What Must Businesses Do When Making Payments and Transferring Money for Outbound Goods Trading?

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According to Circular 02/2020/TT-NHNN, when Vietnamese traders engage in cross-border goods re-export business activities (excluding Vietnamese traders that are economic organizations with foreign investment capital), they must fulfill the following responsibilities:

1. Present documents as regulated by the authorized bank when buying foreign currencies, making payments, and transferring money for cross-border goods re-export business activities and take legal responsibility for the accuracy and honesty of the documents and papers presented to the authorized bank.

2. Provide information on the source of funds received from the goods sales contract so that the authorized bank can compile statistics and monitor incoming and outgoing financial transactions within the same cross-border business transaction and be legally responsible for the accuracy and honesty of the information provided to the authorized bank.

3. Strictly comply with the regulations in this Circular and other relevant laws.

4. Not use the same set of documents for one cross-border goods re-export business transaction to purchase foreign currencies, make payments, and transfer money at multiple authorized banks.

Additionally, the Circular also specifies the responsibilities for authorized banks involved in foreign exchange services. Specifically:

- Develop internal regulations, including provisions for simultaneously checking both the purchase and sales contracts of goods in the same cross-border business transaction when transferring money abroad, monitoring the flow of foreign currencies into and out of Vietnamese territory through statistics and tracking of incoming and outgoing financial transactions within the same cross-border business transaction.

- When conducting foreign currency sales, payments, and money transfers related to cross-border goods re-export business for customers, authorized banks are responsible for reviewing, checking, and retaining relevant documents and papers aligned with actual transactions to ensure the provision of foreign exchange services is accomplished rightfully and in accordance with this Circular and related legal regulations.

- Strictly comply and guide customers to comply with the regulations in this Circular.

For details, see Circular 02/2020/TT-NHNN, effective from May 15, 2020.

Le Hai

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