Question:
Our company, Acecook Vietnam Joint Stock Company (located at Lot 2-3, Street No. 11, Tan Binh Industrial Park, Tan Phu District, Ho Chi Minh City), is a foreign-invested enterprise (from Japan) specializing in manufacturing and trading instant food. The business lines detailed in our investment license are as follows:
- Industry code: 10740 – Industry name: Manufacture of noodles, pasta, and similar products
- Industry code: 10750 – Industry name: Manufacture of ready-made dishes and meals
- Industry code: 10790 – Industry name: Manufacture of other food products not classified elsewhere
- Industry code: 10401 – Industry name: Manufacture and packaging of vegetable oils and fats
- Industry code: 10409 – Industry name: Processing and preserving other vegetable oils and fats
- Industry code: 10204 – Industry name: Processing and preserving fish and fish products
Currently, we are negotiating the sale of our products, such as instant noodles and pho, to a partner in Myanmar for export. Due to market demand, we intend to export some specific products separately, including: pressed noodles, pressed pho, spices (in powder or paste form), oil, and vegetables in two forms: packed in 5-15 kg boxes and pre-packaged in small 1g-50g packets. Details of the products are as follows:
- Product name: Pressed noodles, pressed pho / HS code: 19023040 & 19023090 / Packaging: 5-15 kg boxes
- Product name: Spices (in powder or paste form) / HS code: 21039040 / Packaging: Small 1-50g packets or 5-15 kg boxes
- Product name: Oil / HS code: 15179069 / Packaging: Small 1-50g packets or 5-15 kg boxes
- Product name: Vegetables / HS code: 07129090 / Packaging: Small 1-50g packets or 5-15 kg boxes
According to Circular No. 08/2013/TT-BCT (dated April 22, 2013) and Circular No. 34/2013/TT-BCT (dated December 24, 2013), foreign-invested enterprises are only allowed to export goods for which export rights have been granted. Therefore, on January 7, 2016, we sent official letter No. 21/2016/AV-HCM to the Ho Chi Minh City Customs Department to seek guidance on procedures. Specifically, we would like to know:
Based on the industry sectors specified in our investment license (we have attached the investment license for the Ho Chi Minh City Customs Department’s reference), are we allowed to export the aforementioned products?
However, on January 13, 2016, we received a response from the Ho Chi Minh City Customs Department, which referred us to the provisions of Circular No. 08/2013/TT-BCT (dated April 22, 2013) and Circular No. 34/2013/TT-BCT (dated December 24, 2013) for our reference. The response did not provide a clear answer to our specific question. Therefore, through the business dialogue portal, we are sending this letter to the Ho Chi Minh City Customs Department to request a clearer response so that we can proceed with and finalize the export contract with our partner.
Answer:
Pursuant to Clause 3, Article 3, Decree No. 23/2007/ND-CP dated February 12, 2007, of the Government, it is stated: “3. The right to export is the right to purchase goods in Vietnam for export, including the right to be named on the export declaration for the purpose of carrying out and taking responsibility for export-related procedures. The right to export does not include the right to organize a network for purchasing goods in Vietnam for export, except in cases where Vietnamese law or international agreements to which the Socialist Republic of Vietnam is a party provide otherwise.”
Based on Clause 1, Article 3, Circular No. 08/2013/TT-BCT dated April 22, 2013, of the Ministry of Industry and Trade, it states: “1. Foreign-invested enterprises that have been granted export rights are allowed to purchase goods in Vietnam for export, including goods imported into Vietnam by the enterprises themselves or other enterprises, provided that they have fulfilled tax and financial obligations, under the following conditions:
a) The exported goods must not be on the list of goods prohibited from export, the list of temporarily suspended exports, or the list of goods not eligible for export as committed in international agreements.
b) The exported goods must comply with the conditions stipulated by the law.
c) The exported goods must be in accordance with the export commitment schedule.
d) The exported products must be appropriate to the content of the enterprise’s granted export rights.”
Based on the above provisions, if the company purchases goods in Vietnam for export, it must be granted export rights. For products that the company manufactures itself and are not subject to export restrictions, export rights must still be granted.
