Thông tư 24/2014/TT-BCT

Circular No. 24/2014/TT-BCT dated July 30, 2014, detailing a number of articles of Decree No. 42/2014/ND-CP on management of multi-level marketing activities

Nội dung toàn văn Circular No. 24/2014/TT-BCT detailing No. 42/2014/ND_CP on management of multi-level marketing activities


THE MINISTRY OF INDUSTRY AND TRADE
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 24/2014/TT-BCT

Hanoi, July 30, 2014

 

CIRCULAR

DETAILING A NUMBER OF ARTICLES OF THE GOVERNMENT’S DECREE NO. 42/2014/ND-CP OF MAY 14, 2014, ON MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES

Pursuant to the Government’s Decree No. 95/2012/ND-CP of November 12, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 42/2014/ND-CP of May 14, 2014, on management of multi-level marketing activities;

At the proposal of the Director of the Vietnam Competition Authority,

The Minister of Industry and Trade promulgates the Circular detailing a number of articles of the Government’s Decree No. 42/2014/ND-CP of May 14, 2014, on management of multi-level marketing activities.

Article 1. Scope of regulation and subjects of application

1. This Circular details and guides the implementation of a number of articles related to multi-level marketing activities and management of multi- level marketing activities prescribed in the Government’s Decree No. 42/2014/ND-CP of May 14, 2014, on management of multi-level marketing activities (below referred to as Decree No. 42/2014/ND-CP).

2. This Circular applies to multi-level marketing businesses, multi-level marketing participants, agencies granting multi-level marketing registration certificates, provincial-level Industry and Trade Departments and other agencies, organizations and individuals related to multi-level marketing activities.

Article 2. Dossiers of application for multi-level marketing registration certificates

A dossier of application for a multi-level marketing registration certificate must comprise:

1. An application for a multi-level marketing registration certificate, made according to form M-01 provided in the Appendix to this Circular.

2. A certified copy of the enterprise registration certificate or the enterprise registration certificate printed out from the national enterprise registration information system or a certified copy of the investment certificate.

3. A document proving the legal charter, which may be any of the following documents: a credit institution’s written certification of the business’s account balance; an independent auditor’s report on the business’s current asset status; a deed of valuation granted by a valuation institution operating lawfully in Vietnam for assets of the business; the business’s financial statement up to the time of submission of the dossier or other equivalent documents.

4. A list of valid personal identity papers (people’s identity cards or passports, for Vietnamese nationals; passports and temporary residence registration certificates granted by competent Vietnamese agencies, for foreigners temporarily residing in Vietnam; or passports, for foreigners not residing in Vietnam) of the persons mentioned in Clause 7, Article 7 of Decree No. 42/2014/ND-CP and certified copies of such papers.

5. Two sets of the dossier of the business’s multi-level marketing activities, each comprising:

a/ The model contract for participation in multi-level marketing activities;

b/ The bonus payment program clearly stating conditions for and methods of payment of commissions, bonuses and other economic benefits to multi-level marketing participants;

c/ Basic training program;

d/ Rules of operation.

6. Documents related to goods to be traded by the mode of multi-level marketing, including:

a/ Two copies of the list of goods indicating information on categories, origin, packaging specifications, sale prices (applicable to multi-level marketing participants and customers) and bonus points converted from goods traded by the mode of multi-level marketing;

b/ Valid documents guaranteeing the circulation of goods as prescribed by relevant laws;

c/ Documents related to uses, use methods and policies on warranty, return and re-purchase of goods.

7. A certified copy of the business eligibility certificate or business license or practice certificate as prescribed by law, in case of trading in goods subject to conditional business.

8. The original written certificate of payment of escrow money as prescribed in Article 16 of this Circular.

Article 3. Order and procedures for grant of multi-level marketing registration certificates

The Vietnam Competition Authority shall receive, appraise and grant multi-level marketing registration certificates to businesses that register for multi-level marketing activities. The order and procedures for granting a multi-level marketing registration certificate are as follows:

1. Receiving the dossier

a/ A business that registers for multi-level marketing activities shall submit 1 (one) set of the dossier prescribed in Article 2 of this Circular (enclosed with a soft copy recorded in a CD-ROM disc or an USB flash drive) to the Office of the Vietnam Competition Authority. The dossier may be submitted directly or sent by post;

b/ Within 5 working days after receiving the dossier, the Vietnam Competition Authority shall check its completeness and validity. If the dossier is incomplete or invalid, the Vietnam Competition Authority shall notify such to the business for the latter to modify or supplement the dossier within subsequent 30 days;

c/ If the business fails to modify or supplement the dossier within 30 days after the Vietnam Competition Authority issues a notice for dossier modification or supplementation, the Vietnam Competition Authority shall return the dossier.

2. Appraising the dossier

a/ Within 15 working days after receiving a complete and valid dossier, the Vietnam Competition Authority shall appraise the dossier and issue an appraisal document.

b/ Appraisal contents:

- Examining the form of documents provided by the business in order to ensure their conformity with regulations;

- Appraising contents of documents related goods to be traded by the mode of multi-level marketing and documents related to multi-level marketing activities of the business in order to ensure their conformity with Decree No. 42/2014/ND-CP.

3. Granting multi-level marketing registration certificates

If a business’s dossier meets the conditions prescribed in Decree No. 42/2014/ND-CP the Vietnam Competition Authority shall grant a multi-level marketing registration certificate, made according to for m M-03 provided in the Appendix to this Circular, to the business and return the business 1 (one) copy bearing the certification of the Vietnam Competition Authority of each of the documents prescribed in Clause 5 and at Point a, Clause 6, Article 2 of this Circular.

If the business’s dossier fails to meet the conditions prescribed in Decree No. 42/2014/ND-CP the Vietnam Competition Authority shall issue a notice requesting the business to modify or supplement the dossier. The time limit for dossier modification and supplementation is 30 days.

If the business cannot meet fully the conditions prescribed in Decree No. 42/2014/ND-CP or it fails to modify or supplement the dossier within the prescribed time limit, the Vietnam Competition Authority shall return the dossier to the business and issue a written reply clearly stating the reason.

4. Within 10 working days after granting a multi-level marketing registration certificate, the Vietnam Competition Authority shall announce such grant on its website and send a copy of the certificate, enclosed with copies of the documents prescribed in Clauses 2, 5 and 6, Article 2 of this Circular, to provincial-level Industry and Trade Departments nationwide by any of the following modes:

a/ Post;

b/ Fax;

c/ E-mail.

Article 4. Modification and supplementation of multi-level marketing registration certificates

1. A dossier of request for modification or supplementation of a multi- level marketing registration certificate must comprise:

a/ A written request for modification or supplementation of the multi- level marketing registration certificate, made according to form M-04 provided in the Appendix to this Circular;

b/ The original multi-level marketing registration certificate granted by the Vietnam Competition Authority;

c/ The documents prescribed in Article 2 of this Circular, which are related to to-be-modified or -supplemented contents of the certificate.

2. The order and procedures for modification and supplementation of multi-level marketing registration certificates must comply with Article 3 of this Circular.

Article 5. Re-grant of multi-level marketing registration certificates

1. In case its multi-level marketing registration certificate is lost, ragged or damaged, a business shall submit an application for re-grant of the multi- level marketing registration certificate, made according to form M-05 provided in the Appendix to this Circular, to the Vietnam Competition Authority. Such application may be submitted directly or sent by post.

2. Within 10 working days after receiving a valid application for re-grant of a multi-level marketing registration certificate, the Vietnam Competition Authority shall re-grant the certificate to the business.

Article 6. Extension of multi-level marketing registration certificates

1. A dossier of request for extension of a multi-level marketing registration certificate must comprise:

a/ A written request for extension of multi-level marketing registration certificate, made according to form M-06 provided in the Appendix to this Circular;

b/ The documents prescribed in Clauses 2, 3 and 4, Article 2 of this Circular;

c/ The documents prescribed in Clauses 5, 6 and 7, Article 2 of this Circular, if there is any change compared to the last modified or supplemented certificate;

d/ A report on business results and law compliance in 5 (five) years after being granted the multi-level marketing registration certificate.

2. The order and procedures for extension of multi-level marketing registration certificates must comply with Article 3 of this Circular.

Article 7. Revocation of multi-level marketing registration certificates

1. Multi-level marketing registration certificates shall be revoked in the cases prescribed in Clause 1, Article 14 of Decree No. 42/2014/ND-CP.

2. Order and procedures for revocation of a multi-level marketing registration certificate:

a/ The Vietnam Competition Authority shall issue a decision to revoke a multi-level marketing registration certificate in one of the cases prescribed in Clause 1, Article 14 of Decree No. 42/2014/ND-CP and notify the revocation to the business concerned;

b/ Within 10 working days after receiving the decision on revocation of the multi-level marketing registration certificate, the business shall return the certificate to the Vietnam Competition Authority. The certificate may be returned directly or by post;

c/ Within 10 working days after issuing the decision on revocation of a multi-level marketing registration certificate, the Vietnam Competition Authority shall notify the revocation to provincial-level Industry and Trade Departments nationwide by one of the modes prescribed in Clause 4, Article 3 of this Circular, and post such decision on its website.

Article 8. Notification of suspension of multi-level marketing activities

1. A dossier of notification of suspension of multi-level marketing activities must comprise:

a/ A notice of suspension of multi-level marketing activities, made according to form M-07 provided in the Appendix to this Circular;

b/ A decision on, and a minutes of the meeting discussing, the suspension of multi-level marketing activities, issued by the Members’ Council, if the multi-level marketing business is a limited liability company with two or more members, the company owner, if the business is a single- member limited liability company, the Shareholders’ Meeting, if the business is a joint-stock company, or partners, if the business is a partnership.

2. At least 30 days before the date of suspension of multi-level marketing activities, the business shall:

a/ Submit directly or send by post a dossier of notification prescribed in Clause 1 of this Article to the Vietnam Competition Authority and each of provincial-level Industry and Trade Departments of the localities where it conducts multi-level marketing activities;

b/ Post up the notice of suspension of multi-level marketing activities at its head office, branches, representative offices and business places, and on its website and notify the suspension of multi-level marketing activities to multi-level marketing participants.

3. Within 10 working days after receiving a valid dossier of notification of suspension of multi-level marketing activities, the Vietnam Competition Authority shall issue a written certification of receipt of the dossier of notification, inform provincial-level Industry and Trade Departments nationwide of the business’s suspension of multi-level marketing activities by one of the modes prescribed in Clause 4, Article 3 of this Circular, and post such information on its website.

4. Before resuming multi-level marketing activities after a period of suspension, a business shall submit directly or send by post to the Vietnam Competition Authority a notice of resumption of multi-level marketing activities made according to form M-08 provided in the Appendix to this Circular.

Within 10 working days after receiving a notice of resumption of multi- level marketing activities, the Vietnam Competition Authority shall issue a written certification of the receipt of the dossier of notification, inform provincial-level Industry and Trade Departments nationwide of the business’s resumption of multi-level marketing activities by one of the modes prescribed in Clause 4, Article 3 of this Circular, and post such information on its website.

Article 9. Termination of multi-level marketing activities

1. In case a business terminates multi-level marketing activities at its own will:

a/ A dossier of notification of termination of multi-level marketing activities must comprise:

- A notice of termination of multi-level marketing activities, made according to form M-09 provided in the Appendix to this Circular;

- The original multi-level marketing registration certificate;

- A decision on, and a minutes of the meeting discussing, the termination of multi-level marketing activities, issued by the Members’ Council, if the multi-level marketing business is a limited liability company with two or more members, the company owner, if the business is a single-member limited liability company, the Shareholders’ Meeting, if the business is a joint-stock company, or partners, if the business is a partnership;

- Three consecutive issues of a central newspaper publishing the business’s notice of termination of multi-level marketing activities.

b/ Order and procedures for termination of multi-level marketing activities:

- The business shall submit directly or send by post to the Vietnam Competition Authority a dossier of notification of termination of multi-level marketing activities and, at the same time send by post a notice of termination of multi-level marketing activities to each of provincial-level Industry and Trade Departments of the localities where it conducts multi-level marketing activities;

- The business shall post up the notice of termination of multi -level marketing activities at its head office, branches, representative offices and business places, and on its website and notify the termination of multi -level marketing activities to multi-level marketing participants;

- Within 10 working days after receiving a valid dossier of notification of termination of multi-level marketing activities, the Vietnam Competition Authority shall issue a written certification of receipt of the dossier of notification, inform provincial-level Industry and Trade Departments nationwide of the business’s termination of multi-level marketing activities by one of the modes prescribed in Clause 4, Article 3 of this Circular and post such information on its website;

- Within 90 days after the Vietnam Competition Authority issues a written certification of the dossier of notification of termination of multi-level marketing activities, the multi-level marketing business shall fulfill its obligations toward multi-level marketing participants as prescribed by law.

2. In case a business terminates multi-level marketing activities because its multi-level marketing registration certificate expires or is revoked:

a/ Within 10 working days after its multi-level marketing registration certificate expires (extension not permitted) or is revoked, the business shall:

- Submit directly or send by post a notice of termination of multi-level marketing activities to the Vietnam Competition Authority and each of the provincial-level Industry and Trade Departments of the localities where it conducts multi-level marketing activities;

- Post up the notice of termination of multi-level marketing activities at its head office, branches, representative offices and business places and on its website and notify the termination of multi-level marketing activities to multi-level marketing participants;

- Get the notice of termination of multi-level marketing activities published on 3 (three) consecutive issues of a central newspaper.

b/ Within 10 working days after receiving a valid dossier of notification of termination of multi-level marketing activities, the Vietnam Competition Authority shall issue a written certification of receipt of the dossier of notification, inform provincial-level Industry and Trade Department nationwide of the business’s termination of multi-level marketing activities by one of the modes prescribed in Clause 4, Article 3 of this Circular, and post such information on its website.

c/ Within 90 days after the Vietnam Competition Authority issues a written certification of the dossier of notification of termination of multi-level marketing activities, the multi-level marketing business shall fulfill its obligations toward multi-level marketing participants as prescribed by law.

Article 10. Notification of multi-level marketing activities

1. A dossier of notification of multi-level marketing activities must comprise:

a/ A notice of multi-level marketing activities, made according to form M-10 provided in the Appendix to this Circular;

b/ A certified copy of the multi-level marketing registration certificate;

c/ Copies certified by the business of the documents prescribed in Clause 2, Article 2, and Clause 3, Article 3, of this Circular;

d/ A certified copy of the business eligibility certificate, business license or practice certificate as prescribed by law, in case of trading in goods subject to conditional business in localities (if any).

2. The business shall submit directly or send by post a dossier of notification of multi-level marketing activities directly to each of the provincial-level Industry and Trade Departments of the localities where it will conduct multi-level marketing activities.

3. Within 5 working days after receiving a dossier, a provincial-level

Industry and Trade Department shall check its completeness and validity.

In case the dossier is complete and valid, within 5 working days after its receipt, the provincial-level Industry and Trade Department shall send to the business a written certification of receipt of the dossier, made according to form M-11 or M-11A (for case of modification or supplementation of dossiers of notification under Claus 4 of this Article) provided in the Appendix to this Circular

In case the dossier is incomplete or invalid, the provincial-level Industry and Trade Department shall notify such to the business for dossier modification or supplementation. The time limit for dossier modification or supplementation is 15 working days after the provincial-level Industry and Trade Department issues a notice. The provincial-level Industry and Trade Department shall return the dossier if the business fails to modify or supplement the dossier within that time limit.

Within 5 working days after receiving a complete and valid modified or supplemented dossier, the provincial-level Industry and Trade Department shall send a written certification of receipt of the dossier of notification to the business.

4. Within 10 working days after a change is made to the content of the dossier of notification of multi-level marketing activities prescribed in Clause 1 of this Article, the business shall submit directly or send by post a notice, made according to form M-10A provided in the Appendix to this Circular, enclosed with the changed documents, to each of the provincial-level Industry and Trade Departments of the localities where it conducts multi- level marketing activities. The order and procedures for notification of changes in contents of dossiers of notification must comply with Clause 3 of this Article.

5. Within 5 working days after issuing a written certification of receipt of the dossier of notification, the provincial-level Industry and Trade Department shall send a copy of such written certification to the Vietnam Competition Authority by one of the modes prescribed in Clause 4, Article 3 of this Circular.

Article 11. Notification of organization of conferences, seminars and training courses

1. A dossier of notification of organization of a conference, seminar or training course must comprise:

a/ A notice of organization of a conference, seminar or training course, made according to form M-12 provided in the Appendix to this Circular;

b/ A certified copy of the enterprise registration certificate or investment certificate;

c/ The contents, program, agenda and documents of the conference, seminar or training course, and the expected number of participants;

d/ The list of speakers at the conference, seminar or training course;

dd/ A copy of the training certificate, in case of training multi-level marketing participants as prescribed in Article 20 of Decree No. 42/2014/ND-CP;

e/ The letter of authorization, in case the business authorizes an individual to provide training or organize the conference or seminar;

g/ In case the conference, seminar or training course deals with the contents prescribed at Point b, Clause 1, Article 18 of Decree No. 42/2014/ND-CP the business shall also submit:

- A list of its products to be traded by the mode of multi-level marketing which are introduced at the conference, seminar or training course;

- A copy of a competent state agency’s written certification of contents of the product advertisement displayed at the conference or seminar, which may be the written certification of registration for organization of a food introduction conference or seminar, in case the product is food and/or the

receipt of the dossier of registration for organization of a cosmetic introduction seminar or event, in case the product is a cosmetic.

2. The business shall submit directly or send by post the dossier of notification of organization of a conference, seminar or training course to the provincial-level Industry and Trade Department of the locality where such event will be organized.

3. Within 5 working days after receiving a dossier of notification of organization of the conference, seminar or training course, the provincial- level Industry and Trade Department shall:

a/ Check the completeness and validity of the dossier;

b/ Review and compare the dossier of notification with the multi-level marketing registration dossier already certified by the Vietnam Competition Authority so as to ensure their consistency.

4. Within 5 working days after receiving a dossier, the provincial-level Industry and Trade Department shall:

a/ Send to the business a written certification of receipt of the dossier of notification, made according to form M-13 provided in the Appendix to this Circular, if the dossier is complete and valid and consistent with the multi-level marketing registration dossier already certified by the Vietnam Competition Authority;

b/ Issue a notice requesting the business to modify or supplement the dossier, in case the dossier is incomplete or invalid or inconsistent with the multi-level marketing registration dossier certified by the Vietnam Competition Authority. The time limit for dossier modification or supplementation is 15 working days after the provincial-level Industry and Trade Department issues the notice.

If the multi-level marketing business fails to modify or supplement the dossier within the above-said time limit, the provincial-level Industry and Trade Department shall return the dossier.

Article 12. Training of multi-level marketing participants

1. After signing contracts with multi-level marketing participants, a business shall train them according to the basic training program which has been certified and returned to the business by the Vietnam Competition Authority under Clause 3, Article 3 of this Circular.

2. Within 15 days after the training course finishes, the business shall grant certificates of basic multi-level marketing training, made according to form M-14 provided in the Appendix to this Circular, to multi-level marketing participants.

After granting certificates of basic multi-level marketing training to participants, the business shall grant them member cards, made according to form M-02 provided in the Appendix to this Circular.

3. When there are any changes in the basic training program, the business shall update multi-level marketing participants on such changes within 30 days after such changes are certified by the Vietnam Competition Authority by either of the following modes:

a/ Organizing a supplementary training course;

b/ Notifying such changes to multi-level marketing participants via the business’s website and post them up at its head office, branches, representative offices and business places.

Article 13. Training of trainers

1. A training program for multi-level marketing trainers must cover the following basic knowledge:

a/ Laws and regulations governing multi-level marketing activities;

b/ Specialized laws and regulations concerning goods to be traded by the mode of multi-level marketing.

2. The Vietnam Competition Authority shall, based on the actual demand for training multi-level marketing trainers, designate training institutions which meet the following conditions to train multi-level marketing trainers:

- Having appropriate training functions and experience;

- Having adequate training facilities.

3. After completing a training course with satisfactory examination results, a trainee shall be granted by a training institution prescribed in Clause 2 of this Article a certificate of training in basic multi-level marketing knowledge, made according to form M-15 provided in the Appendix to this Circular.

4. Order and procedures for designating a training institution to train multi-level trainers:

a/ The training institution shall submit directly or send by post to the Vietnam Competition Authority 1 (one) set of dossier of registration for training multi-level marketing trainers, comprising:

- A written registration for training multi-level marketing trainers;

- A certified copy of its establishment decision or enterprise registration certificate with relevant training functions;

- The capacity dossier with the following contents: introduction of training experiences and capabilities, and physical foundations of the training institution, training programs and training materials, list of lecturers (enclosed with their CVs certified by their managing agencies and certified copies of their diplomas), number of trainees estimated based on the institution’s training capacity; plan on training and grant of certificates of training in basic multi-level marketing knowledge.

b/ Within 30 days after receiving a complete and valid dossier, the Vietnam Competition Authority shall inspect the training institution and assess the registration dossier against the criteria prescribed in Clause 2 of this Article and issue a decision to designate the institution to train multi-level marketing trainers. In case of refusal, it shall issue a written reply clearly stating the reason.

A decision on designation of a multi-level marketing trainer training institution is valid for 3 years from the date of its signing.

5. Examination and supervision of operations of training institutions:

a/ Before January 15 every year, each training institution shall send a review report on the training of multi-level marketing trainers in the previous year (covering results of training, examination and grant of certificates of training in basic of multi-level marketing knowledge) to the Vietnam Competition Authority;

b/ Annually, the Vietnam Competition Authority shall inspect training facilities and equipment of training institutions and assess their compliance with regulations on training, examination and grant of training certificates.

Based on inspection results, depending on the severity of violations, the Vietnam Competition Authority may request a training institution to remedy its violation or decide to suspend the implementation of the designation decision.

c/ The Vietnam Competition Authority shall revoke or invalidate a designation decision in the following cases: the training institution is dissolved; the training institution no longer operates in the designated field; the training institution fails to remedy its violation during the period of suspension of operation or its violations cannot be remedied.

Article 14. Trainer certificates

1. Trainer certificates shall be made according to form No. M-16 provided in the Appendix to this Circular.

2. A trainer certificate is valid for training activities of the business which has requested the grant of such certificate.

3. Order and procedures for granting trainer certificates:

a/ A multi-level marketing business shall submit directly or send by post to the Vietnam Competition Authority a dossier of application for trainer certificates, comprising:

- An application for trainer certificates;

- Certified copies of labor contracts or training service provision contracts signed between the multi-level marketing business and persons applying for trainer certificates;

- A list of persons applying for trainer certificate, 2 (two) photos (3cm x 4cm) of each person and certified copies of their certificates of training in basic multi-level marketing knowledge prescribed in Clause 3, Article 13 of this Circular.

b/ Within 10 working days after receiving a complete and valid dossier, the Vietnam Competition Authority shall grant trainer certificates as requested by the multi-level marketing business and post information thereon on its website.

In case the dossier is incomplete or invalid, the Vietnam Competition Authority shall notify such to the business for dossier modification or supplementation. The time limit for dossier modification or supplementation is 10 working days after the Vietnam Competition Authority issues the notice.

4. Revocation of trainer certificates:

a/ Cases in which a trainer certificate shall be revoked:

- There is fraudulence in the dossier of application for trainer certificates;

- The trainer fails to conduct training activities in accordance with law;

- The multi-level marketing business terminates the labor contract or training service provision contract signed with the trainer.

b/ Order and procedures for revocation of a trainer certificate:

- If detecting fraudulence in a dossier of application for trainer certificates or if detecting that a trainer fails to conduct training activities in accordance with law, the Vietnam Competition Authority shall issue a decision to revoke the trainer certificate and send it to the multi-level marketing business concerned. Within 15 working days after receiving the revocation decision, the business shall revoke the trainer certificate and return it directly or by post to the Vietnam Competition Authority. The trainer certificate is invalidated on the date the Vietnam Competition Authority issues the revocation decision;

- If terminating the labor contract or training service provision contract with a trainer, a multi-level marketing business shall revoke his/her trainer certificate and, within 15 working days after terminating the contract, shall return the certificate directly or by post to the Vietnam Competition Authority.

c/ The Vietnam Competition Authority shall post on its website information on revocation of trainer certificates of each multi-level marketing business.

5. Order and procedures for re-grant of trainer certificates:

a/ When there are any changes in the law related to the contents prescribed in Clause 1, Article 13 of this Circular, the Vietnam Competition Authority shall notify such changes to multi-level marketing businesses for the latter to train and update knowledge for its trainers and, at same time, re- grant trainer certificates.

b/ The order and procedures for re-grant of trainer certificates must comply with Clause 3 of this Article.

Article 15. Periodical reporting by multi-level marketing businesses

1. Before July 15 and January 15 every year, a multi-level marketing business shall submit biannual and annual reports on multi-level marketing activities to the Vietnam Competition Authority and provincial-level Industry and Trade Departments to which it has submitted a notice of multi-level marketing activities. Such reports shall be made in paper and electronic files.

2. A periodical report submitted to the Vietnam Competition Authority must state:

a/ Information on the business: its name, address of head office, enterprise identification number, telephone number, fax number, email address; date of issuance and serial number of the granted, modified or supplemented multi-level marketing registration certificate; addresses of its branches, representative offices and business places, names and telephone numbers of contact persons in localities where the business conducts multi- level marketing activities;

b/ Information on the business’s multi-level marketing results: multi- level marketing sales, statistics on products traded by the mode of multi-level marketing; number of multi-level marketing participants and commissions, bonuses and other economic benefits paid to them;

c/ Number of conferences, seminars and training courses with the contents prescribed in Clause 1, Article 18 of Decree No. 42/2014/ND-CP which are notified to each provincial-level Industry and Trade Department, and the total number of conferences, seminars and training courses certified by provincial-level Industry and Trade Departments;

d/ The audited financial statement of the year preceding the reporting year, for biannual reports.

3. A periodical report submitted to a provincial-level Industry and Trade Department must state:

a/ Information on the business: its name, address of head office, enterprise identification number, telephone number, fax number, email address; date of issuance and serial number of the granted, modified or supplemented multi-level marketing registration certificate; addresses of its branches, representative offices and business places in the locality, and name and telephone number of the contact person in the locality;

b/ Information on the business’s multi-level marketing results in the locality: multi-level marketing sales, statistics on products traded by the mode of multi-level marketing; number of multi-level marketing participants and commissions, bonuses and other economic benefits paid to them.

Article 16. Certification of payment of escrow money

1. A written certification of payment of escrow money must cover the following contents:

a/ Information on the bank where the business opens the escrow account;

b/ Information on the escrow-making business: its name, address, serial number of its enterprise registration certificate or investment certificate; at - law representative;

c/ Information on the escrow: number of the escrow account, amount of escrow money, time of making the escrow and principles of management of the escrow account as prescribed in Article 29 of Decree No. 42/2014/ND-CP.

2. If it relocates to another province or centrally run city, a multi-level marketing business shall make an escrow as prescribed in Clause 1, Article 29 of Decree No. 42/2014/ND-CP and submit the new certification of payment of escrow money to the Vietnam Competition Authority.

Upon receiving the new certification of payment of escrow money, the Vietnam Competition Authority shall issue a document permitting the business to withdraw the previously paid escrow money.

Article 17. Withdrawal of escrow money

1. After 90 days since the Vietnam Competition Authority issues a written certification of a dossier of notification of termination of multi-level marketing activities, the business concerned may submit directly or send by post to the Vietnam Competition Authority a dossier of request for withdrawal of escrow money.

2. A dossier of request for withdrawal of escrow money must comprise:

a/ A request for unfreezing of the escrow account, made according to form M-17 provided in the Appendix to this Circular;

b/ A list of multi-level marketing participants by the time of termination of multi-level marketing activities (their names, serial numbers of people’s identity cards or passports, addresses, telephone numbers, serial numbers and dates of signing multi-level marketing participation contracts, serial numbers of member cards).

3. Receipt of dossiers of request for withdrawal of escrow money:

a/ Within 5 working days after receiving a dossier of request for withdrawal of escrow money from a multi-level marketing business, the Vietnam Competition Authority shall check its completeness and validity.

In case the dossier is incomplete or invalid, the Vietnam Competition Authority shall issue a notice requesting the business to modify or supplement the dossier. The time limit for dossier modification or supplementation is 10 working days after the Vietnam Competition Authority issues the notice.

In case the dossier is complete and valid, the Vietnam Competition Authority shall post on its website information on the business’s termination of multi-level marketing activities and its request for withdrawal of escrow money.

b/ Within 30 days after the Vietnam Competition Authority posts the above-said information on its website, if the multi-level marketing business has not yet fulfilled the obligations prescribed at Point b, Clause 2, Article 16 of Decree No. 42/2014/ND-CP multi-level marketing participants may report it to the Vietnam Competition Authority.

If the Vietnam Competition Authority receives no reports from multi- level marketing participants within the above-said time limit, the multi-level marketing business shall be regarded as having fulfilled the obligations prescribed at Point b, Clause 2, Article 16 of Decree No. 42/2014/ND-CP.

If receiving reports from multi-level marketing participants within the above-said time limit, the Vietnam Competition Authority shall summarize such reports and request the multi-level marketing business to fulfill its obligation toward multi-level marketing participants concerned. After fulfilling its obligations toward multi-level marketing participants, the business shall send a notice, enclosed with written certifications of such persons, to the Vietnam Competition Authority.

c/ After the business fulfills the obligations prescribed at Point b, Clause 2, Article 16 of Decree No. 42/2014/ND-CP the Vietnam Competition Authority shall issue a document approving the unfreezing of the business’s escrow account.

Article 18. Use of escrow money

1. In case a multi-level marketing business terminates multi-level marketing activities under Clause 1, Article 16 of this Decree 42/2014/ND-CP but fails to fulfill obligations related to multi-level marketing activities and there is a competent agency’s legally effective decision or judgment on the settlement of disputes related to such obligations between the business and multi-level marketing participants, multi-level marketing participants may request the Vietnam Competition Authority to use escrow money of the business to perform the obligations under the decision or judgment as prescribed in Clause 1, Article 31 of Decree No. 42/2014/ND-CP.

2. Order and procedures for use of escrow money:

a/ Multi-level marketing participants mentioned in Clause 1 of this Article shall submit direct or send by post to the Vietnam Competition Authority written requests for use of escrow money and certified copies of the judgments or decisions specified in Clause 1, Article 31 of Decree No. 42/2014/ND-CP;

b/ Within 10 working days after receiving the documents prescribed at Point a of this Clause, the Vietnam Competition Authority shall check the validity of such documents.

In case the documents prescribed at Point a of this Clause are invalid, the Vietnam Competition Authority shall issue a notice requesting the requesters to modify or supplement such documents. The time limit for modification or supplementation is 15 working days after the Vietnam Competition Authority issues the notice.

c/ In case the documents prescribed at Point a of this Clause are valid, the Vietnam Competition Authority shall issue a document requesting the bank where the business opens its escrow account to use escrow money to fulfill requirements of multi-level marketing participants.

Article 19. Handling of escrow money paid under the Government’s Decree No. 110/2005/ND-CP of August 24, 2005, on management of multi- level marketing activities

1. A business which has been granted by a provincial-level Industry and Trade Department a written registration for organization of multi-level marketing activities may withdraw escrow money in the following cases:

a/ It terminates multi-level marketing activities;

b/ It has been granted a multi-level marketing registration certificate by the Vietnam Competition Authority under Decree No. 42/2014/ND-CP.

2. Order and procedures for withdrawal of escrow money in the case prescribed at Point a, Clause 1 of this Article:

a/ When terminating multi-level marketing activities, a multi-level marketing business shall:

- Submit directly or send by post to the provincial-level Industry and Trade Department a notice of termination of multi-level marketing activities;

- Post up the notice of termination of multi-level marketing activities at its head office, branches, representative offices and business places and on its website and notify the termination of multi-level marketing activities to multi-level marketing participants;

- Getting the notice of termination of multi-level marketing activities published on 3 (three) consecutive issues of a central newspaper.

Within 90 days after submitting the notice of termination of multi-level marketing activities, the multi-level marketing business shall fulfill its obligations toward multi-level marketing participants in accordance with law.

b/ Within 90 days after submitting the notice of termination of multi- level marketing activities, the business may submit directly or send by post to the provincial-level Industry and Trade Department a dossier of request for withdrawal of escrow money;

c/ A dossier of request for withdrawal of escrow money must comprise:

- A request for unfreezing of the escrow account, made according to form M-17 provided in the Appendix to this Circular;

- The certificate of registration for organization of multi-level marketing activities granted by the provincial-level Industry and Trade Department;

- A list of multi-level marketing participants by the time of termination of multi-level marketing activities (their names, serial numbers of their people’s identity cards or passports, addresses, telephone numbers, serial numbers and dates of signing of multi-level marketing participation contracts, serial numbers of their member cards);

- Three consecutive issues of a central newspaper publishing the business’s notice of termination of multi-level marketing activities.

d/ Receipt of dossiers of request for withdrawal of escrow money:

Within 5 working days after receiving a dossier of request for withdrawal of escrow money from a multi-level marketing business, the provincial-level Industry and Trade Department shall check the completeness and validity of the dossier.

In case the dossier is incomplete or invalid, the provincial-level Industry and Trade Department shall issue a notice requesting the business to modify or supplement the dossier. The time limit for dossier modification or supplementation is 10 working days after the provincial-level Industry and Trade Department issues the notice.

In case the dossier is complete and valid, the provincial-level Industry and Trade Department shall post on its website information on the business’s termination of multi-level marketing activities and its request for withdrawal of escrow money.

Within 30 days after the provincial-level Industry and Trade Department posts the above-said information on its website, if the multi-level marketing business has not yet fulfilled its obligations as prescribed by law, multi-level marketing participants may report it to the provincial-level Industry and Trade Department.

If the provincial-level Industry and Trade Department receives no reports from multi-level marketing participants within the above-said time limit, the multi-level marketing business shall be regarded as having fulfilled its obligations as prescribed by law.

If receiving reports from multi-level marketing participants within the above-said time limit, the provincial-level Industry and Trade Department shall summarize such reports and request the multi-level marketing business to fulfill its obligations toward the multi-level marketing participants concerned. After fulfilling its obligations toward multi-level marketing participants, the business shall send a notice, enclosed with written certifications of such persons, to the provincial-level Industry and Trade Department.

dd/ After the business fulfills the obligations toward multi-level marketing participants as prescribed by law, the provincial-level Industry and Trade Department shall issue a document approving the unfreezing of the business’s escrow account.

3. Order and procedures for withdrawal of escrow money in the case prescribed at Point b, Clause 1 of this Article:

a/ After receiving a multi-level marketing registration certificate from the Vietnam Competition Authority under Decree No. 42/2014/ND-CP a business may submit directly or send by post to the provincial-level Industry and Trade Department a dossier of request for withdrawal of escrow money;

b/ A dossier of request for withdrawal of escrow money comprises:

- A request for unfreezing of the escrow account, made according to form M-17 provided in the Appendix to this Circular;

- The certificate of registration for organization of multi-level marketing activities granted by the provincial-level Industry and Trade Department;

- A certified copy of the multi-level marketing registration certificate granted by the Vietnam Competition Authority.

c/ Receipt of dossiers of request for withdrawal of escrow money:

Within 5 working days after receiving a dossier of request for withdrawal of escrow money from a multi-level marketing business, a provincial-level Industry and Trade Department shall check the completeness and validity of the dossier.

If the dossier is incomplete or invalid, the provincial-level Industry and Trade Department shall issue a notice requesting the business to modify or supplement the dossier. The time limit for dossier modification or supplementation is 10 working days after the provincial-level Industry and Trade Department issues the notice.

Within 5 working days after receiving a complete and valid dossier, the provincial-level Industry and Trade shall issue a document approving the unfreezing of the multi-level marketing business’s escrow account.

Article 20. Organization of implementation

1. The Vietnam Competition Authority, according to its function and tasks, shall:

a/ Implement this Circular;

b/ Guide and coordinate with provincial-level Industry and Trade Departments and other competent agencies in implementing this Circular.

2. Provincial-level Industry and Trade Departments shall:

a/ Perform the tasks specified in this Circular.

b/ Coordinate with the Vietnam Competition Authority and other competent agencies in implementing this Circular.

Article 21. Effect

1. This Circular takes effect on September 15, 2014.

2. This Circular replaces the Minister of Trade’s Circular No. 19/2005/TT-BTM of November 8, 2005, guiding a number of contents of the Government’s Decree No. 110/2005/ND-CP of August 24, 2005, on management of multi-level marketing activities, and the Minister’s of Industry and Trade’s Circular No. 35/2011/TT-BCT of September 23, 2011, amending and supplementing a number of administrative procedure-related contents of Circular No. 19/2005/TT-BTM of November 8, 2005, guiding some contents of Decree No. 110/2005/ND-CP of August 24, 2005.

3. Any problems arising in the course of implementation of this Circular should be directly reported to the Vietnam Competition Authority for consideration and settlement according to its competence or reported to the Ministry of Industry and Trade for settlement.-

 

 

FOR THE MINISTER OF INDUSTRY AND TRADE
DEPUTY MINISTER




Tran Quoc Khanh

* The Appendix to this Circular is not translated.

Thuộc tính Văn bản pháp luật 24/2014/TT-BCT

Loại văn bảnThông tư
Số hiệu24/2014/TT-BCT
Cơ quan ban hành
Người ký
Ngày ban hành30/07/2014
Ngày hiệu lực15/09/2014
Ngày công báo...
Số công báo
Lĩnh vựcDoanh nghiệp, Thương mại
Tình trạng hiệu lựcCòn hiệu lực
Cập nhật4 năm trước

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Lược đồ Circular No. 24/2014/TT-BCT detailing No. 42/2014/ND_CP on management of multi-level marketing activities


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          Circular No. 24/2014/TT-BCT detailing No. 42/2014/ND_CP on management of multi-level marketing activities
          Loại văn bảnThông tư
          Số hiệu24/2014/TT-BCT
          Cơ quan ban hànhBộ Công thương
          Người kýTrần Quốc Khánh
          Ngày ban hành30/07/2014
          Ngày hiệu lực15/09/2014
          Ngày công báo...
          Số công báo
          Lĩnh vựcDoanh nghiệp, Thương mại
          Tình trạng hiệu lựcCòn hiệu lực
          Cập nhật4 năm trước

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