Processing contracts must be made in writing or in other forms of equivalent legal validity

Processing contracts must be made in writing or in other forms of equivalent legal validity.

Article 180.- Goods for processing

Set-up-company-in-vietnam-Vinasc21. Goods of all types can be processed, except for goods banned from business.

2. In case of processing of goods for foreign traders for overseas consumption, goods banned from business, goods banned from export or import may be processed if so permitted by competent state agencies.

Article 181.- Rights and obligations of processees

1. To hand over part or whole of raw materials and materials for processing in accordance with processing contracts or transfer money for purchase of materials with agreed quantities, quality and at agreed prices;

2. To take back all processed products, leased or lent machinery and equipment, raw materials, auxiliary materials, supplies and discarded materials after the liquidation of processing contracts, unless otherwise agreed.

3. To sell, destroy, donate or give as gifts on the spot processed products, leased or lent machinery and equipments, raw materials, auxiliary materials, redundant supplies, faulty products and discarded materials according to agreements and provisions of law.

4. To send their representatives to examine and supervise processing activities at processing places, to assign experts to guide production technology and inspect quality of processed products according to agreements in processing contracts.

5. To be responsible for the legality of the intellectual property rights over processed goods, raw materials, materials, machinery and equipment for processing handed over to processors.

Article 182.- Rights and obligations of processors

1. To supply a part or whole of raw materials and materials for processing as agreed upon with processees in terms of quantities, quality, technical standards and prices.

2. To receive processing remunerations and other reasonable expenses.

3. In case of processing for foreign organizations and individuals, to be entitled to export on spot processed products; leased or borrowed machinery and equipment, raw materials, materials, redundant supplies, faulty products and discarded materials under the authorization of processees.

Set-up-company-in-vietnam-Vinasc14. In case of processing for foreign organizations and individuals, to be exempt from import tax on machinery, equipment, raw materials, auxiliary materials and supplies, that are temporarily imported for the performance of processing contracts according to the provisions of tax law.

5. To be responsible for the legality of goods processing activities in cases where goods being processed are those banned from business, export or import.

Article 183.- Processing remuneration

1. Processors may receive processing remunerations paid in cash or in processed products, or machinery and equipment used for the processing.

2. In case of processing for foreign organizations and individuals, if processors receive processing remunerations in processed products, machinery and equipment used for processing, regulations on import of such products, machinery and equipment must be complied with.