Joint Circular No. 14/2009/TTLT-BCT-BTC dated June 23, 2009,of the Ministry of Industry and Trade and the Ministry of Finance guiding the certification of and procedures for import and export of rough diamonds in implementation of the Kimberley Process Certification Scheme

THE MINISTRY OF INDUSTRY AND TRADE - THE MINISTRY OF FINANCE

Joint Circular No. 14/2009/TTLT-BCT-BTC of June 23, 2009, guiding the certification of and procedures for import and export of rough diamonds in implementation of the Kimberley Process Certification Scheme

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 Kimberley Process Certification Scheme for rough diamonds, concluded on November 5, 2002, in Interlaken, Switzerland;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

In furtherance of the Prime Minister’s Directive No. 1600/2002/CT-QHQT-VPCP of December 13, 2002, on Vietnam’s participation in the Kimberley Process Certification Scheme for import and export of rough diamonds;

The Ministry of Industry and Trade and the Ministry of Finance jointly guide the certification of and procedures for import and export of rough diamonds in implementation of the Kimberley Process Certification Scheme as follows:

I. GENERAL PROVISIONS

Article 1. Scope of regulation

This Joint Circular guides the certification of and procedures for import and export of rough diamonds in implementation of the Kimberley Process Certification Scheme (below referred to as the KP Certification Scheme).

Article 2. Subjects of application

This Circular applies to traders participating in the import and export of rough diamonds.

Article 3. Interpretation of terms

1. Conflict diamonds means rough diamonds used by rebel movements or their allies to finance conflicts aimed at undermining legitimate governments, as described in relevant United Nations Security Council (UNSC) resolutions still in effect, or in other similar UNSC resolutions which may be adopted in the future, and as understood and recognized in United Nations General Assembly (UNGA) Resolution 55/56, or in other similar UNGA resolutions which may be adopted in the future;

2. Country of origin means the country where rough diamonds have been mined or extracted;

3. Country of provenance means the last Participant from where rough diamonds were exported, as recorded on import documentation;

4. Diamond means a natural mineral consisting essentially of pure crystallized carbon in the isometric system, with a hardness on the Mohs (scratch) scale of 10, a specific gravity of approximately 3.52 and a refractive index of 2.42;

5. Exporting authority means the authority or body designated by the country of provenance which is authorized to validate the Kimberley Process Certificate;

6. Importing authority means the authority or body designated by an importing country to conduct all import formalities and particularly the verification of the accompanying Kimberley Process Certificate;

7. Kimberley Process Certificate (below referred to as KP Certificate) means a forgery resistant document with a particular format which identifies a shipment of rough diamonds as complying with the requirements of the KP Certification Scheme;

8. Parcel means one or more diamonds that are packed together and that are not individualized;

9. Parcel of mixed origin means a parcel that contains rough diamonds from two or more countries of origin, mixed together;

10. Participant means a state or a regional economic integration organization for which the KP Certification Scheme is effective;

11. Regional economic integration organization means an organization comprising sovereign states that has been transferred competence in respect of matters governed by the KP Certification Scheme;

12. Rough diamonds means diamonds that are unworked or simply sawn, cleaved or crude and fall under subheadings 7102.10, 7102.21 and 7102.31 of the Harmonized Systems (HS);

13. Shipment means one or more parcels that are physically imported or exported.

Article 4. Rough diamonds banned from import or export

The import or export of conflict diamonds is prohibited.

Article 5. Conditions for import or export of rough diamonds

1. Traders may only import rough diamonds from or export rough diamonds to Participants in the KP Certification Scheme (Annex I, not printed herein). In case of any change in the KP Certification Scheme’s Participants, the Ministry of Industry and Trade shall update, modify and supplement this list.

2. Shipments of rough diamonds may be exported to a Participant only with valid KP Certificates (Annex II, not printed herein) issued by a competent Vietnamese state agency.

3. Shipments of rough diamonds may be imported from a Participant only with valid KP certificates issued by a competent agency of the country of provenance being a Participant.

4. Imported or exported shipments of rough diamonds must be transported in anti-theft containers with unbroken seals.

Article 6. Transit of shipments of rough diamonds

Traders are required neither to produce KP Certificates nor carry out any procedures specified in Section II or III of this Circular for shipments of rough diamonds transiting the Vietnamese territory but shall observe the Vietnamese law on goods transit.

Article 7. Agencies confirming import and issuing KP Certificates

Agencies confirming the import of imported shipments of rough diamonds and issuing KP Certificates for exported shipments of rough diamonds include the Industry and Trade Ministry’s Regional Import-Export Management Sections based in Hanoi and Ho Chi Minh City (below referred to as Import-Export Management Sections). Detailed information on these Sections is provided in Annex III (not printed herein).

Article 8. Responsibilities of importers and exporters of rough diamonds

Importers and exporters of rough diamonds shall:

1. Make and submit trader dossiers to Import-Export Management Sections;

2. Make and submit complete dossiers of application for import confirmation or dossiers of application for KP Certificates to Import-Export Management Sections;

3. Prove that imported rough diamonds are imported from Participants in the KP Certification Scheme and exported rough diamonds are exported to Participants in the KP Certification Scheme, and create favorable conditions for Import-Export Management Sections to verify the origin of goods;

4. Take responsibility before law for the accuracy and truthfulness of details declared in trader dossiers and dossiers of application for import confirmation or dossiers of application for KP Certificates as well as the origin of imports and exports, even in case of authorization;

5. Promptly report to Import-Export Management Sections of localities where traders have applied for KP Certificates on the shipments rejected by importing countries even though they have been issued Vietnamese KP Certificates (if any);

6. Keep purchase, sale, import and export documents; list names of buyers or sellers, numbers of permits of buyers or sellers, quantity and value of sold, exported or bought, imported diamonds; and keep other documents within five (5) years from the date of registration of customs declarations.

Article 9. Responsibilities of Import-Export Management Sections

Import-Export Management Sections shall:

1. Provide instructions to traders upon request;

2. Receive and examine trader dossiers and dossiers of application for import confirmation or dossiers of application for KP Certificates;

3. Verify the actual origin of products, when necessary;

4. Confirm import and issue KP Certificates;

5. Keep import confirmation dossiers or issue KP Certificates within five (5) years;

6. Keep all detailed information on shipments of imported and exported rough diamonds in a computerized database;

7. Send specimens of signatures of persons authorized to sign KP Certificates and specimens of seals of Import-Export Management Sections to the Ministry of Industry and Trade (the Import-Export Department) under regulations of the Ministry of Industry and Trade;

8. Settle according to their competence complaints related to KP Certificates;

9. Keep confidential dossiers and documents related to KP Certificates;

10. Exchange information on the registration of trader dossiers and other matters related to import confirmation or issuance of KP Certificates;

11. Comply with the reporting regime and other requests under regulations of the Ministry of Industry and Trade.

Article 10. Responsibilities of customs agencies

Customs agencies shall:

1. Carry out customs procedures for the import or export of rough diamonds under regulations;

2. Keep dossiers of imported and exported shipments of rough diamonds within five (5) years from the date of registration of customs declarations;

3. Keep all detailed information on shipments of rough diamonds in a computerized database;

4. Collaborate with the Ministry of Industry and Trade in settling cases arising in the management of import and export of rough diamonds.

Article 11. Registration of trader dossiers

1. Persons who apply for the first time for confirmation of the import of shipments of rough diamonds and for KP Certificates for exported shipments of rough diamonds may have relevant procedures carried out only after they have completed procedures for registration of trader dossiers. A trader dossier comprises:

a/ Registration of the specimen of the signature of the person authorized to sign the application for import confirmation and the application for KP Certificate, and the specimen of the trader’s seal (Annex IV, not printed herein);

b/ Trader’s business registration certificate (a true certified copy);

c/ Tax identification number registration certificate (a true certified copy);

d/ List of the trader’s production and processing establishments (Annex V, not printed herein);

e/ Trader’s address, nationality and/or place of residence.

2. Any change in trader dossiers must be notified to Import-Export Management Sections with which they have been registered prior to applying for import confirmation and KP Certificates. In case of no change, trader dossiers must still be updated every two (2) years.

3. In case the application for import confirmation and the application for KP Certificates are made in places other than those where trader dossiers had previously been registered, applicants shall give written plausible reasons for not applying for import confirmation and KP Certificates in the places where trader dossiers had previously been registered. After being accepted to have trader dossiers registered at an Import-Export Management Section other than that with which trader dossiers had previously been registered, traders shall register new trader dossiers.

II. PROCEDURES FOR THE IMPORT OF ROUGH DIAMONDS

Article 12. Procedures for the import of rough diamonds at customs agencies

1. For traders

When carrying out procedures for the import of rough diamonds, a trader shall submit to the customs agency the following:

a/ Original of the KP Certificate issued by a competent agency of the country of provenance being a Participant and two (2) copies signed and certified true by the head or authorized person of the  trader;

b/ Other papers as provided for by the customs law.

2. The customs agency shall:

a/ Inspect shipments of rough diamonds to confirm that packings and seals are not tampered with;

b/ Carefully check dossiers and goods to ensure that imported shipments of rough diamonds are consistent with information shown in the KP Certificate and information supplied by a competent agency of the country of provenance (if any);

c/ Keep in the import customs dossier one (1) copy of the KP Certificate, signed and certified true by the head or authorized person of the  trader;

d/ Within three (3) working days after completing customs procedures for imported shipments of rough diamonds, issue a certificate of imported rough diamonds, comprising three (3) copies made according to a form provided in Annex VI to this Circular (not printed herein), one (1) of them shall be sent to the Import-Export Management Section, one (1) copy kept in the customs agency’s import dossier, and one (1) copy sent to the trader. Send through email details of the KP Certificate and the certificate of imported rough diamonds to the Import-Export Management Section (made according to a form provided in Annex III, not printed herein) and to [email protected]. Such an email contains information on the weight, value, country of origin, country of provenance, exporter, importer, and number of the KP Certificate.

Article 13. Procedures for import confirmation at Import-Export Management Sections

1. For traders

Within three (3) working days after the customs agency issues a certificate of imported rough diamonds, a trader importing rough diamonds shall make import confirmation at the Import-Export Management Section and submit the following:

a/ Application for confirmation of the import of rough diamonds, committing that imported rough diamonds are not conflict diamonds (the original signed and stamped by the head or authorized person of the trader);

b/ KP Certificate, comprising one (1) original and three (3) copies;

c/ Certificate of imported rough diamonds, issued by the customs agency;

d/ Import customs declaration, with certification of the completion of customs procedures  (a copy signed and certified true by the head or authorized person of the trader, or signed and stamped by the notary public and enclosed with the original for comparison).

2. Import-Export Management Sections shall:

a/ Within three (3) working days after receiving complete and valid papers specified in Clause 1 of Article 13 and an email from the customs agency, confirm import on the right side of the KP Certificate and three (3) copies;

b/ After confirming import in three (3) copies of the KP Certificate, keep one (1) copy, and send one (1) copy to the Import-Export Department (the Ministry of Industry and Trade) and one (1) copy to the trader. Cut the KP Certificate’s original into two sections and send the import confirmation section to the KP Certificate-issuing agency of the country of provenance, and keep the country of provenance’s confirmation section for reference upon issuance of KP Certificates for exported shipments of traders;

c/ Within three (3) working days after confirming import in the (original) KP Certificate, send through email to a competent agency of the country of provenance details of the KP Certificate with import confirmation and to the Import-Export Department of the Ministry of the Industry and Trade at [email protected] for monitoring. Such an email contains information on the weight, value, country of origin or country of provenance, exporter, and number of the KP Certificate.

III. PROCEDURES FOR THE EXPORT OF ROUGH DIAMONDS

Article 14. Procedures for the issuance of KP Certificates

1. For traders

When carrying out procedures for applying for KP Certificates for exported shipments of rough diamonds, a trader shall submit to the Import-Export Management Section the following:

a/ Application for KP Certificate, committing that exported rough diamonds are not conflict diamonds (the original signed and stamped by the head or authorized person of the trader);

b/ Export KP Certificate completely filled in under the guidance in Annex VII (not printed herein), comprising one (1) original and three (3) copies;

c/ Import KP Certificate with import confirmation by the Import-Export Management Section;

d/ Export customs declaration for which customs procedures have been completed  (a copy signed and certified true by the head or authorized person of the trader and enclosed with the original for comparison);

e/ Bill of lading (a copy signed and certified true by the head or authorized person of the trader and enclosed with the original for comparison);

f/ Commercial invoice (a copy signed and certified true by the head or authorized person of the trader and enclosed with the original for comparison);

g/ Packing slip (a copy signed and certified true by the head or authorized person of the trader and enclosed with the original for comparison);

h/ Processing contract and processing norms already registered with the customs agency (a copy signed and certified true by the head or authorized person of the trader and enclosed with the original for comparison);

If having plausible reasons, the trader may submit later the export customs declaration for which customs procedures have been completed and the bill of lading within fifteen (15) working days after a KP Certificate is issued.

2. For Import-Export Management Sections:

a/ The Import-Export Management Section shall issue a KP Certificate to a trader within three (3) working days after accepting a complete and valid dossier of application for KP Certificate.

b/ A KP Certificate set comprises one (1) original and three (3) copies. Each KP Certificate has its number of reference.

c/ The trader shall send the original KP Certificate to the importer for submission to a competent agency of the importing Participant. One (1) copy shall be kept by the Import-Export Management Section and two (2) others handed over to the trader. Upon request of the importing Participant, the trader may request the Import-Export Management Section to issue more than three (3) copies.

d/ When necessary, the Import-Export Management Section may conduct inspection at the production place if deeming that dossier examination does not provide sufficient grounds for the issuance of a KP Certificate or when detecting violations of law with regard to previously issued KP Certificates. Examination results must be made in a record to be signed by the examination officer and KP Certificate applicant. If the KP Certificate applicant refuses to sign the record, the examination officer shall sign for confirmation after stating the reason. In this case, the time limit for issuing a KP Certificate is five (5) working days after the applicant submits a complete dossier.

e/ Within three (3) working days after a trader submits the export customs declaration for which customs procedures have been completed, the Import-Export Management Section shall send through email details of the issued KP Certificate to a competent agency of the importing country and to the Import-Export Department of the Ministry of Industry and Trade at [email protected] for monitoring. Such an email contains information on the weight, value, country of origin or country of provenance, importer, and number of the KP Certificate.

Article 15. Procedures for the export of rough diamonds at customs agencies

1. For traders

When carrying out procedures for the export of rough diamonds, a trader shall submit to the customs agency the following:

a/ Original and one (1) copy of the KP Certificate, issued by the Import-Export Management Section.

b/ Other papers provided for by the customs law.

2. The customs agency shall:

a/ Carefully check the dossier and goods to ensure that the exported shipment of rough diamonds is consistent with information shown in the KP Certificate;

b/ After checking and comparison, return the original of the KP Certificate to the trader and keep a copy of this Certificate in the export customs dossier;

c/ Within three (3) working days after completing customs procedures for an exported shipment of rough diamonds, send through email details of the KP Certificate to the Import-Export Management Section and to [email protected]. Such an email contains information on the weight, value, country of origin, exporter, importer, and number of the KP Certificate.

Article 16. Effect of KP Certificates

A KP Certificate is valid for two (2) months after it is issued. In case a shipment of rough diamonds has been issued a KP Certificate but not yet exported within this time limit, the trader shall return the KP Certificate to the Import-Export Management Section which has issued it.

IV. OTHER PROVISIONS

Article 17. Tasks and powers of the Ministry of Industry and Trade

The Ministry of Industry and Trade, which is the focal point for managing the import and export of rough diamonds, has the following tasks and powers:

1. To guide and examine import confirmation or issuance of KP Certificates to ensure that such confirmation and issuance comply with regulations;

2. Inform Participants through the Chair of specimens and characteristics of Vietnamese KP Certificates, and specimens of signatures of officers and seals of Import-Export Management Sections authorized to issue KP Certificates;

3. To forward specimens of officers and seals of Participants’ agencies competent to issue KP Certificates to the Ministry of Finance (the General Department of Customs);

4. To supply other Participants through the Chair with information in English on Vietnamese legal documents concerning the implementation of the KP Certification Scheme, and update that information upon request;

5. To compile and make available to other Participants through the Chair statistics in line with the principles set out in the KP Certification Scheme;

6. Exchange experience and other relevant information, including on self-assessment, in order to arrive at the best practice in given circumstances in implementing the provisions of the KP Certification Scheme;

7. Consider favorably requests from other Participants for assistance to improve the functioning of the KP Certification Scheme within their territories;

8. To inform another Participant through the Chair if it considers that legal documents of that Participant do not ensure the absence of conflict diamonds in the exports of that Participant;

9. To cooperate with other Participants to attempt to resolve problems which may arise from unintentional circumstances and which could lead to non-fulfillment of the minimum requirements for the issuance or acceptance of KP Certificates, and inform all other Participants of the essence of the problems encountered and of solutions found;

10. To closely cooperate with law enforcement agencies and customs agencies of Participants;

11. To make known the names of individuals or companies convicted of violations of the provisions of the KP Certification Scheme to all other Participants through the Chair;

12. To be encouraged to ensure that all cash purchases of rough diamonds are routed through official banking channels, supported by verifiable documentation.

Article 18. Tasks and powers of the Ministry of Finance

1. To guide customs procedures and conduct customs inspection of imported and exported shipments of rough diamonds under regulations;

2. To guide the reporting, and report, on the import and export of rough diamonds;

3. To settle arising problems and complaints related to the import and export of rough diamonds;

4. To cooperate with competent domestic and foreign agencies and international organizations in investigating and verifying imported and exported rough diamonds;

5. To collaborate in performing tasks and exercising powers of a Participant.

Article 19. Regulations on reporting and information update

1. Import-Export Management Sections shall quarterly update information on import confirmation and issuance of KP Certificates according to a form provided by the Ministry of Industry and Trade and email such information to the Import-Export Department of the Ministry of Industry and Trade at [email protected].

2. The Ministry of Finance shall quarterly update information on the import and export of shipments of rough diamonds according to a form provided by the Ministry of Industry and Trade and email such information to the Ministry of Industry and Trade at [email protected].

3. Based on the data supplied by Import-Export Management Sections and the Ministry of Finance, the Ministry of Industry and Trade shall sum up and report to the Working Group on data of the KP Certification Scheme.

V. IMPLEMENTATION PROVISIONS

This Circular takes effect 45 days from the date of its signing.

This Circular replaces the Trade Ministry’s Circular No. 11/2002/TT-TM-XNK of December 26, 2002, guiding the management of import and export of rough diamonds, and relevant decisions and guiding documents amending and supplementing Circular No. 11/2002/TT-TM-XNK.

Any problems arising in the course of implementation should, depending on their nature, be promptly reported to the Ministry of Industry and Trade or the Ministry of Finance for settlement, at the following addresses:

Ministry of Industry and Trade (Import-Export Department)

54 Hai Ba Trung street, Hoan Kiem district, Hanoi

Tel: 04.2.2205444

Fax: 04.2.2202525

Ministry of Finance (General Department of Customs, Supervision and Management Department)

162 Nguyen Van Cu, Long Bien district, Hanoi

Tel: 04.3.8720121

Fax: 04.3.8725909

For the Minister of Finance
Deputy Minister
DO HOANG ANH TUAN

For the Minister of Industry and Trade
Deputy Minister
NGUYEN THANH  BIEN