely processed planks made from IIA wood group in the list issued in conjunction with Decree 18-HDBT dated 17 January 1992; raw rattan.

6. Wild animals and valuable and rare natural plants and animals of all kinds.

List 2

EXPORTS MANAGED BY QUOTAS IN 1998(Issued in accordance with Decision 11-1998-QD-TTg of the Prime Minister dated 23 January 1998)

- Rice.

- Textiles and garments for export to EU, Canada, Norway, Turkey.

List 3

EXPORTS MANAGED BY SEPARATE PROVISIONS

1. Explosives, inflammables (except for matches).

2. Printed books and newspapers.

3. Pearls, precious stones and metals (except for imitation jewellery).

4. Works of art, art collections and antiques.

5. Wooden products (except for handicrafts referred to in article 7).

6. Coffee.

7. Wild animals.

8. Wild plants used as stock strains.

9. Marine products.

10. Minerals.

Where an enterprise is granted an investment licence or business licence to produce the above items, exportation shall be in accordance with the investment licence and related legislation. 

Form 1

BRIEF REPORT ON MAIN FEATURES OF ENTERPRISE

1. Name of enterprise: (state clearly name in Vietnamese and abbreviated name in foreign language(s) as in investment licence)

2. Investment licence (or business licence):

No............ Dated:

Investment (or business) licence-issuing body:

3. Address as stated in investment licence:

Tel..................... Fax:

Contact address:

4. Full names of management of enterprise:

- Chairman of Board of Management:

- General Director (Director):

- First Deputy General Director (First Deputy Director):

5. Total invested capital of enterprise (USD):

- Fixed capital including:

+ Capital for construction

+ Capital for machinery and equipment

+ Capital for means of transportation

+ Capital for office equipment

+ Reserve fund for procurement

- Working capital:

6. Number(s) of account(s) registered with bank(s):

- Vietnamese currency:

- Foreign currency:

- Off-shore account (if any):

7. Business registration: (state clearly objectives of production or business as written in article 1 of investment licence or business licence)

- Goods to be imported:

- Goods to be exported:

- Goods to be sold in Vietnamese market:

8. Export ratio as stated in investment licence: (if any)

9. Notes: (if any)

 

                                                                                                        ...Date...

                                GENERAL DIRECTOR (DIRECTOR)                                (Signature & seal)

 

 

                                        Person authorized to sign application for approval of import/export plan

                                            (Signature and position )

       Form 2

LIST OF EQUIPMENT, MACHINERY, SUPPLIES AND MEANS OF TRANSPORTATION TO BE IMPORTED FOR FORMATION OF ENTERPRISE (OR FOR FORMATION OF FIXED ASSETS TO IMPLEMENT BUSINESS CO-OPERATION CONTRACT) 

Name of machinery, equipment	Quantity	Temporary unit price	Value	Notes

I. Machinery, equipment, production tools, etc.:

(The company should clearly separate each main stage of production and systems of auxiliary machinery and equipment.)

1.

2.

3.

.........

II. Supplies to be imported for construction of project:

1.

2.

3.

.........

III. Means of transportation to be imported:

(State clearly types of vehicles.)

1.

2.

...

 

IV. Office equipment and furniture:

1.

2.

...

 Form 3

A - PLAN FOR IMPORTATION OF RAW MATERIALS AND SUPPLIES FOR PRODUCTION IN ...YEAR... OF ...COMPANY...

Name of items	Unit price	Quantity	Value	Notes

I. Raw materials for production:

1.

2.

...

II. Sub-materials:

1.

2.

...

III. Supplies used for production and business activities:

(Spare parts, tools, supplies, etc..) 

B - PLAN FOR EXPORT

I. Goods produced by enterprise in accordance with investment licence:

(Export ratio stated in investment licence is %)

Name of items	Unit price	Quantity	Value	Notes

II. Goods not produced by enterprise:

Name of items	Unit price	Quantity	Value	Notes

 

C - PLAN FOR SALES OF PRODUCTS IN VIETNAM

 

Name of items	Unit price	Quantity	Value	Notes

 1. Working capital as stated in the Feasibility Study: USD........

Form 3 (continued)

EXPLANATORY STATEMENT OF PLAN FOR IMPORTATION OF RAW MATERIALS AND SUPPLIES FOR PRODUCTION AND PLAN FOR EXPORTATION AND SALES OF PRODUCTS IN VIETNAM

 

 

2. Designed capacity as stated in the Feasibility Study (by production year):

- Costs of raw materials for production: ... USD.

- Capacity according to annual quantity of products:

3. Year in which the enterprises starts production:

Year of production in which the enterprise prepares the plan:

4. Investment in capital construction up to now:

- Capacity of invested equipment:

5. Brief report on import activities of previous year and comparison (calculated according to value only):

Name of imports	Approved by Ministry of Trade	Actually imported by enterprise
I. Raw materials and sub-materials:
II. Spare parts:

6. Report on situation of export and sales of products in Vietnam (export ratio stated in investment licence is %):

Name of goods	Export		Sales in Vietnam
	Quantity	Value	Quantity	Value
I. Goods produced by enterprise under investment licence
II. Goods not produced by enterprise			NA	NA

Implementing provision Periodical reporting Plans for exportation and sale of products produced by enterprises in accordance with the provisions of investment licencesPlans for importation of raw materials and sub-materials for production