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THE GOVERNMENT        THE SOCIALIST REPUBLIC Of VIETNAM
   No.33/CP            Independence-freedom-Happiness
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                                Hanoi, April 19, 1994.

DECREE Of THE GOVERNMENT ON THE STATE MANAGEMENT Of EXPORT AND IMPORT OPERATIONS

THE GOVERNMENT

• Pursuant to the Law on organization of the Government of September 30th, 1992.
• Pursuant to the resolution of the government adopted at the section on January 13th, 1994.
• In order to vigorously encourage exports, direct imports to better serve production and consumption, protect and develop domestic production, increase the efficiency of export and import, broaden economic and trade cooperation with foreign countries, th us making contribution to the implementation of the national economic and social objectives.
• In accordance with the proposal by the Minster of Trade.

HEREBY DECIDES

Chapter1. GENERAL PROVISION

• Article 1:

  This decree shall apply to the following export and import operations:

  • 1/ Goods exports to and imports (including also complete equipment's) from foreign countries and export processing zones by means of Trading, economic and technical-scientific cooperation, investment cooperation, aids, loans and debt payment.

  • 2/ The forms listed below can also be considered as goods exports and imports.
    • Temporary imports for re-exports; temporary exports for re-imports; tripartite transactional trade, transit of goods.

    • Transfer of industrial property.

    • Processing and manufacturing goods and semi-finished goods for foreign countries or hiring foreign countries to process or manufacture goods.

    • Acting as purchase or sales agent, export trusting and accepting trustee export, imports for domestic and foreign enterprises.
• Article 2:

  This Decree does not regulate the imports and exports of the following goods and services, which shall be managed by separate regulations:

  • Gold, silver and precious gemstones

  • Gifts

  • Mobile properties

  • Postal matters, post parcels of non- commercial nature.

  • Personal luggage carried by Vietnamese personal use when exiting or entering.

  • Accompanied luggage of foreign individuals or organizations carried for use when exiting or entering.

  • Goods and appliances of diplomatic agencies and international organizations in Vietnam.

  • Goods exported and imported between export processing zones themselves and between export processing zones and foreign countries.

  • Services of tourism, banking, insurance, post, aviation, railway, sea and land transportation.
• Article 3:

  The State management of export and import operations is conducted in accordance with the following principles:

  • Compliance with Laws and relevant policies of the State on productions, circulation and market control.

  • Respect of commitments with foreign countries and international trade, customs and practices.

  • Ensuring the right to self-control in trading of enterprises and guaranteeing the state management.

CHAPTER I

PROVISIONS ON EXPORT AND IMPORT GOODS

Article 4:

All goods shall be exported and imported to regulations by taxation in accordance with the law on import and export taxation except for some goods listed below, which shall be still regulated by non-tariff measures of management

• Goods that are prohibited to export and import

• Export and import goods which are managed by quotas

• Goods made for special purposes

• Goods which are related to major balances of the national economy
In each period of time, the Prime Minister shall approve or delegate the Chairman of State Planning Committee to approve the List of Export or Import goods stated in this Article 4 and empower the Minister of Trade to announce them.

CHAPTER III

IMPORT EXPORT TRADING ENTERPRISES

• Article 5:

  In order to do export and import business, the enterprise must gave the license to trade export and import granted by the Ministry of Trade.

• Article 6:

  Conditions to obtain license to trade export and import are as follow:

  • Regarding enterprises that are specialized in export and import trading:
    • They are established in accordance with laws and regulations and commit to currently existing laws and regulation.

    • These enterprises have a minimum amount of working capital in Vietnamese Dong which is equivalent to USD 200,000 at the time of registration to export and import. The above- said amount of working capital will be USD 100,000 with regard to enterprise i n mountainous province or other provinces suffering from economic problems (difficulties), enterprises specialized in tracing such goods that should be encouraged for export but do not receive much capital.

    • Carrying out their import-export operations in accordance with goods groups or branches which are registered when the enterprise is established.

    • Having a contingent of personnel staff who are qualified to do business, conclude and implement foreign trade contracts.
  • Regarding production enterprises

    These enterprises must be established in compliance with Law and regulations, have stable basis of production of goods for export have outlets of goods abroad have a contingent of personnel staff who ate qualified to do business, concluded and implement foreign trace sales and purchase contracts, to be entitled to conduct direct exports of goods which are produced y themselves and imports of raw materials necessary for production of the enterprise. In case of barter trade goods exchange with foreign cust omers, the Ministry of Trade shall consider and make reasonable settlement on the case basis.

• Article 7:

  In case of enterprises specialized in trading exports - imports should they be capable of trading in such branches of goods that are not stipulated in export and import licenses, those enterprises shall be entitled to propose the Ministry of Trade to supp lement these branches of goods after the regulation of the supplement of these branches of goods to the license of establishment of the enterprise and registration at economic arbitration...

• Article 8:

  Enterprises that are granted export, import licenses shall be obliged to pay fee (once) in Vietnamese currency. The amount of this fee and the unified guidance of payment and fee spending shall be stipulated jointly by the Ministry of Trade and the Minist ry of finance.

CHAPTER IV

EXPORT INCENTIVE POLICY

• Article 9:

  The state encourage and promulgates policies to support the development and expansion of new market for enterprise and help them to export such goods that are encouraged by the State.

  The Ministry of Trade in cooperation with the State Planning Committee, the Ministry of finance, the State Bank and other concerned ministries shall submit to the Government the list of goods to be encouraged for exports, policies and measures aimed at i mplementing the above-said purpose.

• Article 10:

  In order to stimulate exports, if enterprises that have been granted export, import licenses find customers and markets which are effective for exports of goods outside the scope of the list of goods that have already been registered in the export-import licenses, the Ministry of Trade shall be responsible for considering and settling the exports of these goods on the case by case basis.

• Article 11:

  In accordance with the Law on export-import taxation, the preferential rate of tax shall apply to the following cases:

  • Complete equipment and technology imported to create further capability of production, process of export goods approved by the levels of competent authorities.

  • New export products made by new capabilities of production jointly invested and built by domestic enterprises. The Ministry of finance shall discuss with the Ministry of Trade on the specific provision and instructions with regard to the preferential t ax rate and duration.

• Article 12:

  Goods exported for payment of debts aids and Government loans for foreign countries shall be implemented in accordance with separate regulations.

CHAPTER V

MANAGEMENT MEASURES

• Article 13:

  The Ministry of Trade is an agency to exercise the function of State unified management of export-import operations. The Ministry of Trade is responsible for:

  • Researching foreign trade strategies: Researching domestic markets of foreign regions, proposing counter policies for every foreign market region, creating trading environment and orientations of other concerned Ministries and branches, issuing or pro posing the Government to issue documents aimed at completing the system of policies, laws and regulations on foreign trade.

  • Examining the compliance with the laws and regulations in export - import operations.
• Article 14:

  The Ministries, the People's Committee of provinces and cities directly under the central authorities have the responsibility to cooperate with the Ministry of Trade in managing export , import operations in the following areas:

  • Instructing and directing the proper implementation of State policies and regulations with regard to management of exports-import within the branch and locality.

  • Recommending the modifications of policies and measures of management of export-import operations.
• Article 15:

  The management by quotas of export and import goods are stipulated as follows:

  • During the time of preparation of the annual plan, the Ministries in charge of managing the goods shall propose suggest the goods that should be included in the list of quotas management, the total quotas of exports and imports for the following year of each item that should be managed by quotas (that needs quotas management).

  • The State Planning Committee shall together with the Ministry of Trade submit the general report to the Prime Minister for approval of the total export and import quotas for the following year.

  • After consulting the branches and localities concerned the associations of exports and imports (if any), the Ministry of Trade shall stimulate and announce the methods of allocation of quotas (including the quotas allocated by foreign country for Viet nam) directly to enterprises of production and trade of export and imports and instruct the implementation.
  The enterprises are not allowed to swap, assign, or purchase or sell the allocated quotas.

• Article 16:

  In conformity with the content and requirements of the annual economic-social tasks, in order to ensure the major balances of the national economy and implement the commitments of the government, based on the proposal of the State Planning Committee, the Prime Minister shall approve and designate a number of State enterprises the task of exporting-importing some essential articles in certain ratio. attached by the corresponding conditions for implementation.

• Article 17:

  With regard to complete equipment, equipment for special purpose, materials and some goods related to national security, defense, technological policies, ecology and environment(goods for special purposes), the Ministry of Trade shall grant license of exp orts-imports after obtaining agreement form concerned State management agency.

• Article 18:

  The importation of machinery, individual and complete equipment using capital from state budget shall be carried out in accordance with Decision number 91/TTG of 13 November 1992 by the Prime Ministry.

• Article 19:

  The Ministry of Trade in cooperation with the Ministry of finance, the State Bank and the General Department of Customs, in accordance with their respective functions, shall stipulate and instruct the conclusion and implementation of foreign trade sales a nd purchase contracts; issue license of exports-imports regarding goods that must have export-import license; examine the capability of finance and payment, collect export-import tax; recovery of tax; customs procedures...

• Article 20:

  The payment of export-import goods for foreign customers (including delayed payment) shall be carried out in accordance with the provisions and instruction of the Bank.

• Article 21:

  With regard to some goods of importance or grand value, the Ministry of Trade shall stipulate the price levels or the methods to set the minimum price regarding the export goods, the maximum price concerning import goods for each period after reaching agr eement with the State Planning Committee and other ministries. The Ministry of Trade shall make public the list of these goods.

• Article 22:

  The Ministry of Trade shall together with the General Department of customs stipulate the procedures and organize the insurance of export-import license appropriate to each branch of goods for each specific period of time, in the direction of simplifying procedures, gradually reducing the list of goods that must apply for export -import license, creative favorable conditions the enterprises and at the same time ensuring State control.

  The General Department of Customs and customs authorities at the entry points are responsible for informing in timely manner the Ministry of Trade of the situation of the factual exports and imports of goods so as to serve the direction and management of exports and imports.

• Article 23:

  The Ministry of Trade shall together with the other ministries, People's Committees of provinces and cities directly under central administration make periodical examination of export - import trading enterprises and apply appropriate measures to enterpri ses that do not have sufficient conditions to trade or violate the laws during their process of operation.

• Article 24:

  The Ministry of Trade shall together with the Ministry of Justice, Ministry of finance and General Department of Customs prepare draft and submit to the Prime Minister for insurance of the provisions on the sanctions against violations committed by export -import trading enterprises.

• Article 25:

  The Ministry of Trade shall be responsible to discuss with the Ministry of finance, the State Bank and other concerned branches to draft and submit to the Prime Minister for approval of the following regulations:

  • Regulations on the Vietnamese enterprises opening shops, establishing branches, company abroad.

  • Regulations on trade fair, exhibition and advertisement within and without the country.

    The Ministry of Trade shall be responsible to manage and instruct the implementation of such above-mentioned regulations.

  Article 26:

  The Ministry of Trade shall be responsible to discuss with the Ministry of finance, the State Bank, the General Department of Customs and other concerned branches to draft and issue the following regulations:

  • Regulations on sales agent of foreign country in Vietnam.

  • Regulations on the forms of trade of temporary imports for re-exports; temporary exports for re-imports and on the forms of tripartite transition all trade.

  • Regulations of goods in transit.

  • Regulations on entrusting and entrusted exports and imports of goods for domestic and foreign enterprises

  • Regulations on processing for foreign country and hiring foreign country to process.

  • Regulations on the examination of export, import goods.
  The Ministry of Trade shall be responsible to issue, manage and instruct the implementation of the above-mentioned regulations.

  CHAPTER VI

  PROVISION Of IMPLEMENTATION

  • Article 27:

    This Decree shall have the effects of implementation from the date of signature and replace Decree number 114/HDBT of 7 April 1992; and the other previous provisions that are contrary to this Decree shall all be repeated.

  • Article 28:

    All acts of violation of the provisions in this Decree shall all be handled in accordance with the laws.

  • Article 29:

    The Minister of Trade shall together with the Minister, Chairman of the State Planning Committee, Minister of finance, Governor of the State Bank of Vietnam, the General Director of the General Department of Customs be responsible to instruct the implemen tation of this Decree.

  • Article 30:

    Ministries, Heads of Ministerial-equivalent Agencies, Heads of other agencies under the government, Chairmen of the People's Committee directly under the Central Administration shall be responsible to implement this Decree.

  • for the Government
  • Vice Prime Minister

  • PHAN VAN KHAI
  • (Signed)