DECISION No.864-TTg OF DECEMBER 30, 1995 OF THE PRIME MINISTER REGARDING THE POLICY ON COMMODITIES AND THE REGULATION OF IMPORT-EXPORT IN 1996

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to Decree No.33-CP of April 19, 1994 of the Government on State management of import-export activities;

At the proposal of the Minister of Trade and the Minister of Planning and Investment,

DECIDES:

Article 1.- To ratify the lists of commodities for export and import in 1996 according to the Appendices attached to this Decision:

- List of commodities banned from export and import (see Appendix 1).

- List of commodities controlled by quotas (see Appendix 2).

- List of commodities to be exported and imported under the Regulations of specialized branches (see Appendix 3).

- List of commodities concerning the major balances of the national economy (see Appendix 4).

Article 2.- To ratify the quotas and the mechanisms regulating the commodities belonging to the following list of commodities controlled by quotas in 1996:

1. On textiles and clothes exported under agreements Vietnam has signed with the EU, Canada, and Norway:

The Ministry of Trade shall make public the quotas reached under agreements Vietnam has signed with the EU, Canada and Norway.

The Ministry of Trade and the Ministry of Industry shall negotiate with the foreign partners to increase the quotas and the categories of commodity which Vietnam can produce, and grant the main quotas to textile and garment manufacturing establishments.

2. On rice export:

To assign the Ministry of Trade to carry out the following measures of regulation to ensure the export of 2 million tons of rice:

- The Ministry of Trade shall discuss with the Ministry of Agriculture and Rural Development and the Vietnam Union of Food Import-Export Enterprises to appoint at most 15 rice export enterprises and award 100% of rice export quotas to these enterprises.

- The quotas for rice export shall be awarded in 2 phases: export of 1.6 million tons of rice in Phase I from the beginning of the year to September 1996; the remaining quotas shall continue to be issued depending on the crop harvest. The Ministry of Trade shall consult with the Union of Food Import-Export Enterprises and the Ministry of Agriculture and Rural Development to grant the quotas directly to the export enterprises.

- The export of rice for payment of debts shall be carried out according to Decree No.40-CP on July 3, 1995 of the Government.

Article 3.- To issue regulations for the import of commodities concerning the major balances of the national economy:

1. On petrol and oil (except lubricants):

The mechanism of import control to ensure the import of about 5.4 million tons is as follows:

- To grant 100% of the quotas for petrol and oil import to the specialized enterprises, including about 60% to the Vietnam Oil and Gas Corporation.

- To grant all import quotas once for the whole year, and to consider adjustment it after 6 months.

2. On urea:

The Ministry of Trade shall organize the import of about 1.4 million tons of urea on the following principles:

- To assign the Agricultural Materials Corporation to import 40% of the volume needed and other qualified enterprises to import the rest in order to meet the demand of production in each region.

- The Ministry of Agriculture and Rural Development shall have to inform the Ministry of Trade of the quantity of fertilizer that must be imported in each cropping season, so that the Ministry of Trade may regulate the import.

3. On cement:

The Ministry of Trade shall have to organize the import of about 1.4 million tons of construction cement by assigning the National Cement Corporation to import 40% of the volume needed and other qualified enterprises to import the rest, so that in the first 6 months of the year they should fulfill about 60% of the import plan.

With regard to clinker and other materials for cement production, the Ministry of Trade shall have import promptly to meet the demand of production.

4. On sugar:

The Ministry of Trade shall have to regulate the import of sugar on the following principles:

- Discussing with the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development to determine the demand and regulate the import in order to satisfy market demand without affecting the domestic production of sugarcane and sugar.

- Assigning a number of qualified and experienced enterprises to import the major part of the volume needed, and other qualified enterprises to import the rest in order to meet the consumers' demand in each region.

5. On steel:

The Ministry of Industry shall discuss with the Ministry of Planning and Investment and notify the Ministry of Trade of the list of types of steel which the country is able to produce to meet the local market needs, so that the Ministry of Trade can organize the import of those types which the country is not yet able to produce, or of which domestic production has not yet met market demand.

The Ministry of Trade shall have to regulate the import on the following principles:

- Importing enough steel of those types which the country is not yet able to produce, including steel for specialized use and steel blocks, to meet the demands of the ministries, branches and localities for production, construction and trading.

- Consulting the Ministry of Planning and Investment and the Ministry of Industry in determining the demand for ordinary construction steel which should be imported; assigning the National Steel Corporation to import about 40% of the ordinary construction steel needed, and other qualified enterprises to import the rest.

Article 4.- Regulating the import of consumer goods:

The Ministry of Trade shall regulate the import of consumer goods on the following principles:

- Meeting social demand for consumer goods, ensuring the balance between money and goods, contributing to stabilizing prices and fighting inflation.

- Regularly monitoring the market situation and discussing with the Ministry of Finance to flexibly readjust tax rates to limit the import of nonessential goods or those items which the country has been able to produce enough with good quality.

- Importing a quantity of consumer goods equal to 20% of export earnings in 1996 (semi-finished products and components for finishing, processing and assembling are not included in this 20%).

- Making public the list of goods or categories of consumer goods which should be controlled in quantity or value to the enterprises to select and decide which to import.

- Regarding other consumer goods not included in the above-mentioned list, the Ministry of Trade shall allow the enterprises to import them according to the value of each category and to the business licence of the enterprises.

Article 5.- Regulating the import of cars, motorbikes and spare-parts:

1. Vehicles of various types: 20,000 units, including parts for assembling, of which 5,000 units have less than 12 seats.

a/ Vehicles of less than 12 seats shall be imported under the provision on the import of consumer goods in Article 4 of this Decision.

b/ Regarding other types of vehicles, those enterprises which are licensed to trade in the means of transport and are qualified shall be allowed to import them according to the quota mentioned in Point 1, Article 5, of this Decision.

2. Motorbikes: about 350,000 units, including parts for assembling; the mechanism for importing motorbikes is the same as that for importing consumer goods mentioned in Article 4 of this Decision.

3. Components for vehicles and motorbikes of various types:

a/ No limit is put to the quantity of components imported into Vietnam for the assembly of vehicles and motorbikes for export.

b/ Regarding the import of components for assembling vehicles and motorbikes for domestic consumption, the quantity of components imported shall be set in the total quota for the import of vehicles and motorbikes mentioned in Points 1 and 2, Article 5, of this Decision.

The Ministry of Finance shall discuss with the Ministry of Science, Technology and Environment and the branches concerned to rationally readjust the tax rates for the import of components for assembling with the aim of limiting the forms of simple assembly and encouraging the form of assembly with locally made components.

Article 6.- Regarding the commodities listed for control by the specialized branches, the Customs Office shall complete the procedure of export or import only after the enterprises concerned have complied with the guiding regulations of the Ministry or the managing agency in charge of that branch of commodities.

The regulations of the Ministries and the managing agency of the branch must be simplified to the minimum in conformity with the common policy of the Government for reforming administrative procedures; they are strictly banned from making arbitrary stipulations to cause difficulties to the enterprises.

The Ministries and the managing agency of the branch must discuss with the Ministry of Trade to issue the relevant regulations in January 1996.

Article 7.- Those businesses and enterprises which are qualified to conduct production and assembly are entitled to directly import (if they have been licensed to conduct import and export activities) or contract with other businesses to import raw materials and additives and components for production under current regulations.

Article 8.- The import of used technologies, production lines, machinery, equipment and working vehicles and machines must be conducted in accordance with the common criteria defined by the Ministry of Science, Technology and Environment.

Article 9.- The import of complete equipment and single equipment with the source of capital from the State budget shall be conducted according to the current decisions of the Prime Minister.

Article 10.- Regarding commodities not included in the lists enclosed with this Decision, those enterprises licensed to conduct import and export shall perform their function to satisfy the demand for production and consumption.

Article 11.- To assign the Ministry of Planning and Investment the task of discussing with the Ministry of Finance, the Government Pricing Commission, the Ministry of Trade, and the Ministries in charge of production to draft and submit to the Prime Minister for ratification the Regulation on the management of the Circulation Reserves Fund for petrol and oils, fertilizer, cement, and rice.

Article 12.- The cancellation of the procedure for granting licences for the export or import of each consignment of commodities shall comply with Decree No.89-CP of December 15, 1995 of the Government.

Article 13.- To assign the General Customs Department to draft the relevant regulations and improve the work-style of the Customs Departments in order to control and supervise the export and import of commodities to meet the Customs' requirement for control and the demand of export and import, while creating favorable conditions for the enterprises to step up export and import; to promptly supply the Ministry of Trade, the Ministry of Planning and Investment, the General Department of Statistics, and the Office of the Government with information on the situation and statistics on the export and import of each commodity of the branches and localities to help regulate export and import.

Article 14.- The Minister of Trade shall have to discuss with the other Ministries and branches concerned to issue documents to promptly give concrete guidance on the implementation of this Decision.

Article 15.- This Decision takes effect from January 1st, 1996 to March 31st, 1997. In the process of implementation, the Ministry of Trade shall listen and collect opinions from the Ministries, branches and localities, and report it to the Prime Minister for readjusting the commodity policy if necessary.

Article 16.- The Ministers, the Heads of ministerial-level agencies, the Heads of agencies attached to the Government, and the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decision.

For the Prime Minister,

Deputy Prime Minister,

PHAN VAN KHAI

APPENDIX 1

LIST OF COMMODITIES BANNED FROM EXPORT AND IMPORT IN 1996

(issued together with Decision No.864-TTg of December 30, 1995 of the Prime Minister)

I.- COMMODITIES BANNED FROM EXPORT

1. Weapons, ammunition, explosives, military technical equipment.

2. Antiques.

3. Narcotics.

4. Toxic chemicals.

5. Logs, sawn timber, laminated wood, firewoods and charcoal, wood products made from timber group IA and planks made from timber group IIA as included on the list issued together with Decree No.18-HDBT of January 17, 1992; semi-finished wood products, raw rattan.

6. Wild animals and rare and precious animals and plants.

II.- COMMODITIES BANNED FROM IMPORT

1. Weapons, ammunition, explosives, military technical equipment.

2. Narcotics.

3. Toxic chemicals.

4. Depraved and reactionary cultural products.

5. Firecrackers. Toys harmful to the education of children and social order and safety.

6. Cigarettes (except the set amount brought in as check-in belongings).

7. Used consumer goods (except vehicles of fewer than 12 seats, motorbikes, transferred property and a set amount of personal belongings).

8. Right-hand drive automobiles and other vehicles (including CKD components).

9. Used components of vehicles, motorbikes and side-cars.

Notes:

1. The export and import of the above-listed commodities, if required by national security and defense or other reasons, shall be conducted only with the Prime Minister's written permission and settled by the Customs Office.

2. The banning of the export and import of animals and plants as required by environmental protection shall comply with a separate document issued by the Ministry of Agriculture and Rural Development in consultation with the Ministry of Science, Technology and Environment.

3. After reaching agreement with the Ministry of Trade and the Ministry for Foreign Affairs, the General Customs Department shall make public a document guiding the implementation of the "property on the move" item mentioned in II.7.

4. The banning of the import of other used equipment (including spare-parts and components) shall comply with the guidance of the Ministry of Science, Technology and Environment.

APPENDIX 2

LIST OF COMMODITIES CONTROLLED BY QUOTAS IN 1996

(issued enclosed with Decision No.864-TTg of December 30, 1995 of the Prime Minister)

Export commodities:

- Rice

- Textiles and garments exported to the EU, Canada, and Norway.

APPENDIX 3

LIST OF COMMODITIES TO BE EXPORTED AND IMPORTED UNDER THE REGULATIONS OF SPECIALIZED BRANCHES

(issued together with Decision No.864-TTg of December 30, 1995 of the Prime Minister)

1. List of commodity mineral ores exported under the guidance of the Ministry of Industry.

2. List of forest plants and animals exported under the Regulations of the Ministry of Agriculture and Rural Development.

3. List of addictive drugs and substances, psychotropic substances, and raw substances. A number of machinery, equipment and instruments for treatment of patients imported under the Regulations of the Ministry of Health.

4. List of rare and precious aquaproducts, live aquaproducts for breeding, food and medicaments produced by aquaculture, exported and imported under the Regulations of the Ministry of Aquaproducts.

5. Wave-transmitting machines, wireless receiving and transmitting equipment; telephone exchanges imported under the Regulations of the General Post Office.

6. Cultural publications, art works controlled by the State, cinematographic productions, specialized printing equipment, and recorded video-tapes exported and imported under the Regulations of the Ministry of Culture and Information.

7. Specialized banking equipment and machines exported and imported under the Regulations of the State Bank.

Notes: A detailed list of the above-mentioned commodities shall be based on the lists issued together with Decree No.89-CP of December 15, 1995 of the Government.

APPENDIX 4

LIST OF COMMODITIES CONCERNING THE MAJOR BALANCES OF THE NATIONAL ECONOMY

(issued together with Decision No.864-TTg of December 30, 1995 of the Prime Minister)

1. Petrol and oils

2. Fertilizer

3. Cement

4. Sugar

5. Construction steel.-