1. Can Vietnamese traders act as goods purchase and sale agents for foreign traders?

According to the provisions of Decree 69/2018/ND-CP Vietnamese traders are allowed to act as agents to buy and sell goods to foreign traders, except:

• Goods on the List of prohibited exports and temporary suspension of export.
• Goods on the List of goods banned from import or temporarily suspended from import.
• For goods exported or imported under a License, traders may only sign agency contracts after being granted a License by the ministry or ministerial-level agency with management authority.

2. Figures awake be an agent

Based on Article 169 of the 2005 Commercial Law, the forms of agency are prescribed as follows:

• Offtake agency is a form of agency in which the agent buys and sells a complete volume of goods or provides a complete service to the principal;
• Exclusive agency is a form of agency in which in a certain geographical area the principal only assigns one agent to buy or sell one or a number of items or provide one or a number of certain types of services. ;
• General agent for purchasing and selling goods and providing services is a form of agency in which the agent organizes a system of affiliated agents to carry out the purchase and sale of goods and provision of services for the principal;
• General agent represents the affiliated agent system. Affiliated agents operate under the management of the general agent and on behalf of the general agent;
• Other forms of agency agreed upon by the parties;

Thus, according to current regulations, there will be agency forms such as off-take agents, exclusive geographical locations, goods purchase and sale agents, and service provision agents. In addition, the parties can agree on other forms of agency.

3. Do I have to sign an agency contract when acting as an agent for a foreign trader?

According to Vietnamese law, an agency contract is an agreement between the principal and the agent, whereby the principal authorizes the agent to act as its representative to make the purchase. , sell goods, provide services to the principal and receive remuneration according to regulations.

Thus, when a Vietnamese trader acts as an agent for a foreign trader, he must sign an agency contract with that foreign trader. The agency contract must be made in writing or in another form with equivalent legal validity.

In case a Vietnamese trader hires a foreign trader to act as a sales agent abroad, according to the provisions of Article 54 of Decree 69/2018/ND-CP, the Vietnamese trader must sign an agency contract with the foreign trader. abroad and must transfer proceeds from sales contracts back to the country according to regulations on foreign exchange management and instructions of the State Bank of Vietnam.

4. The role of agents buying and selling goods for foreign traders

Goods purchase and sale agency for foreign traders is a form of commercial agency contract, whereby the agent receives authorization from the principal to buy or sell goods to the principal.

The role of a goods purchasing agent for foreign traders can be summarized as follows:

• Market access: Goods purchasing agents can help foreign traders access the Vietnamese market quickly and effectively. Agents can grasp market demand, find potential customers, negotiate and sign goods purchase and sale contracts.
• Minimize risks: Goods purchasing agents can help foreign traders minimize risks in business activities. Agents can be responsible for finding customers, negotiating prices, implementing import and export procedures, insuring goods, and paying for goods.
• Cost savings: Goods purchasing agents can help foreign traders save costs in business activities. Agents often have a team of professional staff who understand the market and can perform tasks related to buying and selling goods effectively, helping foreign traders minimize labor costs and management costs. reason.

5. Tax obligations

When Vietnamese traders act as goods purchase and sale agents for foreign traders, they must comply with tax laws, accordingly: 

• Goods under agency contracts to buy and sell goods to foreign traders are subject to taxes and other financial obligations according to the provisions of Vietnamese law.
• Vietnamese traders are responsible for registering, declaring, and paying taxes and other financial obligations related to goods under goods purchase and sale agency contracts and their business activities according to the provisions of the Law. law.

6. Procedures for exporting and importing goods under agency contracts

When exporting or importing goods under agency contracts to buy and sell goods with foreign traders, the procedures must be carried out in accordance with the same regulations as for exported and imported goods specified in this Decree.

7. Return the item

Goods under sales agency contracts in Vietnam for foreign traders may be re-exported if they cannot be consumed in Vietnam. Tax refund is carried out according to regulations of the Ministry of Finance.

8. About Us, Hankuk Law Firm

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