Decree stipulates border trade activities

According to the decree, those who are allowed to perform the purchase, sale and exchange of goods across borders, are Vietnamese traders, including businesses, cooperatives, business households and individuals, with business registration as prescribed by the law.

Traders with foreign direct investments, foreign companies and branches of foreign companies in Viet Nam are allowed to conduct the cross-border purchase, sale and exchange of goods pursuant to the commitments of international treaties to which Viet Nam is a signatory.

The border gates via which the traders’ cross-border purchase, sale and exchange of goods are performed, operate in accordance with provisions in clause 1 Article 54 of the Law on Foreign Trade Management.

If the purchase, sale and exchange of goods are conducted via sub-border gates or border crossings, the People’s Committee of the border province will announce the list of sub-border gates and border crossings subject to the purchase, sale and exchange of commodities, whilst working with relevant ministries and sectors to ensure the sufficient forces for specialised inspection as well as technical infrastructure in service of State management. 

The decree clearly stipulates that the goods purchased, sold and exchanged via borders must abide by the provisions of the Law on Foreign Trade Management and other documents guiding the implementation of international goods trading activities.

Traders’ goods purchased, sold and exchanged via borders must ensure accordance with international law and treaties on medical quarantine, animal and plant quarantine, aquatic product quarantine, goods quality inspection and food safety inspection.

Traders who conduct the purchase, sale and exchange of goods across borders must fully observe their tax, fee and cost obligations in line with the law.

Goods traded across borders are entitled to incentives in accordance with the provisions of international laws and treaties to which Viet Nam is a signatory. Goods exported in the form of the cross-border purchase, sale and exchange of goods specified in this decree will have their value added tax refunded in accordance with the provisions of law. 

                                                                                                                                        By Vien Nhu