DECISION

THE IMPORT-EXPORT MANAGEMENT MECHANISM OF 1998

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to Resolution No.59-CP of the Government of June 5, 1997;
At the proposal of the Minister of Trade,

DECIDES:

Article 1.- To approve the 1998 lists of import and export commodities:

- The list of commodities banned from import and/or export (Appendix 1)

- The list of commodities managed by quotas (Appendix 2)

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- The list of import and export commodities to be balanced against the domestic production and demand (Appendix 4)

Article 2.- Import and export commodities managed by quotas.

a/ For textiles and garments exported to markets with quotas set by countries, the Prime Minister's directions provided for in Document No.6228/KTTH of December 5, 1997 shall apply.

b/ For rice: To approve the 1998 rice export quotas of 4 million tons.

The management of rice export in 1998 shall comply with a separate decision of the Prime Minister.

On the basis of reviewing the management of rice export in 1997, to enhance and improve the operation of the Vietnam Food Importers'-Exporters' Association and assign the Ministry of Trade, the Ministry of Agriculture and Rural Development to continue perfecting the rice export mechanism and organization. To assign the Ministry of Finance to assume the prime responsibility in discussing with the Ministry of Trade and the Ministry of Agriculture and Rural Development the establishment of a fund to support rice production and export; studying the establishment of a "transaction center for rice export". To allow the experiment on the direct rice export by a number of qualified non-State rice-husking and -processing enterprises and agricultural farms.

Article 3.- Import commodities and materials to be balanced against domestic production and demand:

a/ For petrol and oil (except for lubricants):

- The Ministry of Trade shall manage and ensure the import of around 7 million tons of petrol and oil in 1998 (excluding the quantity temporarily imported for re-export); allocate from the beginning of the year all the petrol and oil import quotas to the specialized enterprises, about 60% of which shall be imported by the Petrol and Oil Corporation.

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b/ For fertilizers: To ratify the minimum quotas of fertilizers of different kinds to be imported in 1998 as follows:

- Urea: 1,600,000 tons

- DAP: 300,000 tons

- SA: 250,000 tons

- NPK: 350,000 tons

- Kali: 240,000 tons

The management of the fertilizer import in 1998 shall comply with a separate decision of the Prime Minister.

c/ With regard to materials and commodities, the demands for which are met largely by domestic production, such as: construction steel, cement of various types, writing and printing paper of various kinds, refined sugar, raw material sugar and construction white glass, the Ministry of Planning and Investment is assigned to assume the prime responsibility and coordinate with the Ministry of Finance, the production-managing ministries and the Ministry of Trade in determining the demand for additional import and working out the management regulations for implementation from the beginning of February 1998, on the principles that:

- Only materials and commodities of the categories and models which have not yet been produced or have been produced insufficiently in the country shall be imported.

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- The Ministry of Trade shall ensure the management of additional import of materials and commodities according to their categories, models and quantities under the import management regulations jointly adopted by the involved ministries;

- The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance, the production-managing ministries and the Ministry of Trade in monitoring and handling concrete problems, thus ensuring the market's supply and demand.

d/ As for steel cast and clinker, production and business enterprises shall be allowed to import them according to their demands and production capacities.

Article 4.- Import and export commodities subject to specialized management:

To assign the concerned ministries to revise the 1997 lists of commodities exported and/or imported under the specialized management mechanism, reducing the commodities which are deemed unnecessary to be restricted; to work out import-export management regulations, which must be agreed upon by the Ministry of Trade be submitted to the Prime Minister for ratification and made public by the Ministry of Trade by the end of March 1998 at the latest. The customs agency shall base itself on the list of import-export commodities subject to specialized management, promulgated by the Ministry of Trade to fulfill import-export procedures.

Article 5.- On the import of consumer goods:

The imported consumer goods shall be regulated by taxes and payment modes of banks:

Enterprises with permits to export and/or import goods shall be allowed to import such kinds of goods according to their demand and pay import duties in accordance with the provisions of law; to abolish the allocation of quotas and the granting of permits for the import of consumer goods; as for the import of liquor, it shall comply with guidances of the Ministry of Trade.

The Ministry of Trade shall assume the prime responsibility and coordinate with the Ministry of Planning and Investment, the Ministry of Finance and the State Bank... in determining the list of consumer goods subject to additional regulation by taxes and payment modes of banks for implementation from the beginning of the year along the direction of restricting to the minimum the import of consumer goods which are not really necessary and goods which can be manufactured in the country.

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a/ For automobiles in complete units and of different types (except for automobiles of 12 seats or less), enterprises with permits to import and/or export such kinds of commodity shall be entitled to import such automobiles according to their production and business demand; to abolish the granting of import permits.

The Ministry of Finance shall readjust the rates of import tax on trucks of under 7 tons and passenger cars of under 60 seats so as to restrict the import of these two kinds of automobiles.

b/ For tourist cars of 12 seats or less and motorbikes of various types: in the immediate future, automobiles in complete units shall not be imported; foreign-invested enterprises engaged in the assembly and manufacture of automobiles and motorbikes shall be allowed to import components for manufacture and assembly in strict compliance with their investment licenses and in conformity with the current criteria set by the Ministry of Science, Technology and Environment and the Ministry of Communications and Transport.

Basing itself on the plans for manufacture and assembly of automobiles and motorbikes of foreign-invested enterprises and domestic enterprises having invested in the manufacture and assembly of motorbikes in the IKD form, the Ministry of Trade shall approve the import plan for the whole year and issue a notice so that enterprises may take initiative in ensuring their production plans and consumption markets.

The Ministry of Trade is assigned to assume the prime responsibility and coordinate with the Ministry of Planning and Investment, the Ministry of Industry, the General Department of Customs and the Ministry of Science, Technology and Environment in the promulgation of guiding circular(s) in February 1998 for the implementation of the above-said provisions.

c/ To ensure the balance between supply and demand for motorbikes of various types while the foreign-invested enterprises have not yet fully promoted their production-assembly capacities in 1998, domestic enterprises having already obtained permits for the assembly of motorbikes of CKD form are allowed to import 100,000 sets of CKD components for the assembly and trading of motorcycles of different types.

Basing itself on criteria set for enterprises engaged in the assembly of motorbikes of CKD form already categorized jointly by the Ministry of Industry and the Ministry of Science, Technology and Environment, the Ministry of Trade shall allocate all import quotas to enterprises from January 1998 and inform the concerned agencies thereof for coordinated management.

Article 7.- The export of wood products and import of material wood shall comply with Decision No.1124/1997/QD-TTg of December 25, 1997 of the Prime Minister.

For other materials and commodities outside the aforesaid lists, enterprises shall be allowed to import and/or export them according to their demand and under the Ministry of Trade's guidances.

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Article 9.- This Decision takes effect from the date of its signing till March 31st, 1999. In the course of implementation, the Ministry of Trade shall supervise, sum up opinions from the ministries, branches and localities and promptly report to the Prime Minister for handling problems beyond the competence of ministries and branches.

Article 10.- The ministers, the heads of the ministerial-level agencies and agencies attached to the Government, the presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decision.

FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Manh Cam

APPENDIX 1

LIST OF COMMODITIES BANNED FROM EXPORT AND IMPORT IN 1998
(issued together with Decision No.11/1998/QD-TTg of January 23, 1998 of the Prime Minister)

I. COMMODITIES BANNED FROM EXPORT

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2. Antiques.

3. Narcotics of all kinds.

4. Toxic chemicals.

5. Logs, sawn and peeled timber, firewood, charcoal made from wood or firewood, wood and forest products made from timber of Group IA and planks processed from timber of Group IIA on the list issued together with Decree No.18/HDBT of January 17, 1992; material rattan.

6. Wild animals, and animals and plants of rare and precious species.

II. COMMODITIES BANNED FROM IMPORT

1. Weapons, ammunitions, explosives, military technical equipment.

2. Narcotics of all kinds.

3. Toxic chemicals.

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5. Firecrackers, fireworks and flares of all kinds. Children's toys harmful to ethical education, social order and safety.

6. Cigarettes (except for those as personal effects in prescribed quantity).

7. Used consumer goods (except for transferred assets, including commodities in service of personal needs of individuals with diplomatic titles of foreign countries, international organizations and personal effects in prescribed quantity).

8. Cars and self-propelled vehicles with right-hand drive (including those in knock-down forms).

9. Used spare parts of automobiles of all kinds, motorbikes and motor tricycles; including chassis mounted with used automobile engines of all kinds.

Notes:

1. The export of commodities on the aforesaid lists for security, defense and other purposes shall be permitted by the Prime Minister or the Minister of Trade under the Prime Minister's authorization and the procedures involved shall be completed by the customs service.

2. The ban on the export of animals and plants for the purpose of environmental protection shall be guided jointly by the Ministry of Agriculture and Rural Development and the Ministry of Science, Technology and Environment in a separate document.

3. The Ministry of Trade and the General Department of Customs shall jointly provide guidances for the implementation of Section II.7.

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APPENDIX 2

1998 LIST OF COMMODITIES MANAGED BY QUOTAS
(issued together with Decision No.11/1998/QD-TTg of January 23, 1998 of the Prime Minister)

EXPORT COMMODITIES

- Rice.

- Textiles and garments exported to the EU, Canada, Norway and Turkey.

APPENDIX 3

LIST OF IMPORT AND EXPORT COMMODITIES SUBJECT TO SPECIALIZED MANAGEMENT
(issued together with Decision No.11/1998/QD-TTg of January 23, 1998 of the Prime Minister)

1. Lists of export minerals and import chemicals shall comply with the guiding regulations of the Ministry of Industry.

2. Lists of forest plants and animals for export, drugs and materials for production of crop protection drugs and veterinary drugs; animal feeds and materials for the production of animal feeds, shall comply with the guiding regulations of the Ministry of Agriculture and Rural Development.

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4. Lists of rare and precious living aquatic products used as breeds, feeds and medicines in aquaculture, to be imported and/or exported under the guiding regulations of the Ministry of Aquatic Resources.

5. Wave transmitters, radio transmitters and receivers; exchange boards of various kinds, to be imported under the guiding regulations of the General Department of Post and Telecommunications.

6. Cultural products and fine art works managed by the State, cinematographic works, special printing equipment, recorded video tapes, to be exported and/or imported under the guiding regulations of the Ministry of Culture and Information.

7. Equipment and machinery used exclusively for banking services, to be exported and/or imported under the guiding regulations of the State Bank of Vietnam.

Note:

The itemized lists of the aforesaid commodities shall comply with Decree No.89-CP of December 15, 1995 of the Government.

APPENDIX 4

LIST OF IMPORT COMMODITIES AND SUPPLIES TO BE BALANCED AGAINST DOMESTIC PRODUCTION AND DEMAND
(issued together with Decision No.11/1998/QD-TTg of January 23, 1998 of the Prime Minister)

1. Petrol and oil.

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3. Construction steel of various types.

4. Cement of various types.

5. Writing and printing paper of various types.

6. Construction glass.

7. Refined sugar and raw material sugar.

8. Liquor.