Commercial Agency for Foreign Traders

I. Traders acting as agents for purchase and sale of goods for foreign traders

• Traders are permitted to act as agents for the purchase and sale of various types of goods for foreign traders, except for goods on the List of banned exports, suspended exports, and goods on the List of banned imports, suspended imports. For goods exported or imported under a license, traders may only sign agency contracts after being granted a license by the competent managing ministry or ministerial-level agency.
• In cases where the law specifically stipulates that an agent may only enter into an agency contract with one principal for a certain type of goods or services, the trader must comply with such provisions of law.
• Traders acting as purchasing agents must request foreign traders to transfer funds in freely convertible foreign currencies through a bank to purchase goods in accordance with the agency contract.
• Traders acting as purchasing agents are responsible for registering, declaring, and paying taxes and other financial obligations related to the goods under the purchase and sale agency contract and their business activities in accordance with the provisions of law.

II. Tax obligations

• Goods under commercial agency contracts for purchase and sale with foreign traders shall be subject to taxes and other financial obligations in accordance with the provisions of Vietnamese law.
• Vietnamese traders are responsible for registering, declaring, and paying taxes and other financial obligations related to the goods under the purchase and sale agency contract and their business activities in accordance with the provisions of law.

III. Export and import procedures for goods under agency contracts

Goods under commercial agency contracts for purchase and sale with foreign traders, when exported or imported, must undergo procedures in accordance with the regulations applicable to exported and imported goods as stipulated in this Decree.

IV. Return of goods

Goods under sales agency contracts in Vietnam for foreign traders may be re-exported if they cannot be consumed in Vietnam. Tax refund shall be implemented in accordance with the regulations of the Ministry of Finance.

V. Hiring foreign traders as sales agents abroad

• Vietnamese traders may hire foreign traders to act as sales agents for various types of goods abroad, except for goods on the List of banned exports and suspended exports.
• Traders hiring sales agents abroad must sign agency contracts with the foreign traders and must remit the proceeds collected from the sales contracts back to the country in accordance with regulations on foreign exchange management and the guidelines of the State Bank of Vietnam.
• In cases where payment for sales is received in the form of goods, traders must comply with current legal provisions on the importation of goods.

VI. Tax obligations

• Goods under sales agency contracts abroad shall be subject to taxes and other financial obligations in accordance with the provisions of Vietnamese law.
• Traders are responsible for registering, declaring, and paying taxes, and fulfilling other financial obligations related to the activity of hiring foreign traders as sales agents abroad in accordance with the guidelines of the Ministry of Finance.

VII. Repossession of goods

• Goods exported under sales agency contracts abroad may be imported back into Vietnam if they cannot be consumed abroad.
• Re-imported goods into Vietnam as specified in Clause 1 of this Article shall be exempt from import duties and shall be eligible for an export tax refund (if any) in accordance with the guidelines of the Ministry of Finance.
• Goods exported under sales agency contracts abroad, when exported or re-imported into Vietnam in accordance with the provisions of this Article, must undergo procedures regulated for exported and imported goods as stipulated in this Decree.