Thông tư 07/1999/TT-BTM

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;

- Enterprises which have received a rice export quota can purchase rice directly from farmers in accordance with guidelines of the Ministry of Trade.

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).

3. Fertiliser import: Foreign-invested enterprises which specialise in fertiliser production in accordance with regulations in their investment licence and want to import fertilisers as production materials will be allowed to import according to the volume and type suitable to their feasibility study and actual production performance of the enterprises in the previous year.

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

The Circular comes into effect 15 days from the date of singing.

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

3. Drugs of all kinds

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

6. Cigarettes (excluding personal luggage in the regulated volume)

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)

2. Two and three wheel motorised vehicles and complete assembly components

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

12. Clinker

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

- Round corrugated construction steel 10-40mm

- 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

- Packaging material, flat cardboard (for packaging) with a strength of less than 3kgf.sq.cm and a pressure resistance of less than 14kgf.

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).