Currently, there is no specific concept of a contract for the delivery of goods to a foreign trader, so it is still included in the general provisions of the processing contract in accordance with the provisions of the Civil Code 2015 and more specifically the In accordance with the provisions of the processing of goods in commerce, it can be understood that a goods processing contract for a foreign trader is an agreement between the parties, whereby the processor performs work to create products at the request of the ordering party, and the ordering party accepts the products and pays wages as prescribed in Article 542 of the Civil Code 2015. DHP LAW will clarify some characteristics of the Contract. processing goods for foreign traders as follows:
Regarding contract classification:
This is a commercial activity, a transaction between merchants, so this is a Commercial Contract.
About the subject:
A party to a transaction must be a foreign trader, and according to the provisions of Article 16 of the Commercial Law 2005 , a foreign trader is a trader established and registered for business in accordance with the laws of the country. foreign or recognized by foreign law. Foreign traders may set up representative offices and branches in Vietnam; established in Vietnam foreign-invested enterprises in the forms prescribed by Vietnamese law. Foreign-invested enterprises established in Vietnam by foreign traders in accordance with Vietnamese law or international treaties to which the Socialist Republic of Vietnam is a contracting party are considered Vietnamese traders. Male.
About content:
Commercial processing is a commercial activity whereby the processor uses a part or all of the raw materials of the ordering party to perform one or more stages in the production process as required. of the outsourcing party to receive remuneration.
The form of the contract:
The processing contract must be made in writing or in another form with equivalent legal validity.
All types of goods can be processed, except for goods banned from trading.
In case of processing goods for foreign traders for consumption abroad, goods banned from business, export or import may be processed if so permitted by a competent state agency.
Processed goods must go through export and import procedures across Vietnam’s borders;
Payment method:
According to international payment methods such as: L/C letter of credit, TT wire transfer, MRT money transfer letter, …
Some other rights and obligations for processing such as:
The processor may receive processing remuneration in cash or in the form of processed products, machinery and equipment used for processing, if the processor receives processing remuneration in the form of processed products, machinery or equipment. If the equipment is used for processing, it must comply with import regulations for such products, machinery and equipment, or receive technology transfer in processing, etc.
About the form of processing:
Can Receive processing for foreign traders or Order goods to be processed abroad:
Processing goods for foreign traders: Traders, including foreign-invested traders, may process goods for foreign traders, except for goods on the List of goods banned from export or temporarily suspended from export. goods on the List of goods banned from import or temporarily suspended from import. For goods imported or exported under permits, traders may only sign contracts after they are licensed by the Ministry of Trade.
Order processing of goods abroad: Traders may order to process goods abroad that have been allowed to circulate on the Vietnamese market for business in accordance with the provisions of law. The export of machinery, equipment, raw materials, auxiliary materials and supplies for processing and the import of processed products must comply with regulations on export and import management. Contracts for ordering goods to be processed overseas and customs procedures for export and import of goods ordered for processing.
For support and advice on Business, Investment, Intellectual Property, Tax,… in the best way, please contact us with the following information:
DHP LAW
Address: L4-09.OT06 Landmark 4 Building Vinhomes Central Park, 720A Dien Bien Phu, Ward 22, Binh Thanh District, Ho Chi
Minh City
