Vietnam: Cross-border trade in goods by traders

On January 23, 2018, the Government of Vietnam issued Decree No. 14/2018/ND-CP on border trade activities, of which one of the notable contents is the regulations on cross-border trade in goods by traders.

Specifically, according to Decree No. 14/2018/ND-CP of Vietnam’s Government, regulations on cross-border trade in goods by traders are as follows:

1. Traders eligible to conduct cross-border trade in goods shall be Vietnamese traders, including: enterprises, cooperatives, household businesses or individuals registering business legally.

Traders having direct foreign investment, foreign companies and branches thereof in Vietnam shall be entitled to conduct cross-border trade in goods in compliance with commitments of international agreements to which the Socialist Republic of Vietnam is a signatory.

2. Border checkpoints where traders conduct cross-border trade in goods shall comply with the provision of Clause 1 Article 54 of the Law on Foreign trade management of Vietnam.

If the border trade conducted through an auxiliary checkpoint or border crossing, the People’s Committee of the bordering province shall decide or publish the list of auxiliary checkpoints and border crossings where purchase, sale or exchange of goods is allowed after discussing and reaching an agreement with relevant ministries or industries on the inspectorate and facilities serving state management.

The Ministry of Industry and Trade shall take charge or cooperate with relevant authorities in requesting the Prime Minister to consider whether allowing purchase, sale or exchange of goods through locations other than auxiliary checkpoints or border crossings mentioned in Clause 1 and Clause 2 Article 6 of this Decree.

On the basis of the Prime Minister, the People’s Committee of the bordering province shall reach an agreement with relevant ministries or industries on the inspectorate and facilities serving state management.

3. The trader’s goods for sale or exchange across the border shall comply with the provisions of the Law on Foreign trade management and physical guidance specifying the implementation of international trade of goods.

The Ministry of Industry and Trade shall take charge or cooperate with relevant authorities and People’s Committees of bordering provinces in updating the list of goods traded through auxiliary checkpoints or border crossings.

4. The trader’s goods for sale or exchange across the border shall comply with regulations of law or international agreements on health quarantine; quarantine of plants, animals or aquatic products; quality control of goods; or inspection of food safety.

5. The cross-border trade by traders shall be conducted on the basis of the agreement reached by and between Vietnamese trader and trader of the neighboring country in any of the following forms:

- Written agreement.

- A statement of goods traded across the border if a written agreement is not available. The statement shall bear the signature or seal of the Vietnamese trader, who is responsible for accuracy of the statement.

The statement of goods mentioned in Point b Clause 1 Article 9 of this Decree shall be made according to the specimen provided in the Appendix attached hereto.

View more details at: Decree No. 14/2018/ND-CP of Vietnam’s Government takes effect from January 23, 2018.

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