To replace for Decree 187/2013/ND-CP, the government has promulgated Decree 69/2018/ND-CP on 15 May, 2018. Basically, this decree also is responsible for guiding foreign trade law implementation, managing international goods trading by import- export activities.
Firstly, the new decree stipulates that Vietnamese traders can process goods legally for foreign countries. As long as the trader meets the conditions of production and business with the goods on the list of conditional business investment, the trader will be processed for export to foreign countries. Except for goods which are banned from export and import, goods temporarily suspended from export or import or not allowed to be processed in Vietnam, other products will be encouraged to develop production in Vietnam for export. Thus, it can be seen that Vietnam policy at the moment is much more open for developing business activities.
For imported goods appointing traders under the management of the State Bank of Vietnam, the processing goods will be made under the regulations of the State Bank of Vietnam.
For the commodities requiring licenses for export and import, enterprises need the license from the Ministry of Industry and Trade for processing contracts for foreign traders. Processing contracts must be made in written form or other forms equivalent legal validity and must follow the Commercial Law. Therefore the requirements for name, address of each party, quantity, price & unit price, payment including term and method of payment will be pointed clearly the contract. Additionally, the parties in contract should also strictly comply with the terms of scrap handling, waste and defective products solution, as well as information on the location, delivery time, labels of goods and especially the origin of processed goods.
For exported processed products, processing traders will be exempt from export tax and import tax on goods temporarily imported according to the norm and loss ratio for a processing contract.
Besides, processing traders can hire other parties for processing goods, as long as they follow strictly Import-Export Tariff law with the domestic raw materials and the terms and the conditions in the processing contract.
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