Sales Agency for Foreign Traders: Permitted Goods

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Which goods may a trader act as sales agency for a foreign trader?

Under Article 48 of the Law on Foreign Trade Management 2017:

Management of sales agency activities for foreign traders

1. A trader may act as sales agency for lawful goods for a foreign trader, except goods on the List of goods prohibited from export or import, or goods temporarily suspended from import.

2. Where the trader chooses to receive sales agency commission in cash, foreign exchange laws apply. Where the trader chooses to receive sales agency commission in goods, such goods must not be on the List of goods prohibited from export or import, or goods temporarily suspended from export or import. Where the commission is paid in goods subject to export/import licensing, permission from the competent state authority is required.

3. A sales agency for a foreign trader must complete export and import procedures for the goods and fulfill tax obligations and other financial obligations as prescribed.

Accordingly, a trader may act as sales agency for a foreign trader for all types of goods except goods on the List of goods prohibited from export or import, or goods temporarily suspended from import.

For goods subject to licensing, when may a trader sign a sales agency contract for a foreign trader?

Article 50 of Decree 69/2018/ND-CP provides:

Traders acting as purchase/sales agencies for foreign traders

1. A trader may act as purchase or sales agency for all types of goods for a foreign trader, except goods on the List of goods prohibited from export, temporarily suspended from export, and goods on the List of goods prohibited from import or temporarily suspended from import. For goods subject to export or import licensing, the trader may only sign an agency contract after being granted a License by the competent ministry or ministerial-level agency.

2. Where the law specifically provides that an agent may enter into an agency contract with only one principal for a certain type of goods or services, the trader must comply with that law.

3. A trader acting as a purchasing agent must require the foreign trader to remit freely convertible foreign currency through a bank to purchase goods under the agency contract.

4. A trader acting as a purchasing agent is responsible for registering, declaring and paying all taxes and other financial obligations related to goods under the purchase/sales agency contract and its own business activities as prescribed.

Accordingly, for goods subject to export or import licensing, a trader may sign a sales agency contract for a foreign trader only after being granted a License by the competent ministry or ministerial-level agency.

Are goods under a sales agency contract for a foreign trader subject to tax in Vietnam?

Under Article 51 of Decree 69/2018/ND-CP:

Tax obligations

1. Goods under a purchase/sales agency contract for a foreign trader are subject to tax and other financial obligations under Vietnamese law.

2. The Vietnamese trader is responsible for registering, declaring and paying all taxes and other financial obligations related to goods under the purchase/sales agency contract and its own business activities as prescribed.

Accordingly, in addition to paying taxes, goods under a sales agency contract for a foreign trader are subject to other financial obligations related to goods under the purchase/sales agency contract and its own business activities as prescribed.

What are the export/import procedures for goods under a sales agency contract with a foreign trader?

Article 52 of Decree 69/2018/ND-CP provides on export/import procedures for goods under agency contracts:

Export/import procedures for goods under agency contracts

Goods under a purchase/sales agency contract with a foreign trader, when exported or imported, must undergo procedures exactly as applicable to export/import goods under this Decree.

Referring to Article 4 of Decree 69/2018/ND-CP, export/import procedures for goods under a sales agency contract with a foreign trader are as follows:

Export/import procedures

1. For goods subject to export or import licensing, the exporting or importing trader must have a license from the relevant ministry or ministerial-level agency.

2. For goods subject to conditions, the exporting or importing trader must satisfy the prescribed conditions.

3. For goods on the List of goods subject to inspection under Article 65 of the Law on Foreign Trade Management, the exporting or importing trader is subject to inspection by the competent authority as prescribed.

4. For goods not falling under clauses 1, 2 or 3 of this Article, the trader only needs to complete export/import procedures at the customs authority.

Notes on applying current legal provisions

This article belongs to the General Knowledge group and is presented for reference, helping readers understand the legal issue at an overview level before preparing dossiers or conducting transactions.

Legal provisions may change depending on timing, locality, dossier type and specific circumstances. Where it is necessary to determine the exact legal basis applicable to your dossier, you should contact an ANT Legal lawyer at 0966.475.966 for review and advice before proceeding.

Common risks to note

Applying legal texts that have been amended, supplemented or replaced.
Preparing incomplete dossiers, documents or evidence.
Misunderstanding the applicable conditions, procedures, time limits or competent authority.
Signing, filing or conducting transactions without fully assessing legal risks.

How can ANT Legal help?

ANT Legal assists in reviewing specific situations, checking dossiers, identifying the applicable legal basis, advising on handling plans, and representing you in working with individuals, organizations or competent authorities when necessary.

For quick advice, you may contact a lawyer at 0966.475.966.

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Which Goods May a Trader Act as Sales Agency for a Foreign Trader?