Decision No. 1437/2001/QD-NHNN dated November 19, 2001 of the State Bank of Vietnam issuing the regulation on the purchase, transfer and bringing of foreign currencies overseas by residents being Vietnamese citizens

DECISION

ISSUING THE REGULATION ON THE PURCHASE, TRANSFER AND BRINGING OF FOREIGN CURRENCIES OVERSEAS BY RESIDENTS BEING VIETNAMESE CITIZENS

THE STATE BANK GOVERNOR

Pursuant to Vietnam State Bank Law No.01/1997/QH10 of December 12, 1997;

Pursuant to the Government’s Decree No.15/1993/ND-CP of March 2, 1993 on the tasks, powers and State management responsibility of the ministries and ministerial-level agencies;

Pursuant to the Government’s Decree No.63/1998/ND-CP of August 17, 1998 on foreign exchange management;

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

DECIDES:

Article 1.-To issue together with this Decision the Regulation on the purchase, transfer and bringing of foreign currencies overseas by residents being Vietnamese citizens.

Article 2.-This Decision takes effect as from January 1, 2002. The provisions of Section I, Chapter IV, Part III and Section I, Chapter V, Part IV, of the State Bank’s Circular No.01/1999/TT-NHNN7 of April 16, 1999 guiding the implementation of the Government’s Decree No.63/1998/ND-CP of August 17, 1998 on foreign exchange management and Clause 1, Article 1 of the State Bank Governor’s Decision No.19/2001/QD-NHNN of January 12, 2001 authorizing the director of the State Bank’s Ho Chi Minh City branch to carry out a number of foreign exchange management tasks in the southern provinces and cities are no longer effective.

Article 3.-The directors of the Office and the Foreign Exchange Management Department and the heads of the units under the State Bank, the directors of the State Bank’s branches in the provinces and centrally-run cities as well as the general directors (directors) of the licensed banks shall have to implement this Decision.

REGULATION

ON THE PURCHASE, TRANSFER AND BRINGING OF FOREIGN CURRENCIES OVERSEAS BY RESIDENTS BEING VIETNAMESE CITIZENS
(Issued together with the State Bank Governor’s Decision No.1437/2001/QD-NHNN of November 19, 2001)

Chapter I

GENERAL PROVISIONS

Article 1.-Governing scope

This Regulation governs the purchase, transfer and bringing of foreign currencies overseas by residents being Vietnamese citizens (hereafter called Vietnamese citizens) for use for the following purposes:

1. To cover expenses for the study or medical treatment of their own or their relatives;

2. To make working trips, tours or visits overseas;

3. To pay charges of different kinds to foreign parties;

4. To support their relatives overseas;

5. To transfer money of inheritance to their heirs overseas;

6. To settle down in foreign countries.

Article 2.-Term interpretation

In this Regulation the following words and phrases shall be construed as follows:

1. Foreign currencies mean currencies of foreign countries. In this document, foreign currency amounts to be purchased, transferred or brought overseas are prescribed in US dollar. Where Vietnamese citizens wish to transfer or bring overseas other foreign currencies, such shall be converted into US dollar with equivalent value.

2. Foreign currency purchase means the use Vietnam dong by Vietnamese citizens to purchase foreign currencies at the licensed banks for the purposes specified in Article 1 on the basis of presenting papers prescribed in this Regulation.

3. Foreign currency transfer means the transfer of foreign currencies overseas by Vietnamese citizens through the licensed banks.

4. Foreign currency bringing means the bringing of foreign currencies in cash (including notes, coins, traveler’s checks and similar payment instruments) overseas by Vietnamese citizens upon their exit.

5. Customs-declaration level means the amount of foreign currency in cash set by the State Bank Governor in each period for citizens to bring along upon their entry or exit. Individuals bringing foreign currency amounts beyond this prescribed limit shall have to declare with the border-gate customs offices.

6. Foreign currency-transfer permit means the permit granted by the State Bank to a Vietnamese citizen who transfers overseas a foreign currency amount from the customs-declaration level upward. This permit shall be used for foreign currency purchase at or transfer through the licensed banks.

7. Foreign currency-bringing permit means the permit granted by the State Bank to a Vietnamese citizen who brings overseas a foreign currency amount from the customs-declaration level upward, for the whole foreign currency amount he/she brings along on exit. This permit shall be used for foreign currency-cash purchase at the licensed banks and presented to border-gate customs offices when foreign currencies are brought through border gates.

8. Relatives include natural parents, foster parents, wife or husband, natural children, adoptive children and siblings of a Vietnamese citizen who applies for foreign currency transfer or bringing.

9. Papers proving the family relationship mean one of the following papers: copy of the birth certificate, copy of the household registration book, copy of the marriage registration certificate, written certification of the managing agency or local administration proving the family relationship. For adoptive parents and children, they must obtain certifications of competent State management bodies as prescribed by law.

10. Expense notice means one of the following papers: document, voucher or invoice issued by the foreign party, notifying expenses related to study, medical examination and/or treatment and other expenses in form of original, copy or facsimile. A written notice must be translated into Vietnamese. When necessary, the banks may request Vietnamese citizens to present original notices.

11. Periodic money order means the written request made by a Vietnamese citizen to a licensed bank for the transfer of a certain foreign currency amount from his/her own account to another account overseas at a given time point in the year. Upon transferring foreign currencies to their heirs or for the purpose of settling down overseas, Vietnamese citizens shall have to submit dossiers of application for foreign currency transfer only once for the whole foreign currency amount to be transferred. The subsequent transfers shall be effected according to the periodic money orders already agreed upon between Vietnamese citizens and the licensed banks without having to apply for permission of the State Bank.

Article 3.-Sources of foreign currencies to be transferred or brought overseas

Vietnamese citizens who are permitted by the banks with competence prescribed in Article 12 of this Regulation to transfer or bring overseas foreign currencies for the purposes mentioned in Article 1 of this Regulation may use foreign currencies available on their deposit or savings accounts or foreign currencies stored by themselves or purchased from the licensed banks for transfer or bringing overseas.

Article 4.-The rights to purchase, transfer and bring foreign currencies overseas

1. For amounts below the customs-declaration level: Vietnamese citizens wishing to use foreign currencies for the purposes mentioned in Article 1 of this Regulation may contact licensed banks and present relevant papers in order to:

a/ Transfer foreign currencies from their deposit or savings accounts or foreign currencies stored by themselves;

b/ Purchase foreign currencies from licensed banks and transfer them overseas;

c/ Purchase foreign currencies in cash to bring overseas.

2. From the customs-declaration level upward: Vietnamese citizens wishing to use foreign currencies for the purposes mentioned in Article 1 of this Regulation shall have to contact the State Bank with competence prescribed in Article 12 of this Regulation so as to apply for foreign currency transfer or bringing. On the basis of foreign currency-transfer or -bringing permits granted by the State Bank, Vietnamese citizens may:

a/ In cases where they are granted foreign currency-transfer permits, Vietnamese citizens may contact the licensed banks to:

- Transfer foreign currencies from foreign currency sources available on their deposit or savings accounts or stored by themselves;

- Purchase and transfer foreign currencies.

b/ In cases where they are granted foreign currency-bringing permits, Vietnamese citizens may:

- Bring along foreign currencies in cash from foreign currency sources available on their deposit or savings accounts or stored by themselves;

- Contact the licensed banks for purchase of foreign currencies in cash to bring overseas.

3. Based on their available foreign currency sources, the licensed banks shall consider and have the right to decide on foreign currency amounts to be sold to Vietnamese citizens for transfer or bringing overseas for the purposes prescribed in Article 1 of this Regulation.

Chapter II

SPECIFIC PROVISIONS

Article 5.-Transfer, bringing of foreign currencies for study overseas

1. Vietnamese citizens who wish to transfer or bring foreign currencies overseas for the payment of tuition fees, accommodation and meal as well as other expenses arising in the course of their own study overseas may contact the banks with competence prescribed in Article 12 of this Regulation so as to fill in the foreign currency-transfer or-bringing procedures on the basis of submitting the following papers:

a/ The application for foreign currency transfer or bringing;

b/ The written expense notice of the overseas school or training establishment (hereafter called training establishment) to the trainee. In cases where the notice is not sent directly to the trainee, such trainee-Vietnamese citizen shall have to submit a letter of study acceptance of the overseas training establishment or paper(s) proving that he/she is studying overseas.

c/ The copy of the applicant’s passport.

The foreign currency amount to be transferred or brought overseas shall be based on the expense amount notified by the overseas training establishment.

In cases where the training establishment does not issue any notice on meal, accommodation, subsistence and relevant expenses, each Vietnamese citizen-trainee shall, in addition to the already notified tuition fee amount, be allowed to transfer or bring overseas no more than USD 5,000 for each school year.

2. Vietnamese citizens who wish to transfer or bring foreign currencies to their relatives studying overseas shall, in addition to the papers prescribed at Points a and b, Clause 1 of this Article, have to submit the following papers:

a/ The papers proving their family relationship;

b/ The copies of their identity cards (for cases of applying for foreign currency transfer) or passports (for cases of applying for foreign currency bringing).

3. Persons who are authorized by Vietnamese citizens to bring foreign currencies to their relatives studying overseas shall, in addition to the papers prescribed at Points a and b, Clause 1 of this Article, have to submit the following papers:

a/ The papers proving their family relationship with the authorizers;

b/ The written authorizations;

c/ The copies of the authorized persons passports.

4. Vietnamese citizens may authorize enterprises with function of providing overseas study consultancy and services to contact the banks with competence prescribed in Article 12 of this Regulation in order to apply for foreign currency transfer. A dossier of application for foreign currency transfer includes:

a/ The enterprise’s written request for foreign currency transfer, which must cover the following contents:

- The list of the overseas trainees;

- The foreign currency amount requested to be transferred to each of the overseas trainees;

- Each trainee’s address for foreign currency transfer.

b/ The overseas training establishment’s written notice on expenses of each trainee. In cases where such a notice fails to specify such trainee’s expenses, the enterprise shall have to attach the letter of study acceptance of the overseas training establishment or paper(s) proving that the trainee is studying overseas;

c/ The copies of the trainees’ passports (for those who have not yet left for study);

d/ The authorization contracts made between Vietnamese citizens and the enterprise whereby Vietnamese citizens authorize the enterprise to fill in the foreign currency- transfer procedures;

e/ The notarized copy of the business registration certificate (for case of the first-time application for permits).

Article 6.-Transfer, bringing of foreign currencies overseas for medical treatment purpose

1. Vietnamese citizens who wish to transfer or bring foreign currencies overseas for the payment of hospital fees, accommodation, meal and subsistence as well as relevant expenses arising in the course of their medical treatment overseas may contact the banks with competence prescribed in Article 12 of this Regulation in order to fill in the foreign currency-transfer or -bringing procedures, on the basis of submitting the following papers:

a/ The application for foreign currency transfer or bringing;

b/ The paper of acceptance for medical examination and/or treatment, issued by the overseas medical treatment establishment or the written recommendation to overseas medical treatment issued by a domestic medical treatment establishment;

c/ The written notice on the expenses or expense estimates made by the overseas medical treatment establishment;

d/ The copy of the patient’s passport.

The foreign currency amount to be transferred or brought overseas shall be based on the expense amount notified by the overseas medical treatment establishment.

In cases where the overseas medical treatment establishment does not issue any notice on the meal, accommodation, subsistence as well as relevant expenses, a Vietnamese citizen-patient shall, in addition to the already notified hospital fee amount, be allowed to transfer or bring overseas no more than USD 10,000 each time he/she goes abroad for medical treatment.

In cases where the expense notice of the overseas medical treatment establishment is not yet available, the Vietnamese citizen may bring overseas an amount of USD 10,000 as mentioned above in order to cover the initial expenses, then have to work with the overseas medical treatment establishment to acquire a written expense notice, which shall serve as a basis for foreign currency transfer or bringing as prescribed in Clause 2 or 3 of this Article.

2. In cases where Vietnamese citizens transfer or bring foreign currencies to their relatives who are undergoing medical treatment overseas, they shall, in addition to the papers prescribed at Points a and b, Clause 1 of this Article, have to submit the following papers:

a/ The papers proving their family relationship;

b/ The copies of their identity cards (for cases of applying for foreign currency transfer) or passports (for cases of applying for foreign currency bringing).

3. Persons who are authorized by Vietnamese citizens to bring foreign currencies to their relatives who are undergoing medical treatment overseas shall, in addition to the papers prescribed at Points a and b, Clause 1 of this Article, have to submit the following papers:

a/ The papers proving their family relationship with the authorizers;

b/ The written authorizations;

c/ The copies of the authorized persons passports.

Article 7.-Transfer, bringing of foreign currencies overseas for payment of charges and fees to foreign parties

Vietnamese citizens who wish to transfer or bring foreign currencies overseas for the payment of charges and fees (membership fees, dossier-consideration charges, visa fee as well as other charges and fees) to foreign parties may contact the banks with competence prescribed in Article 12 of this Regulation in order to fill in the foreign currency-transfer or-bringing procedures, on the basis of submitting the following papers:

1. The application for foreign currency transfer or bringing;

2. The foreign party’s written notice on expenses;

3. The copy of the applicant’s identity card (for cases of applying for foreign currency transfer) or passport (for cases of applying for foreign currency bringing).

The foreign currency amount to be transferred or brought overseas shall be based on the expense amount notified by the foreign party.

Article 8.-Transfer, bringing of foreign currencies overseas for working, traveling or visiting purposes

1. Vietnamese citizens who make working trips overseas and wish to transfer overseas or bring along foreign currencies may contact the banks with competence prescribed in Article 12 of this Regulation for filling in the foreign currency-transfer or -bringing procedures, on the basis of presenting the following papers:

a/ The application for foreign currency transfer or bringing;

b/ The foreign party’s written notice on expenses;

c/ The copy of the applicant’s identity card.

The foreign currency amount to be transferred or brought overseas shall be based on the expense amount notified by the foreign party.

2. Vietnamese citizens who go on overseas tours or visits and wish to bring along foreign currencies, may each bring along an amount not exceeding the customs-declaration level upon each exit without having to ask for permission of the State Bank.

Article 9.-Transfer or bringing of foreign currencies to support relatives overseas

1. Vietnamese citizens who wish to bring a foreign currency amount of the customs-declaration level upward or transfer foreign currencies to support their relatives overseas may contact the State Bank’s provincial/municipal branches in the relevant localities for filling in the foreign currency -transfer or -bringing procedures, on the basis of submitting the following papers:

a/ The application for foreign currency transfer or bringing permit;

b/ The paper(s) proving their family relationship;

c/ The paper(s) proving that the support beneficiary is residing overseas;

d/ The copy of the applicant’s identity card (for cases of applying for foreign currency transfer) or passport (for cases of applying for foreign currency bringing).

2. The State Bank’s provincial/municipal branches shall grant foreign currency-transfer or -bringing permits once a year to Vietnamese citizens who want to support their relatives but the foreign currency amount to be transferred or brought to a support beneficiary must not exceed USD 5,000.

Article 10.-Transfer or bringing of foreign currencies to heirs overseas

1. Vietnamese citizens who represent heirs overseas may contact the banks with competence prescribed in Article 12 of this Regulation for filling in the foreign currency-transfer or -bringing procedures on the basis of submitting the following papers:

a/ The application for foreign currency transfer or bringing;

b/ The original or notarized copies of the competent agency’s document on the inheritance division or testament and the written agreement between the lawful heirs;

c/ The written authorization of the heir (notarized or authenticated) or document proving the representative-at-law capacity of the applicant for foreign currency transfer or bringing;

d/ The copy of the applicant’s identity card (for cases of applying for foreign currency transfer) or passport (for cases of applying for foreign currency bringing).

2. Vietnamese citizens representing heirs overseas may each transfer or bring each year no more than USD 10,000 or 20% of the total money amount of inheritance if such amount is larger than USD 50,000. In cases where the money amount to be transferred or brought overseas is larger than USD 50,000, the concerned Vietnamese citizen shall have to present papers proving that he/she actually holds the money amount to be transferred for inheritance purposes.

The remaining sum (in Vietnam dong or a foreign currency) may be deposited by the Vietnamese citizen at a licensed bank for gradual transfers (both principal and arising interests) in the subsequent years by the mode of periodic money order as already agreed upon between the licensed bank and the applicant for foreign currency transfer, but the money amount to be transferred each year must not exceed the above-prescribed level. In cases where the money is deposited in Vietnam dong at the licensed bank, the Vietnamese citizen can buy foreign currency at the selling rate announced by that bank at the time of transferring foreign currency as already agreed upon between the licensed bank and the foreign currency-transfer applicant in the periodic money order.

Article 11.-Transfer or bringing of foreign currencies overseas for permanent residence purposes

1. Vietnamese citizens who are allowed to settle down overseas and wish to transfer overseas or bring along foreign currencies may contact the banks with competence prescribed in Article 12 of this Regulation for filling in the foreign currency-transfer or -bringing procedures on the basis of presenting the following papers:

a/ The application for foreign currency transfer or bringing;

b/ The copy of the overseas competent agency’s document, allowing the permanent residence, attached with the translation thereof certified by the translating body or paper(s) proving that the Vietnam citizen is allowed to settle down overseas;

c/ The copy of passport of the person on exit for permanent settlement overseas.

2. Vietnamese citizens on exit for permanent residence overseas may each transfer or bring along each year no more than USD 10,000 or 20% of the total money amount to be transferred or brought overseas if this amount is larger than USD 50,000. In case of applying for the transfer or bringing of more than USD 50,000 overseas, the concerned Vietnamese citizen shall have to present paper(s) proving that he/she actually holds the money amount to be transferred or brought overseas for permanent residence purpose.

The remaining sum (in Vietnam dong or a foreign currency) may be deposited by the Vietnamese citizen at a licensed bank for gradual transfer (of both principal and arising interests) in the subsequent years by the mode of periodic money order as already agreed upon between the licensed bank and the foreign currency-transfer applicant, but the money amount transferred each year must not exceed the above-prescribed level. In cases where this sum is deposited in Vietnam dong at a licensed bank, the Vietnamese citizen can buy foreign currency at the selling rate announced by that bank at the time of transferring foreign currency as agreed upon between the licensed bank and the foreign currency-transfer applicant in the periodic money order.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 12.-Competence to permit Vietnamese citizens to purchase, transfer or bring foreign currencies overseas

Vietnamese citizens who wish to transfer or bring foreign currencies overseas for the purposes prescribed in Article 1 of this Regulation, which are available on their deposit accounts, savings accounts or stored by themselves or purchased from licensed banks, may contact banks with competence prescribed below in order to fill in the foreign currency-transfer or -bringing procedures:

1. Licensed banks: The general directors (directors) of the licensed banks or the persons authorized by the general directors (directors) shall consider and permit Vietnamese citizens to purchase and transfer overseas foreign currency amounts below the customs-declaration level (except for cases of transferring support money to relatives overseas).

2. The State Bank’s branches in the provinces and centrally-run cities: The directors of the State Bank’s branches in the provinces and centrally-run cities shall issue permits to Vietnamese citizens residing in their respective localities to transfer or bring overseas foreign currency amounts from the customs-declaration level upward and for case of applying for foreign currency transfer to support relatives overseas with amounts below the customs-declaration level.

3. For cases of applying for foreign currency transfer or bringing for purposes other than those stipulated in Article 1 of this Regulation, the State Bank’s branches in the provinces and centrally-run cities shall receive dossiers, examine them and send their proposals (together with the dossiers) to the Foreign Exchange Management Department under the State Bank so that the latter submit them to the Governor for settlement.

Article 13.-Dossier examination

1. For the sale and transfer of foreign currencies:

a/ When selling or transferring foreign currencies to Vietnamese citizens with amounts below the customs-declaration level, the licensed banks shall have to examine dossiers for each of the purposes mentioned in Chapter II of this Regulation.

b/ When selling or transferring foreign currencies to Vietnamese citizens with amounts from the customs-declaration level upward, the licensed banks shall have to base themselves on the foreign currency-transfer permits issued by the State Bank’s provincial/municipal branches.

In cases where Vietnamese citizens must use permits issued by the State Bank to purchase or transfer foreign currencies for many times, at many licensed banks, when selling or transferring foreign currencies to them, the licensed banks shall have to inscribe the already sold or transferred foreign currency amounts and affix stamp on the permits issued by the State Bank’s provincial/municipal branches. The total foreign currency amount purchased at or transferred through the licensed banks must not exceed the amount already approved by the State Bank’s provincial/municipal branches.

2. For the sale of foreign currencies in cash:

a/ When selling foreign currencies in cash to Vietnamese citizens with amounts below the customs-declaration level, the licensed banks shall have to examine the latter’s passports and passenger-transportation coupons then inscribe the already sold foreign currency amounts and affix stamp on the counterfoils of the passenger-transportation coupons.

b/ When selling foreign currencies in cash to Vietnamese citizens with amounts from the customs-declaration level upwards, the licensed banks shall have to base themselves on the foreign currency-bringing permits issued by the State Bank’s provincial/municipal branches.

In cases where Vietnamese citizens have to use permits issued by State Bank’s provincial/municipal branches to purchase foreign currencies for many times, at many licensed banks, such licensed banks shall, when selling foreign currencies to Vietnamese citizens, have to inscribe the already sold foreign currency amounts and affix stamp on the permits issued by the State Bank’s provincial/municipal branches. The total foreign currency amount purchased at the licensed banks must not exceed the amount already approved by State Bank’s provincial/municipal branches.

Article 14.-Permit-issuing time limit

Within 10 (ten) working days after receiving valid dossier sets, the licensed banks or State Bank’s provincial/municipal branches (according to their competence provided for in Article 12 of this Regulation) shall approve or issue permits to Vietnamese citizens to transfer or bring foreign currencies overseas. In case of refusal, they must notify the applicants of the reasons therefor.

Article 15.-Registration of sample stamps and signatures

The State Bank’s branches in the provinces and centrally-run cities shall have to register sample stamps and signatures of the persons competent to issue permits to Vietnamese citizens to bring foreign currencies overseas, with the General Department of Customs for monitoring and supervision.

Article 16.-Reporting regime

1. Quarterly, by the 25th of the last month of the quarter at the latest, the licensed banks shall report the situation on the sale and transfer of foreign currencies to Vietnamese citizens to the State Bank’s branches in the relevant provinces or centrally-run cities.

2. Quarterly, by the 30th of the last month of the quarter at the latest, the State Bank’s branches in the provinces and centrally-run cities shall sum up the situation on the granting of foreign currency-transfer and -bringing permits as well as the sale and transfer of foreign currencies to Vietnamese citizens in their respective localities and send reports thereon to the State Bank (the Foreign Exchange Management Department).

Article 17.-Handling of violations

Organizations and individuals violating this Regulation shall, depending on the nature and seriousness of their violations, be disciplined or examined for penal liabilities as prescribed by law.

Article 18.-Amendment, supplementation of Regulation

The amendment and supplementation of this Regulation shall be decided by the State Bank Governor.