Management of the border trade conducted at land border checkpoints in Vietnam

Management of the border trade conducted at land border checkpoints in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows:

1. Management of the border trade conducted at land border checkpoints in Vietnam

The management of the border trade conducted at land border checkpoints in Vietnam according to Article 54 of the Law on Foreign Trade Management 2017 is as follows:

- The border trade shall be conducted through international border checkpoints and principal border checkpoints. If the border trade is conducted through other border checkpoints or places opened for crossing borders, it shall satisfy prescribed conditions and be subject to the supervision and management of competent authorities in accordance with regulations of international treaties to which the Socialist Republic of Vietnam is a signatory and relevant regulations of law.

- The People’s Committee of the bordering province shall decide to publish the list of other border checkpoints and places opened for crossing borders where the border trade prescribed in Clause 1 of this Article may be conducted. If the export or import of products in the abovementioned areas is jammed, the People’s Committee of the bordering province, based on the infrastructure of these areas, may implement the measure for giving the priority to the export of fresh foods and perishable agricultural products or suspending the export and import until there is no jam.

- The management of the export and import of products at the land border checkpoints shall be conducted consistently, synchronously, cooperate closely and simplify the administrative procedures.

2. Policies on management and development of activities providing the assistance in the border trade conducted at land border checkpoints

Policies on management and development of activities providing the assistance in the border trade conducted at land border checkpoints in Vietnam according to Article 55 of the Law on Foreign Trade Management 2017 are as follows:

- Ministries, ministerial authorities and local governments shall take the responsibility for the management and development of the following activities at the land border checkpoints:

+ Provide the assistance in going through administrative procedures in accordance with relevant regulations of law.

+ Provide the assistance in strengthening the commercial logistics capacity including forwarding, shipping, processing, packaging, load, translation, protection of products and other activities strengthening the commercial logistics capacity;

+ Carry out activities related to finance and currency including change of money, depositing of money and payment;

+ Provide the assistance in strengthening the capacity for expansion into the markets of neighboring countries by providing assistance in consultancy, brokerage, purchasing and selling agents, entrustment of export and import, merchanting trade, advertisements, fairs and exhibitions;

+ Provide the assistance in the infrastructure including roads, electricity, water, border markets, showrooms, warehouses, electronic weighing stations and fire safety;

+ Provide other aids related to border trade conducted at the border checkpoints in accordance with regulations of law.

- The Government shall formulate the policy on encouraging traders of all economic sectors to invest in, develop and carry out activities of the assistance in the border trade conducted at the border checkpoints prescribed in Clause 1 of the Law on Foreign Trade Management 2017.

3. Regulations on management of the foreign trade with neighboring countries of Vietnam

Regulations on management of the foreign trade with neighboring countries of Vietnam according to Article 53 of the Law on Foreign Trade Management 2017 are as follows:

- The foreign trade with neighboring countries of Vietnam in bordering areas (hereinafter referred to as “border trade") shall be managed by:

+ Regulations on products, the quantity of products, the limit for tax exemption, places and measures related to the purchase, sale and exchange of products by inhabitants of bordering areas;

+ Regulations on products, places, measures and the assistance related to the purchase, sale and exchange of products by traders that have been agreed in the international treaties between the Socialist Republic of Vietnam and neighboring countries.

- Principles of the management of the border trade include:

+ The State shall intensify the assistance and promote the autonomy right of local governments of border areas related to the organization and management of the border trade in order to facilitate the purchase, sale and exchange of products by traders and inhabitants of bordering areas;

+ People, vehicles and products related to the border trade shall be subject to the inspection and control of the competent authority in accordance with regulations of law;

+ Violations of regulations of commercial law and other relevant regulations of law shall be prevented and dealt with strictly.

- Border trade activities are entitled to the specialized policies on areas, products, fees and payment measures in accordance with regulations of law.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE