Circular No. 16/2012/TT-NHNN dated May 25, 2012 of the State Bank of Vietnam guiding a number of articles of the Government’s Decree No. 24/2012/ND-CP of April 3, 2012, on management of gold business activities

THE STATE BANK OF VIETNAM

Circular No. 16/2012/TT-NHNN of May 25, 2012, guiding a number of articles of the Government’s Decree No. 24/2012/ND-CP of April 3, 2012, on management of gold business activities

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

Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to the Government’s Decree No. 96/2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 24/2012/ND-CP of April 3, 2012, on management of gold business activities;

At the proposal of the director of the Foreign Exchange Management Department,

The Governor of the State Bank of Vietnam promulgates this Circular guiding a number of articles of the Government’s Decree No. 24/2012/ND-CP of April 3, 2012, on management of gold business activities.

Section 1

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the manufacture of gold jewelry and art crafts; gold bar trading; and export and import of gold material by enterprises and credit institutions under the Government’s Decree No. 24/2012/ND-CP of April 3, 2012, on management of gold business activities (below referred to as Decree No. 24/2012/ND-CP).

Article 2. Subjects of application

This Circular applies to enterprises and credit institutions engaged in gold business activities in the Vietnamese territory and other related organizations and persons.

Section 2

CONDITIONS FOR OBTAINING GOLD MATERIAL EXPORT OR IMPORT LICENSES

Article 3. Conditions for a manufacturer of gold jewelry and art crafts to obtain a gold material import license

1. Having an enterprise registration certificate indicating the business line of manufacture of gold jewelry and art crafts.

2. Having a certificate of eligibility for manufacture of gold jewelry and art crafts granted by the State Bank of Vietnam (below referred to as the State Bank).

3. Its gold material import demand matching its plan on manufacture of gold jewelry and art crafts.

4. Not violating the law on management of gold business activities for 12 (twelve) consecutive months preceding the time of applying for a gold material import license.

Article 4. Conditions for an enterprise having a contract to process gold jewelry and art crafts for a foreign party to obtain a license for temporary import of gold material for re-export of products

1. Having an enterprise registration certificate indicating the business line of manufacture of gold jewelry and art crafts.

2. Having a certificate of eligibility for manufacture of gold jewelry and art crafts granted by the State Bank.

3. Its gold material import demand matching its plan on manufacture of gold jewelry and art crafts and the contract to process gold jewelry and art crafts for a foreign party.

4. Not violating the law on management of gold business activities for 12 (twelve) consecutive months preceding the time of applying for a license for temporary import of gold material for re-export of products.

Article 5. Conditions for a foreign-invested enterprise to obtain a license for gold material import for manufacture of gold jewelry and art crafts

1. Being lawfully established and having registered the manufacture of gold jewelry and art crafts.

2. Its gold material import demand matching its production capacity, production and business plan and contract to process gold jewelry and art crafts.

3. Not violating the law on management of gold business activities for 12 (twelve) consecutive months preceding the time of applying for a gold material import license.

Article 6. Conditions for an enterprise making offshore investment in gold mining to obtain a gold material import license

1. Being lawfully established and having registered gold mining business as indicated in its investment certificate.

2. Having documents proving that the gold material to be imported is exploited overseas by the enterprise or is its shared product under its gold mining agreement overseas.

3. Imported gold material being used only to manufacture gold jewelry and art crafts.

4. Not violating the law on management of gold business activities for 12 (twelve) consecutive months preceding the time of applying for a gold material import license.

Article 7. Conditions for a licensed gold mining enterprise in Vietnam to obtain a gold material export license

1. Being a lawfully established foreign-invested enterprise.

2. Having a gold mining license.

3. Having documents proving that the gold material to be exported is exploited domestically by the enterprise.

4. Not violating the law on management of gold business activities for 12 (twelve) consecutive months preceding the time of applying for a gold material export license.

Section 3

DOSSIERS OF APPLICATION FOR CERTIFICATES OF ELIGIBILITY FOR MANUFACTURE OF GOLD JEWELRY AND ART CRAFTS, GOLD BAR TRADING LICENSES AND GOLD MATERIAL EXPORT OR IMPORT LICENSES

Article 8. Dossier of application for a certificate of eligibility for manufacture of gold jewelry and art crafts

1. An application for a certificate of eligibility for manufacture of gold jewelry and art crafts (made according to a set form).

2. The enterprise registration certificate indicating the business line of gold trading.

3. The document or material proving the right to own or lawfully use the business place; a list of physical foundations and equipment for the manufacture of gold jewelry and art crafts.

Article 9. Dossier of application for a gold bar trading license

1. For an enterprise, a dossier of application for a gold bar trading license comprises:

a/ An application for a gold bar trading license (made according to a set form);

b/ The enterprise registration certificate indicating the business line of gold trading;

c/ Operation registration certificates of its branches;

d/ The tax office’s certification of the tax amounts paid for gold trading activities in 2 (two) latest consecutive years.

2. For a credit institution, a dossier of application for a gold bar trading license comprises:

a/ An application for a gold bar trading license (made according to a set form);

b/ The credit institution’s establishment and operation license indicating the business line of gold trading.

Article 10. Dossier of application for a gold material import license for a manufacturer of gold jewelry and art crafts

1. An application for a gold material import license (made according to a set form).

2. The enterprise registration certificate.

3. The certificate of eligibility for manufacture of gold jewelry and art crafts.

4. A report on the enterprise’s gold material import and manufacture of gold jewelry and art crafts in 12 (twelve) latest months preceding the reporting time, together with the gold import customs declaration and reconciliation slip certified by the customs office (made according to a set form).

5. The enterprise’s plan on manufacture of gold jewelry and art crafts.

Article 11. Dossier of application for a license for temporary import of gold material for re-export of products for an enterprise having a contract to process gold jewelry and art crafts for a foreign party

1. An application for a license for temporary import of gold material for re-export of products (made according to a set form).

2. The enterprise registration certificate.

3. The certificate of eligibility for manufacture of gold jewelry and art crafts.

4. The contract to process gold jewelry and art crafts for a foreign party.

5. A report on the enterprise’s gold material import and manufacture and export of gold jewelry and art crafts in 12 (twelve) latest months preceding the reporting time, together with the customs declaration of temporary import and re-export of gold and reconciliation slip certified by the customs office (made according to a set form).

6. The enterprise’s plan on manufacture of gold jewelry and art crafts.

Article 12. Dossier of application for a gold material import license for a foreign-invested enterprise to manufacture gold jewelry and art crafts

On December 15 of the year preceding the planning year at the latest or when wishing to increase the volume of imported gold material under plan, a foreign-invested enterprise shall submit a dossier of application for a gold material import license. A dossier comprises:

1. An application for a gold material import license (made according to a set form).

2. The investment certificate.

3. A report on the export, import and sale of gold products in Vietnam in 12 (twelve) latest months preceding the reporting time, together with the export-import customs declaration and reconciliation slip certified by the customs office (made according to a set form).

4. The enterprise’s production and business plan; documents and materials proving the enterprise’s production capacity.

5. The contract to process gold jewelry and art crafts for a foreign party.

Article 13. Dossier of application for a gold material import license for an enterprise making offshore investment in gold mining

1. An application for a gold material import license (made according to a set form).

2. The investment certificate.

3. Documents proving that the gold material to be imported is exploited overseas by the enterprise or is its shared product under the agreement on gold mining overseas.

4. Documents and materials proving the use of the imported gold material is compliant with Clause 3, Article 6 of this Circular.

5. A report on the enterprise’s gold mining and gold material import in 12 (twelve) latest months preceding the reporting period, together with the gold import customs declaration and reconciliation slip certified by the customs office (made according to a set form).

Article 14. Dossier of application for a gold material export license for a licensed gold mining enterprise

1. An application for a gold material export license (made according to a set form).

2. The investment certificate.

3. Documents proving that the gold material to be exported is exploited by the enterprise.

4. A report on the enterprise’s gold mining and gold material export in 12 (twelve) latest months preceding the reporting time, together with the gold export customs declaration and reconciliation slip certified by the customs office (made according to a set form).

Section 4

PROCEDURES FOR GRANTING GOLD BAR TRADING LICENSES; GOLD MATERIAL EXPORT OR IMPORT LICENSES AND CERTIFICATES OF ELIGIBILITY FOR MANUFACTURE OF GOLD JEWELRY AND ART CRAFTS

Article 15. Procedures for granting gold bar trading licenses; gold material export licenses; and gold material import licenses for foreign-invested enterprises and enterprises making offshore investment in gold mining

1. An enterprise or a credit institution wishing to trade in gold bars; a foreign-invested enterprise wishing to import gold material for manufacture of gold jewelry and art crafts; an enterprise making offshore investment in gold mining and wishing to import its gold material exploited overseas; or a licensed gold mining enterprise wishing to export its exploited gold material shall submit directly or by post 1 (one) dossier set provided in Article 9, 12, 13 or 14 of this Circular to the State Bank (the Foreign Exchange Management Department) to obtain a gold bar trading license or a gold material import or export license.

2. Based on the conditions, dossiers and procedures provided in Decree No. 24/2012/ND-CP and this Circular, the Foreign Exchange Management Department shall propose the Governor to consider and license the gold bar trading.

3. Based on the objectives of the monetary policy and gold supply and demand in each period and the conditions, dossiers and procedures provided in Decree No. 24/2012/ND-CP and this Circular, the Foreign Exchange Management Department shall propose the Governor to consider and license the export and import of gold material.

4. Within 30 (thirty) working days after receiving a complete and valid dossier from an enterprise or a credit institution, the State Bank shall grant or refuse to grant (clearly stating the reason) a gold bar trading license; gold material export license or gold material import license (made according to a set form). The gold bar trading license granted by the State Bank to a credit institution is an integral part of that credit institution’s establishment and operation license.

Article 16. Procedures for granting certificates of eligibility for manufacture of gold jewelry and art crafts and licenses for temporary import of gold material for re-export of products

1. An enterprise wishing to manufacture gold jewelry and art crafts or to import gold material for processing gold jewelry and art crafts for a foreign party shall submit directly or by post 1 (one) dossier set provided in Article 8 or 11 of this Circular to the State Bank branch of the province or central run city in which the enterprise is headquartered (below referred to as provincial-level State Bank branch) to obtain a certificate of eligibility for manufacture of gold jewelry and art crafts or a license for temporary import of gold material for re-export of products.

2. Based on the conditions, dossiers and procedures provided in Decree No. 24/2012/ND-CP and this Circular, a provincial-level State Bank branch shall consider and grant a certificate of eligibility for manufacture of gold jewelry and art crafts or a license for temporary import of gold material for re-export of products.

3. Within 30 (thirty) working days after receiving a complete and valid dossier from an enterprise, the director of a provincial-level State Bank branch shall grant or refuse to grant (clearly stating the reason) a certificate of eligibility for manufacture of gold jewelry and art crafts or a license for temporary import of gold material for re-export of products (made according to a set form).

Article 17. Procedures for licensing temporary import of gold material for manufacture of gold jewelry and art crafts

1. An enterprise wishing to import gold material for manufacture of gold jewelry and art crafts shall submit directly or by post 2 (two) dossier sets provided in Article 10 of this Circular to a provincial-level State Bank branch to obtain a gold material import license.

2. Within 7 (seven) working days after receiving a complete and valid dossier from an enterprise, a provincial-level State Bank branch shall send to the State Bank (the Foreign Exchange Management Department) a dossier of request for gold material import licensing, which comprises:

a/ The provincial-level State Bank branch’s document on the enterprise’s eligibility or ineligibility under Article 3 of this Circular;

b/ The enterprise’s license application dossier.

3. Within 30 (thirty) working days after receiving a dossier from a provincial-level State Bank branch, the State Bank shall send to that branch a notice of its approval or disapproval of the licensing.

4. Within 3 (three) working days after receiving the State Bank’s notice, the director of a provincial-level State Bank branch shall grant or refuse to grant (clearly stating the reason) a gold material import license for manufacture of gold jewelry and art crafts (made according to a set form).

Article 18. Principles of dossier compilation

1. The documents and materials of the dossiers provided in Section 3 of this Circular must be the originals or certified true copies under law.

2. Enterprises and credit institutions shall take responsibility for the accuracy and truthfulness of the documents and materials in their application dossiers.

Section 5

REPORTING REGIME AND RESPONSIBILITIES FOR INSPECTION AND SUPERVISION

Article 19. Reporting responsibilities of provincial-level State Bank branches

1. Provincial-level State Bank branches shall submit monthly and annual reports on management of gold business activities in their localities (made according to a set form) to the State Bank Governor. The deadlines for submitting a monthly report and an annual report are respectively the 5th of the following month and January 15 of the following year.

2. When granting a certificate of eligibility for manufacture of gold jewelry and art crafts, a license for gold material import for manufacture of gold jewelry and art crafts or a license for temporary import of gold material for re-export of products to an enterprise, a provincial-level State Bank branch shall send 1 (one) copy to the State Bank (the Foreign Exchange Management Department).

Article 20. Reporting responsibilities of enterprises and credit institutions engaged in gold business activities

1. Enterprises and credit institutions licensed for gold bar trading shall submit monthly and annual reports on their gold bar trading (made according to a set form) to the State Bank (the Foreign Exchange Management Department) and provincial-level State Bank branches. The deadlines for submitting a monthly report and an annual report are respectively the 5th of the following month and January 15 of the following year.

2. Gold trading enterprises shall quarterly and annually report on their gold trading to the State Bank (the Foreign Exchange Management Department) and provincial-level State Bank branches according to the following provisions:

a/ Enterprises obtaining a certificate of eligibility for manufacture of gold jewelry and art crafts shall submit reports on their manufacture of gold jewelry and art crafts (made according to a set form);

b/ Manufacturers of gold jewelry and art crafts obtaining a gold material import license shall submit reports on their gold material import for manufacture of gold jewelry and art crafts (made according to a set form);

c/ Gold trading enterprises having a contract to process gold jewelry and art crafts for a foreign party and obtaining a license for temporary import of gold material for re-export of products shall submit reports on their gold material import and manufacture and export of gold jewelry and art crafts (made according to a set form);

d/ Foreign-invested gold trading enterprises obtaining a gold material import license shall submit reports on their gold export and import and sale of gold products in Vietnam (made according to a set form).

3. The deadlines for submitting quarterly and annual reports provided in Clause 2 of this Article are respectively the 15th of the first month of the following quarter and January 15 of the following year.

4. Every year on January 15 at the latest, enterprises making offshore investment in gold mining and licensed gold mining enterprises obtaining a gold material import or export license shall submit a report on their import or export of gold material (made according to a set form) to the State Bank and provincial-level State Bank branches.

5. Within 10 working days after a change in its branches or gold bar trading places, a credit institution or an enterprise shall send a notice of such change to the State Bank (the Foreign Exchange Management Department) together with a certified true copy of the enterprise registration certificate and the branch operation registration certificate (which is re-granted, granted or modified).

Article 21. Responsibilities for inspection and supervision

The Banking Supervisory Agency and provincial-level State Bank branches shall inspect and examine gold business activities and handle violations under Decree No. 24/2012/ND-CP, this Circular and relevant laws.

Section 6

IMPLEMENTATION PROVISIONS

Article 22. Transitional provisions

1. Within 6 (six) months after the effective date of this Circular, operating gold bar trading enterprises and credit institutions may continue their gold bar trading and shall complete procedures to make re-registration with business registration agencies and to apply for a gold bar trading license to the State Bank under this Circular and relevant laws.

2. After the transitional period provided in Clause 1 of this Article, operating gold bar trading enterprises and credit institutions failing to obtain a gold bar trading license from the State Bank may not trade in gold bars.

3. After the transitional period provided in Article 21 of Decree No. 24/2012/ND-CP, operating manufacturers of gold jewelry and art crafts failing to obtain a certificate of eligibility for manufacture of gold jewelry and art crafts may not manufacture gold jewelry and art crafts.

Article 23. Effect

1. This Circular takes effect on July 10, 2012.

2. To annul the State Bank’s Circular No. 10/2003/TT-NHNN of September 16, 2003, guiding the Government’s Decree No. 174/1999/ND-CP of December 9, 1999, on management of gold business activities, and Decree No. 64/2003/ND-CP of June 11, 2003, amending and supplementing Decree No. 174/1999/ND-CP; to annul Decision No. 1703/2004/QD-NHNN of December 28, 2004, amending and supplementing Circular No. 10/2003/TT-NHNN.

3. The director of the Office, the director of the Foreign Exchange Management Department and heads of units of the State Bank; directors of provincial-level State Bank branches; chairpersons of boards of directors or member councils and directors general (directors) of credit institutions; enterprises engaged in gold business activities and other related organizations and persons shall implement this Circular.-

For the Governor of the State Bank of Vietnam
Deputy Governor
LE MINH HUNG