Chapter 1

GENERAL PROVISIONS

Article 1. Scope of regulation

Border trading activities with bordering countries (hereinafter referred to as border trading) prescribed in this Decision includes:

1. Goods purchase, sale and exchange of border residents;

2. Trading in border marketplaces, border-gate marketplaces and marketplaces in Border-gate economic zones;

3. Export and import of goods across the border in other forms not under international practices on purchase and sale agreed in bilateral trading treaties between The Socialist Republic of Vietnam and bordering countries.

Article 2. Border trading goods

The exchange, purchase, sale, export and import of goods in forms of border trading are implemented in accordance with the Government's Decree No. 12/2006/ND-CP of January 23, 2006 detailing the implementation of the Law on Trade with respect to international purchases and sales of goods and agent activities of sale, purchase, processing and transits of goods with foreign parties.

Article 3. Border trading goods quality

1. The quality of border trading goods must comply with the Vietnamese law provisions on management of export and import goods quality.

2. Import goods on the List of goods subject to quality inspection and quarantine under the current provisions must be inspected for quality prior to customs clearance; it is forbidden to import through border-gates without plant and animal quarantine post, medical quarantine post, goods quality inspection post as prescribed by Vietnam law.

3. Authorizing for Minister of Trade, after discussing with the Ministry of Agriculture and Rural development, The Ministry of Health shall consider and take measures to control of the export and import of goods not satisfying the norms for food hygiene, food safety and consumers’ health.

Article 4. Border trading payment

1. Border trading goods are paid in freely convertible foreign currencies or in Vietnam dong and the currencies of the bordering countries.

2. Methods of payment: agreed by the sellers and the buyers in accordance with the provisions of the State bank of Vietnam on the basis of Payment treaties signed between Vietnam and the bordering countries; to encourage the business subjects in payment via bank

Article 5. Tax policy

1. Border trading goods must be paid tax and other fees as prescribed by Vietnam’s law and shall be entitled to privileges of export tax, import tax for goods across border under the bilateral treaties between the Government of The Socialist Republic of Vietnam and the Gorvernments of bordering countries.

2. Goods produced by residents in the bordering countries being imported to The Socialist Republic of Vietnam in forms of border residents’ goods exchange, sale, purchase shall be exempted from import tax as long as the value of such goods does not exceed 2,000,000 dong/person/day.

3. Other relevant tax polices are implemented in accordance with the State’s current provisions.

4. The Ministry of Finance shall preside over and coordinate with the Ministry of Trade to implement this Article.