Thông tư 10/2003/TT-NHNN

CIRCULAR

GUIDING THE IMPLEMENTATION OF THE DECREE No. 174/1999 DATED 9 DECEMBER, 1999 OF THE GOVERNMENT ON THE MANAGEMENT TO GOLD TRADING ACTIVITIES AND THE DECREE No. 64/2003/ND-CP DATED 11 JUNE, 2003 OF THE GOVERNMENT ON THE AMENDMENT, SUPPLEMENT OF THE DECREE No. 174/1999/ND-CP

Pursuant to Article 19 of the Decree No. 174/1999/ND-CP dated 9 December, 1999 of the Government on the management to gold trading activities and Article 3 of the Decree No. 64/2003/ND-CP dated 11 June, 2003 of the Government on the amendment, supplement of the Decree No. 174/1999/ND-CP the Governor of the State Bank provides guidance on the implementation as follows:

Chapter I

GENERAL PROVISIONS

Section 1. GOVERNED SUBJECTS AND GOVERNING SCOPE

1. Subjects of application of this Circular shall be organizations, which, individuals, who engage in gold trading activities.

2. This Circular shall govern the activities of gold trading including jewelry gold, fine art gold, piece gold, raw material gold; not govern the activities of gold exploitation, refinement of gold exploiting enterprises.

3. The trading in gold of international standard shall be performed in accordance with provisions of the Decree No. 63/1998/ND-CP dated 17 August, 1998 of the Government on foreign exchange control and the Circular No. 01/1999/TT-NHNN7 dated 16 April, 1999 of the Governor of the State Bank of Vietnam guiding the implementation of the Decree No. 63/1998/ND-CP of the Government.

Section 2. GOLD TRADING ACTIVITIES, WHICH REQUIRE A PERMIT OF THE STATE BANK

4. Following gold trading activities shall require a permit of the State Bank:

a. Export, import of raw material gold in forms of block, bar, bean and piece;

b. Production of piece gold;

Section 3. OPERATION OF GOLD TRADING ENTERPRISES WITH FOREIGN INVESTED CAPITAL

5. Enterprises with foreign invested capital, which are granted an operation license to operate in areas of production, processing of jewelry, fine art gold, shall comply with applicable provisions of the Law on Foreign investment in Vietnam, provisions in the Investment License and provisions in Section 5, Chapter III, Chapter IV and Chapter V of this Circular during their operation.

Chapter II

 GOLD PURCHASE, SALE, PRODUCTION AND PROCESSING ACTIVITIES

Section 1. OPERATING CONDITIONS, SCOPE OF ORGANIZATIONS, WHICH, INDIVIDUALS, WHO ENGAGE IN THE PURCHASE, SALE, PRODUCTION AND PROCESSING OF GOLD.

6. Conditions for operation

a. The business is registered in accordance with provisions of applicable laws;

b. Availability of tools that satisfy requirements for the production, processing of jewelry gold, fine art gold; availability of gold measurement device, which is certified by a certificate of verification of the State management agency in charge of the quality measurement criteria;

c. Availability of staff, workers with professional skills, which meet requirements of gold trading activities in line with the certificate of business registration.

7. Scope of operation

a. Purchase, sale of all kinds of jewelry gold, fine art gold, piece gold and raw material gold;

b. Production, processing of jewelry and fine art gold.

Section 2. OPERATING CONDITIONS AND SCOPE OF ENTERPRISES, WHICH PRODUCE PIECE GOLD.

8. Conditions for operation

Considering objectives of the monetary policy from time to time, the State Bank of Vietnam shall grant a permit for the production of piece gold to enterprises, which fully satisfy following conditions:

a. Being enterprises, which have registered the business of jewelry, fine art gold production;

b. Their material - technical conditions and equipment satisfy requirements of piece gold production;

c. Availability of managerial officers and workers with professional skills, which meet requirements of piece gold production.

9. Scope of operation

a. Piece gold production;

b. Processing of piece gold for organizations, individuals for weights as stated in the permit of piece gold production granted to the enterprise by the State Bank of Vietnam.

10. Application file for the issuance of the permit of piece gold production.

The application file for the issuance of the permit of piece gold production to be submitted to the State Bank of Vietnam (Foreign Exchange Control Department ) shall include:

a. An application for the issuance of the permit for the production of piece gold under the sample form in the Appendix 1;

b. A notarized copy of the business registration certificate (only submitted in the first time or in the event of any change);

c. A report on the status of premises, machines, equipment;

d. A report on the managerial officers, technicians and professional workers (only submitted in the first time or in the event of any change);

Within 10 working days from the date of receipt of the complete valid file, the State Bank of Vietnam shall consider granting a permit for the production of piece gold to enterprises. In case of refusal, the State Bank of Vietnam shall give out clear reasons thereof in writing.

Chapter III

EXPORT, IMPORT OF GOLD

Section 1. EXPORT, IMPORT OF JEWELRY AND FINE ART GOLD

11. Gold trading enterprises shall be entitled to export, import jewelry, fine art gold (including gold-plated jewelry and fine arts) in accordance with enterprises' business registration certificate and applicable provisions of the Prime Minister on the export, import management without the need to have a permit from the State Bank of Vietnam.

Section 2. EXPORT, IMPORT OF RAW MATERIAL AND PIECE GOLD

12. The State Bank of Vietnam shall, based on the demand for the production of jewelry, fine art gold and objectives of the monetary policy from time to time, consider granting a permit for export, import of raw material gold in forms of block, bar, bean, piece to enterprises, which have registered the business of gold export, import.

13. Files submitted to the State Bank of Vietnam (Department of Foreign Exchange Control) shall include:

a. An application for the gold export, import under the sample form in the Appendix 2;

b. A notarized copy of the certificate of gold business registration (only submitted in the first time or in the event of any change);

c. A report on the enterprise's business result in the last six months.

Within 10 working days from the date of receipt of complete valid files, the State Bank of Vietnam shall consider granting a permit to enterprises. In case of refusal, the State Bank of Vietnam shall state clearly the reasons thereof in writing.

14. Enterprises, which have registered the gold export, import shall be entitled to export, import raw-material gold in forms of foil, fiber, powder, solution, welded scrap, gold salt, semi-finished products of jewelry gold in accordance with the business registration certificate of enterprises and applicable provisions of the Prime Minister on the export, import management without the need to have a permit from the State Bank of Vietnam.

Section 3. GOLD IMPORT FOR THE PROCESSING OF JEWELRY, FINE ART GOLD PRODUCTS FOR FOREIGN COUNTRIES

15. Organizations, which, individuals, who, have registered the gold trading business and have entered into a processing contract with foreign countries shall be permitted by the State Bank of Vietnam to import raw material gold in forms of block, bar, bean, piece for the processing and re-export of gold products to foreign countries. General Managers of the State Bank's branches in provinces, cities shall consider granting a permit for the import of raw material gold to these subjects in accordance with the sample form in Appendix 6.

16. Files submitted to the State Bank branches in provinces, cities, where the head office of organizations and individuals is located, shall include:

a. An application for the Gold import under the sample form in the Appendix 2;

b. A notarized copy of the certificate of gold business registration.

c. The processing contract with the foreign country (ies).

Within a period of 10 working days from the date of complete receipt of valid files, General Managers of the State Bank branches in provinces, cities shall consider granting a permit for the import of raw material gold to organizations, individuals. In case of refusal, the State Bank branches in provinces, cities should give out clear reasons thereof in writing.

Section 4. EXPORT OF RAW MATERIAL GOLD BY GOLD EXPLOITING ENTERPRISES

17. Enterprises, which possess a gold exploitation permit and wish to export raw material gold, which is refined after exploitation in forms of nuggets, bars, clot, shall submit their file to the State Bank of Vietnam (Foreign Exchange Control Department) for their consideration of the issuance of a permit. The file shall include:

a. An application for the gold export in accordance with the sample form in the Appendix 2;

b. A notarized copy of gold exploitation permit.

Within a period of 10 working days from the date of complete receipt of valid files, the State Bank of Vietnam shall consider granting a permit for the raw material gold export to enterprises. In case of refusal, the State Bank of Vietnam should give out clear reasons thereof in writing.

Section 5. GOLD EXPORT, IMPORT BY GOLD TRADING ENTERPRISES WITH FOREIGN INVESTED CAPITAL

18. Based on business plan of enterprises with foreign invested capital, the State Bank of Vietnam shall grant a quota for the import of raw-material gold in forms of block, bar, bean, piece to enterprises within the planned year. Enterprises with foreign invested capital shall not be required to submit for the permit of gold export, import for each shipment.

19. Enterprises with foreign invested capital shall be entitled to export, import following kinds of gold without the need to have a permit of the State Bank of Vietnam:

a. Export, import of raw material gold in forms of foil, fiber, powder, solution, gold salt, welded scrap, semi-finished products of jewelry gold;

b. Export of jewelry, fine art gold that is produced from imported raw material gold;

c. Temporary import, re-export of jewelry, fine art gold as samples;

d. Export of mixtures containing gold that are taken during the production process for gold material re-use.

20. Written assignment of quota issued by the State Bank of Vietnam shall be used as a proof for enterprises to clear import procedures with the Customs.

21. By the 15^th December of the year prior to the planned year at the latest or in case where the quota adjustment is required, enterprises shall submit file to the State Bank of Vietnam (Foreign Exchange Control Department) for the quota assignment or the quota adjustment. The file shall include:

a. An application for the assignment of the quota for the import of raw material gold under the sample form in Appendix 3;

b. A report on the performance of export, import, consumption of gold products in the Vietnam market of the year prior to the planned year (estimate for December) under the sample form in Appendix 7.

22. If an enterprise is permitted to sell its products in Vietnam, it shall be required to report to the State Bank's branches in provinces, cities where they intend to locate their shops of the place of its shops, codes to be sealed on its gold products, before the opening of its shops. The product sale in Vietnam shall be performed in compliance with provisions stated in the Investment License.

Section 6. EXPORT, IMPORT OF GOLD PRODUCTS FOR THE PARTICIPATION IN EXHIBITIONS OR FAIRS

23. The export, import of gold products for display at exhibitions and fairs shall be performed in compliance with provisions of applicable laws on the promotion, commercial advertisement and commercial fairs and exhibitions and other related legal documents.

Section 7. NON-TRADE EXPORT, IMPORT OF GOLD

24. The non- trade export, import of jewelry, fine art gold, raw material gold, piece gold shall be performed in compliance with regulations of the Governor of State Bank of Vietnam issued from time to time.

Chapter IV

RESPONSIBILITY OF ORGANIZATIONS, WHICH AND INDIVIDUALS, WHO ENGAGE IN GOLD TRADING ACTIVITIES

 25. To seriously carry out the gold trading activities in compliance with the scope stipulated in the business registration certificate and applicable provisions of this Circular.

26. To regularly ensure all conditions to be satisfied during the business process;

27. To publicize the copy of the certificate of gold business registration, the quality, the purchase and sale price of gold products at the transaction place and to take responsibilities before the Law for the products they sell.

28. To perform the regime on the accounting and statistics in compliance with provisions of applicable laws on accounting and statistics

29. To have a plan of safety security, environment protection, prevention and treatment of fire and explosion

30. In addition to provisions in points 25, 26, 27, 28 and 29 of this Circular, organization, which and individuals, who, engage in gold trading activities shall be responsible:

a. to fix goods label in accordance with provisions of applicable Laws;

b. to give written notice of trademark of enterprises to the State Bank branches in provinces, cities where their head offices are located for its supervision;

c. to affix organizations, individuals' trademark, gold quality code on their products

d. to assure the gold quality, which is sealed on products and to take responsibility for their own products before the laws.

31. Enterprises, which produce piece gold, shall comply with provisions stated in the permit, register trademark and product quality with the State Bank of Vietnam (Foreign Exchange Control Department) and seal trademark, weight, quality and continuous serial number on the piece gold products, which they produce and process.

Chapter V

REPORT, INVESTIGATION AND DEALING WITH VIOLATIONS

Section 1. REPORTING REGIME

32. For organizations, individuals

a. Gold trading organizations, which and individuals, who produce jewelry gold, fine art gold, piece gold, export, import raw material gold, piece gold shall be required to submit quarterly, annual reports on their gold trading performance according to the form at Appendix 4 to the State Bank of Vietnam (Foreign Exchange Control Department) and State Bank branches in provinces, cities where their head offices are located.

b. Organizations, which and individuals, who engage in gold trading activities, gold purchase, sale, and processing activities shall be required to submit quarterly, annual reports on their gold trading performance according to the form at Appendix 5 to State Bank branches in provinces, cities where their head offices are located.

c. Foreign invested enterprises, which engage in the production and processing of jewelry and fine art gold, shall be required to submit report to the State Bank of Vietnam (Foreign Exchange Control Department) and State Bank branches in provinces, cities where their head offices are located of their performance of gold export, import and gold products sale in Vietnam in conformity with the form at Appendix 7.

33. For State Bank braches in province, cities

State Bank branches in provinces, cities shall submit to the Governor of State Bank of Vietnam (Foreign Exchange Control Department) an annual consolidated report on the management to gold trading activities according to the form at Appendix 8.

34. Reporting time limit

- For quarterly report: by10^th of the first month of the following quarter at the latest;

- For annual report: by 10^th of January of the following year at the latest

Section 2. SUPERVISION AND INSPECTION

35. Organizations, which and individuals, who engage in gold trading, shall be subject to the supervision and inspection of the State Bank of Vietnam and the State competent agencies of the compliance with the provisions of the State on the management to the gold trading activities, provisions of this Circular and other related legal provisions of applicable laws.

Section 3. Dealing with violations

36. Organizations, which and individuals, who commit any violation act of any provision of the Decree No. 174/1999/ND-CP dated 9 December, 1999 of the Government on the management to gold trading activities, the Decree No. 64/2003/ND-CP dated 11 June, 2003 of the Government on the amendment, supplement of several articles of the Decree No. 174/1999/ND-CP this Circular and other related legal provisions shall, depending on the nature, the seriousness, be subject to the administrative punishment or prosecuted for criminal liability and subject to compensation for any damage caused in accordance with provisions of applicable laws.

Chapter VI

IMPLEMENTING PROVISION

37. This Circular shall be effective after 15 days since the date of publication in the Official Gazette and shall replace the Circular No. 07/2000/TT-NHNN dated 28 April, 2000 of the Governor of State Bank guiding the implementation of the Decree No. 174/1999/ND-CP dated 9 December, 1999 of the Government on the management to gold trading activities.

38. The Director of the Administration Department, the Chief Inspector, the Director of Foreign Exchange Control Department, Heads of concerning units and General Managers of the State Bank of Vietnam's branches in provinces and cities under the central Government's management, organizations, individuals engaging in gold trading activities shall be responsible for the implementation of this Circular.

APPENDIX 1

APPLICATION FOR PIECE GOLD PRODUCTION PERMIT

To: The State Bank of Vietnam
(Foreign Exchange Control Department)

1. Name of Enterprise:

2. Head office: (clearly state address, ward, town, district, city, province)

3. Tel No.:  Fax No.:

4. Full name of General Director (Director):

5. Establishment decision:

6. Business registration certificate No.:

Based on the conditions stated in the Circular No. ........dated.......of the Governor of the State Bank guiding the implementation of the Decree No. 174/1999/ND-CP dated 9 December, 1999 of the Government on the management to gold trading activities and the Decree No. 64/2003/ND-CP dated 11 June, 2003 of the Government on the amendment, supplement of the Decree No. 174/1999/ND-CP we would like to suggest the State Bank of Vietnam to permit ................(name of enterprise) to produce ......Kg of piece gold in the year........

We would like to commit:

- To take full responsibility before the laws for documents, files submitted to the State Bank;

- To strictly comply with provisions on the management to gold trading activities, provisions on foreign exchange control and other related regulations of Vietnam's laws as well as the provisions stated in the gold production permit in case of being granted by the State Bank.

Enclosed files:

- A notarized copy of Enterprise establishment decision;

- A notarized copy of Business registration certificate;

- A report on status of premise, machines, equipment;

- A report on situation of managerial officers, technicians, professional workers

- A report on the performance of piece gold production in previous year (in respect of enterprises which were granted with piece gold production permit in previous year)

APPENDIX 2

APPLICATION FOR GOLD IMPORT/EXPORT

To: The State Bank of Vietnam (Foreign Exchange Control Department)
(Organizations, which, individuals, who import raw material gold for product processing and re-import for foreign countries shall send to the State Bank of Vietnam's branch in province/city…)

1. Name of organization/ individual:

2. Head office: (clearly state address, ward, town, district, city, province)

3. Tel No.:  Fax No.:

4. Full name of competent representative

5. Establishment decision:

6. Business registration certificate No.

Based on the conditions stated in the Circular No. ........dated.......of the Governor of the State Bank guiding the implementation of the Decree No. 174/1999/ND-CP dated 9 December, 1999 of the Government on the management to gold trading activities and the Decree No. 64/2003/ND-CP dated 11 June, 2003 of the Government on the amendment, supplement of the Decree No. 174/1999/ND-CP we would like to suggest the State Bank of Vietnam to grant ................(name of organization/individual) a gold export/import permit with following contents:

1- Type gold applied for import/export:

2- Import/export purpose:

3- Import/Export via border checkpoint

4- Time planned for import/export:…/…

We would like to undertake:

- To take full responsibility before the laws for documents, files submitted to the State Bank;

- To strictly comply with provisions on the management to gold trading activities, provisions on foreign exchange control and other related regulations of Vietnam's laws as well as the provisions stated in the gold export/import permit granted by the State Bank.

Enclosed files:

- A notarized copy of Enterprise establishment decision, of business registration certificate;

- A notarized copy of gold exploitation permit (in respect of gold exploiting enterprises asking for the export of raw material gold);

- A report on the result of business operation in the latest 6 months (in the event of asking for the export, import of raw material gold, piece gold);

- Processing contract entered into with foreign party (in the event of gold import for processing and re-export).

APPENDIX 3

APPLICATION FOR QUOTA ASSIGNMENT OF RAW MATERIAL GOLD IMPORT
(applicable to foreign invested enterprises)

To: The State Bank of Vietnam
(Foreign Exchange Control Department)

1. Name of enterprise:

2. Head office: (clearly state address, ward, town, district, city, province)

3. Tel No.:  Fax No.:

4. Full name of Director (General Director):

5. Investment Licence No:… date of issue:..................

6. Form of investment: (100% foreign capital/ joint venture…)

7. Total investment capital: in the licence Performed

 In which: - legal capital: - -

 - borrowed capital: - -

8. Export ratio:

 - In the investment licence:

 - Performed:

9. Number of staff, workers:

10. Time commencing operation:

Based on the conditions stated in the Circular No. ........dated.......of the Governor of the State Bank guiding the implementation of the Decree No. 174/1999/ND-CP dated 9 December, 1999 of the Government on the management to gold trading activities and the Decree No. 64/2003/ND-CP dated 11 June, 2003 of the Government on the amendment, supplement of assign the quota of raw material gold import to ................(name of enterprise) with specific contents as follows:

We would like to undertake:

- To take full responsibility before the laws for documents, files submitted to the State Bank;

- To strictly comply with provisions on the management to gold trading activities, provisions on foreign exchange control and other related regulations of Vietnam's laws as well as the import quota.

Enclosed files:

- A notarized copy of Investment Licence (only submitted in the first time or in the event of any change);

- A report on the performance of gold export, import and gold product sale in Vietnam

- A plan on the production, business of jewelry, fine art gold in the planned year

APPENDIX 4

To: - The State Bank of Vietnam (Foreign Exchange Control Department)
- The State Bank's branch in province/city…

REPORT ON THE PERFORMANCE OF GOLD TRADING ACTIVITIES
Quarter:… of the year:

(applicable to organization, individual engaging in the production of jewelry, fine art gold, piece gold and export, import of raw material gold)

Unit: Kg (Weight), USD, VND (value)

APPENDIX 5

To: The State Bank of Vietnam's branch in province, city.......

REPORT ON THE PERFORMANCE OF GOLD TRADING ACTIVITIES
Quarter…of the year.…

(applicable to organization, individual engaging in the purchase, sale and processing of gold)

Unit: Kg (Weight), USD, VND (Value)

APPENDIX 6

To: (Name of organization/ individual…)

To respond the request of (name of organization/ individual.…) in the document No. …, the State Bank of Vietnam's branch in city, province wishes to express its opinion as follows:

1. To permit (name of organization, individual…) to import …Kg (in words) of raw material gold for processing and re-export. The import shall be made through the border checkpoint…

2. (Name of organization, individual…) is responsible to use the imported gold properly as stated at point 1 of this Official Dispatch and to strictly comply with provisions in the Decree No. 174/1999/ND-CP dated 9 December, 2003 of the Government on gold trading management, the Decree No.64/2003/ND-CP dated 11 June, 2003 of the Government on the amendment, supplement of several articles of the Decree No. 174/1999/ND-CP the Circular No. …of the Governor of the State Bank and other applicable related provisions.

3. (Name of organization, individual…) must re-export all the products, which are processed from imported raw material gold before the date of…

4. This document shall be valid until the date of…

APPENDIX 7

To: - The State Bank of Vietnam (Foreign Exchange Control Department)
- The State Bank of Vietnam's branch in city, province…

REPORT ON GOLD EX-IMPORT AND GOLDEN PRODUCT CONSUMPTION IN VIETNAM
Year:…
(Applicable to Foreign invested enterprises)

Unit: Kg; domestic currency

APPENDIX 8

To: The State Bank of Vietnam (Foreign Exchange Control Department)

REPORT ON GOLD TRADING CONTROL
Year:…

1. Number of organizations, individuals engaging in gold trading at locality:

2. Business performance:

Unit: Kg (Weight), USD, VND (Value)

3. The compliance with provisions on gold trading management by organizations, individuals: