Hanoi (VNA) - TheVietnamese Government has issued a decree stipulating that Vietnamese tradersare allowed to process legal goods for foreign merchants, excluding thecommodities banned or temporarily suspended from export and import.

For the sectors considered relevant to state security and societalsafety, including firearms, insurance, casinos, petrol and tax services, onlythe producers who fully meet the statutory conditions for producing and tradingthe listed products will be eligible to process them for export, according tothe decree dated May 15, 2018.

As for the goodsimported by designated traders under the management of the State Bank of Vietnam(SBV), the processing of commodities will be implemented in accordance with theregulations of the SBV.

For goods that must beexported or imported under special permits, firms can only sign the processingcontracts for foreign traders once they obtain appropriate licences from theMinistry of Industry and Trade.

The processing contractsmust be consist of documents or other forms of equivalent legal value asstipulated by the Commercial Law. They must at least contain thefollowing provisions: names and addresses of the signatories and thedirect processing party; names and quantity of outsourced products; outsourcingprices; payment term and mode; the list, quantity and valueof the imported materials, auxiliary materialsand supplies, as well as the materialsdomestically produced for processing; norms on the use of materials;norms on the consumption and waste of materials inprocessing; list and value of the machinery and equipmentleased, lent or donated for processing (if any); measures to deal with wastematerials, wastes, and defective products, and the principlesof handling the redundant borrowed machinery, equipment, surplus rawmaterials, auxiliary materials and supplies after the expiry of the processingcontract; place and time of delivery; trademarks and appellations of origin;and certification of the validity of the contract.

The decree alsostipulates that the processing merchants are exempt fromimport and export tariffs in accordance with provisions of the tax law andare entitled to hire other traders to conduct the processing. They also have topay import and export tariffs for the raw materials, auxiliarymaterials and supplies purchased inside the country, while abiding by theprovisions of Vietnamese laws on processing activities for exports,imports and domestic manufacture of goods, as well as the terms ofthe signed processing contracts.-VNA