Do Foreign Traders Absent in Vietnam Need Import-Export Rights When Trading Goods?

How are Foreign Traders Absent in Vietnam Regulated?

On May 17, 2023, the General Department of Customs issued Official Letter 676/GSQL-GQ2 to provide guidance on customs procedures, specifically for foreign traders absent in Vietnam as follows:

Foreign traders absent in Vietnam are defined as those who do not engage in investment or business activities in Vietnam in accordance with the forms stipulated in laws on investment, commerce, and enterprises; they do not have representative offices or branches in Vietnam as per regulations on commerce and enterprises (Article 3, Clause 5 of the 2017 Law on Foreign Trade Management).

Additionally, according to Article 3, Clause 2 of Decree 90/2007/ND-CP concerning foreign traders absent in Vietnam:

Foreign traders absent in Vietnam are those who do not have direct investments in Vietnam according to the forms stipulated in the Investment Law, and Commercial Law; they do not have representative offices or branches in Vietnam according to the Commercial Law.

What are the Export Rights for Foreign Traders Absent in Vietnam?

According to Article 2 of Circular 28/2012/TT-BTC regarding export rights implementation:

• Foreign traders absent in Vietnam (hereinafter referred to as absent traders) who have been granted Certificates of Registration of Export Rights, and Import Rights are entitled to exercise export rights as follows:

• Export goods not included in the list of prohibited export goods, temporarily suspended export goods, and goods not permitted for export according to international commitments. For export goods subject to conditions, they must meet the requirements as prescribed by law.

• For goods listed for export according to the international commitment roadmap, they must follow the committed roadmap.

• They are directly responsible for customs export procedures according to the law based on purchase contracts signed with Vietnamese traders.

• Exported goods must correspond with the content of the Certificate of Registration of Export Rights, and Import Rights.

• Absent traders are only allowed to directly purchase goods from Vietnamese traders registered for business or holding export or distribution rights for the purpose of export.

They are not permitted to organize a network for purchasing goods in Vietnam for export, including establishing locations for purchasing export goods, except as stipulated by Vietnamese law or international conventions to which the Socialist Republic of Vietnam is a member.

What are the Responsibilities of Foreign Traders Absent in Vietnam?

According to Article 5 of Decree 90/2007/ND-CP regarding the responsibilities of foreign traders absent in Vietnam:

• Fully comply with customs regulations, taxes, import licensing, technical standard regulations, food safety and animal, and plant quarantine measures, and other related regulations concerning the export, and import of goods in accordance with Vietnamese law and international agreements to which the Socialist Republic of Vietnam is a member.

• Ensure the accuracy of information and documents submitted to competent authorities of Vietnam.

• Fulfill all responsibilities and obligations as stipulated by Vietnamese Commercial Law and related laws.

• Submit annual reports as required and ad hoc reports upon request from the Ministry of Commerce on the export, import situation of the trader.

• Pay fees for issuance, re-issuance, modification, supplementation, and extension of the Certificate of Registration of Export Rights, and Import Rights according to the regulations of the Ministry of Finance.

• Register contact addresses for communication with Vietnamese state management agencies when necessary.

• Maintain documentation and records as required by Vietnamese law.

Does the Trading of Goods between Foreign Traders Absent in Vietnam and Vietnamese Enterprises Constitute In-place Import-Export?

In-place export-import is regulated by Article 35.1 of Decree 08/2015/ND-CP, including:

• Goods processed in Vietnam and sold by foreign individuals or organizations to individuals or organizations in Vietnam.

• Goods traded between domestic enterprises and export processing enterprises, enterprises in non-tariff zones.

• Goods traded between Vietnamese enterprises and foreign individuals or organizations absent in Vietnam and designated by foreign traders to deliver or receive goods from other enterprises in Vietnam.

Thus, according to the above regulations, the trading of goods between Vietnamese enterprises and foreign individuals or organizations absent in Vietnam, designated by foreign traders to deliver or receive goods from other enterprises in Vietnam, constitutes in-place import-export.

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