Circular No. 08/2008/TT-BCT dated June 18, 2008 of the Ministry of Industry and Trade guiding the export of minerals

CIRCULAR

GUIDING THE EXPORT OF MINERALS

Pursuant to the Government's Decree No. 189/ 2007/ND-CP of December 27, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government's Decree No. 12/ 2006/ND-CP of January 23, 2006, detailing the implementation of the Commercial Law regarding international goods trading and goods trading agency, processing and transit with foreign parties;

Pursuant to the Government's Decree No. 160/ 2005/ND-CP of December 27, 2005, detailing and guiding the implementation of the Law on Minerals and the Law Amending and Supplemen­ting a Number of Articles of the Law on Minerals;

The Ministry of Industry and Trade guides the export of minerals as follows:

I. OBJECTS OF APPLICATION

Minerals specified in this Circular are solid minerals, including metal minerals, non-metal minerals and industrial minerals.

Petroleum oil, natural gas, natural hydrate, mineral water, natural thermal water, minerals used as construction materials and minerals used as raw materials for cement production are not governed by this Circular.

II. INTERPRETATION OF TERMS

In this Circular, the terms below are construed as follows:

1. VILAS standards are standards set by the Vietnam Laboratory Accreditation Scheme. Laboratories meeting VILAS standards are those having the quality management system under ISO/ IEC 17025, equivalent to TCVN ISO/IEC 17025:2001. VILAS certificates shall be granted by the Bureau of Accreditation under the Directorate for Standards and Quality.

2. State agencies competent to grant mineral mining or processing licenses include the Ministry of Industry (before November 11, 2002), the Ministry of Natural Resources and Environment (from November 11, 2002), or People's Committees of provinces or centrally run cities (below referred to as provincial-level People's Committees).

3. Processing means a process of removing impurities and increasing the content of useful mineral element(s) in crude minerals in order to acquire mineral products with specifications, standards and content meeting the requirements of the subsequent deep processing (refined ores); or a process of processing crude minerals or refined ores (not yet into metal products, alloys or chemical compounds) to meet specifications and use requirements through the application of one or more of the following methods:

- Hand sorting.

- Washing; grinding-sieving for classification based on granule size.

- Gravity sorting; magnetic sorting; electrical sorting; chemical sorting.

- Other mechanical or thermological methods (such as removing rim rock, sawing- cutting, breaking-grinding, drying, agglomerating, caking, etc.)

III. PROVISIONS ON THE EXPORT OF MINERALS

1. Domestically mined minerals may be exported only if they simultaneously satisfy the following requirements:

a/ Being extracted from mines or mine spots not planned for domestic deep processing as specified in Appendix 1 to this Circular.

b/ Having been processed up to quality standards and meeting the conditions specified in Appendix 2 to this Circular. The quality standards of minerals for which a certain percentage of metal is required must be certified by laboratories meeting VILAS standards.

Minerals listed in column2of Appendix land Appendix 2 which are extracted from mines or mine spots not listed in column 3 of Appendix 1 and meet the standards and conditions specified in Appendix 2 may be freely exported.

2. Only enterprises may export minerals. Mineral exporters are enterprises set up under law, fully meeting the conditions specified in the Commercial Law regarding goods import, export, processing and trading agency with foreign parties, and satisfying one of the following conditions:

a/ Having valid mineral mining licenses or mineral salvage extraction licenses, granted by competent  state agencies.

b/Having valid mineral processing licenses and contracts on the purchase of minerals for processing, signed with organizations or individuals possessing licenses specified at Point a of this Clause.

c/ Having contracts on the purchase of minerals for export, enclosed with copies of value-added invoices, or contracts on the entrusted export of minerals, signed with organizations or individuals possessing licenses specified at Points a and b of this Clause.

d/ Having adequate valid documents on the purchase (or auction) of minerals confiscated and sold by competent state agencies.

3. In case of importing minerals for processing and export, exporters must have adequate valid documents proving that exported minerals originate from the import.

4. The export of minerals by temporary import for re-export or processing for foreign traders must comply with the Government's Decree No. 12/ 20067NB-CP of January 23, 2006, detailing the implementation of the Commercial Law regarding international goods trading and goods trading agency, processing and transit with foreign parties.

5. The export of pit coal must comply with the Industry and Trade Ministry's Circular No. 05/ 2007/TT-SCT of October 22, 2007, guiding the export of coal.

IV. REFORTING ON THE EXPORT OF MINERALS

1. Mineral exporters shall report the results of export of minerals and be held responsible for the accuracy and truthfulness of reported data and information.

2. A report on the export of minerals has the following details:

a/ Kinds, volumes and export turnover of minerals.

b/ The origin of exported minerals; the observance of regulations on the export of minerals.

3. Reporting on the export of minerals is specified as follows:

a/ Reports on the export of minerals shall be made biannually and annually. Biannual period is counted from January 1 to June 30 of the year of reporting. Annual period is counted from January 1 to the end of December 31 of the year of reporting.

b/ Mineral exporters shall, apart from observing the reporting requirements specified at Point a of this Clause, make extraordinary reports on the expert of minerals upon request of concerned state management agencies to meet management requirements.

4. The time limit for sending a report on the export of minerals is stipulated as follows:

a/ Reports made by mineral exporters under Clause 2 of this Section must be sent within 5 (five) days after the reporting time limit specified at Point a, Clause 3 of this Section to provincial-level People's Committees of localities where minerals are exported.

b/ Provincial-level People's Committees shall direct functional agencies to make reports reviewing the export of minerals under their management and to send them to the Ministry of Industry and Trade within 15 (fifteen) days after the reporting time limit specified at Point a, Clause 3 of this Section.

V. HANDLINGOF VIOLATIONS

1. All acts of violating the provisions on the export of minerals specified in this Circular shall, depending on their severity, he sanctioned under the Government's Decree No. 06/2008/ND-CPof January 16, 2008, on the sanctioning of administrative violations in commercial activities, and relevant legal documents.

Exporters of minerals of illegal origin shall be sanctioned under Item 3, Clause 4, Article 1 of the Government's Decree No. 77/2007/ND-CP of July 29, 2007, amending and supplementing a number of articles of the Government's Decree No. 150/ND-CP of July 29, 2004, on the sanctioning of administrative violations in the mineral domain.

2. State cadres and civil servants who abuse their positions or powers to violate the provisions of this Circular shall, depending on the severity and acts of violations, be disciplined, administratively handled or examined for penal liability according to law.

VI. ORGANIZATION OF IMPLEMENTATION

1. This Circular takes effect 15 days after its publication in "CONG BAO" and replaces Circular No. 02/2006/TT-BCN of April 14,2006, of the Ministry of Industry (now the Ministry of Industry and Trade), guiding the export of minerals, Circular No. 09/2006/TT-BCN of November 28, ?0O6, of the Ministry of Industry (now the Ministry of Industry and Trade), amending and supplementing the list, quality standards of, and conditions for exported minerals attached to Circular No. 02/2006/TT-BCN of April 14, 2006, of the Ministry of Industry (now the Ministry of Industry and Trade), guiding die export of minerals.

2. The export of minerals used as construction materials and minerals used as raw materials for cement production must comply with a guiding circular of the Ministry of Construction. Pending the issuance of this circular, the export of minerals used as construction materials and minerals used as raw materials for cement production provisionally continues to comply with Circular No. 02/2006/TT-BCN of April 14, 2006, of the Ministry of Industry (now the Ministry of Industry and Trade), guiding the export of minerals.

3. For processed minerals which, for objective reasons, are not up to the quality standards specified in Appendix 2 to this Circular, or exported minerals which are not yet specified in Appendix 2, mineral exporters shall report them to provincial-level People's Committees for inspection and certification and request the Ministry of Industry and Trade to provide guidance.

4. Based on the actual situation of mineral mining and processing and the domestic demand for mineral use, the Ministry of Industry and Trade shall consider and adjust and/or supplement Appendices 1 and 2, when necessary.

5. When detecting violations of the provisions on the export of minerals, provincial-level People's Committees of localities where minerals are exported shall direct functional agencies to inspect, rectify and handle them in time.

6. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with concerned ministries, branches and localities in, regularly inspecting the observance of provisions on the export of minerals in this Circular and relevant provisions of law.

7. Valid mineral export contracts signed before the effective date of this Circular may continue to be performed through September 30,2D08.

In the course of implementing this Circular, exporters or concerned organizations and individuals shall report in writing arising problems to the Ministry of Industry and Trade for consideration and settlement.

APPENDIX 1

LIST OF MINES PLANNED FOR DOMESTIC DEEP PROCESSING
(Attached to the Industry and Trade Ministry's Circular No. 08/2008/TT-BCT of June 18, 2008)

APPENDIX 2

LIST, QUALITY STANDARDS OF AND CONDITIONS FOR EXPORTED MINERALS
(Attached to the Industry and Trade Ministry's Circular No. 08/2008/TT-BCT of June 18, 2008}

Note: Planned mines are those listed in column 3 of Appendix I to this Circular.-