Nghị định 02-CP

DECREE

DEFINING THE COMMODITIES AND SERVICES BANNED FROM COMMERCIAL BUSINESS, AND THE COMMODITIES AND SERVICES ALLOWED FOR COMMERCIAL BUSINESS UNDER CERTAIN CONDITIONS ON THE DOMESTIC MARKET

THE GOVERNMENT

Pursuant to the Law on Organization of the Government on the 30th of September, 1992;
With a view to exerting unified State management of the commercial business activities with regard to commodities and services on the market as prescribed by law, ensuring the right to lawfull business of the business organizations and individuals and the legitimate interests of the consumers, and preventing the misuse of business to carry out illegal activities;
At the proposal of the Minister of Trade;

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- This Decree defines the commodities and services banned form commercial business, and the commodities and services allowed for commercial business under certain conditions on the domestic market (hereunder called commodities and services banned from business and allowed for business under certain conditions).

All organizations and individuals conducting commercial business activities in these categories of commodities and services, irrespective of their economic sectors and whether they are Vietnamese or foreigners, must abide by the provisions of this Decree.

Article 2.- The commercial business activities regulated by this Decree are the circulation of commodities or the conduct of services on the market aimed at gaining profits. They include the conduct of one, a number or all the commercial activities, such as buying, selling, transporting, exporting, importing, stocking, exhibiting, advertising, brokering or other commercial services.

Article 3.- The bases to determine the commodities and services banned from business or allowed for business under certain conditions are the management needs of the State, the impact and extent of their harmful influence on security, national defense, the economy, society, the environment, sanitation and disease prevention caused by the trading of these commodities and the conduct of these services.

Article 4.- The Ministry of Trade is the State agency to manage the commercial business activities on the market; the other Ministries, ministerial-level Agencies, the General Departments controlling the economic and technical branches have the responsibility to take the initiative, and cooperate with one another in providing detailed guidance for the implementation of the provisions of this Decree; and also of studying and putting forth the complements and amendments when necessary, inspecting and supervising the State agencies, the organizations and individuals engaged in commercial business on the market in the implementation of this Decree.

Chapter II

COMMODITIES AND SERVICES BANNED FROM BUSINESS

Article 5.- The commodities and services, which during the process of circulation or utilization may cause serious damage to security, national defense, the political, economic and social situation and the traditions of the national culture, or the environment and the health of the people, are banned from business.

The list of commodities and services banned from business is given in Appendix I issued along with this Decree.

Article 6.- On the basis of the management need of the State, the Prime Minister shall consider and decide on the amendment and supplement to the list of commodities and services banned from business.

The Ministers of Defense, Health, Culture and Information, Agriculture and Food Industry, Forestry, Trade, Education and Training, and the Interior shall, within their function, task and jurisdiction, and on the basis of Article 5 of this Decree, make detailed provisions on the commodities and services banned from business listed in Appendix I, and consult with the Minister of Trade before submitting the list to the Prime Minister of ratification. They shall also have to guide, inspect and supervise the implementation.

Article 7.- Basing themselves on the special needs of the economy, national defense, security and public health care, the controlling ministries of the economic and technical branches propose to the Prime Minister to allow a number of businesses to trade in some commodities on the ban list within a given scope and with a given quantity, and according to separate regulations.

Chapter III

COMMODITIES AND SERVICES ALLOWED FOR BUSINESS UNDER CERTAIN CONDITIONS

Article 8.- Allowed for business under certain conditions are the commodities and services which during the process of circulation or utilization may cause damage to human health, or to the environment, security and order and social safety; or which in the process of trading necessarily require a given material and technical basis, and a given professional standard and skill of the traders.

The list and the main conditions set for these commodities and services allowed for business under certain conditions are contained in Appendix 2 published along with this Decree.

Article 9.- The conditions set for the trade in the commodities and services allowed for business under certain conditions comprise the following:

9.1- Conditions for the business owner:

Based on the extent of their impact on the economic and society of a number of commodities and services in the business process and also on the managerial need, the selection and designation of a number of business enterprises shall have to observe the following provisions:

9.1a: The categories of commodities and services to be assigned to only a number of State-owned businesses shall be decided by the Prime Minister at the proposal of the Ministers and Heads of General Controlling Departments of the economic and technical branches.

9.1b: Categories of commodities and services reserved only for the Businesses.

9.1c: Categories of commodities and services allowed for only a number of businesses or individuals to be designated by the Ministers or Heads of General Controlling Departments of the economic and technical branches, or the Presidents of the People's Committees of provinces and cities.

9.2- Conditions on material and technical bases:

With a view to reducing to the minimum the harmful effect on human health, the environment, security and order and social safety, or to ensuring the quality norms of the commodities and services, a business must observe the regulations on material and technical bases in the following cases:

9.2a: The categories of commodities and services which when brought into trade must have a location conforming with the plan and the regulations of the authorized agencies.

9.2b: The categories of commodities and services which when brought into trade must ensure the minimum material and technical bases and equipment, under the norms stipulated by the Government or the Ministries and General Controlling Departments of the economic and technical branches.

9.3: Conditions on professional standard and technical skill of the business people: To meet the requirement on economic and technical norms, commercial civilization and to protect the interests of the consumers, he/she must observe the following regulations in these circumstances:

9.3a: Categories of commodities and services which require professional or specialized training on the part of the business people (they must have the prescribed diplomas or certificates).

9.3b: The categories of commodities and services which require a certain health status of the business people.

Article 10.- Based on the managerial need of the State, the Prime Minister shall consider and decide on the amendments and supplements to the conditions stipulated at Article 9 and the list of the categories of commodities and services allowed for business under certain conditions listed in Appendix 2.

The Ministers, the Heads of the General Controlling Departments of the economic and technical branches shall base themselves on Article 8 and 9 of this Decree to make detailed provisions for the commodities and services allowed for business under certain conditions as well as concrete conditions for each commodity and service, according to each category and group of commodities and services listed in Appendix 2, publish and guide the implementation after consulting with the Ministry of Trade.

Article 11.- The order and procedure of settling a request to deal in the commodities and services in the category subject to certain conditions shall obey the following uniform regulation:

1. For a trade organization or an individual trader:

Any organization or individual who wants to trade in these goods and services, or to make supplements to their business registration (for an individual, this is the business permit stipulated in Decree No. 66-HDBT, hereunder called business registration), must prepare all the necessary conditions and documents for the authorized agency to check and consider for the issue of a certificate of eligibility. This certificate shall be the basis for the consideration for granting or supplementing the business registration. They can begin their business activities only after they are issued with the business registrations or have got the supplements to their registrations approved.

2. For the managerial agencies:

a/ The Ministries and General Controlling Departments of the branches or services assigned to issue certificates of eligibility have the responsibility:

- To receive, collect and study the dossiers sent in by business organizations and individuals;

- To check and consider (including on the spot inspection at the business establishment if deemed necessary) the conditions for business operation of these organizations and individuals.

- To issue certificate of eligibility for business within 20 days after receiving the dossier.

b/ For the business license-issuing agencies: they can consider and application for business registration or supplements to the business registration only after the applicant has gathered all the business conditions and are certified to be so by the managerial agency of the concerned economic and technical branch.

c/ The collection and utilization of the fee for the issue of certificates of eligibility for business, or the issue of supplements to the business registrations shall be done according to the regulations in force.

Article 12.- All organizations or individuals meeting all the norms and conditions set by law and this Decree are eligible for consideration to be granted a business permit. In the process of business, they must constantly ensure all the conditions stipulated, and must place themselves under the inspection and supervision of the responsible agencies.

Chapter IV

HANDLING OF VIOLATIONS

Article 13.- All business organizations or individuals that violate the provisions on commodities and services banned from business, shall have the commodities involved in the violation confiscated and depending on the extent of the violation, be subject to administrative sanctions, or investigated for penal liability under the law in force.

Article 14.- Those organizations or individuals who trade without authorization in the commodities and services allowed for business under certain conditions, or who, though authorized, do not constantly ensure the conditions set for these commodities and services, shall be regarded as practitioners of illicit trade, and shall, depending on the extent of violation, subject to administrative sanctions or investigated for penal liability under the law in force.

Article 15.- All organizations and individuals responsible for the issue of certificates of business eligibility, business permits and business registrations, and for controlling and supervising the activities of those organizations and individuals having business permits, and who take acts of abuse of position and power to act contrarily to the provisions of this Decree, shall, depending on the extent of the violation, be subject to administrative sanctions or be investigated for penal liability under the law in force.

Chapter V

IMPLEMENTATION PROVISIONS

Article 16.- This Decree takes effect as from the 1st of July, 1995. The Minister of Trade, the other Ministers, the Heads of the ministerial-level agencies, the Heads of the General Controlling Departments of the concerned branches shall have to revise the earlier provisions on commercial business and services on the market, complement or amend those provisions, and guide and inspect the concerned branches, localities and the business organizations and individuals to strictly observe the regulations of this Decree.

Article 17.- The Minister of Trade, the other Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.