Traders are allowed to act as agents to buy and sell goods for foreign traders?

What products are traders allowed to act as agents to buy and sell goods for foreign traders?

Pursuant to Article 48 of the Law on Foreign Trade Management 2017, it is stipulated as follows: following:

Managing goods purchasing and selling agency activities for foreign traders

1. Traders are allowed to act as legal agents to buy and sell goods for foreign traders, except for goods on the List of goods banned from export or import or goods temporarily suspended from import.

2. In case a trader chooses to pay agent sales remuneration in cash, it shall comply with the provisions of foreign exchange law. In case a trader chooses to pay agent sales remuneration in goods, the goods must not be on the List of goods banned from export or import or not be goods temporarily suspended from export or import. In case of payment of agent sales remuneration with goods on the List of goods exported or imported under license, permission must be obtained from a competent state authority.

3. Agents buying and selling goods for foreign traders must carry out procedures to export and import goods, fulfill tax obligations and other financial obligations according to the provisions of law.

Comparing with this regulation, traders are allowed to act as goods buying and selling agents for foreign traders for all types of goods except goods on the List of goods banned from export, banned from import or goods temporarily suspended from import.

For goods exported and imported under License, when can a trader sign a goods purchase and sale agent contract for foreign traders?

In Article 50 of Decree 69/2018/ND-CP, it is stipulated as follows:

Traders act as goods purchase and sale agents for foreign traders outside

1. Traders are allowed to act as agents to buy and sell goods to foreign traders, except for goods on the List of goods banned from export, temporarily suspended from export, and goods on the List of goods banned from import, temporarily suspended from import. For goods exported and imported under License, traders may only sign agency contracts after being granted a License by the ministry or ministerial-level agency with management authority.

2. In case the law has specific provisions that an agent can only enter into an agency contract with one principal for a certain type of goods or service, the trader must comply with the provisions of that law.

3. Traders acting as purchasing agents must request foreign traders to transfer money in freely convertible foreign currency through banks to purchase goods according to the agency contract.

4. Traders acting as purchasing agents are responsible for registering, declaring, and paying taxes and other financial obligations related to goods under the goods purchase and sale agency contract and their business activities in accordance with the provisions of law.

Thus, for goods exported and imported under a License, traders may sign goods purchase and sale agency contracts for foreign traders after being granted a License by the ministry or ministerial-level agency with management authority.

Do goods under an agency contract to buy and sell goods for foreign traders have to pay tax in Vietnam?

Pursuant to Article 51 of Decree 69/2018/ND-CP stipulates as follows:

Tax obligations

1. Goods under agency contracts to buy and sell goods to foreign traders are subject to taxes and other financial obligations according to the provisions of Vietnamese law.

2. Vietnamese traders are responsible for registering, declaring, and paying taxes and other financial obligations related to goods under agency contracts to buy and sell goods and their business activities in accordance with the provisions of law.

Comparing with the above regulations, in addition to having to pay taxes, goods under goods purchase and sale agency contracts for foreign traders must also complete other financial obligations related to goods under goods purchase and sale agency contracts and their business activities in accordance with the provisions of law.

What are the procedures for exporting and importing goods under agency contracts for purchasing and selling goods with foreign traders?

In Article 52 of Decree 69/2018/ND-CP, there are regulations on procedures for exporting and importing goods under agency contracts as follows:

Export and import procedures Export of goods under agency contract

Goods under goods purchase and sale agency contracts with foreign traders must be followed when exported or imported according to the same regulations as for exported and imported goods specified in this Decree.

Reference to Article 4 of Decree 69/2018/ND-CP stipulating export and import procedures under purchasing agency contracts Selling goods to foreign traders is carried out as follows:

Export and import procedures

1. For goods exported or imported under license, export and import traders must have a license from the relevant ministry or ministerial-level agency.

2. For goods exported or imported under conditions, exporting and importing traders must meet the conditions prescribed by law.

3. For goods on the List of exported and imported goods subject to inspection according to the provisions of Article 65 of the Law on Foreign Trade Management, traders exporting and importing goods must be subject to inspection by competent authorities according to the provisions of law.

4. For goods not falling into the cases specified in Clauses 1, 2, 3 of this Article, traders only have to handle export and import procedures at the customs office.