Decision No. 25/2017/QD-UBND dated July 27, 2017 of the People’s Committee of Hanoi City promulgating “Regulations on cooperation between regulatory authorities of Hanoi city in managing representative offices and branches of foreign traders engaging in trade and specific trade activities"

THE PEOPLE’S COMMITTEE OF HANOI CITY

DecisionNo. 25/2017/QD-UBND dated July 27, 2017 of  the People’s Committee of Hanoi City promulgating “Regulations on cooperation between regulatory authorities of Hanoi city in managing representative offices and branches of foreign traders engaging in trade and specific trade activities"

THE PEOPLE’S COMMITTEE OF HANOI CITY

Pursuant to the Law on organization of local governments dated June 19, 2015;

Pursuant to the Law on commerce dated June 14, 2005;

Pursuant to the Government’s Decree No. 07/2016/ND-CP dated January 25, 2016 on elaboration of the Law on commerce with respect to representative offices and branches of foreign traders in Vietnam;

Pursuant to the Government’s Decree No.73/2016/ND-CP dated July 11, 2016 on elaboration of the Law on insurance business and the Law on amendments to certain Articles of the Law on insurance business;

Pursuant to the Government’s Decree No. 22/2006/ND-CP dated February 28, 2006 prescribing organization and operation of branches of foreign banks, joint venture banks, wholly foreign-invested banks and representative offices of foreign credit institutions in Vietnam;

At the request of Hanoi Department of Industry and Trade under the Statement No. 1656/TTr-SCT dated April 12, 2017, the appraisal report No. 483/STP-VBPQ dated March 22, 2017 of Hanoi Department of Justice on drafting of the Decision on promulgation of “Regulations on cooperation between regulatory authorities of Hanoi city in managing representative offices and branches of foreign traders engaging in trade and specific trade activities";

HEREBY DECIDES:

Article 1.“Regulations on cooperation between regulatory authorities of Hanoi City in managing representative offices and branches of foreign traders engaging in trade and specific trade activities" are promulgated together with this Decision.

Article 2.This Decision comes into force after 10 days as of August 06, 2017 and replaces the Decision No. 17/2011/QD-UBND dated May 19, 2011 of the People’s Committee of Hanoi City promulgating “Regulations on cooperation between regulatory authorities of Hanoi City in managing representative offices and branches of foreign traders engaging in trade and specific trade activities".

Article 3.Chief of Office of the People’s Committee of Hanoi City, heads of the city’s Departments, divisions and subdivisions, representative offices and branches of foreign traders in Hanoi City shall be responsible for implementation of this Decision./.

On Behalf of the People’s Committee

Chairman

Nguyen Duc Chung 

REGULATIONS

COOPERATION BETWEEN REGULATORY AUTHORITIES OF HANOI CITY IN MANAGING REPRESENTATIVE OFFICES AND BRANCHES OF FOREIGN TRADERS ENGAGING IN TRADE AND SPECIFIC TRADE ACTIVITIES
(Promulgated together with the Decision No. 25/2017/QD-UBND dated July 27, 2017 of the People’s Committee of Hanoi City)

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This document provides for principles, responsibility, methods and contents of cooperation between regulatory authorities in managing representative offices and branches of foreign traders engaging in trade and specific trade activities.

Article 2. Subjects of application

This Decision applies to regulatory authorities affiliated to the Government of Hanoi City, including Department of Industry and Trade, Department of Labour, War Invalids and Social Affairs, Department of Finance, Hanoi City Public Security Department, Department of Taxation, Hanoi Industrial and Export Processing Zones Authority and other relevant authorities.

Article 3. Definitions

For the purposes of this document, these terms are construed as follows:

1.Representative offices and branches of foreign traders engaging in trade activities refer to representative offices and branches of foreign traders that are licensed according to regulations laid down in the Government’s Decree No. 07/2016/ND-CP dated January 25, 2016.

2.Representative offices and branches of foreign traders engaging in specific trade activities refer to representative offices and branches of foreign traders engaging in banking, finance, insurance or other specific sectors as regulated by laws under the state management of the People s Committee of Hanoi City.

3.Licensing authorities include Hanoi Department of Industry and Trade, and Hanoi Industrial and Export Processing Zones Authority (HIZA) as regulated in Article 5 of the Government’s Decree No. 07/2016/ND-CP dated January 25, 2016.

Article 4. Abbreviated terms

1.“Representative offices” stand for representative offices or branches of foreign traders engaging in trade and specific trade activities.

2.“Regulatory authorities” stand for state regulatory authorities affiliated to the Government of Hanoi City.

Chapter II

PRINCIPLES, METHODS, CONTENTS AND RESPONSIBILITY FOR COOPERATION BETWEEN REGULATORY AUTHORITIES IN MANAGING REPRESENTATIVE OFFICES

Article 5. Principles of cooperation

1.Based on the state management functions as regulated by laws and authority delegation by the People’s Committee of Hanoi City, relevant departments and divisions of the city shall organize the management of representative offices engaging in sectors under their management. The following are strictly prohibited, including authoritarian behavior, bureaucracy, irresponsible attitude, and annoying, harassing or requesting representative offices to do things other than the ones regulated by laws.

2.Regulatory authorities shall proactively cooperate with concerned authorities and/or entities to ensure the consistent and comprehensive direction and management by competent authorities of Hanoi City on the basis of their assigned duties and powers, and representative offices management tasks in each period and each sector.

3.Regulatory authorities shall carry out regular inspections in their managing sectors within their competence as regulated by law, and notify Hanoi Department of Industry and Trade or HIZA of their inspection programs or plans by January 15 every year for avoiding overlapping inspections. Ad hoc inspections shall be carried out in cases denoting violations against laws. Regulatory authorities should cooperate with Hanoi Department of Industry and Trade or HIZA in suggesting solutions for violations beyond their authority (if any) to the People’s Committee of Hanoi City.

4.Officials, public employees and employees of regulatory authorities are prohibited from inspecting or organizing inspections of representative offices without decisions or inspection plans approved by heads of their regulatory authorities.

Article 6. Methods of cooperation

1.A regulatory authority shall coordinate with Hanoi Department of Industry and Trade, assign at least a leading official and a specialist to monitor and settle issues concerning the cooperation in managing representative offices, and play the leading role during the cooperation in settling issues concerning representative offices within the ambit of its assigned functions, duties and powers.

2.By January 15 of the following year, regulatory authorities must submit reports to Hanoi Department of Industry and Trade on their performance of duties and cooperation with relevant authorities during the year. Hanoi Department of Industry and Trade is required to consider reports submitted by regulatory authorities and submit a consolidated report thereof to the People’s Committee of Hanoi City.

3.The cooperation between regulatory authorities must meet operational requirements of each regulatory authority; depending on each cooperating task and the cooperating plan approved in a specific shift-handover meeting, in-charge units or departments (hereinafter referred to as "in-charge units") shall directly work together through their leading officials or specialists assigned to perform information exchange tasks.

Any difficulties that arise during the cooperation must be promptly reported to leaders in charge of relevant sectors for consideration.

Article 7. Contents of cooperation

1.Cooperation in receiving, exchanging and providing information.

2.Cooperation in organizing training and dissemination of laws on operation of representative offices.

3.Cooperation in carrying out inspections of representative offices.

4.Regular handover of tasks concerning the management of representative offices.

5.Other contents as regulated by laws.

Article 8. Forms of cooperation

1.Exchange opinions and provide information in writing, via email, telephone, fax or messaging.

2.Hold interdisciplinary shift-handover meetings.

3.Establish inspection teams in charge of inspecting operation of representative offices.

4.Hold preliminary review and summary conferences on implementation of the Regulations.

5.Update the general foreigner database developed by the People s Committee of Hanoi City.

6.Take other appropriate forms of cooperation as regulated by laws.

Article 9. Cooperation in receiving, exchanging and providing information

1.Directly inform or exchange information.

2.Exchange information in writing.

3.Exchange information through means of mass media.

4.Exchange information through the city’s portal.

5.Time limit for providing/ exchanging requested information between regulatory authorities is 15 working days (excluding Saturday, Sunday and public holidays).

6.Obtaining information available on the general foreigner database.

Article 10. Responsibility of city s departments and divisions for cooperation in receiving, exchanging and providing information

1.Hanoi Department of Industry and Trade shall:

a) Update information concerning the issuance of license to establish representative offices (located outside industrial zones) as regulated in Article 25 and Clause 3 Article 37 of Decree No. 07/2016/ND-CP.

b) Provide information about licensed representative offices at the request of relevant authorities. To be specific:

-A representative office granted the new license: Information about the foreign trader, nationality, registered headquarters of the representative office, and chief representative.

-A representative office granted a modified license: Information about modified contents of the license such as registered headquarters of the representative office, chief representative, and operating address of foreign trader.

-A representative office having its operation terminated: Information about procedures for termination of operation of the representative office carried out by the foreign trader as regulated.

c) Submit copies of regular reports on management of representative offices to competent authorities as regulated.

2.Hanoi Industrial and Export Processing Zones Authority, and Hi-tech Park Management Board (hereinafter referred to as "Management Boards") shall:

a) Update information concerning the issuance of license to establish representative offices (located in industrial zones) as regulated in Article 25 and Clause 3 Article 37 of Decree No. 07/2016/ND-CP.

b) Provide information about licensed representative offices at the request of relevant authorities. To be specific:

-A representative office granted the new license: Information about the foreign trader, nationality, registered headquarters of the representative office, and chief representative.

-A representative office granted a modified license: Information about modified contents of the license such as registered headquarters of the representative office, chief representative, and operating address of the foreign trader.

-A representative office having its operation terminated: Information about procedures for termination of operation of the representative office carried out by the foreign trader as regulated.

3.Hanoi City Public Security Department shall:

a) Monthly provide licensing authorities and Hanoi City Department of Labour, War Invalids and Social Affairs with basic information about foreigners who work at representative offices and are granted visa, temporary resident card or have their temporary resident cards extended (update the general foreigners database with the required information every 10 days).

b) Punctually and regularly exchange information about violations committed by representative offices with licensing authorities, including: representative offices committing violations against regulations on headquarters or chief representative; representative offices terminating their operation without notification as regulated, or performing operations other than the licensed ones, or operating against the license; information concerning inspection and handling of violations committed by representative offices.

c) Review information on the issuance of visa, temporary resident cards or grant of extension of temporary resident cards to foreigners working at representative offices, and provide the mentioned information to relevant authorities as regulated.

4.Hanoi City Department of Labour, War Invalids and Social Affairs shall:

a) Quarterly provide licensing authorities and Hanoi City Public Security Department with the following information:

-Information about the number of employees working at representative offices, which is determined according to received reports from representative offices.

-Basic information about foreigners who work at representative offices and are granted work permit or work permit exemption certificate.

b) Quarterly provide licensing authorities with information about inspections and handling of violations committed by representative offices in responsible sectors.

c) Review information about employees working at representative offices, and provide the mentioned information to relevant authorities as regulated.

5.Hanoi City Department of Taxation shall:

a) Quarterly provide licensing authorities with basic information about employees who work at representative offices and have tax identification numbers.

b) Make notifications of representative offices that have completed procedures for tax statement and termination of validity of tax identification number within the reporting time limit prescribed by the Law on tax administration and its instructional documents. Over the prescribed time limit, Hanoi City Department of Industry and Trade shall make notifications of completion of procedures for termination of operation of representative offices as regulated.

c) Quarterly provide licensing authorities with information about inspections and handling of violations committed by representative offices in responsible sectors.

d) Review information about the fulfillment of tax liabilities by representative offices, and provide the mentioned information to relevant authorities as regulated.

Article 11. Cooperation in disseminating laws

1.Hanoi City Department of Industry and Trade shall play the leading role in performing the following tasks:

a) Publish and update regulations of relevant laws on operation of representative offices on websites of its affiliated authorities.

b) Compile documents disseminating regulations of relevant laws on operation of representative offices.

c) Develop and implement annual plans for dissemination of laws to representative offices.

d) Organize training and dissemination of laws to representative offices.

2.Management Boards shall:

a) Publish and update regulations of relevant laws on operation of representative offices on their websites.

b) Compile documents disseminating regulations of relevant laws on operation of representative offices.

c) Develop and implement annual plans for dissemination of laws to representative offices to which they have issued license.

3.Hanoi City Public Security Department shall cooperate with licensing authorities in organizing training and dissemination of laws to representative offices.

4.Hanoi City Department of Labour, War Invalids and Social Affairs shall:

a) Compile documents disseminating relevant laws on Vietnamese and foreign employees working at representative offices.

b) Cooperate with licensing authorities in organizing training and dissemination of laws to representative offices.

5.Hanoi City Department of Taxation shall:

a) Compile documents disseminating relevant laws on tax liabilities fulfilled by representative offices and the ones discharged by Vietnamese and foreign employees working at representative offices.

b) Cooperate with licensing authorities in organizing training and dissemination of laws to representative offices.

Article 12. Cooperation in carrying out inspections of representative offices

1.Hanoi City Department of Industry and Trade shall play the leading role in performing the following tasks:

a) Work out plan for inspection of licensed representative offices within its competence.

b) Take charge and cooperate with regulatory authorities affiliated to the central government and the ones affiliated to the city’s government in carrying out inspections of representative offices as regulated in Clause 2 Article 41 of Decree No. 07/2016/ND-CP.

c) Take actions against violations within its competence or report inspection results accompanied by suggested measures for violations (if any) to the People’s Committee of Hanoi City for approval and decision on measures for handling violations beyond its competence.

2.Management Boards shall play leading role in performing the following tasks:

a) Work out plans for inspection of licensed representative offices within their competence.

b) Take charge and cooperate with regulatory authorities affiliated to the central government and the ones affiliated to the city’s government in carrying out inspections of representative offices as regulated in Clause 2 Article 41 of Decree No. 07/2016/ND-CP.

c) Take actions against violations within their competence or report inspection results accompanied by suggested measures for violations (if any) to the People’s Committee of Hanoi City for approval and decision on measures for handling violations beyond their competence.

3.Hanoi City Public Security Department, Hanoi City Department of Labour, War Invalids and Social Affairs, and Hanoi City Department of Taxation shall:

a) Appoint officials to attend inspection teams established by licensing authorities.

b) Make lists of representative offices to be inspected during the year, and send them to licensing authorities.

Article 13. Regular handover of tasks concerning management of representative offices

1.Hanoi City Department of Industry and Trade shall:

a) Take charge of organizing annual meeting for handover of tasks between regulatory authorities for reviewing the issuance of license to and management of representative offices.

b) Consolidate reports of city’s departments and divisions on management of representative offices.

2.Hanoi City Public Security Department, Hanoi City Department of Labour, War Invalids and Social Affairs, and Hanoi City Department of Taxation shall:

a) Appoint officials to attend regular meetings for handover of tasks concerning the management of representative offices.

b) Offer suggestions about management of representative offices to Hanoi City Department of Industry and Trade for submitting a consolidated report thereof to competent authorities.

Article 14. Other contents of cooperation

The city’s departments and divisions shall settle issues concerning representative offices within their competence and submit reports thereof to Hanoi City Department of Industry and Trade for consolidation, and cooperate with Hanoi City Department of Industry and Trade in suggesting measures for issues beyond their competence to the People’s Committee of Hanoi City for decision or suggestion.

Article 15. Commendation and handling of violations

1.Officials and public employees who achieve outstanding performance in course of management of representative offices shall be commended and rewarded in accordance with applicable laws.

2.If officials and public employees on duty commit violations against regulations herein or relevant laws, depending the nature and severity of each violation, they shall be disciplined or liable to criminal prosecution in accordance with applicable laws.

Chapter III

IMPLEMENTATION

Article 16. Implementation organization

Departments, divisions and sub-divisions of Hanoi City shall organize the implementation of this Regulation.

Article 17. Funding

Funding for covering costs of performance of cooperation tasks shall be ensured as follows: Funding for covering costs of performing a specific content of cooperation shall be ensured by the regulatory authority or unit in charge of that content.

Hanoi City Department of Industry and Trade shall make and submit the annual estimate of expenditures for carrying out interdisciplinary inspections and interdisciplinary handover of tasks to the People’s Committee of Hanoi City for approval. Hanoi City Department of Finance shall consider allocating funds for covering costs of management and cooperation in managing representative offices to regulatory authorities and units according to the approved annual expenditure estimate and their assigned duties as regulated herein.

Article 18. Provisions on amendments

If difficulties arise during the implementation of this document or this document needs to be modified or amended, Hanoi City Department of Industry and Trade shall consolidate and submit report thereof to the People’s Committee of Hanoi City for consideration and modification./.