The increase in the number of goods entering and leaving customs gates today requires the application for licenses to be done quickly, promptly, and save time for businesses and relevant agencies to handle import and export activities. So what does an import and export license mean? Why do businesses need to apply for an import-export license How does the procedure for applying for an import and export license take place? Let’s find out with Vietnam-US Accounting Law through this article!

1. What does an import-export license mean?

An import and export license means a document that is intended to prove the legality of the transfer of domestic or foreign goods and services into and out of customs gates for the purpose of commercialization. It could be domestic goods for exchange and trade with other countries in the world. This document is related to a certain commodity that is certified as meeting standards to be able to be exported or imported by many different routes and means of transport.

2. In which cases are import licenses and export licenses granted?

According to Decree No. 69/2018/ND-CP and the Law on Foreign Trade Management, Vietnamese traders are entitled to carry out export and import activities and perform other related activities regardless of the business line.

Except for goods in the following categories:

– List of prohibited exports and imports according to the provisions of the Decree

– List of prohibited exports and imports according to the provisions of the Law

– List of temporarily suspended exports and temporarily suspended imports according to regulations

For goods exported/imported under a license, the unit conducting the activity must have a license issued by the relevant Ministry or ministerial-level agency.

For goods exported/imported under conditions, the enterprise conducting the activity must ensure the conditions according to the provisions of the Law.

Only then can units obtain appropriate import/export licenses for their businesses.

3. Current types of import-export licenses

Exchange, trade, export of surplus goods increases profits and import of goods that are not available or lacking domestically, this is one of the most prominent features of the market economy, integration and development as it is today. But besides that, the goods that are exported and imported always have goods that are not allowed to be exported and imported, for example, products that are unstable in the economic and social situation such as guns, etc. In order to control dangerous problems that can occur at any time, the law has regulations when granting import-export licenses for each product. For each type of product, there are specific standards and conditions when granting import-export licenses.

There are some prominent import-export licenses that can be mentioned immediately, such as: petroleum import-export business license, scrap import-export license, drug import-export license, etc.

For example, for petroleum import-export business license, the first requirement when granting a business license is not only the basic conditions but also the types of documents and procedures related to measures, transportation conditions, etc.

For drug import-export licenses, it is necessary to ensure the list of permitted drugs, and it is not allowed to import or export prohibited drugs, which pose a great danger to human life and property.

4. What documents are required for an import-export license application?

The application for an import-export license includes:

– Business registration certificate;

– Certificate of origin for imported and exported goods;

– Commercial invoices related to the transaction of those goods;

– Freight bill;

– Order payment confirmation;

– Commercial contracts on the supply of goods between the parties in the transaction.

5. Procedure for applying for an import-export license in 2024

The process of granting import-export licenses is as follows:

– The enterprise shall submit a set of documents as prescribed in Section 4 directly or by post or online (if applicable) to the ministry or ministerial-level agency competent to grant import-export licenses.

– In case the dossier is not complete, in accordance with regulations or requires additional explanatory documents, within 3 working days from the date of receipt of the dossier, the ministry or ministerial-level agency shall notify the trader to complete the dossier.

– Except in cases where the law has other provisions on the time limit for granting licenses, within a maximum of 10 working days from the date of receipt of the complete and in accordance with regulations, the ministry or ministerial-level agency shall reply to the trader in writing.

– In cases where the law stipulates that the ministry or ministerial-level agency with the authority to issue a license must consult with relevant agencies, the time limit for processing the application shall be calculated from the time of receiving the response from the relevant agency.

– Issuance of amendments, supplements to licenses, and re-issuance of licenses due to loss or damage shall be carried out according to the following principles:

+ Traders shall only submit documents related to the content that needs to be amended or supplemented.

+ The time limit for issuance of amendments, supplements, and re-issuance shall not be longer than the time limit for issuance of export or import licenses.

+ In case of refusal to amend, supplement, or re-issue a license, the ministry or ministerial-level agency shall issue a written reply stating the reasons.

6. List of imported and exported goods managed under import-export licenses

6.1. List of imported goods managed under import licenses

The list of imported goods managed under import licenses includes:

– Goods subject to import control according to the provisions of international treaties to which Vietnam is a member, announced by the Ministry of Industry and Trade for each period.

– Goods subject to automatic import licensing: The Ministry of Industry and Trade announces the list of goods subject to automatic import licensing for each period and organizes licensing according to current regulations on licensing.

– Goods subject to tariff quotas: Salt, Raw tobacco, Poultry eggs, Refined sugar, raw sugar.

– Industrial precursors.

– Explosive precursors, industrial explosives.

– Raw gold.

6.2. List of exported goods managed under export licenses

The list of exported goods managed under export licenses includes:

– Industrial precursors.

– Explosive precursors, industrial explosives.

– Types of goods exported under quotas prescribed by foreign countries (announced by the Ministry of Industry and Trade in accordance with international agreements or commitments between Vietnam and foreign countries).

– Goods subject to export control under the provisions of international treaties to which Vietnam is a member, announced by the Ministry of Industry and Trade for each period.

– Goods subject to automatic export licensing regime: The Ministry of Industry and Trade announces the list of goods subject to automatic export licensing regime for each period and organizes licensing according to current regulations on licensing.

– Drugs subject to special control.

– Pharmaceutical ingredients are psychotropic substances, addictive substances, and precursors used to make drugs.

– Medicinal herbs on the list of precious, rare, and endemic medicinal herbs that must be controlled.

– Raw gold.

Thank you for taking the time to read the article of Viet My Law and Accounting. We hope that the article will help readers better understand the process of applying for an import-export license. In addition, if you encounter any problems or difficulties in the process of import-export procedures, you can choose Viet My Law and Accounting as your companion. Viet My Law and Accounting Company has a team of experienced, honest, dedicated staff who put the interests of customers first. We are committed to monitoring and resolving to ensure that goods arrive safely in the fastest time and at the most reasonable cost for customers. Please contact Viet My immediately whenever you need to experience the best quality of service.