IMPORT-EXPORT RIGHTS AND DISTRIBUTION OF GOODS BY FDI ENTERPRISES IN VIETNAM: PROHIBITED ITEMS

An increasing number of foreign investors are seeking to establish FDI enterprises in Vietnam, aiming to engage in import and export activities. However, many may not be fully informed about the legal regulations governing the importation, exportation, and distribution of goods in the country. What goods are permissible for import and export, and which items are prohibited? This article provides comprehensive insights into the prohibited goods as stipulated by Vietnamese law.

Import-Export and Distribution rights of FDI enterprises

FDI enterprises are entitled to import, export, and distribute the following categories of goods:

Export rights

FDI companies are authorized to export goods that are not listed in Appendix 01 of Circular No. 34/2013/TT-BCT, including:

Petroleum oils and oils obtained from bituminous minerals, crude:

  • Crude petroleum

  • Condensate

  • Other

Import rights

FDI companies are granted the right to import goods not listed in Appendix 02 of Circular No. 34/2013/TT-BCT as follows:

Cigars, cheroots, cigarillos, and cigarettes, of tobacco or of tobacco substitutes:

  • Cigars, cheroots, and cigarillos made from tobacco.

  • Cigarettes made from tobacco: Beedies cigarettes; Cigarettes containing ingredients from clove or other types; Cigars, cheroots, cigarillos / cigarettes made from tobacco substitutes.

Processed tobacco leaves and other processed tobacco substitutes; homogenized or reconstituted tobacco; tobacco extracts and essences.

  • Tobacco leaves for smoking, with or without tobacco substitutes in any proportion: Tobacco used for water pipes; Other types: Packed for retail sale (Ang Hoon, etc.), other processed tobacco leaves for cigarette production, etc.

Oils derived from petroleum and oils obtained from bituminous minerals, excluding crude oil; preparations not specified elsewhere, containing 70% or more by weight of petroleum oils or oils obtained from bituminous minerals, where these oils form the basic components of the preparations; waste oils:

  • Light oils and preparations: Motor gasoline (RON 97 and higher, leaded or unleaded; RON 90 and higher but below RON 97, leaded or unleaded; Other types, leaded or unleaded); Aviation gasoline, except for jet fuel; Tetrapropyl; White spirit; Solvent with aromatic content below 1% by weight; Other light solvents; Naphtha, reformate, and other preparations for motor gasoline blending; Alpha olefins; Other types.

  • Other types: Crude oil stripped of light fractions; Raw materials for black carbon production; Lubricating oils and greases (Refined mineral oil for producing lubricating oil, Lubricating oil for aircraft engines, Other lubricating oils, Lubricating grease); Oil for hydraulic brake systems; Transformer oil and oil for circuit breakers; Diesel fuel; Fuel oils (Automotive diesel fuel, Other diesel fuel, Fuel oil); Aircraft engine fuel (jet fuel) with a flashpoint of 23°C or higher; Aircraft engine fuel (jet fuel) with a flashpoint below 23°C.

Specialized newspapers, magazines, and periodicals, with or without illustrations or containing advertising content:

  • Issued at least four times per week.

  • Other types: Educational, technical, scientific, historical, or cultural magazines and periodicals and others.

Discs, tapes, and other sound recordings or other similarly recorded phenomena, including molds and master copies (matrices) for producing tapes, discs…

  • Video tapes; Computer tapes; Types for cinematic films; Types suitable for computers; Types used for copying scripts, data, sound, and images, recorded in binary format for machine readability, and can be operated or interacted with users through an automatic data processing machine, formatted storage media (recorded), and other types.

Other flying machines (e.g., helicopters, airplanes); spacecraft (including satellites) and suborbital and space launch vehicles:

  • Helicopters: Empty weight not exceeding 2,000 kg; Empty weight over 2,000 kg.

  • Airplanes and other aircraft, empty weight not exceeding 2,000 kg; Empty weight over 2,000 kg but not exceeding 15,000 kg.

  • Parts such as: Propellers and rotors and their parts; Landing gears, wheels, and their parts; Other parts of airplanes or helicopters; Other types (Telecommunications satellite parts, balloons, gliders, or kites, etc.).

Distribution rights

FDI companies are granted the right to distribute goods not listed in Appendix 03 of Circular No. 34/2013/TT-BCT as follows:

  • Rice

  • Sugar from cane or beets

  • Tobacco and cigars (Cigars, cheroots, cigarillos, and cigarettes made from tobacco or tobacco substitutes; Processed tobacco leaves and other processed tobacco substitutes; homogenized or reconstituted tobacco; tobacco extracts and essences).

  • Crude oil and processed oil (Petroleum oils and oils obtained from bituminous minerals, crude; Oils derived from petroleum and oils obtained from bituminous minerals…).

  • Pharmaceuticals (Medicines are substances or mixtures of substances used for humans for the purpose of disease prevention, treatment, diagnosis, or adjustment of physiological functions, including finished drugs, drug ingredients, vaccines, and biological products, excluding functional foods).

  • Explosives (Propellant powders; Prepared explosives, excluding propellant powders; Safety fuses, detonating fuses, igniters, or detonators, detonating devices, electric detonators).

  • Books, newspapers, and magazines (Printed books, brochures, booklets, and similar printed matter, in single sheets or not; Newspapers, specialized magazines, and periodicals, with or without illustrations or containing advertising content; Books, pictures, painting books, or coloring books for children).

  • Precious metals and stones (Diamonds, whether or not worked, but not mounted or set; Other precious stones (except diamonds), synthetic or reconstructed semi-precious stones, whether or not worked or graded but not strung, mounted, or set; precious stones (except diamonds)…; Silver or Gold (including silver plated with gold or platinum) unwrought or in semi-manufactured forms or in powder form; Platinum, unwrought or in semi-manufactured forms, or in powder form; including only silver or gold plated with platinum, unwrought beyond semi-manufactured forms; Coins).

  • Items recorded on all types of media (List of software and hardware products, electronics as prescribed by the Ministry of Information and Communications except where permitted by law; Security, cultural, social, political products… as prescribed by the Ministry of Culture, Sports, and Tourism except where permitted by law).

When are import-export prohibition measures applied?

According to the 2017 Law on Foreign Trade Management, export prohibition measures are applied when goods fall into one of the following cases:

  • Related to national defense, security, and not yet permitted for export by a competent state agency.

  • Protection of relics, antiquities, and national treasures under the provisions of the law on cultural heritage.

  • According to international treaties to which the Socialist Republic of Vietnam is a member.

Additionally, the 2017 Law on Foreign Trade Management stipulates the application of import prohibition measures when goods fall into one of the following cases:

  • Related to national defense, security, and not yet permitted for import by a competent state agency.

  • Harmful to the health and safety of consumers.

  • Adversely affecting public order, social safety, morality, or customs.

  • Harmful to the environment, biodiversity, carrying a high risk of harmful organisms, threatening food security, production, and export of Vietnam, infringing on intellectual property rights.

  • According to international treaties to which the Socialist Republic of Vietnam is a member.

(Information in this article is referenced from Legal Library)

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