Joint Circular No. 03/2007/TTLT-BTM-BCN dated February 28, 2007 of the Ministry of Trade and the Ministry of Industry guiding the monitoring of garment and textile export to the US market
THE MINISTRY OF TRADE -
THE MINISTRY OF INDUSTRY
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, February 28, 2007
GUIDING THE MONITORING OF GARMENT AND TEXTILE EXPORT TO THE US MARKET
Pursuant to the Government's Decree No. 12/2006/ND-CP of January 23, 2006, detailing the implementation of the Commercial Law regarding international goods sale and purchase and activities of goods sale and purchase agency, processing and transit with foreign countries;
Pursuant to current regulations on management of goods import and export;
In furtherance of the Prime Minister's instructions in Document No. 14/VPCP-QHQT of February 14, 2007, on the program on the monitoring of garment and textile export to the US market;
At the proposal of the Vietnam Textile and Apparel Association (hereinafter called the Association for short);
The Ministry of Trade and the Ministry of Industry (hereinafter called the two ministries for short) provide guidance on the monitoring of export of some categories of textiles and garments into the US market as follows:
I. GENERAL PROVISIONS
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1. Purposes of implementation:
- To well manage the process of export growth, establish export markets with sustainable development, ensure long-term benefits for textile and garment exporters, and prevent illegal transshipment and trade frauds.
- To increase the added value of exports, reduce shipments of goods of simple designs, cheap raw materials, unpopular brand names and low export unit prices.
- To raise the confidence of big importers and importers with well-known brand names and encourage customers with large orders.
Pending the connection of the electronic networks between the Trade Ministry and the General Department of Customs, the two ministries shall temporarily grant export licenses (called E/L for short) for a number of categories of textiles and garments exported to the US.
2. Categories requiring licenses and licensing agencies:
The Trade Ministry (through its authorized regional import and export management bureaus) shall grant E/L for some categories of textiles and garments exported to the US in accordance with Notice No. 0616/BTM-DM of December 29, 2006.
The two ministries may adjust these categories and switch to conduct monitoring by HS codes and categories when conditions permits.
3. Subjects to be granted E/L:
To be granted E/L, traders must satisfy the following conditions:
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3.1. Having the business registration certificate or investment license under the Law on Foreign Investment in Vietnam, having registered import/export business codes.
3.2. Traders capable of producing textiles and garments but having no manufacturer identification (MID) codes shall register with regional import and export management bureaus in order to be granted those codes.
When registering for a MID code, a trader shall produce the minutes on the inspection of its production capacity, made by an inter-branch inspection team (headed by the provincial/municipal Trade Service or Trade and Tourism Service) of the locality where its production establishment is located. The regional import and export management bureau shall send a copy of this minutes to the Trade Ministry.
3.3. A commercial trader incapable of producing textiles and garments must have a contract with a production establishment and declare the name and MID code of the producer of their exported goods when making export registration.
The two ministries request traders to access the Trade Ministry's website at www.mot.gov.vnevery day in order to update constant developments of the textile and garment industry and follow the two ministries' guidance.
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