Circular No. 56/2018/TT-BCT

CIRCULAR

GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE BORDER TRADE AGREEMENT BETWEEN THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIET NAM AND THE GOVERNMENT OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC

Pursuant to the Law on Treaties No. 108/2016/QH13 dated April 9, 2016;

Pursuant to the Border Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic signed on June 27, 2015;

Pursuant to the Government's Decree No. 14/2018/ND-CP dated January 23, 2018, detailing border trade activities;

Pursuant to the Government's Decree No. 98/2017/ND-CP dated August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

At the proposal of the Director of the Import-Export Department,

The Minister of Industry and Trade promulgates the Circular guiding the implementation of a number of articles of the Border Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic.

Article 1. Scope of regulation

This Circular guides the implementation of a number of articles of the Border Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic signed on June 27, 2015 (hereinafter abbreviated as the Viet Nam - Laos Border Trade Agreement).

Article 2. Subjects of application

1. Vietnamese traders operating in Viet Nam that wish to register border trade activities in order to enjoy the preferential policies provided in the Viet Nam - Laos Border Trade Agreement.

2. Vietnamese traders that have been granted by the competent authority of the Lao People's Democratic Republic an investment certificate for production, animal raising or cultivation in the border provinces of the Lao People's Democratic Republic (hereinafter abbreviated as the border provinces of Laos) adjoining the Socialist Republic of Viet Nam, and that wish to register border trade activities in order to enjoy the preferential policies provided in the Viet Nam - Laos Border Trade Agreement.

3. Border residents of the Socialist Republic of Viet Nam and residents of the border districts of the Lao People's Democratic Republic.

4. Other organizations and individuals involved in Viet Nam - Laos border trade activities.

Article 3. Dossier and procedures for registering traders engaged in border trade activities

1. Traders referred to in Clauses 1 and 2, Article 2 of this Circular that wish to enjoy the preferential policies provided in the Viet Nam - Laos Border Trade Agreement shall submit directly or send by post 01 (one) set of the dossier for registering Viet Nam - Laos border trade activities to one of the Departments of Industry and Trade of Viet Nam's provinces bordering the Lao People's Democratic Republic. The dossier comprises:

a) The application for registration of border trade activities, using the form provided in Appendix I issued together with this Circular.

b) The investment certificate or the enterprise registration certificate or the business registration certificate or the household business registration certificate or the cooperative or union of cooperatives registration certificate: 01 (one) copy, certified and stamped as a true copy by the trader.

2. Within 03 (three) working days from the date of receipt of a complete and proper dossier, the Department of Industry and Trade shall submit it to the Chairperson of the People's Committee of the border province for consideration and decision on announcing the trader as being permitted to carry out Viet Nam - Laos border trade activities.

3. Within 02 (two) working days from the date of receipt of the proposal of the Department of Industry and Trade, the Chairperson of the People's Committee of the border province shall consider and issue, or refuse to issue, the decision announcing the trader as being permitted to carry out Viet Nam - Laos border trade activities. Where the trader's request is refused, the Chairperson of the People's Committee of the border province shall reply, or authorise the provincial Department of Industry and Trade to reply, to the trader in writing, stating the reason.

Article 4. Announcement of the list of traders engaged in border trade activities on the National Single Window Portal

1. The Chairperson of the People's Committee of the border province shall assign the functional agency in the province to perform the following tasks:

a) Announce the content of the decision and the list of traders announced as carrying out border trade activities on the National Single Window Portal;

b) Send copies of the decision announcing the list of traders permitted to carry out border trade activities to the Ministry of Industry and Trade and to Viet Nam's provinces bordering the Lao People's Democratic Republic;

c) Notify the content of the decision and the list of traders announced as carrying out border trade activities to the border provinces of Laos.

2. Within 05 (five) working days from the date of issuance of the decision announcing traders permitted to carry out border trade activities, the functional agency in the province shall perform the tasks assigned under Clause 1 of this Article.

Article 5. Application of the preferential policies under the Viet Nam - Laos Border Trade Agreement to traders' imported goods

1. Goods imported by traders referred to in Clause 1, Article 2 of this Circular that have registered border trade activities under Article 3 of this Circular shall enjoy the preferential import duty under Clause 1, Article 6 of the Viet Nam - Laos Border Trade Agreement where there is a Certificate of Origin (C/O) form S issued by a competent authority or organization of the Lao People's Democratic Republic.

2. Goods of traders referred to in Clause 2, Article 2 of this Circular that have registered border trade activities under Article 3 of this Circular shall, when imported into Viet Nam, enjoy the preferences provided in Article 7 and Clause 2, Article 13 of the Viet Nam - Laos Border Trade Agreement where the following documents are available:

a) A document issued by the Department of Industry and Trade of a border province or the Office of Industry and Trade of a border district of the Lao People's Democratic Republic certifying that the goods were produced at and by the investment project of the Vietnamese investor.

b) A document of the competent authority of the Lao People's Democratic Republic certifying that the goods have been inspected and meet the requirements on quality, quarantine and food safety.

3. A trader announced by the People's Committee of a border province of Viet Nam as being permitted to carry out Viet Nam - Laos border trade activities may carry out border trade activities along the whole Viet Nam - Laos border line and enjoy the preferential policies provided in the Viet Nam - Laos Border Trade Agreement and in this Circular.

Article 6. Purchase, sale and exchange of goods by border residents

1. Border residents as provided in Clause 1, Article 5 of the Viet Nam - Laos Border Trade Agreement may purchase, sell and exchange goods across the border and enjoy the duty-free allowance provided in Article 13 of Decree No. 14/2018/ND-CP and Circular No. 02/2018/TT-BCT dated February 27, 2018 of the Ministry of Industry and Trade providing detailed regulations on the List of goods for purchase, sale and exchange by border residents.

2. Crops, livestock and goods produced by residents in the border districts of Laos that enjoy the preferences provided in Clause 4, Article 5 of the Viet Nam - Laos Border Trade Agreement must, when carrying out import procedures into Viet Nam, be accompanied by the following documents:

a) A certification that the goods were produced by residents in the border districts of the Lao People's Democratic Republic, issued by the Department of Industry and Trade of a border province or the Office of Industry and Trade of a border district of Laos;

b) A certification by the competent authority of the Lao People's Democratic Republic on quarantine, quality inspection and food safety.

Article 7. Organization of implementation

1. The Ministry of Industry and Trade shall, according to its functions and tasks, guide and inspect the agencies, organizations, traders and individuals concerned in implementing this Circular.

2. The People's Committees of Viet Nam's border provinces shall:

a) Organize the implementation and management of the border trade activities of traders and border residents in their localities under this Circular and other relevant legal documents; direct and coordinate the functional forces in managing and preventing smuggling and trade fraud and in regulating the flow of goods at border gates to avoid congestion in their localities.

b) Develop and implement a mechanism for notifying traders announced as carrying out Viet Nam - Laos border trade activities to the competent provincial authority of the Lao People's Democratic Republic; direct the functional agency in the province to update the list of traders registering border trade activities on the National Single Window Portal.

c) Direct the functional agency in the province to regularly monitor the border trade activities of traders and border residents in the locality; make quarterly periodic reports, or ad hoc reports at the request of the Ministry of Industry and Trade, on the border trade activities of traders and border residents, using the form provided in Appendix II issued together with this Circular.

3. Traders permitted to carry out border trade activities shall make quarterly periodic reports to the Departments of Industry and Trade of the border provinces of the Socialist Republic of Viet Nam where the trader carries out border trade activities, using the form provided in Appendix III issued together with this Circular, or ad hoc reports at the request of the relevant functional agencies.

4. Traders and the agencies, organizations and individuals involved in Viet Nam - Laos border trade activities shall strictly comply with this Circular.

Article 8. Effect

1. This Circular takes effect from February 18, 2019.

2. To annul Circular No. 10/2016/TT-BCT dated July 1, 2016 of the Ministry of Industry and Trade guiding the implementation of a number of articles of the Border Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic.

3. In the course of implementation, if any difficulty, obstacle or issue arises, the agencies, organizations, traders and individuals concerned shall report it in writing to the Ministry of Industry and Trade for handling./.

APPENDIX I

FORM OF THE APPLICATION FOR REGISTRATION OF VIET NAM - LAOS BORDER TRADE ACTIVITIES (issued together with Circular No. 56/2018/TT-BCT dated December 26, 2018 of the Minister of Industry and Trade)

APPLICATION FOR REGISTRATION OF VIET NAM - LAOS BORDER TRADE ACTIVITIES

To: The Department of Industry and Trade of ... province

- Name of the trader: ……..

- Address of the registered business office: ………..

- Telephone:........ Fax:.............. Email:................... Website:............

- Business registration certificate / enterprise registration certificate No.:... issued by ………….. on ...

Pursuant to Circular No. 56/2018/TT-BCT dated December 26, 2018 of the Ministry of Industry and Trade guiding the implementation of a number of articles of the Border Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic.

We request the Department of Industry and Trade to submit to the Chairperson of the People's Committee of ... province for permission for ….(name of the trader)… to carry out Viet Nam - Laos border trade activities in order to enjoy the preferential policies of the Viet Nam - Laos Border Trade Agreement at the border gates and border crossings where border trade activities are permitted along the Viet Nam - Laos border line.

…(Name of the trader)… encloses copies of the relevant dossier, comprising:

1. …

2. …

…(Name of the trader)… undertakes to strictly comply with the Viet Nam - Laos Border Trade Agreement and Vietnamese law on border trade activities./.

APPENDIX II

FORM OF THE REPORT ON THE IMPLEMENTATION OF VIET NAM - LAOS BORDER TRADE ACTIVITIES (issued together with Circular No. 56/2018/TT-BCT dated December 26, 2018 of the Minister of Industry and Trade)

REPORT

On border trade activities under the Viet Nam - Laos Border Trade Agreement in ... province

To: The Ministry of Industry and Trade

Pursuant to Circular No. 56/2018/TT-BCT dated December 26, 2018 of the Ministry of Industry and Trade guiding the implementation of a number of articles of the Border Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic, ... reports on border trade activities under the Viet Nam - Laos Border Trade Agreement in the province as follows:

1. Import-export turnover

2. Other relevant matters.

The above is the situation of border trade activities under the Viet Nam - Laos Border Trade Agreement in the province, which the Department of Industry and Trade of ... province reports to the Ministry of Industry and Trade for consolidation and monitoring./.

APPENDIX III

FORM OF THE REPORT ON THE IMPLEMENTATION OF VIET NAM - LAOS BORDER TRADE ACTIVITIES (issued together with Circular No. 56/2018/TT-BCT dated December 26, 2018 of the Ministry of Industry and Trade)

REPORT

On border trade activities

To: The Department of Industry and Trade of ..(1).. province

Pursuant to Circular No. 56/2018/TT-BCT dated December 26, 2018 of the Ministry of Industry and Trade guiding the implementation of a number of articles of the Border Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Lao People's Democratic Republic, ..(2).. reports on the implementation of border trade activities under the Viet Nam - Laos Border Trade Agreement for quarter … of … as follows:

...(2)... undertakes that the contents reported above are true; if they are false, the trader shall bear full liability before the law./.