Circular 23/2022/TT-NHNN amend documents to decentralize settlement of administrative procedures in foreign exchange management

CIRCULAR

Amending and supplementing a number of articles of legal documents to decentralize the settlement of administrative procedures in the field of foreign exchange management

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010; the Law on Amending and Supplementing a Number of Articles of the Law on Credit Institutions dated November 20, 2017;

Pursuant to the Ordinance on Foreign Exchange dated December 13, 2005; the Ordinance Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange dated March 18, 2013;

Pursuant to the Government’s Decree No. 102/2022/ND-CP dated December 12, 2022, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Foreign Exchange Management Department;

The Governor of the State Bank of Vietnam promulgates the Circular amending and supplementing a number of articles of legal documents to decentralize the settlement of administrative procedures in the field of foreign exchange management.
 

Article 1. Amending and supplementing a number of articles of the Circular No. 21/2014/TT-NHNN dated August 14, 2014 of the Governor of State Bank of Vietnam guiding the scope of foreign exchange operations and the conditions, order and procedures for approval of foreign exchange operations of credit institutions and branches of foreign banks (hereinafter referred to as Circular No. 21/2014/TT-NHNN)

1. To add Article 4a as follows:

“Article 4a. Competence of approval of the foreign exchange operations

1. The Governor of the State Bank has the competence to approve the foreign exchange operations and approve the extension of foreign exchange operations for the following subjects:

a) Commercial banks, cooperative banks, policy banks, general financial companies, factoring financial companies, consumer credit financial companies, financial leasing companies;

b) Branches of foreign banks subject to micro-prudential inspection and supervision by the Banking Inspection and Supervision Agency.

2. Directors of the State Bank’ branches of provinces or centrally-run cities have the competence to approve the foreign exchange operations and approve the extension of foreign exchange operations for branches of foreign banks whose head offices are located in such provinces or cities, except for foreign bank branches specified at Point b Clause 1 of this Article.”

2. To amend and supplement Clause 1 Article 12 (amended and supplemented by Clause 12 Article 1 of Circular No. 28/2016/TT-NHNN dated October 05, 2016 of the Governor of the State Bank of Vietnam, on amending and supplementing a number of articles of the Circular No. 21/2014/TT-NHNN (hereinafter referred to as Circular No. 28/2016/TT-NHNN)) as follows:

“1. When wishing to conduct foreign exchange operations on the domestic market or international market, a commercial bank shall make a dossier as prescribed in Article 11 of this Circular and send it via postal service or directly to the Single-window section of the State Bank. In case the dossier is incomplete, within 10 working days after receipt of the dossier, the State Bank shall send a written request for supplementation of the dossier to the commercial bank.”

3. To amend and supplement Article 19 (amended and supplemented by Clause 18 Article 1 of Circular No. 28/2016/TT-NHNN) as follows:

“Article 19. Dossier, order and procedures for request for approval of basic foreign exchange operations on the domestic and international markets

A foreign bank branch wishing to conduct basic foreign exchange operations on the domestic or international market shall make a dossier and send it via postal service or directly to the Single-window section of the State Bank or the State Bank’ branch of province or centrally-run city (hereinafter referred to as the State Bank’ branch of province or city) in accordance with the competence specified in Article 4a of this Circular. Dossier, order and procedures for request for approval of basic foreign exchange operations on the domestic and international markets shall comply with regulations applicable to commercial banks as specified in Clauses 1, 2 and 3 Article 11 and Article 12 of this Circular.”

4. To amend and supplement Article 20 (amended and supplemented by Clause 19 Article 1 of Circular No. 28/2016/TT-NHNN) as follows:

“Article 20. Dossier, order and procedures for request for approval of other foreign exchange operations on the domestic and international markets

A foreign bank branch wishing to conduct other foreign exchange operations on the domestic or international market shall make a dossier and send it via postal service or directly to the Single-window section of the State Bank or the State Bank’ branch of province or city in accordance with the competence specified in Article 4a of this Circular. Dossier, order and procedures for request for approval of, and approval of extension of, other foreign exchange operations on the domestic and international markets shall comply with regulations applicable to commercial banks specified in Clauses 1, 4 and 5 Article 11 and Article 12 of this Circular.”

5. To amend and supplement Article 36 (amended and supplemented by Clause 35 Article 1 of Circular No. 28/2016/TT-NHNN) as follows:

a) To amend and supplement Clause 1 as follows:

“1. The Banking Inspection and Supervision Agency shall:

a) Act as the focal point in receiving dossiers, collecting written opinions from related units under the State Bank, appraising and submitting them to the Governor of the State Bank, for dossiers of request for approval of, and approval of extension of, foreign exchange operations of credit institutions, branches of foreign banks specified in Clause 1 Article 4a of this Circular;

b) Act as the focal point in solving problems in the approval of, and approval of extension of, foreign exchange operations of credit institutions, branches of foreign banks specified in Clause 1 Article 4a of this Circular.”

b) To add Clause 6 as follows:

“6. State Bank’ branches of provinces and cities shall:

a) Receive, collect written opinions from related units (if necessary) and appraise dossiers of request for approval of, and approval of extension of, foreign exchange operations of branches of foreign banks specified in Clause 2 Article 4a of this Circular;

b) Act as the focal point in solving problems in the approval of, and approval of extension of, foreign exchange operations of branches of foreign banks specified in Clause 2 Article 4a of this Circular.”

6. To replace Appendices No. 01 and 04 issued together with Circular No. 21/2014/TT-NHNN with Appendices No. 01 and 02 issued together with this Circular, respectively.

Article 2. Amending and supplementing a number of articles of the Regulation on payment in purchase, sale and exchange of goods and commercial services in Vietnam-Cambodia border areas promulgated together with the Decision No. 17/2004/QD-NHNN dated January 05, 2004 of the Governor of the State Bank of Vietnam

1. To amend and supplement Clause 1 Article 8 (amended and supplemented by Article 3 of the Circular No. 29/2015/TT-NHNN dated December 22, 2015 of the Governor of the State Bank of Vietnam, amending and supplementing a number of the State Bank of Vietnam’s legal documents providing for dossiers with certified copies of papers and documents) as follows:

“1. The use of freely convertible foreign currencies in cash for payment in purchase, sale and exchange of goods and commercial services in border areas between Vietnamese traders and Cambodian traders only applies for cases where traders of the two parties cannot pay through the Bank and only applies to Vietnamese traders who receive the payment of foreign currencies in cash through their sale of goods and provision of services for Cambodian traders, does not apply to Vietnamese traders who pay for imported goods and services sold or provided by Cambodian traders.

When wishing to collect foreign currencies in cash, a Vietnamese trader shall make a dossier and send it via postal service or directly to the Single-window section of the State Bank’ branch of the province or city where the trader’s head office is located for a license to collect foreign currencies in cash from exports to Cambodia. A dossier must comprise:

- A written request for approval of collecting foreign currencies in cash from exports to Cambodia, made according to Form in the Appendix 01 issued together with this Circular;

- A copy of the written approval of the competent agency for goods temporarily suspended from export and goods subject to conditional export;

- A copy of the commercial contract signed with a Cambodian trader with an agreement on the payment in freely convertible foreign currencies in cash (certified by the legal representative of the enterprise).

Within 07 working days after receipt of a complete and valid dossier, the State Bank’ branch of the province or city shall grant to the Vietnamese trader a license to collect foreign currencies in cash from exports to Cambodia, made according to the license template in Appendix 02 issued together with this Circular. In case of refusal, the State Bank’ branch of the province or city shall reply in writing, clearly stating the reasons.

The Vietnamese trader must pay the collected foreign currencies in cash into his/her/its foreign currency deposit account at an authorized bank within 03 working days from the date on which the foreign currencies in cash is brought into Vietnam according to the certification by the Customs of the border gate. After depositing the collected foreign currencies in cash into his/her/its foreign currency deposit account, the trader must send a copy of the cash deposit slip to the State Bank’s branch of the province or city where the license to collect foreign currencies in cash is granted.

When depositing the foreign currencies in cash into the account, in addition to the granted license to collect foreign currencies in cash, the Vietnamese trader must submit to the Commercial bank the following papers:

- The original customs declaration (with the certification by the Customs of the border gate on the amount of foreign currencies brought into Vietnam);

- A copy of the export declaration (submitted after the goods are exported).”

2. To replace Appendix No. 01 issued together with the Decision No. 17/2004/QD-NHNN dated January 05, 2004 of the Governor of the State Bank of Vietnam on promulgating the Regulation on payment in purchase, sale and exchange of goods and commercial services in Vietnam-Cambodia border areas with Appendix No. 03 issued together with this Circular.

Article 3. Responsibility of implementation organization

The Chief of Office, the Director of the Foreign Exchange Management Department, heads of units of the State Bank of Vietnam, credit institutions, foreign bank branches and Vietnamese traders shall be responsible for the implementation of this Circular.

Article 4. Implementation provisions

1. This Circular takes effect on February 15, 2023.

2. From the effective date of this Circular, the following regulations shall cease to be effective:

a) Article 3 of Circular No. 29/2015/TT-NHNN dated December 22, 2015 of the Governor of the State Bank of Vietnam, amending and supplementing a number of the State Bank of Vietnam’s legal documents providing for dossiers with certified copies of papers and documents;

b) Clause 18, Clause 19 Article 1, Clause 1 Article 2 of the Circular No. 28/2016/TT-NHNN dated October 05, 2016 of the Governor of the State Bank of Vietnam, amending and supplementing a number of articles of Circular No. 21/2014/TT-NHNN of the Governor of the State Bank of Vietnam, guiding the scope of foreign exchange operations and the conditions, order and procedures for approval of foreign exchange operations of credit institutions and branches of foreign banks./.

* All Appendices are not translated herein.