The 4th draft of the Decree on strategic trade control for dual-use goods introduces several important updates on licensing procedures, internal compliance programs, and inter-ministerial management responsibilities.
1.Structure of the Draft Decree:
The 4th draft consists of 4 Chapters, 17 Articles, and 6 Annexes, including:
- 4 Chapters:
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- Chapter I: General Provisions.
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- Chapter II: Export, temporary import for re-export, transit, transshipment, and border-gate transfer of dual-use goods.
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- Chapter III: Internal Compliance Program (ICP).
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- Chapter IV: Implementation and enforcement provisions.
- 6 Annexes:
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- Annex I: List of dual-use goods subject to licensing for export, temporary import for re-export, transit, transshipment, and border-gate transfer.
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- Annex II: Application form for a license to export, temporarily import for re-export, transit, transship, or transfer dual-use goods.
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- Annex III: Report form on the implementation of granted licenses.
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- Annex IV: Periodic report form on activities involving dual-use goods.
2. Key Highlights
a. What are dual-use goods?
Dual-use goods are items commonly used for civilian purposes but that may be applicable in military contexts or used in the development, production, or use of weapons of mass destruction.
b. Competence of Relevant Ministries and Agencies:
The Ministries assigned to take the lead shall coordinate with the Ministry of National Defence, Ministry of Public Security, Ministry of Finance, and Ministry of Foreign Affairs to jointly issue the List of Dual-Use Goods and carry out declaration approvals.
The assigned Ministries and the types of goods under their management include:
- Ministry of Science and Technology: Radioactive materials and nuclear equipment; electronics; computers; telecommunications, sensors, and lasers.
- Ministry of Construction: Aviation; maritime.
- Ministry of Health: Biological agents causing human diseases and toxins (viruses, bacteria, fungi, toxins).
- Ministry of Industry and Trade: Chemicals; metals and alloys; unmanned vehicles (UAVs).
c. Licensing of Dual-Use Goods:
- Traders engaged in the export, temporary import for re-export, transshipment, transit of dual-use goods must obtain a license.
- Types of licenses:
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- Shipment-based license: Valid for 03 months from the date of signing.
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- Term-based license: Valid for 12 months, not limited in quantity; issued only to traders certified as participating in the Internal Compliance Program.
- The licensing dossier includes application forms, undertakings as prescribed, and relevant documents.
- Competent authority:
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- If the dossier is incomplete, the authority must notify within 05 working days for supplementation.
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- If opinions from other Ministries are needed: Request must be sent within 05 working days; relevant Ministries shall respond within 07 working days.
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- A decision to grant or deny the license shall be made within 10 working days from receipt of a complete dossier or from receipt of relevant responses.
Read more: What is customs clearance? Import export customs clearance procedures.
d. Regulations on Internal Compliance Program (ICP):
- Enterprises shall develop and implement an Internal Compliance Program to ensure strategic trade control in accordance with legal regulations.
- After 02 years of implementation and confirmation by the Ministry of Industry and Trade of compliance with the Internal Compliance Program, enterprises may be considered for issuance of a term-based license valid for 12 months as prescribed.
e. Responsibilities of Ministries and Ministerial-Level Agencies:
- Ministry of Industry and Trade: Develop the list, issue licenses, monitor compliance, and conduct public communication on dual-use goods.
- Ministry of Science and Technology, Ministry of Health, Ministry of Construction: Manage lists and issue licenses for dual-use goods in their respective areas.
- Ministry of Finance: Issue HS codes, direct the General Department of Customs on control, conduct staff training, and promote international cooperation.
- State Bank of Vietnam: Financial control and prevention of financing for weapons of mass destruction.
- Ministry of Foreign Affairs: Conduct international exchanges on dual-use goods subject to control.
- Ministry of National Defence: Develop lists of organizations/individuals related to the proliferation of weapons of mass destruction.
(According to Fourth Draft Decree on Strategic Trade Control of Dual-Use Goods)
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