CIRCULAR

PROVIDING THE TRANSIT OF GOODS OF THE PEOPLE’S REPUBLIC OF CHINA THROUGH THE TERRITORY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to the Government’s Decree No. 95/2012/ND-CP of November 12, 2012, defining the functions, duties, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the April 9, 1994 Agreement between the Government of the Socialist Republic of Vietnam and the Government of the People’s Republic of China on Goods Transit;

Pursuant to the Government’s Decree No. 187/2013/ND-CP of November 20, 2013, detailing the implementation of the Commercial Law regarding international goods purchase and sale and goods purchase and sale agency, processing and transit with foreign countries;

At the proposal of the Director of the Import and Export Department;

The Minister of Industry and Trade promulgates the Circular providing the transit of goods of the People’s Republic of China through the territory of the Socialist Republic of Vietnam.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the procedures for licensing the transit and transportation of in-transit goods under the April 9, 1994 Agreement between the Government of the Socialist Republic of Vietnam and the Government of the People’s Republic of China on Goods Transit (below referred as to the Agreement).

Article 2. Subjects of application

This Circular applies to agencies, organizations and individuals engaged in activities related to the transit of goods under the Agreement.

Article 3. Goods in transit

1. Goods banned or suspended from import or export may not be transited through the Vietnamese territory.

2. Goods other than those prescribed in Clause 1 of this Article may be transited through the Vietnamese territory after having obtained a transit permit from the Ministry of Industry and Trade.

Chapter II

PROCEDURES FOR GRANT OF GOODS TRANSIT PERMITS

Article 4. Dossiers of application for goods transit permits

A dossier of application for a transit permit for goods prescribed in Clause 2, Article 3 of this Circular must comprise:

1. An application for a goods transit permit: 1 (one) original (made according to the form provided in Appendix I to this Circular).

2. A copy of the contract on transportation of in-transit goods (bearing the goods owner’s signature and true-copy stamp).

Article 5. Agencies in charge of receiving and processing dossiers

1. For goods prescribed in Clause 2, Article 3 of this Circular (excluding industrial explosives), a goods owner shall send by post 1 (one) set of the dossier of application for a goods transit permit to one of the following agencies in charge of receiving and processing dossiers:

a/ The Import and Export Management Division in Ho Chi Minh City under the Import and Export Department - the Ministry of Industry and Trade. Address: 12 Vo Van Kiet, District 1, Ho Chi Minh City, Vietnam;

b/ The Import and Export Management Division in Da Nang under the Import and Export Department - the Ministry of Industry and Trade. Address: 132 Nguyen Chi Thanh, Hai Chau district, Da Nang city, Vietnam;

c/ The Import and Export Management Division in Hanoi under the Import and Export Department - the Ministry of Industry and Trade. Address: 25 Ngo Quyen, Hoan Kiem district, Hanoi city, Vietnam.

2. For industrial explosives, a goods owner shall send 1 (one) set of the dossier of application for a goods transit permit to the Ministry of Industry and Trade (the Import and Export Department). Address: 54 Hai Ba Trung, Hoan Kiem district, Hanoi city, Vietnam.

Article 6. Order and time limits for processing dossiers

1. For goods prescribed in Clause 2, Article 3 of this Circular (excluding industrial explosives), the order and time limit for processing a dossier of application for a goods transit permit are as follows:

a/ The time limit for processing the dossier and granting a permit is 7 working days after receipt of a complete and valid dossier;

b/ In case the dossier is incomplete or invalid, within 3 working days after receiving it, the licensing agency shall request in writing the goods owner to supplement or modify the dossier;

c/ In case of refusal, the licensing agency shall issue a written reply to the goods owner, clearly stating the reason.

2. For industrial explosives, the order and time limit for processing a dossier of application for a transit permit are as follows:

a/ Within 7 working days after receiving a complete and valid dossier from a goods owner, the Ministry of Industry and Trade shall submit it to the Prime Minister for consideration and decision;

b/ Within 7 working days after receiving the Prime Minister’s written approval, the Ministry of Industry and Trade shall grant a transit permit;

c/ In case of refusal, the Ministry of Industry and Trade shall issue a written reply to the goods owner, clearly stating the reason.

Chapter III

TRANSPORTATION OF IN-TRANSIT GOODS

Article 7. Border gates for transit of goods

1. Goods shall be transited via the following pairs of border gates:

2. In addition to the border gates prescribed in Clause 1 of this Article, goods may be transited through international border gates opened under agreements between the Government of the Socialist Republic of Vietnam and the Government of the People’s Republic of China.

Article 8. Transit routes

Routes for transportation of in-transit goods must comply with the Ministry of Transport’s Circular No. 15/2014/TT-BGTVT of May 13, 2014, guiding routes for transportation of goods in transit through the Vietnamese territory.

Article 9. Carriers and carrying vehicles

1. The transportation of in-transit goods shall be performed by carriers being Vietnamese traders according to regulations.

2. In-transit goods being self-propelled vehicles must have temporary registration number plates granted by the Public Security Departments of the provinces or centrally run cities where the border gates of importation are located and certificates of technical safety and environmental protection inspection granted by the transport sector before they are allowed to operate through the Vietnam territory. Passenger cars with 9 seats or less are not allowed to operate through the Vietnam territory.

Article 10. Documents required for carrying out customs procedures for in-transit goods

Good owners or carriers shall submit or produce to customs offices transit permits granted by the Ministry of Industry and Trade under this Circular, contracts on transportation of in-transit goods in transit and other documents as prescribed in the customs law.

Article 11. Supervision of goods in transit through the Vietnamese territory

1. In-transit goods are subject to supervision by customs offices throughout their movement in the Vietnamese territory; and must be transported into and out of Vietnam via prescribed border gates and along prescribed routes. Goods transported out of Vietnam must have a quantity which is exactly the same with the quantity upon entry into Vietnam and be in their original packaging.

2. The procedures for storage and splitting of lots of in-transit goods; and for transshipment or change of carrying vehicles must comply with the customs law.

3. In the process of transportation and storage in the Vietnamese territory, if anything happens to in-transit goods (for example, goods are broken, damaged or lost, etc.), goods owners or carriers shall promptly notify such to customs offices in the localities where the incidents occur so that the latter shall make a written certification of the state of goods and handle them according to regulations. In case the customs offices are not available, they may notify such to public security agencies, border guard or coast guard for certification.

Article 12. Duration of goods transit

In-transit goods may be kept in the Vietnamese territory for a maximum duration of 30 days as after completion of customs procedures at the border gate of importation, except for cases eligible for the extension of transit duration under Article 13 of this Circular.

Article 13. Extension of goods transit duration

1. Agencies having granted goods transit permits shall consider and permit extension of goods transit duration. The transit duration of an in- transit goods lot may be extended for 3 (three) times at most with each extension not exceeding 30 days.

2. A dossier of request for extension of goods transit duration must comprise:

a/ The goods owner’ written request for extension of goods transit duration: 1 (one) original;

b/ A copy of the granted goods transit permit (bearing the goods owner’s signature and true-copy stamp);

c/ The customs agency’ written certification of state of the in-transit goods lot: 1 (one) original;

d/ A copy of the customs declaration of the in-transit goods lot (bearing the goods owner’s signature and true-copy stamp).

3. The procedures and order for processing a dossier of request for extension of goods transit duration are as follows:

a/ The goods owner shall send by post 1 (one) set of the dossier prescribed in Clause 2 of this Article to the agency competent to permit extension of goods transit duration prescribed in Clause 1 of this Article;

b/ The time limit for processing a dossier of request for extension of goods transit duration is 7 working days after receipt of a complete and valid dossier;

c/ In case the dossier is incomplete or invalid, within 3 working days after receiving it, the competent agency prescribed in Clause 1 of this Article shall request in writing the goods owner to supplement or modify the dossier;

d/ In case of refusal to extend goods transit duration, the competent agency prescribed in Clause 1 of this Article shall issue a written reply to the goods owner, clearly stating the reason.

Article 14. Change of border gates for transit of goods

1. Agencies granting transit permits shall consider and permit the change of border gates of importation or exportation prescribed in Article 7 of this Circular.

2. A dossier of request for change of the border gate for transit of goods must comprise:

a/ The goods owner’s written request for change of the border gate: 1 (one) original;

b/ A copy of the granted goods transit permit (bearing the goods owner’s signature and true-copy stamp);

c/ The customs agency’s written certification of the state of the in-transit goods lot: 1 (one) original;

d/ A copy of the customs declaration of the in-transit goods lot (bearing the goods owner’s signature and true-copy stamp).

3. The procedures and order for processing a dossier of request for change of border gates for transit of goods are as follows:

a/ The goods owner shall send by post 1 (one) set of the dossier prescribed in Clause 2 of this Article to the agency competent to permit the change of border gates for transit of goods prescribed in Clause 1 of this Article;

b/ The time limit for processing a dossier of request for change of border gates is 7 working days after receipt of a complete and valid dossier;

c/ In case the dossier is incomplete or invalid, within 3 working days after receiving it, the competent agency prescribed in Clause 1 of this Article shall request in writing the goods owner to supplement or modify the dossier;

d/ In case of refusal to permit the change of border gates, the competent agency prescribed in Clause 1 of this Article shall issue a written reply to the goods owner, clearly stating the reason.

Article 15. Sale of in-transit goods

1. In-transit goods may not be sold in the Vietnamese territory.

2. In special cases, the sale of in-transit goods in the Vietnamese terriroty must be permitted by the Ministry of Industry and Trade.

3. The sale of in-transit goods in the case prescribed in Clause 2 of this Article shall be carried out via Vietnamese traders and import procedures shall be carried out at custom offices according to regulations on import and export management. Tax payment must comply with law.

4. A dossier of request for sale of in-transit goods must comprise:

a/ The goods owner’s written request for sale of in-transit goods: 1 (one) original (made according to the form provided in Appendix IV to this Circular);

b/ A copy of the granted goods transit permit (bearing the goods owner’s signature and true-copy stamp);

c/ Documents proving the necessity to sell in-transit goods in Vietnam;

d/ The customs office’s written certification of the state of the in-transit goods lot: 1 (one) original;

dd/ A copy of the custom declaration of the in-transit goods lot (bearing the goods owner’s signature and true-copy stamp).

5. The order and time limit for processing a dossier of request for sale of in-transit goods are as follows:

a/ The goods owner shall send by post 1 (one) set of the dossier prescribed in Clause 4 of this Article to the Ministry of Industry and Trade (the Import and Export Department, at the address: 54 Hai Ba Trung, Hoan Kiem district, Hanoi city, Vietnam) for consideration and permission of the sale of in-transit goods;

b/ The time limit for processing a dossier of request for sale of in-transit goods is 15 working days after receipt of a complete and valid dossier;

c/ In case the dossier is incomplete or invalid, within 7 working days after receiving it, the Ministry of Industry and Trade shall request in writing the goods owner to supplement or modify the dossier;

d/ In case of refusal to permit the sale of in-transit goods, the Ministry of Industry and Trade shall issue a written reply to the goods owner, clearly stating the reason.

Article 16. Rights and obligations of owners and carriers of in-transit goods

1. Owners and carriers of goods in transit through the territory of the Socialist Republic of Vietnam have the rights and obligations prescribed in the Agreement, this Circular and other relevant legal documents.

2. Owners of in-transit goods shall pay customs fees and other charges applicable to in-transit goods according to regulations.

Article 17. Payment and foreign exchange management

Fees and expenditures arising from transit activities shall be paid in a freely convertible currency in accordance with the provisions of the October 16, 2003 Payment and Cooperation Agreement between the State Bank of Vietnam and the People’s Bank of China and current regulations on foreign exchange management.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 18. Organization of implementation

1. The Import and Export Management Division in Ho Chi Minh City, the Import and Export Management Division in Da Nang and the Import and Export Management Division in Hanoi (the Import and Export Department - the Ministry of Industry and Trade) shall grant goods transit permits prescribed in Clause 1, Article 6 of this Circular.

2. The Import and Export Department shall receive and appraise dossiers of procedures prescribed in Clause 2, Article 6, and Clause 5, Article 15, of this Circular and submit such to the Ministry of Industry and Trade’s leaders for consideration and decision.

Article 19. Effect

1. This Circular takes effect on July 20, 2015.

2. This Circular replaces the Minister of Trade’s Decision No. 305/2001/QD-BTM of March 26, 2001, promulgating the Regulation on the People’s Republic of China’s goods transiting through the territory of the Socialist Republic of Vietnam.

3. This Circular annuls the Minister of Trade’s Decision No. 336/2005/QD-BTM of March 8, 2005, authorizing Import and Export Management Divisions to grant permits for the People’s Republic of China’s goods to transit through the territory of the Socialist Republic of Vietnam.

4. Permits granted before the effective date of this Circular remain valid until their expiry date.-