JOINT CIRCULAR
Guiding the depositing/guarantee for implemen-tation of export textile and garment quotas
Pursuant to the Government's Decree No. 29/2004/ND-CP of January 16, 2004, defining the functions, tasks, powers and organizational structure of the Ministry of Trade;
Pursuant to the Government's Decree No. 55/2003/ND-CP of May 28, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Industry;
At the proposal of the Vietnam Textile and Garment Association,
The Ministry of Trade and the Ministry of Industry hereby jointly guide the depositing/guarantee for implementation of export textile and garment quotas as follows:
I. GENERAL PROVISIONS
1. Definitions
a/ Depositing for implementation of textile and garment quotas: Traders shall commit to implementing export textile and garment quotas by depositing a sum of money corresponding to the volume of registered or assigned quotas at the deposit level jointly set by the Trade Ministry and the Industry Ministry, into the Trade Ministry's custody account at the Hanoi State Treasury.
b/ Bank guarantee for implementation of textile and garment quotas: Traders shall submit to the Trade Ministry a bank's guarantee letter for the volume of registered or assigned quotas (which have not yet been used up) stating the guarantee amount as jointly set by the Trade Ministry and the Industry Ministry.
The form of bank guarantee letter shall be jointly stipulated and notified in detail by the Trade Ministry and the Industry Ministry.
2. Traders entitled to depositing and bank guarantee
Traders may participate in the production and export of textiles and garments subject to quota according to current regulations.
Traders may choose either or both of form(s) of depositing and/or bank guarantee for registration of implementation of quotas.
Regarding administration of textile and garment quotas, to supplement the regulations on inspection of the capability of new traders that have not yet been assigned or allocated or have not yet implemented export textile and garment quotas as follows: New traders must have at least 100 industrial sewing-machines or other machinery or equipment suitable to the requirements of production of products registered for export (with a written certification on machinery, equipment and textile and garment production capability, given by the inter-branch inspection team headed by the provincial/municipal Trade Service under Notice No. 0577/TM-DM of May 20, 2005).
II. REGULATIONS ON DEPOSITING AND BANK GUARANTEE IN ADMINISTERING TEXTILE AND GARMENT QUOTAS
1. Basing themselves on the export situation, the Trade Ministry and the Industry Ministry shall jointly publicize a list of goods categories and the levels of their deposit and guarantee money, serving as a basis for the payment of deposits and the application for bank guarantee.
2. The principles, volumes and modes of assignment and allocation of quotas in the forms of depositing and bank guarantee shall be notified jointly by the Trade Ministry and the Industry Ministry for each category at each specific time.
3. Quotas allocated in the form of payment of deposits and/or submission of guarantee letters may be used for the production and export of goods only, are non-transferable and entrusted export is disallowed.
4. Return of quotas and refund of deposit/bank guarantee money
4.1. Return of quotas
- For quotas with a term of 45 days or longer, within 10 days after paying the deposit and/or submitting the bank guarantee letter or after being allocated quotas according to deposit and/or bank guarantee, traders that are incapable of exporting or implementing assigned quotas as committed shall have the whole deposited amount refunded and/or the bank guarantee letter released if they send official letters on returning quotas to the Trade Ministry.
- At least 60 days before the expiration of the term of quotas or before the last day of goods delivery stipulated in quotas (depending on which date comes first), traders may return all or part of the quotas allocated in the form of depositing and/or bank guarantee but shall be fined by the Trade Ministry an amount equal to 20% of the value of the deposit or bank guarantee money amount for the returned quota volume. The returned quota volume shall be used for assignment and allocation according to general regulations.
4.2. Refund of deposit and bank guarantee money
a/ For traders that have fulfilled the assigned quotas:
Traders that have implemented 95% or more of quotas allocated by mode of depositing and/or bank guarantee within the effective duration of quota assignment notices shall be regarded as having fulfilled the quotas and have the deposit principal fully refunded and/or the bank guarantee letter released.
b/ For traders that have not yet used up quotas:
By the end of the effective time limit of quota assignment notices:
+ If traders have implemented less than 50% of quotas allocated by mode of depositing and/or bank guarantee, the Trade Ministry shall not refund all the principal deposit and/or shall request the guaranteeing bank to transfer the whole guarantee money amount to its account.
+ If traders have implemented between 50% and under 95% of quotas allocated by mode of depositing and/or bank guarantee, the Trade Ministry shall refund part of the deposit corresponding to the volume of implemented quotas and/or request the guaranteeing bank to transfer the money amount corresponding to the volume of quotas not yet implemented by traders into an account designated by the Ministry.
All amounts collected from traders' non-compliance with regulations shall be remitted into the state budget.
5. The Trade Ministry and the Industry Ministry shall jointly sum up the implementation of quotas by these modes and base themselves on the actual production/business situation in each period to make necessary and appropriate adjustments by issuing guiding documents or specific notices.
This Joint Circular takes effect 15 days after its publication in "CONG BAO" but shall cease to be effective if the Prime Minister does not permit its implementation, even when it has been published in "CONG BAO."