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Official Gazette

Friday, June 9, 2023

Roadmap to eliminate unofficial-quota border trade set forth

Updated: 14:53’ - 08/04/2023
The Ministry of Industry and Trade (MOIT) is working on a draft decree revising Decree 14 of 2018 on border trade, with a view to boosting cross-border export of goods via official channels, reducing risks in unofficial-quota trade while preventing the abuse of the trade and exchange of goods between border residents for tax evasion purposes.

Worthy of note, the MOIT sets out a specific roadmap to gradually reduce unofficial-quota and promote official-quota trade of goods across the border.

Under current regulations, a Vietnamese border resident may enjoy duty exemption for goods traded or exchanged across the border within the limit of VND 2 million per day for at most four times per month. From 2025, a new duty-free allowance lower than the above-said threshold would be applied and border residents would be required to carry out exit procedures concurrently with import/export procedures for their goods.

In addition, from 2025, all goods exported across the border, including also goods traded and exchanged by border residents, must meet quality standards and traceability requirements of importing countries.

From 2026, export procedures for items licensed for export to China via official channels would only be carried out at international border gates, main border gates (bilateral border gates) and secondary border gates or border crossings opened for cross-border trade and exchange of goods under Vietnam-China bilateral agreements.

From 2027, the import and export of goods via border gates and border crossings for which no bilateral agreement is reached would be suspended.

From 2028, authorities at all border gates and border crossings between Vietnam and China would carry out export procedures only for goods already exported to China via international border gates and main border gates.

The list of secondary border gates and border crossings opened for cross-border trade and exchange of goods of each border province would be decided by the provincial People’s Committee after reaching agreement with the MOIT and other related ministries.- (VLLF) 

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