Circular No. 07-NH/TT dated October 29, 1993 of the State Bank guiding the implementation of the Regulation No. 63/CP dated on September 24, 1993 of the Council of Minister about the state management on gold business activities.
THE STATE BANK OF VIETNAM
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
Hanoi, October 29, 1993
THE IMPLEMENTATION OF THE REGULATION NO. 63/CP DATED ON SEPTEMBER 24, 1993 OF THE COUNCIL OF MINISTER ABOUT THE STATE MANAGEMENT ON GOLD BUSINESS ACTIVITIES.
The Council of Ministers promulgated the Regulation No 63/CP dated on September 24,1993 about the State management on gold business activities. Referring to the Article 7 of this Regulation, the Governor of the State Bank of Vietnam guides the implementations as follows :
I. GOLD OWNERSHIP AND LIMITATION OF THE STATE MANAGEMENT ON GOLD BUSINESS ACTIVITIES (ARTICLE 1 AND ARTICLE 2)
1. Organizations and individuals having gold in any legal form of ownership's, irrespective of amount, have the right to transfer hold, transport, mortgage of deposit and banks, banks will keep gold in request of organizations and individuals.
2. The State Bank of Vietnam performances the State management on gold business activities, these include purchasing, selling, mortgaging processing, producing, exporting, importing gold, objects to the State management stipulated in the chapter II following
II. THE OBJECTS, CONDITIONS, PROCEDURE, LIMITATIONS AND RESPONSIBILITIES (ARTICLE 3,4,6)
1. The Object to permit for gold business activities are entities (the State enterprises, the limited companies, shares holding companies, private enterprise, enterprise with foreign capital) which are established in conformity with prevailing laws (the Regulations for establishment and winding up of the State enterprises, the company laws, the private company law, the foreign investment law)
2. Conditions for granting a license to gold business institutes from the State Bank as follows :
a. Legal capital
a1. In respect of State enterprises must have 250 million dong of legal capital in currency or in gold equally.
In the case, institutes wanting to establish one more of gold business branch (in side or out side of location) must present an application to director of local branch of the State Bank for consideration of specific cases, granting license in this case is not based on legal capital level stated above.
a2. In respect of the private enterprises :
- Institutes must have 150 million dong of legal capital in currency or in gold equally in Hanoi and Ho Chi Minh city.
- Institutes must have 50 million dong of legal capital in currency or in gold equally in delta areas.
- Institutes must have 25 million dong of legal capital in currency or in gold equally in mountain areas.
a3. In respect of the limited companies and the joint stock companies:
- Institutes must have 200 million dong of legal capital in currency or in gold equally in Hanoi and Ho Chi Minh city.
- Institutes must have 60 million dong of legal capital in currency or in gold equally in delta areas.
- Institutes must have 30 million dong of legal capital in currency or in gold equally in mountain areas.
b. Technical qualifications :
The gold business institutes must have :
- Trained workers at least from 3 level of scale upward, workers must have skill trained certificates issued by the centers, schools which are established in accordance with the prevailing law, institutes present the worker-trained certificates to local branch of the State Bank for examinations.
- Accurate scales instruments, which granted an using license by a branch of measure examination agency at Province and City level in the location, at which the institute seating.
c. The seat
a. A seat of gold business institute is started clearly (number, District, Street, Quarter, Townlet, City) and must be agreed by the People Committee of District, Townlet for setting a seat.
The institute must register new seat again and communicate its decision to branch of the State Bank at province or City as stipulated in this Circular.
3. Procedure of applying for a license.
The institutes applying for permit for gold business activities will have to file an application to director of the State Bank branch at province or City at which institutes seat, documents including:
- The application for issuance of a license
- The permit for establishment institute
- The charter of institute
- The certificate of depositing at banks (in Vietnam dong or foreign currency, gold)
- The level trained certificate of workers, the permit for its seat.
Director of Province branch or City of the State Bank base on the Regulations provided above for the objects and conditions to consider and issue a license to gold business institutes.
4. The limitations for gold business activities :
The institute having an operating license for gold business activities have the rights as follows :
- Purchasing, selling gold nuggets, gold leaf, gold decorative, personal product, block of gold, a stick of gold, a slime of gold in domestic markets.
- Producing, processing, mortgaging gold for domestic organizations, domestic private persons and foreign organizations, foreign private persons.
- When having a license of exports from the State Bank, the institutes are authorized to export for collecting foreign currencies.
- Entering into a Joint-Venture company with foreign organizations are foreign private persons to operate on gold business area in accordance with the investment law.
5. The responsibilities for gold business institutes
The institutes purchasing, selling gold must comply with the regulations following :
- Using the forms of bill set by the Ministry of Finance, the bill must reflect : customers, quantity, weight, quality, worth of gold purchased or sold.
- Applying the accounting regime and keeping book accounts, accounting vouchers according to the Ordinance on accounting and statistics.
- Products of gold business institutes sold must meet quality, weight, mark, sign registered with Province or City branch of the State Bank.
- Seriously, observing the tax policies of the State, incurring an audit of Province or City Branch of the State bank for Conditions limitations quality, weight, prices, incurring a posted up control audit by the People Committee, the economic arbitration, measure-examination department, financial unit and conduct control Market Committee of Province or City for Implementing the Regulations of the State.
- Paying license fee stipulated by the State Bank and Ministry of Finance.
6. In respect of private persons having skill 4 upward level, but not meeting to the conditions for establishing business institutes, for who director of branch of the State Bank of Province of City may allow them to open a shop to process, smith gold.
- Private persons, who want to open a processing, producing shop, must submit a document to director of Province, City branch of the State Bank. The document includes :
a. The application for processing, producing gold, applicants must committee to do what they have applied for. If they operate out of what they have applied, their operating license shall be withdrawn and incurred administrative penalty.
b. The certificate of skill level issued by the center or the training school (established in accordance with prevailing Law)
c. Permit certificate of the District People Committee for setting seat (shop)
III. GOLD EXPORTATION AND IMPORTATION
1. Gold importation is implemented by the State Bank, in necessary case, the Governor of the State Bank of Vietnam may allow a number of gold business institutes, which have prestige enough capital for importation (certificate by keeping account banks) to import in indirect forms through the State Bank.
2. Exportations for of decorative personal products of Institutes must implemented under a license for exporting issued by director of Province branch of the State Bank or city.
In the case of exporting decorative personal products only need a contract with foreign partner and quality tested certificate from City branch of the State Bank or Province to present to Customs
There is no need of a license for exporting from director of Province branch of the State Bank or City.
- Conditions and Formalities for granting a license for gold business institutes exporting decorative personal products stipulated as follows :
2.1 The license of gold business issued by director of City branch of the State Bank or Province.
2.2 The contract with foreign partner for purchasing, selling decorative personal products, the contract clearly reflect quantity, weight, quality, worth, manner of payment, the international commercial terms, products, timing, markets.
2.3 The quality-tested certificate issued by Province branch of the State Bank or City.
2.4 The application for exporting decorative personal products are submitted to director or City branch of the State Bank or Province, the application must be stated the border gate and the Regulations stipulated at 2.2 point.
3. Institutes exporting, processing, producing gold to be exported gold material or block of gold, stick of gold will be considered and issue exporting license for each time by the Governor of the State Bank of Vietnam.
4. Institutes must pay a fee for grating a license and testing stipulated by the State bank and the Ministry of Finance
5. When Vietnamese citizens and foreign citizens entering, exiting are authorized to bring gold in accordance with the Regulations on foreign exchange management of the Socialist republic of Vietnam and others Regulations set by the Governor of the State Bank on gold management.
IV. VIOLATIONS AND PENALTIES (ARTICLE 8)
1. In accordance with article 11,13,14,15,16 of the chapter II of administrative penalty Decree Law, gold business institutes violating provisions in the Regulation No 63 dated on September 24, 1993 of the Council of Ministers and this Circular depending. on serious level of violations will be subjects to one of the following forms of penalties : confiscating exhibit and incurred a fine up three times of the value of exhibit confiscated or withdrawing operating license. In serious case, violator shall be subjects to criminal pursuit in compliance with operating license with the prevailing Laws.
In the case, the operating license is withdrawn, the decisions of withdrawing is published in the local Gazette, Radio.
2. The authorities of penalties :
The Penalties are implemented by the State organizations and authorized persons stipulated at Article 17 chapter III "decree Law on administrative penalties of violations".
V. THE IMPLEMENTATION PROVISIONS (ARTICLE 7,8,9)
The gold business institutes must report the status and its results of its business operations to Province branch of the State Bank of City where they seat monthly, yearly.
The Directors of Province branch of the State Bank or City are responsible for monitoring and supervising the executions of gold business institutes in order to observe the provisions of this Circular seriously, reporting the status of executions to the Governor of the State Bank (foreign exchange department) (not later than 15 days of the close quarter)
Within 60 days from the date of promulgating of this Circular, the institutes, which already had an operating license before promulgating if this Circular, must reapply for gold business license.
Within 15 days from the dated of receipt an application for gold business activities the director of Province branch of the State Bank or City shall be responsible for reapplying to the institutes.
- The Province branches of the State Bank or City will refunds the depositing for issuance of the license for gold business before.
- Ministries, agencies subordinated to the Council of Minister, The Province Peoples Committee or City, each within his functions and authorities will be responsible for coordinating of implementations of this Circular.
The present circular shall become effective as from the date of its signing, any guidelines or Circulars contrary to this Circular are hereby replace (the Circular No 01/NH-TT dated on June 16th 1981 and the Circular No 75/NH-TT dated on June 5th, 1989
FOR THE STATE BANK OF VIETNAM
Le Van Chau