A.D.A Company Limited (HCMC) operates in the field of import and export. The company orders from overseas manufacturers and then supplies them to domestic customers.

Because domestic customers are entitled to preferential import tax policies, customers request to carry out import clearance procedures by themselves, bearing their names on the customs declaration. When the Company pays overseas suppliers, the bank informs the Company that it must provide a customs declaration in the Company's name but this is not possible.

A.D.A Co., Ltd. has provided the bank with a set of documents including purchase contract with the foreign supplier, invoice of the foreign supplier, contract with the domestic customer in which customer was clearly indicated that the domestic customer did the import procedures, confirmation from the bank that the domestic customer had paid for the Company, the customs declaration was in the name of the customer of the Company. However, the bank has still disagreed.

Through the receipt and reply system to businesses recommendations, A.D.A Co., Ltd. proposed to provide regulations on this case because this sale is very popular nowadays.

In this regard, the State Bank of Vietnam replied as follows:

Article 16 of Decree No. 70/2014/ND-CP dated July 17, 2014, detailing the implementation of several provisions of the Ordinance and the amended Ordinance on Foreign Exchange stipulates: “Authorized credit institutions and other organizations eligible to perform foreign exchange activities when conducting foreign exchange transactions are responsible to examine, review and keep any relevant document and record during actual transactions to ensure that the supply of foreign exchange services serve the right purpose and comply with legal regulations”.

Clause 2, Article 4 of Decree No. 70/2014/ND-CP stipulates: “Residents, non-residents are responsible to submit required documents as regulated by credit institutions upon purchase, transfer and carry of foreign currency overseas to perform current transactions as well as take legal responsibility for the authentication of these documents provided for authorized credit institutions”.

According to the above legal provisions, the regulation of documents when making overseas payments falls under the jurisdiction of the bank where the transaction is performed and the customer is responsible to present the documents following the bank's regulations.

Therefore, A.D.A Co., Ltd. needs to work and unify with the bank on the types of documents to be presented when making payment without the customs declaration of imported goods.