Exported – imported goods subject to animal, plant or fishery quarantine must be quarantined before receiving custom clearances.— File Photo

The Government issued Decree 187/2013/ND-CP (20 November 2013) providing details of implementation of Commercial Law on activities of international purchase and sale of goods, agencies for purchase or sale, processing and transit of goods involving foreign parties.

Export – import of goods

Vietnamese traders not having foreign direct invested capital are entitled to export – import goods not subject to their registered business scope, except goods banned or temporarily suspended from export – import.

Goods banned from import may be considered and permitted to import in cases of importing for scientific research or humanitarian aid, without environmental pollution, spreading of epidemic diseases, affecting human health, traffic safety, security, defense, social order, and adversely affecting ethics, habits and customs of Viet Nam.

Exported – imported goods subject to animal, plant or fishery quarantine must be quarantined before receiving custom clearances.

The trader is entitled to authorise another trader (the authorised dealer) to export – import or to act as the authorised dealer receiving export – import from another trader of all types of goods, except for goods banned or temporarily suspended from export – import.

With respect to exported – imported goods subject to issuance of a permit, the trader or the authorised dealer must have an export – import permit prior to either party signing the contract of authorised dealership.

Agency for purchase or sale of goods for foreign trader

The trader has the right to be an agency of purchase or sale of goods, except goods banned or temporarily suspended from export – import for foreign traders.

If the goods must be exported – imported under the permit, the trader enters into an agency contract, only once having the permit granted by the competent authority.

The trader can pay by Viet Nam dong to the foreign trader who has a presence in Viet Nam, remit foreign currency overseas to pay to the foreign trader, or pay by goods not banned or temporarily suspended from export. If the trader pays by goods subject to permit for export, then the trader must obtain the permit from the competent authority.

Goods under the agency contract with the foreign trader will be re-exported if they are not sold in Viet Nam.

The Vietnamese trader is entitled to engage the foreign trader to be an agency overseas to sell goods, except those banned or temporarily suspended from export.

In this case, a Vietnamese trader must enter into an agency contract with the foreign trader and remit amounts under the sale agency contract into Viet Nam.

Goods exported under the overseas sale agency contract are re-imported into Viet Nam if they are not able to be sold overseas. Such goods are not subject to import duty and are entitled to refund of export duty (if any).

Processing of goods involving foreign elements

Vietnamese traders, including foreign invested traders in Viet Nam, are entitled to process goods for foreign traders, except goods banned or temporarily suspended from export – import.

Processors may lease or borrow machinery and equipment from their suppliers for the purpose of implementation of processing contracts. The lease, borrowing or donation of machinery and equipment must be agreed upon in the processing contract.

The trader may have goods permitted to be circulated in Viet Nam processed overseas for business purposes.

Export of machinery, equipment, raw materials, accessories or supplies for processing overseas, and import of processed products, must comply with provisions on management of export – import.

Transit of goods through territory of Viet Nam

The trader having business registration of freight forwarding and transportation is entitled to provide service of transportation of goods transiting through territory of Viet Nam to foreign owners.

Transited goods are not sold in the territory of Viet Nam, except that which is necessary and subject to approval of the Ministry of Industry and Trade ("MoIT").

Most goods of foreign organisations or individuals are permitted to transit through the territory of Viet Nam, except weapon, munitions, explosive materials, highly dangerous goods and goods banned from business, or banned or temporarily suspended from export – import.

Weapon, munitions, explosive materials, and highly dangerous goods may be permitted to transit through the territory of Viet Nam subject to the Prime Minister's approval. Goods banned from business, or banned or temporarily suspended from export – import are permitted to transit after obtaining MoIT's approval.

This Decree takes effect on 20 February 2014 and replaces the Government Decree 12/2006/ND-CP. — MAI Counsel