Quyết định 1064-TM/PC

DECISION

OF THE MINISTER OF TRADE PROMULGATING THE REGULATION ON TRADING INFORM OF SWITCH -TRADE AND REGULATION ON TRADING INFORM OF RE-EXPORTATION

MINISTER OF TRADE

- Pursuant to the Decree No.95/CP dated December 4, 1993 of the Government regulating the function, task, authority and the organization system of the Ministry of Trade
- Pursuant to the Decree No.33/CP dated April 19, 1994 of the Government regarding state management on export, import activities.

DECIDES

Article 1:

Hereby promulgate, in connection with Decision the following two regulations:

- Regulation on trading in switch-trade form.

- Regulation on trading in re-exportation form.

Article 2:

This Decision comes into force from the date of signing. All previous regulations contrary to the regulations in this Decision shall be abrogated.

Article 3:

Directors of the related departments, chiefs of import-export license departments shall have the responsibility to guide the implementation of these regulations.

REGULATION

ON TRADING IN SWITCH-TRADE FORM
( promulgating in connection with Decision No. 1064-TM/PC Dated August 18, 1994 )

Pursuant to article 26, Decree No.33/CP dated April 19, 1994 of the Government concerning the state management on import, export operations and on the basis of international trading practice, Ministry of Trade, hereby, regulates the trading principles and procedures in switch-trade form as follows:

I. GENERAL PROVISIONS

Article 1:

Switch-trade is form of import-export business operation regularly used in international trade and is influenced by the adjustment of international law, international trading practice, rules and laws of related countries. Vietnamese companies which are permitted to trade in switch-trade form shall fully observe regulation hereto.

Article 2:

In this Regulation, the terms hereunder shall be understood as follows:

2.1/ Switch-trade is buying goods from a country (export country) to sell to another country (import country) without doing the import procedures to Vietnam and export procedures from Vietnam.

2.2/ Switch-trade form including the following ways:

2.2.1- Goods are transported directly from export country to import country and do not go through Vietnam.

2.2.2- Goods are transported to Vietnam without import procedures to Vietnam and go directly to import country.

2.2.3- Goods are transported to Vietnam where first temporarily stored in "transit stock" and then transported to import country without import procedures to Vietnam.

Article 3:

Legal ground of the switch-trade form is two separate contracts: goods buying contract (signed by Vietnamese company and company of export country) and goods selling contract (signed by Vietnamese company and company of import country). Goods buying contract can be signed before or after the goods selling contract, depending on concrete conditions and decided by Vietnamese company self.

Article 4:

Vietnamese company allowed to trade in switch-trade form is the company which is granted the import-export license and allowed to trade in this form by Ministry of Trade.

II. CONDITIONS, PROCEDURES FOR TRADING IN SWITCH-TRADE FORM

Article 5:

Kinds of goods for trading:

5.1/ Kinds of goods for trading depend on goods policy of selling country and buying country, according to international practice and custom.

5.2/ Kinds of goods for trading depend on the scope of import-export business operations written in the import-export license of the Vietnamese company. In case of over scope of these import export business operations, it shall be considered by Ministry of Trade before signing the goods buying contract and selling contract.

Article 6:

Companies trading in switch-trade form have not to apply the import export license for each shipment but implement on the basis of goods buying contract signed with the company of export country) and goods selling contract (signed with the comp any of import country).

Article 7:

Goods payment for switch-trade form shall be through the bank where company opened its accounts and observe the regulations and guidance's on international payment of the State Bank of Vietnam.

Article 8: File and implementation process. Companies have to:

8.1/ Submit to import export license department one goods buying contract, one goods selling contract (copies with notary seal). If all these contracts are legal, at least 7 days from the date of submitting, the import export license department shall seal and sign on the original contracts to confirm that these contracts have been registered at import export license department (on the date of...)

8.2/ Submit to the customs of harbor mouth the declaration and the following documents for customs procedures in the cases as mentioned in article 2.2.2 and 2.2.3

8.2.1- Goods buying contract, goods selling contract (copies with notary seal) signed and sealed by import export license department for the confirmation of "registered"

8.2.2- Bill of lading (copy)

8.2.3- Commercial invoice made by the foreign company (seller) for reclaiming the Vietnamese company's money and commercial invoice made by the Vietnamese company for reclaiming the foreign company's money (buyer) copies.

8.2.4- packing list (copy with notary seal). On the basis of the above documents, the customs of harbor mouth shall permit the necessary customs procedures.

8.3/ Submit to commercial bank one goods buying contract, one goods selling contract (original) signed and sealed by the import export license department to confirm "registered" for making the payment procedures.

Article 9:

Every quarter, company trading in switch-trade form shall report the implementation progress and results to Ministry of Trade and General Department of Customs.

III. LAST PROVISIONS

Article 10:

All cases of violation of this Regulation shall be treated according to the existing law .

Article 11:

This Regulation comes into force from the dated of signing and replaces the temporary Regulation No.4914/TN-XNK dated August 3, 1991 of the Ministry of Commerce regarding the trading in switch-trade form.