JOINT CIRCULAR

ON THE PRIORITY ALLOCATION AND REWARD OF TEXTILE AND GARMENT EXPORT QUOTAS

Following the Prime Minister’s instructions in Official Dispatch No.1126/CP-KTTH of September 21, 1998 and in furtherance of Joint Circular No.20/1998/TTLT/BTM-BKHDT-BCN of October 12, 1998;
In order to encourage enterprises to promote the export of textile and garment products made of home-made fabrics and export their goods to non-quota markets;
Basing themselves on the quota source to be used, the Ministry of Trade, the Ministry of Planning and Investment and the Ministry of Industry unanimously stipulate the priority allocation and reward of textile and garment quotas as follows:

I. GENERAL PROVISIONS

- The 1998 reward and 1999 priority allocation of quotas shall be given to enterprises that export to the EU textile and garment products made of home-made fabrics.

- Textile and garment quotas shall be rewarded to enterprises that have exported textile and garment products to non-quota markets in 1998.

- The source of quotas for reward and priority allocation shall be deducted from the total quotas of textile and garment products to be exported to the EU in 1999. The specific quantities are specified in the list herein.

II. REWARD AND PRIORITY ALLOCATION OF QUOTAS TO ENTERPRISES THAT HAVE EXPORTED TO THE EU TEXTILE AND GARMENT PRODUCTS MADE OF HOME-MADE FABRICS IN 1998 AND 1999

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a) Rewards shall be given to enterprises that have exported textile and garment products made of home- made fabrics to the EU in 1998 at level of 10% of the volume of quotas of the same category performed in 1998.

b) Priority allocation of quotas to enterprises that export textile and garment products made of home- made fabrics to the EU in 1999 with the maximum level of 10,000 products; for cat.15: 5,000 products, cat.73: 5,000 products, particularly for cat.4: 30,000 products, and such priority shall be given only to enterprises having knitting machines (for contracts with quantities below the prescribed level, the quotas shall be allocated according to such contracts; for contracts with quantities above the prescribed level, the quotas shall be allocated at the maximum level).

c) The quota source for reward and priority allocation is specified as follows:

1/ T-shirt

(Cat.4):

910,000 pieces

2/ Sweater

(Cat.5):

130,000 pieces

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(Cat.6):

575,000 pairs

4/ Women shirt

(Cat.7):

90,000 pieces

5/ Men shirt

(Cat.8):

500,000 pieces

6/ Women coat

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23,000 pieces

7/ Jacket

(Cat.21):

660,000 pieces

8/ Dress

(Cat.26):

100,000 pieces

9/ Knitted pants

(Cat.28):

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10/ Women suit

(Cat.29):

35,000 suits

11/ sport suit

(Cat.73):

50,000 suits

12/ Other clothes

(Cat.78):

41 tons

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d) Dossiers applying for consideration of reward or priority allocation:

- For enterprises requesting the consideration for reward of 1998 quotas, the dossier shall comprise: the already liquidated customs declaration, bill of

lading, fabrics purchase invoice(s), ...

- For enterprises requesting the consideration for priority allocation of 1999 quotas, the dossier shall comprise: the export contract, the contract for domestic sale/purchase of fabrics, fabrics purchase invoice(s). The dossiers shall be sent to the Export and Import Department of the Ministry of Trade in the first month of each quarter.

If the enterprises fail to fulfill the allocated quotas, they shall have to return them by September 30, 1999 at the latest for allocation to other enterprises, and make reports on performance by the end of the year.

The reward shall be considered in the first quarter of 1999 and the priority allocation shall be considered once every 3 months.

III. REWARD OF QUOTAS TO ENTERPRISES THAT EXPORTED TEXTILE AND GARMENT PRODUCTS TO NON-QUOTA MARKETS IN 1998

a) Reward criteria: Enterprises in Hanoi and Ho Chi Minh City that exported textile and garment products to the non-quota markets with a FOB value of US$400,000 or more; and enterprises in other localities that achieved a value of US$200,000 or more shall be rewarded with quotas.

b) The source of reward quotas shall be set aside as follows:

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(Cat.4):

390,000 pieces

2/ Sweater

(Cat.5):

130,000 pieces

3/ Trousers

(Cat.6):

246,000pairs

4/ Women shirt

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90,000 pieces

5/ Men shin

(Cat.8):

205,000 pieces

6/ Women coat

(Cat.15):

23,000 pieces

7/ Jacket

(Cat.21):

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8/ Dress

(Cat.26):

43,000 pieces

9/ Knitted pants

(Cat. 28) :

140,000 pieces

10/ Women suit

(Cat.29):

35,000 suits

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(Cat.73):

50,000 suits

12/ Other clothes

(Cat.78):

17 tons

c) Reward level : Every US$1,000 in the value of products exported to the non-quota markets in 1998 shall be rewarded with 3 jackets (cat.21) or an equivalent quantity of other products.

The reward quotas shall be given to the enterprises according to their respective production and export demands. In cases where no more quotas of the product category(ies) meeting their demands are left, the enterprises may receive quotas of other product categories according to the conversion rate set by the Agreement between Vietnam and the EU.

d) Dossiers for reward consideration:

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The reward consideration shall be made in the first quarter of 1999.

To facilitate the reward consideration stipulated in Sections II and III, the enterprises’ directors are requested to base themselves on the reward dossiers to sum up figures into indices (according to the set form) and take responsibility therefor.

IV. IMPLEMENTATION PROVISIONS

The Ministry of Trade, the Ministry of Planning and Investment and the Ministry of Industry request the ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and centrally-run cities and the central committees of mass organizations to inform the content of this Circular to the enterprises under their respective management for implementation, and at the same time report to the ministries issuing this Circular problems arising in the course of implementation for timely and appropriate readjustments.

This Circular takes effect 15 days after its signing.

FOR THE MINISTER OF PLANNING AND INVESTMENT
VICE MINISTER




Lai Quang Thuc

FOR THE MINISTER
OF INDUSTRY
VICE MINISTER




Le Huy Con

FOR THE MINISTER
OF TRADE
VICE MINISTER




Luong Van Tu

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