I. GENERAL PROVISIONS

1. The provisions of this Circular shall apply only to the business of temporary import for re-export and transiting of cars and cigarettes into the Chinese market (excluding Hong Kong and Macao special administrative zones).

2. Goods re-exported or transported across border into Chinese market are goods which the sellers have the obligations to deliver at border-gates on the Vietnam-China border (including international railway border-gates) or at China�s sea-ports, or which are transported to such places by transport means hired under the buyers� authorization.

3. The payment for goods purchase and service charges by the above-said modes of temporary import for re-export or transiting as mentioned above must be effected via banks in accordance with the provisions of the State Bank.

4. Cases falling beyond the regulation scope of this Circulars shall comply with the provisions of the "Regulation on business by mode of temporary import for re-export", or the "Regulation on business by mode of transiting", issued together with Decision No. 1311/1998/QD-BTM of October, 31, 1998 of the Minister of Trade.

II. SPECIFIC PROVISIONS

1. Enterprises which have already been permitted by the Ministry of Trade to do the business of temporary import for re-export and/or transiting of cars and cigarettes into the Chinese market may continue their business with these two goods items.

2. Enterprises importing for re-export or transiting cigarettes shall have to produce import permits granted to the importers by Chinese competent agencies, so that the Ministry of Trade shall have grounds for granting permits for the temporary import for re-export and/or transiting thereof.

3. Enterprises shall not be allowed to import for re-export or transit used cars.

4. Transited goods shall be transported in and out of Vietnam only by sea, the customs procedures for their import into and export out of Vietnam shall not be carried out.

5. Goods temporarily imported for re-export may be re-exported by sea or by land; if the land transport is chosen, they must be transported through international or national border-gates agreed upon by the two Governments.

6. Time for goods temporarily imported for re-export or transited goods to be on the Vietnamese territory shall be 60 days as from the date of completion of import procedures at customs offices (for goods temporarily imported for re-export) or as from the date when goods are officially subject to customs supervision (for transited goods). In cases where there is a need to keep such goods on the Vietnamese territory for more than 60 days, such must be permitted by the Ministry of Trade.

7. Other provisions shall comply with the Regulation on business by modes of temporary import for re-export or transiting, issued together with Decision No. 1311/1998/QD-BTM of October 31, 1998 of the Minister of Trade.

III. IMPLEMENTATION PROVISIONS

1. This Circular takes effect 15 days after its signing.

2. Every three months, enterprises engaged in the business of temporary import for re-export and/or transiting of car and cigarette commodities into Chinese market shall report on the implementation thereof to the Ministry of Trade, so that the latter shall consider, synthesize and report the situation to the Prime Minister.

For the Minister of Trade
Vice-Minister
MAI VAN DAU