Nghị định 24/2012/ND-CP

DECREE

ON GOLD BUSINESS ACTIVITIES

Pursuant to Law on the organization of the Government of December 25, 2001;

Pursuant to Commercial Law No.36/2005/QH11 of June 14, 2005;

Pursuant to Enterprise Law of November 29, 2005;

Pursuant to Law on the State Bank of Vietnam No. 46/2010/QH12 of June 16, 2010;

Pursuant to Law on credit institutions No. 47/2010/QH12 of June 16, 2010;

At the proposal of the Governor of the State Bank of Vietnam;

The Government hereby issues the Decree on management of gold business activities,

Chapter 1.

GENERAL PROVISIONS

Article 1. Governing scope

1. This Decree regulates gold business activities including: production and processing of gold jewellery and fine arts; purchase and sale of gold jewellery and fine arts; purchase and sale of gold bars; import and export of gold and other gold businesses, including gold trading via accounts and gold derivative activities.

2. This Decree is not applicable to gold exploitation and refinery by gold exploiting enterprises.

Article 2. Scope of regulation

This Decree applies to organizations and individuals that carry out gold business in the territory of Vietnam and other agencies, organizations and individuals relating to gold business activities.

Article 3. Interpretation of terms

In this Decree, the following terms shall be construed as below:

1. Gold jewellery and fine arts of which the gold content is 8 Carat (equivalent to 33.33%) or above that have been processed and fashioned to serve adornment and fine arts.

2. Gold bars means gold molded into bars, engraved with letters, weight indicators, quality, the symbol and the sign of producing enterprises and credit institutions licensed by the State Bank of Vietnam (hereinafter referred to as the State Bank) to produce, or gold bars produced by the State Bank’s in each specific period

3. Gold material means gold bullions, bars grains, pieces and other types.

4. Gold business activities via accounts means gold trading via accounts in the form of deposit transactions and the net value shall be constantly re-evaluated in line with fluctuations in gold price.

Article 4. Principles of management

1. Organizations’ and individuals’ gold ownership is recognized and protected by law.

2. The State Bank is the agency that, on behalf of the Government, uniformly manages gold business activities in accordance with provisions of this Decree.

3. The State shall exclusively produce gold bars, export gold material and import gold material for production of gold bars.

4. The gold business must be managed in order to sustainably develop and stabilize the gold market, ensuring the production and processing of gold jewellery and fine arts to serve the domestic market and export in accordance with law provisions.

5. Organizations and individuals doing gold business must comply with this Decree and other relevant law provisions.

6. The purchase and sale of gold bars; the production of gold jewellery and fine arts are conditional business and must be permitted by the State Bank by issuing the License to trade gold bar or the Qualification certificate of gold jewellery and fine arts production.

7. The business of gold jewellery and fine arts is conditional and not subject to the qualification certificate of business.

8. Gold derivative activities made by commercial banks and branches of foreign banks must comply with Article 105 of the Law on credit institutions.

9. Gold business activities, except gold import and export, purchase and sale of domestic gold material by enterprises producing gold jewellery and fine arts and enterprises trading gold jewellery and fine arts and other activities stipulated in Clause 6, 7 and 8 of this Article, are those in the list of restricted goods and services. Organizations and individuals shall be only entitled to do gold business after being approved by the Prime Mister and licensed by the State Bank.

Chapter 2.

ACTIVITIES OF PRODUCTION, PROCESSING, PURCHASE AND SALE OF GOLD JEWELLERY AND FINE ARTS

Article 5. Conditions for producing gold jewellery and fine arts

1. Enterprises producing gold jewellery and fine arts shall be issued with the Qualification certificate of gold jewellery and fine arts production when the following conditions are satisfied:

a) The enterprise is established under law provisions that have registered to produce gold jewellery and fine arts in the Certificate of business registration.

b) Having premises, facilities and necessary equipment serving the production of gold jewellery and fine arts.

2. The State Bank stipulates the procedures and dossiers on the Qualification certificate of gold jewellery and fine arts production.

Article 6. Responsibilities of enterprises producing gold jewellery and fine arts

1. Affixing their signs, symbols and weight on their products, announcing applicable standards and product weight in accordance with law provisions, bearing responsibility before law for their announced applicable standards and announced weight of gold products manufactured by themselves.

2. Taking responsibility under law for the announcement of applicable standards and weight of gold products which have been processed on their behalf.

3. Complying with law provisions on accounting regime, invoices and accounting records.

4. Taking measures for safety in production and business, environmental protection, fire and explosion prevention and fighting.

5. Sustaining the conditions stipulated in Clause 1 Article 5 of this Decree

6. Complying with this Decree and other relevant law provisions.

Article 7. Activities of processing gold jewellery and fine arts

Individuals, households, cooperatives and enterprises are entitled to process gold jewellery and fine arts enterprises producing gold jewellery and fine arts and must register the processing of gold jewellery and fine arts in the Certificate of household business registration, Certificate of business registration or Certificate of enterprise registration.

Article 8. Conditions for enterprises trading gold jewellery and fine arts

Enterprises trading gold jewellery and fine arts must meet the following conditions:

1. The enterprises is established under law provisions and the Certificate of enterprise registration must include the production of gold jewellery and fine arts.

2. Having premises, facilities and equipments serving gold jewellery and fine art trading.

Article 9. Responsibilities of enterprises trading gold jewellery and fine arts

1. Publicly posting the weight, gold content, purchasing and selling prices of gold jewelry and fine art at the location of transaction, taking responsibilities before law for the quality of their products being sold in the market.

2. Complying with law provisions on the accounting regime, invoices and accounting receipts.

3. Complying with law provisions on measurement.

4. Taking measures and facilities and equipment to ensure safety in business activities.

5. Complying with this Decree and other relevant law provisions.

Chapter 3.

PURCHASE AND SALE OF GOLD BARS

Article 10. Management of gold bar purchase and sale

The purchase and sale of gold bars by organizations and individuals shall be only done at credit institutions and enterprises being issued with the License to trade gold bars by the State Bank.

Article 11. Conditions for obtaining the License to trade gold bars

1. Enterprises are eligible for the License to trade gold bars when the following conditions are satisfied:

a) Being established and operated under law provisions.

b) Having the charter capital of 100 billion VND and above.

c) Having 2-year experience in gold trading or more.

d) Having paid the tax on gold business of 500 (five hundred) million VND/year or above during the two latest successive years (upon verification of the tax authority).

đ) Having branches and sale offices in 3 (three) provinces and centrally-affiliated cities or more in Vietnam.

2. Credit institutions are eligible for the License to trade gold bars when the following conditions are satisfied:

a) Having charter capital of 3,000 (three thousand) billion VND and above.

b) Having registered gold business.

c) Having branches and sale offices in 5 (five) provinces and centrally-affiliated cities or more in Vietnam.

3. The State Bank shall stipulats the procedures and dossiers on the License to trade gold bars applicable to enterprises and credit institutions.

Article 12. Responsibilities of enterprises and credit institutions trading gold bars

Enterprises and credit institutions trading gold bars are responsible to:

1. Purchase and sell only the kinds of gold bars stipulated in Clause 2 Article 3 of this Decree.

2. Keep from gold bars trading through authorized agents.

3. Comply with law provisions on accounting regime, invoices and accounting records.

4. Post the gold bar sale and purchase price publicly at the location of transaction.

5. Take measures and equipment to ensure safety in business activities.

6. Comply with this Decree and other relevant law provisions.

Chapter 4.

ACTIVITIES OF GOLD IMPORT AND EXPORT

Article 13. Import and export of gold jewellery and fine arts

1. The import and export of gold jewellery and fine arts shall be carried out in conformity with the Certificate of business registration or the Certificate of enterprise registration.

2. The import and export of gold jewellery and fine arts for international exhibitions and trade fairs shall be carried out in accordance with provisions of the Government on international exhibitions and trade fairs.

Article 14. Import and export of gold material

1. Depending on targets of monetary policies and gold supply-demand in each period, the State Bank shall organize the import and export of gold material for gold bar production, issue the licenses to import gold material to enterprises in accordance with provisions of Clause 3, 4, 5 and 6 of this Article and issue the license to export gold material to enterprises that possess the License for gold exploitation in accordance with Clause 7 this Article.

2. The import and export of gold material by the State Bank shall be exempt from import and export duties under the decisions of the Prime Minister.

3. The State Bank shall consider and issue the License to import and export gold material for gold jewellery and fine arts production to enterprises that have obtained the Qualification certificate of gold jewellery and fine arts production.

4. Enterprises doing gold business that have contracted to process gold jewellery and fine arts for foreign country shall be issued with the License to temporary import gold for re-export by the State bank.

5. Annually, the State Bank shall consider and issue the License to import gold material in the planning year to foreign-invested companies depending on the production capacity and the report on the export of gold jewellery and fine arts in the previous year.

6. Enterprises investing in gold exploitation overseas wishing to import gold exploited abroad shall be considered and issued with the License to import gold material by the State Bank.

7. Enterprises possessing the license to exploit gold shall be considered and issued with the License to export gold material by the State Bank .

8. The import and export of gold material in form of powder, solution, solder, salt and other semi-finished golden jewellery shall be carried out in conformity with the Certificate of business registration or the Certificate of enterprise registration.

9. The State Bank shall stipulate the conditions, procedures and dossiers on the issuance of the License to import and export gold material in accordance with Clause 3, 4, 5, 6 and 7 of this Article.

Article 15. Individuals bringing along gold when entering, exiting the country

Vietnamese and foreigners when entering, exiting the country through international border gates shall be entitled to bring along gold in accordance with provisions of the State Bank.

Chapter 5.

STATE MANAGEMENT OF GOLD BUSINESS ACTIVITIES

Article 16. Responsibilities of the State Bank

1. The State Bank is responsible to draw up and submit the strategies, plans on gold market development to competent authorities for issuing legal documents on management of gold business in accordance with provisions of this Decree.

2. The State Bank is entitled to supplement gold bars to the State foreign exchange reserve.

3. The State Bank shall intervene in and stabilize the gold market by the following measures:

a) Importing and exporting gold material in accordance with Clause 1 Article 14 of this Decree.

b) Organizing and managing the production of gold bars by establishing quotas, time and methods of gold bar production in each period. The expenses on the organization of production of gold bars shall be accounted into the operating expenses of the State Bank.

c) Making purchase and sales of gold bars in domestic market and mobilizing gold as regulated by the Prime Minister.

4. The State Bank shall issue or withdraw:

a) The Qualification certificate of gold jewellery and fine arts production.

b) The Licenses to trade gold bars.

c) The Licenses to import and export gold material.

d) The License for individuals who bring along gold exceeding the limit prescribed by law when entering, exiting the country exceeding the limit prescribed by law.

đ) Licenses for other gold business activities after having approved by the Prime Minister.

5. The State Bank shall examine and inspect the production of gold jewellery and fine arts;the purchase and sale of gold bars, gold jewellery and fine arts; the import and export of gold materials and other gold business activities.

6. The State Bank shall perform other tasks and powers related to the management of gold business under the Prime Minister’s decisions.

Article 17. Responsibilities of Ministries, ministry-equivalent agencies and People’s Committees of provinces and centrally-run cities

With the scope of task, function and power, ministries, ministry-equivalent agencies, People’s Committees of provinces and centrally-run cities shall exercise the State management over the following gold business activities:

1. The Ministry of Industry and Trade is responsible to cooperate with relevant agencies to perform the management, examination and inspection of the production and processing of gold jewellery and fine arts, the purchase and sale of gold jewellery and fine arts and the compliance of law provisions by enterprises doing gold business.

2. The Ministry of Planning and Investment is responsible for stipulating and guiding the issuance of the Certificate of Enterprise Registration for enterprises doing gold business, making and sending a copies of the issued Certificated of Enterprise to the State Bank branches of provinces and centrally-run cities for implementation in cooperation.

3. The Ministry of Finance shall cooperate with the State Bank in submitting policies on gold import and export duties, value added tax, special consumption tax and income tax applicable to gold business activities for each specific period to competent bodies for issuance or issue such policies within its scope of power.

4. Ministry of Science and Technology shall cooperate with relevant competent agencies in promulgating quality standards applicable to gold jewellery and fine arts; examine, inspect and manage quality of gold jewellery and fine arts for sale in the market and test measurement tools used by enterprises doing gold business.

5. The Ministry of Public Security coordinates with other relevant ministries and services to fight against, investigate and handle violations of laws within its scope of task and power as prescribed by law.

6. People’s Committees of provinces and centrally-run cities within their relevant scope of task and power exercises State management over local gold business activities in accordance with provisions of this Decree and other provisions of applicable law.

Article 18. Inter-service coordination in management of gold business activities

Depending on reality, relevant ministries and branches shall cooperate and share information to serve the management of gold business activities, investigate and inspect in cooperation the gold business as prescribed by law.

Chapter 6.

ACTS OF VIOLATION

Article 19. Acts of violation in gold business activities

Acts of violation of gold business include:

1. Producing gold jewellery and fine arts without the Qualification certificate of gold jewellery and fine arts production issued by the State Bank.

2. Purchasing and selling gold bars, importing and exporting gold materials without the license issued by the State Bank.

3. Individuals bringing along gold when entering, exiting the country exceeding the limit prescribed by law without the written permission from the State Bank.

4. Using gold as a mean of payment.

5. Producing gold bars in contravention of this Decree.

6. Conducting other gold business without being permitted by the Prime Minister licensed by the State Bank.

7. Violations of other provisions of this Decree and other relevant law provisions.

Chapter 7.

IMPLEMENTATION PROVISIONS

Article 20. Reporting system

Enterprises and credit institutions doing gold business shall report their production of gold jewellery and fine arts; purchase and sale of gold bars, import and export of gold in compliance with provisions of the State Bank and competent bodies.

Article 21. Transition provisions

1. Within the period of 12 months as from the effective date of this Decree:

a) Organizations producing gold jewellery and fine arts must register their business again at registration agencies and complete the procedures for obtaining the Qualification certificate of gold jewellery and fine arts production at the State Bank in compliance with this Decree and other relevant law provisions.

b) Organizations trading gold jewellery and fine arts must register their business again at registration agencies.

2. The State Bank shall prescribes the time limit and transitional procedures applicable to enterprises and credit institutions trading gold bars.

3. The License to produce gold bars issued by the State Bank shall expire as from the day this Decree takes effect.

Article 22. Effect

This Decree shall take effect as from May 25, 2012 and supersede the Government’s Decree No.174/1999/ND-CP of December 09, 1999 on management of gold business activities and the Government’s Decree No. 64/2003/ND-CP of June 11, 2003 amending and supplementing Decree No. 174/1999/ND-CP dated December 09,1999.

Article 23. Implementation responsibilities

1. The Governor of the State Bank of Vietnam is responsible for guiding and organizing the implementation of this Decree.

2. Ministries, Heads of ministry- equivalent agencies, Heads of governmental bodies, Chairmen of People’s Committees of provinces and centrally-run cities and other relevant organizations and individuals shall implement this Decree.