Is a foreign trader not present in Vietnam subject to on-site import and export?

How are foreign traders without presence in Vietnam regulated?

On May 17, 2023, the GSQL Department of Customs issued Official Dispatch 676/GSQL-GQ2 to provide guidance on customs procedures, including guidance on foreign traders not present in Vietnam as follows:

Foreign traders with no presence in Vietnam are foreign traders with no investment or business activities in Vietnam in the forms prescribed in the laws on investment, trade, and enterprises; does not have a representative office or branch in Vietnam according to the provisions of law on commerce and enterprises (Clause 5, Article 3 of the Law on Foreign Trade Management 2017).

In addition, according to the provisions of Clause 2, Article 3, Decree 90/2007/ND-CP, regulations on foreign traders not present in Vietnam are as follows:

Foreign traders with no presence in Vietnam are foreign traders with no direct investment in Vietnam in the forms prescribed in the Investment Law and the Commercial Law; does not have a representative office or branch in Vietnam according to the Commercial Law.

What are the export rights for foreign traders not present in Vietnam?

Pursuant to the provisions of Article 2 of Circular 28/2012/TT-BCT on exercising export rights:

– Foreign traders with no presence in Vietnam (hereinafter referred to as non-present traders) who have been granted a Certificate of registration of export and import rights shall exercise their export rights as follows:

+ To export goods that are not on the list of goods banned from export, the list of goods temporarily suspended from export, and the list of goods that are not entitled to export according to international commitments. For conditional export goods, they must meet the conditions prescribed by law;

+ For exported goods on the list of exported goods according to the roadmap in international commitments, comply with the committed roadmap;

+ To directly carry out export procedures at the Customs office according to the provisions of law on the basis of purchase contracts signed with Vietnamese traders;

+ Exported goods must be consistent with the content of the Certificate of registration of export and import rights.

– Non-present traders may only directly buy goods from Vietnamese traders with business registration or the right to export or distribute those goods for export;

It is not allowed to organize a network to purchase goods for export in Vietnam, including opening locations to purchase goods for export, unless Vietnamese law or international treaties to which the Socialist Republic of Vietnam is a member provide otherwise.

How are the responsibilities of foreign traders not present in Vietnam regulated?

According to the provisions of Article 5 of Decree 90/2007/ND-CP stipulating the responsibilities of foreign traders not present in Vietnam as follows:

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

– Ensure the authenticity of information and documents presented to competent Vietnamese authorities

– Fulfill responsibilities and obligations according to the provisions of the Commercial Law and relevant laws of Vietnam.

– Carry out annual reports according to regulations and extraordinary reports at the request of the Ministry of Trade on the export and import situation of traders.

– Pay the fee for issuance, re-issuance, amendment, supplement, and extension of the Certificate of registration of export and import rights at the fee level according to regulations of the Ministry of Finance.

– Register contact addresses for Vietnamese state management agencies to contact when necessary.

– Maintain documents and books according to Vietnamese law.

Are foreign traders not present in Vietnam who buy and sell goods with Vietnamese enterprises subject to on-the-spot import and export?

On-site export and import goods specified in Clause 1, Article 35 of Decree 08/2015/ND-CP include:

– Goods ordered to be processed in Vietnam and sold by foreign organizations and individuals to organizations and individuals in Vietnam.

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

– Goods purchased and sold between Vietnamese enterprises and foreign organizations and individuals that are not present in Vietnam and are designated by foreign traders to deliver and receive goods with other enterprises in Vietnam.

Thus, according to the above regulations, goods purchased and sold between Vietnamese enterprises and foreign organizations and individuals that are not present in Vietnam and are designated by foreign traders to deliver and receive goods with other enterprises in Vietnam are subject to on-site import and export.