Quyết định 418/1998/QD-NHNN7

DECISION

ON THE CHANGE, SUPPLEMENT OF SOME POINTS IN CIRCULAR 08/1998/TT-NHNN7 DATED 30 SEPTEMBER, 1998 GUIDING THE IMPLEMENTATION OF DECISION 173/QD-TTG DATED 12 SEPTEMBER, 1998 OF THE PRIME MINISTER

THE GOVERNOR OF THE STATE BANK

Pursuant to the Decree No.15CP dated 2 March, 1993 of the Government providing for the assignment and authority and responsibility of State Management by the Ministries and ministry-level agencies.
Pursuant to Article 3 of the Decision 232/1998/QD-TTg dated 1 December, 1998 on the change of the paragraphs 1 and 2 of the Decision No.173/1998/QD-TTg dated 12 September, 1998 of the Prime Minister on the obligation to sell and the right to buy foreign currency of the residents being an organization.
Upon proposal of the Director of the Foreign Exchange Control department.

DECIDES

Article 1.

To change and supplement some points in the Circular No.08/1998/TT-NHNN7 dated 30 September, 1998 guiding the implementation of the Decision No. 173/1998/QD-TTg dated 12 September 1998 of the Prime Minister as follows:

1.1. Points A Part IV of the Circular No. 08/1998/TT-NHNN7 shall be changed as follows:

A. The obligation to sell foreign currencies from the current account income:

1. For the incomes which have been determined as current account income: As the foreign currency from the current account income is credited to the foreign currency deposit account of a organization (including economic organizations and non-profit organizations is subject to sale obligation as provided for in Point 1.2, part II of the Circular No. 08/1998/TT-NHNN7) the bank where the account is maintained shall be responsible to buy immediately 80% of the foreign currency income for the economic organization and 100% for a non-profit organization and credit to the VND account of the organization concerned. In case a organization sells the foreign currency income to another authorized bank, the implementation shall be in accordance with paragraphs 5, 6 of this Decision.

If an organization subject to sale obligation does not have VND account with the Bank, the bank shall be permitted to open an VND account for the organization concerned in order to carry out the foreign currency buying transaction.

2. For the income which has not yet been determined whether it is a current account income or an income not subject to sale as provided for in part III of the Circular 08/1998/TT-NHNN7:

From the date the foreign currency income is credited to the deposit account of the organization, the bank shall be responsible to transfer immediately 80% of the foreign currency income for an economic organization and 100% for a non-profit organization to the account Administration for customers, and give immediate notice to the organization and within 3 (three) subsequent working days, the organization shall have to present documents evidencing that the foreign currency earning is the income not subject to sale to the bank as stipulated.

a. Within the above-mentioned 3(three) working days, if the organization has proven that the income is not subject to sale as provided for in Part III of the Circular 08/1998/TT-NHNN7 , the bank shall be responsible to transfer immediately the foreign currency amount back to the deposit accounts of the organization.

b. After the 3 (three) working days period as mentioned above, if an organization has not fulfilled their sale obligation or prove the inapplicability of the sale obligation, the Bank shall buy the foreign currency on the account Administration for customers.

3. For the foreign currency from the current account income of the residents being an organization which was transferred to the account Administration for customers before the effective date of this Decision, the organization shall be responsible to present documents to the authorized bank evidencing that the income is not subject to sale within 3 (three) working days from the effective date of this Decision.

If the organization has proven that the income is not subject to sale, the authorized bank shall be responsible to transfer back to the organization that foreign currency income. After that above-mentioned 3 (three) working days, if the organization has not proven that the income is not subject to sale, the Bank shall immediately buy this foreign currency.

4. The Bank shall pay interest in foreign currency for the foreign currency in the account Administration for customers, at the deposit rates quoted by the Bank. The period to be determined for calculation of interest shall be from the date the foreign currency is transferred to the account Administration for customers to the date the foreign currency is sold to the bank or transferred back to the deposit account of the organization.

5. From the effective date of this Decision, an organization which needs to sell through a spot transaction for the foreign currency subject to sale as provided for by the State Bank to a bank that is not the authorized bank receiving this income, shall be responsible to present the foreign currency spot contract before or at the date the foreign currency is credited to its deposit account with the bank receiving the income.

Based on the spot contract, the receiving bank shall transfer the foreign currency income of the organization to the bank being a partner to the spot contract. The contracting bank shall be responsible to immediately buy this foreign currency income.

6. For the forward contract

a. Forward contracts involving the foreign currency from a current account income which is subject to sale as provided for, entered into between a bank and an organization before the effective date of this Decision shall continue to be carried out.

If the bank buying the foreign currency in a forward contract is not the bank receiving the current account income, the organization shall be responsible to present the forward contract before or at the date the foreign currency is credited to the deposit account with the receiving bank.

Based on the forward contract, the receiving bank shall transfer the foreign currency income of the organization to the bank being a partner to the forward contract. The contracting bank shall be responsible to immediately buy the foreign currency income on the due date.

b. From the effective date of this Decision, forward contracts involving the current account income subject to sale between economic organizations and banks shall be in line with the term of payment of the export or service contract with foreign countries in order to ensure that the current account income shall be sold immediately to the bank when its account is credited.

The economic organization shall be responsible to present the foreign currency forward contract and the export or service contract to the Bank receiving the income. The receiving bank shall based on the term of the forward contract, transfer the foreign currency of the organization to the buying bank in accordance with the forward contract. The buying bank shall be responsible to immediately buy this foreign currency on the due date.

1.2. Point 4 part IV of the Circular 08/1998/TT-NHNN7 shall be supplemented as follows:

Authorized banks shall be responsible to report at the end of each business day to the State Bank (the Foreign Exchange Control Department) on the performance of the purchase of foreign currency by their own system during the day in accordance with the report form attached.

The report form attached to this Decision shall replace the report form attached to the Document No.924/CV-NHNN7 dated 7 October, 1998 on the report on the performance of the implementation of the Decision No. 173/1998/QD-TTg dated 12 September, 1998 by the Prime Minister.

Article 2. This Decision shall be effective from the date of signing.

Article 3. Head of Departments, the Head of Governor office, the Chief Inspectors in the State Bank Head office, General Managers of the State Bank branches in provinces and cities, Directors general (directors) of commercial banks, joint-venture banks and joint-stock commercial banks, foreign bank branches shall, within their competence, be responsible for organising and guiding the implementation of this Decision.

REPORT ON PERFORMANCE OF FOREIGN CURRENCY PURCHASE FROM THE CURRENT ACCOUNT INCOME OF RESIDENTS BEING AN ORGANISATION

(Date )

To: The State Bank of Vietnam

(Foreign exchange control Department)

Fax No. 04 826 8789

Name of the reporting bank:

Telephone No.:

1. The Data Sheet

Unit: US$

2. Obstacles arising during the process of implementation