04 Principles of Payment and Money Transfer for Business Re-Exporting Goods

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According to Article 3 of Circular 02/2020/TT-NHNN, four principles for payments and money transfers related to cross-border trade business include:

- Payments and money transfers related to cross-border trade business are carried out on the basis of two separate payment and money transfer transactions: the money transfer transaction for the goods purchase contract and the money receipt transaction from the goods sale contract. The payment money transfer transaction can be carried out before or after the money receipt transaction.- All payment and money transfer activities related to cross-border trade business must be conducted through an authorized bank.- Traders are only allowed to make payments and money transfers within the same cross-border trade transaction according to the goods purchase contract and the goods sale contract at the same authorized bank.- Traders may use foreign currency from their own foreign currency payment account, foreign currency purchased from authorized banks to transfer abroad for payment under goods purchase contracts.

The above principles apply to the following entities:

- Banks, branches of foreign banks authorized to conduct foreign exchange business and service provision (hereinafter referred to as authorized banks).- Vietnamese traders involved in cross-border trade business (excluding Vietnamese traders that are foreign-invested economic organizations) (hereinafter referred to as traders).- Other agencies, organizations, and individuals related to payment and money transfer activities for cross-border trade business transactions.

For details, please refer to Circular 02/2020/TT-NHNN, effective from May 15, 2020.

Le Hai

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