Guidance on entitlement to tariff preferences upon export of goods to EU

On October 30, 2018, the Ministry of Industry and Trade promulgated the Circular No. 38/2018/TT-BCT prescribing the certification of the origin of goods according to the generalized system of preferences (GSP) upon export of goods to EU, Norway, Switzerland and Turkey.

Pursuant to the Circular, if a tradesperson wishes to enjoy GSP preferences upon export of his/her products to the abovementioned markets, he/she must apply for REX code registration, except those products belonging to a shipment of which total worth is not greater than €6,000 (ex works price). 

The tradesperson must release the GSP documents certifying the origin of goods for each shipment which are valid for a period of 12 months from the release date.

The GSB certificate of origin may be released after export and must be submitted to a customs authority of the importing country within duration of 02 years from the importing date.

Goods exported as small packages of which total worth is not greater than €500 or goods which are personal luggage totaling €1,200 at maximum may be eligible for exemption from the requirement of submission of the GSP certificate of origin.

Those goods exempted from the requirement of submission of the certificate of origin as mentioned above are imported for personal consumption only, not for commercial purposes, and the import thereof must not be regular.

The Circular No. 38/2018/TT-BCT in force from December 14, 2018; in particular, the GSP certificate of origin will be applied from January 1, 2019.

During the transitional period, any tradespersons that have not received REX codes yet will remain eligible to obtain the certificate of origin issued using the sample A upon export of their products to the aforesaid markets.

Source: Thuvienphapluatvn

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New regulations on trade, import and export coming into force from the end of October, 2018

1. Procedures for issuance of C/O certifying origin of a number of special goods

On September 14, 2018, the Ministry of Industry and Trade has promulgated the Circular No. 26/2018/TT-BCT amending and supplementing the Appendix IV of the Circular No. 20/2014/TT-BCT on implementation of rules of origin in the Asean-Korea Free Trade Agreement.

According to this Circular, C/O certifying origin of special goods prescribed in Article 6 of the Appendix I of the Circular No. 20/2014/TT-BCT must comply with the following provisions:

- C/O must be issued by the C/O issuing authority designated by the exporting country as regulated in the Appendix V of the Circular No. 20/2014/TT-BCT.

- The C/O certifying the origin of a specific good issued by the C/O issuing authority designated by the exporting country must be noted that the good is conformable with provisions of Article 6 Appendix I of the Circular No. 20/2014/TT-BCT.

- Unless otherwise provided for in this Appendix, relevant rules set out in the Appendix V enclosed with the Circular No. 20/2014/TT-BCT must be applied with modifications suitable for the special goods applying provisions of Article 6 Appendix I of the Circular No. 20/2014/TT-BCT prescribed in the list enclosed with this Appendix.

The Circular No. 26/2018/TT-BTC comes into force from October 29, 2018.

2. Registration of standard form contract for issuance of domestic debt cards is not mandatory

This regulation is provided in the Decision No. 38/2018/QD-TTg dated September 05, 2018 amending the Decision No. 35/2015/QD-TTg on amendments and supplements to the Decision No. 02/2012/QD-TTg promulgating the list of essential goods and services for which standard form contracts or contracts containing general terms and conditions must be registered.

According to this Decision, when issuing domestic debit cards, opening and using payment accounts (for individual customers) or applying for personal loans (for consumption purpose), the registration of standard form contracts or contracts containing general terms and conditions is not mandatory.

The Decision No. 38/2018/QD-TTg comes into force from October 22, 2018.

3. Promulgation of 06 national technical regulations on environment

On September 14, 2018, the Ministry of Natural Resources and Environment promulgates the Circular No. 08/2018/TT-BTNMT and the Circular No. 09/2018/TT-BTNMT on promulgation of national technical regulations on environment, including:

- QCVN 31:2018/BTNMT - National technical regulation on environment for imported steel scraps for production;

- QCVN 32:2018/BTNMT - National technical regulation on environment for imported plastic scraps for production;

- QCVN 33:2018/BTNMT - National technical regulation on environment for imported paper scraps for production;

- QCVN 65:2018/BTNMT - National technical regulation on environment for imported glass scrap for production;

- QCVN 66:2018/BTNMT - National technical regulation on environment for imported non-ferrous metal scraps for production;

- QCVN 67:2018/BTNMT - National technical regulation on environment for imported slag from iron or steel industry for production.

The Circular No. 08/2018/TT-BTNMT and the Circular No. 09/2018/TT-BTNMT come into force from October 29, 2018.

4. Amendments to the Circular No. 28/2014/TT-BVHTTDL on international trade in goods

The Ministry of Culture, Sports and Tourism has promulgated the Circular No. 26/2018/TT-BVHTTDL on September 11, 2018 to amend the Circular No. 28/2014/TT-BVHTTDL on management of international trade in goods under the management of the Ministry of Culture, Sports and Tourism.

According to this Circular, the following are the most noticeable contents:

- The phrase “National treasures” is removed from the list of goods banned from export.

- A component of the application documentation for approval for contents of imported works of plastic arts, fine arts and photography is abrogated.

- The regulation “The certified copy of the investment certificate or the certificate of enterprise registration or the business registration certificate” on procedures for approval for contents of imported cinema works is abrogated.

The Circular No.26/2018/TT-BVHTTDL comes into force from October 30, 2018.

Source Thuvienphapluat

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Steps in processing of the written request for analysis of imports and exports are available for use

On June 28, 2018, the Ministry of Finance issued the Decision No. 1921/QD-TCHQ on introduction of the processes for sorting commodities, and imposing tax rates on imports and exports.

Steps in processing of the written request for analysis of imports and exports are prescribed as follows:

After receipt of the written request for analysis, the inspecting officer verifies documents submitted to request analysis and searching on the MHS system to decide whether the written request is rejected or accepted for further actions.

If the written request is accepted and analysis is carried out, the inspecting officer determines analyzed indicators.

See more: Process Setting-up Foreign Owned Import Export Business in Vietnam

In case of lack of conditions for analysis, an assessment is needed:

- The inspecting unit requests the requesting customs unit in writing to assign its staff member as a representative to witness the sample splitting process.

- The sample-splitting report is prepared by using the given template. The sample sent for assessment must be split from the sample received for analysis and must be customs sealed.

- When sending the sample for assessment, the inspecting unit must clearly specify analyzed indicators to carry out sorting of commodities according to the List of imports and exports, and the Tariff Schedule applied to imported and exported commodities.

- The inspecting unit is responsible for showing assessment results in the Notification of analysis results.

The Decision No. 1921/QD-TCHQ will enter into force from the signature date.

Source: Thuvienphapluat

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Foreign traders look to import more Vietnam farm produce

HCMC – Traders from France, Japan, Spain, China, and South Korea, among others, expressed interest in importing Vietnamese farm produce at the Vietnam International Food Exhibition 2017 (Vietnam Foodexpo 2017) that kicked off in HCMC on November 15.

French Ambassador to Vietnam Bertrand Lortholary said France has imported Vietnamese seafood and herbs that are very much sought after in France. The country is seeking to import other agricultural products like coffee and cocoa from Vietnam.

In addition to fresh products, French companies will import Vietnamese materials to produce high-quality food. Marou chocolate, which is made from Vietnamese cocoa, has become popular in France.

On the occasion of Vietnam Foodexpo 2017, French leaders, companies and associations have worked with Vietnamese partners to boost imports of Vietnamese farm produce, according to Bruno Dupont, chairman of the French Fruit Producers Association.

Meanwhile, Hidekatsu Ishikawa, director of Tokyo-based Vient Co. Ltd., said his company imported 2,000 tons of banana from Vietnam in 2016, and 50 tons of Vietnamese mango and red dragon fruit in the year to date, adding that the company has plans to import cashew nuts from Vietnam.

At the expo, foreign enterprises also introduced their products to Vietnamese consumers. Particularly, the French pavilion displayed French vegetables, ham and dairy products.

Data of the French Consulate General in HCMC shows that Vietnam imports about 10 tons of French ham a year. The country also imported 3,000 tons of French apples between August 2016 and March 2017.

Jointly organized by the Ministry of Industry and Trade, the Vietnam Trade Promotion Agency and the Ministry of Agriculture and Rural Development at the Saigon Exhibition & Convention Center (SECC) in HCMC’s District 7 from November 15 to 18, Vietnam Foodexpo 2017 features 600 booths of 450 foreign and domestic businesses.

On display are a variety of products like vegetables, fruits, seafood, beverages, spices, confectionary, dairy products, canned food, and machinery for the food industry.

According to French Consul General in HCMC Vincent Floreani, France is a special participant at Vietnam Foodexpo 2017, with a 360-square-meter pavilion introducing French cuisine, agricultural products and food processing machines.

See more: Conditions of Setting up Import and Export Company in Vietnam

Source: The Saigon Times

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What Goods Allowed to Be Imported into Vietnam?

Foreign owned companies in Vietnam wishing to import and distribute physical goods into Vietnam must comply with many regulations. It is imperative that the right to conduct import business of foreign investors and FDI companies differ from the right of Vietnamese traders having no foreign direct investment capital because trading activities are considered conditional investment area.

1. General Principles of Imported Goods

In principle, as other countries, the importers have to follow the general rules when importing and distributing physical goods into Vietnam:

1. Not to import goods specified under the list of goods banned from import or suspended from import provided, published by Vietnam government;
2. Follow the guideline or import regulations and conditions required by ministries and ministerial-level agencies. There are specific conditions for importing certain goods which the importers have to follow i.e. certain medical equipment have to be approved by the Ministry of Health; Food, cosmetics products need to be testedReceiving and transmitting telecom equipment must be inspected by Ministry of Information and Communication; Books, CDs will be checked and scanned for contents to be approved by Ministry of Cultures, Sport and Tourism; Equipment must satisfy energy, environmental regulations to be inspected and labeled by Ministry of Science and Technology…
3. Implement other relevant laws, commitments of the Socialist Republic of Vietnam in treaties which it has signed or acceded to, and the roadmap announced by the Ministry of Industry and Trade.

1. Goods Prohibited to Be Imported into Vietnam

1. For the goods being banned to be imported and distributed in Vietnam, the importers have to follow strictly to avoid penalties:
2. Weapons, ammunitions, explosives (excluding industrial explosives), military technical equipment.
3. Assorted fireworks, sky lanterns, assorted devices causing interference to vehicle speedometers.
4. Used consumer goods: Textiles and garments, footwear, clothes; Electronic appliances; Refrigerating appliances; Home electric appliances; Medical equipment; Interior decoration goods;
5. Assorted publications banned from dissemination and circulation in Vietnam
6. Assorted cultural publications banned from dissemination and circulation or decided to be suspended from dissemination and circulation in Vietnam.
7. Right-hand drive means of transport; assorted automobiles and their spare parts which have their frame or engine numbers erased, modified or tampered with; Assorted motorcycles, special-use motorbikes and motorbikes which have their frame or engine numbers erased, modified or tampered with
8. Used supplies and vehicles
9. Chemicals in Annex III of the Rotterdam Convention.
10. Pesticides banned from use in Vietnam.
11. Wastes and scraps, refrigerating equipment using C.F.C.
12. Products and materials containing asbestos of the amphibole group
13. Schedule-I toxic chemicals; Chemicals on the list of banned chemicals

It is important for foreign trader wishing to establish a trading company in Vietnam to not only study the market demand in Vietnam but also the country’s law on import, export, customs law to ensure their compliance during the operation.  If doubted, the Client is suggested to reach out for help and advisory of law firm in Vietnam by qualified lawyers in the area of import, export and customs.

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Checks on import-export goods overlap

HCMC - Despite much improvement over time, overlapping checks by different agencies on import and export goods have led business costs to swell, according to a recent report of the Ministry of Planning and Investment.

There have been more checks than needed, putting a heavy administrative burden on enterprises, the ministry commented in the report on results of implementation of the Government’s Resolution 19 which is intended to make the business environment more favorable and improve the competitiveness of the economy.

A recent review conducted by the Ministry of Finance found there are currently 414 legal documents on State management and checks. About 30-35% of import shipments must be inspected prior to customs clearance while Resolution 19 targets only 15% this year.

The reality is that many regulations on inspections have not made State management more efficient and effective. For instance, quarantine and food hygiene rules governing meat imports have resulted in importers shouldering high inspection costs while a mere 1% of shipments have been found to violate the rules.

See more:

Conditions of Setting up Import and Export Company in Vietnam

Process Setting-up Foreign Onwed Import Export Business in Vietnam

The Ministry of Planning and Investment said it is irrational to apply same regulations to different types of livestock products imported into Vietnam. Furthermore, the Ministry of Finance issued Circular 285/2016/TT-BTC hiking fees for quarantine inspections, which has led to higher business costs.

Over the years, enterprises have struggled with food safety checks as per the Government’s Decree 38/2012/ND-CP dated April 25, 2012 detailing implementation of regulations in the Law on Food Safety.

The Ministry of Planning and Investment said a small number of ministries and agencies have closely followed Resolution 19 while many others have not heeded the resolution in the process of drafting legal documents and implementing relevant policies.

On a positive note, more localities including Quang Ninh Province and Hanoi have adopted many initiatives to bring into play the measures and policies detailed in the resolution.

To facilitate business, the Government Office, the Ministry of Finance and localities have held dialogues with enterprises to look into their concerns and find coping solutions. However, not all problems have been thoroughly addressed since the Government released the first version of Resolution 19 to improve the business environment.

“Representatives of some enterprises have expressed their disappointment that slow changes at a number of ministries and agencies have impacted the Government’s effort to make the business environment better and improve the nation’s competitiveness,” said the Ministry of Planning and Investment report.

To implement Resolution 19 effectively, the Ministry of Planning and Investment proposed the Prime Minister order the Ministry of Science and Technology to work with other relevant ministries and agencies to review and revise goods quality regulations.

The Ministry of Planning and Investment wants the ministries of finance and agriculture-rural development to consider lowering fees for quality and quarantine veterinary checks. The agriculture ministry should quickly solve problems with quarantine checks on processed livestock products imported into Vietnam as requested by enterprises.

Source: The Saigon Times

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Process Setting-up Foreign Onwed Import Export Business in Vietnam

If a foreign-invested company wishes to apply for export/import or distribution rights, it has to submit the below listed documentation to the competent authorities:

1. Export/Import rights:

The foreign investors who invest to exercise right to export, right to import must follow procedures for grant of investment certificates; the foreign-invested enterprises in Vietnam which supplement the operational business activities for exercise of right to export, right to import must follow procedures for adjustment of investment certificates:

a. Dossier of verification for grant or adjustment of investment certificate as prescribed by law on investment;

b. A written explanation about the satisfaction of conditions in exercise of goods trading and directly related activities;

c. Documents proving the financial capability and experiences of investor in exercise of right to export and right to import;

d. Vouchers of tax agencies on performing the enterprise income tax liability within two consecutive years in the case the foreign-invested enterprises wish to supplement the exercise of right to export, right to import.

2. Trading activities/Distribution

The foreign investors with investment projects on exercise of goods trading and directly related activities in association with the setting up of enterprises must follow procedures for grant of investment certificates.

a. A dossier comprises:

i) Dossier of verification for grant of investment certificate as prescribed by law on investment;

ii) A written explanation about the satisfaction of conditions in exercise of goods trading and directly related activities according to the form MD-6 promulgated together with this Circular;

iii) Documents proving the financial capability and experiences of investor in exercise of busienss operation of goods trading and directly related activities.

b. After having acceptance opinion of the Ministry of Industry and Trade, the competent state agencies shall grant investment certificate. The investment certificate shall concurrently be business license.  Although not stipulated in the law, before granting an investment certificate with these business lines, the authorities usually consider application on case by case basis, taking into account market stability, population density in the area where the company is located and the consistency of the investment project with the master plan of the said area.

For these business lines the competent authorities must obtain the approval of the Ministry of Industry and Trade before issuing the investment certificate.

3. License for setting up retail establishments

If a foreign-invested enterprise wishes to set up a retail establishment in addition to the first retail establishment, it must follow procedures for license for setting up retail establishment, a dossier comprises:

a. Dossier of verification for grant or adjustment of investment certificate as prescribed by law on investment;

b. Dossier of license for setting up retail establishments, comprising:

i) Application for license to set up retail establishment;

ii) A written explanation about the satisfaction of conditions of setting retail establishments as per the law;

iii) Document of provincial People’s Committee that approves the working result of the Council of checking the

economic demand to consider the conformity of setting up of a retail establishment in addition to the first retail establishment.

iv) Report on exercise of goods trading and directly related activities of licensed projects;

v)Vouchers, which are issued by tax agencies, about exercise of enterprise income tax liability in two adjacent years.

After having acceptance of the Ministry of Industry and Trade, the competent state agency shall grant the license for the setting up of retail establishments.

Our lawyers of foreign investment practice at ANT Lawyers, a law firm in Vietnam are available to advise and provide client with service and representation in Vietnam.

In order to seek further advice, please contact us at ant@antlawyers.vn or call + 84 912 817 823.

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