Legal Document Updates in English (01/2014)

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#	NUMBER	TITLE	*In This Updates:*
TAX- FEE – CHARGE			*TAX- FEE – CHARGE*
1	209/2013/ND-CP	Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government on detailing and guiding implementation of several articles of Law on Value-Added Tax	*Conditions to apply VAT rate of 0% to exported goods and services*	Page 2
2	712/2013/UBTVQH13	Resolution No. 712/2013/UBTVQH13 dated December 16, 2013 of the Standing Committee of the National Assembly on promulgating the Royal tariff	*From February 1, 2014, Royal tariff on several natural resources will be raised*	Page 2
FINANCE – BANKING			*FINANCE – BANKING*
3	32/2013/TT-NHNN	Circular No. 32/2013/TT-NHNN dated December 26th 2013 of the State Bank of Vietnam on guiding the implementation of regulations on restricting the use of foreign exchange within the territory of Vietnam	*Subjects allowed to use foreign exchange within Vietnam’s territory*	Page 2
4	33/2013/TT-NHNN	Circular No. 33/2013/TT-NHNN dated December 26, 2013 of the Vietnam State Bank providing guidelines upon approval procedure for activities of export, import of foreign currency in cash of permitted banks	*Approval procedure for activities of export, import of foreign currency in cash*	Page 3
COMMERCE			*COMMERCE*
5	9990/QD-BCT	Decision No. 9990/QD-BCT dated December 25, 2013 of the Ministry of Industry and Trade of Vietnam on the application of temporary antidumping duties	*To apply temporary antidumping duties for several items of steel*	Page 3
STRUCTURE- ORGANIZATIONS			*STRUCTURE- ORGANIZATIONS*
6	132/2013/ND-CP	Decree No. 132/2013/ND-CP of October 16, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Information and Communications	*To change organizational structure of Ministry of Information and Telecommunications*	Page 3
INDUSTRY			*INDUSTRY*
7	137/2013/ND-CP	Decree No. 137/2013/ND-CP dated October 21, 2013 of the Government on detailing implementation of several articles of the Electricity Law and the Law on amending and supplementing several articles of the Electricity Law	*Conditions applied to sign sales and purchase contract of domestic electricity*	Page 4

SUMMARY:

Ü TAX – CHARGE - FEE

CONDITIONS TO APPLY VAT RATE OF 0% TO EXPORTED GOODS AND SERVICES
On December 18, 2013, the Government issued Decree No. 209/2013/ND-CP on detailing and guiding implementation of several articles of Law on Value-Added Tax on exported goods and services (Including: Works built and installed abroad; spare parts for repair, maintenance of means, machinery, equipment for foreign parties…) which will enjoy VAT rate of 0% if several conditions of goods and services types and documentation shall be met… Concretely, enterprises must provide a value-added invoice of purchased goods or services or a document proving the payment of value-added tax on goods at the stage of importation, and a document proving the value-added tax payment in case of services purchased from foreign organizations without permanent establishments in Vietnam or overseas individuals not residing in Vietnam; provide a payment document not using cash of purchased goods or services, except goods or services valued at under VND 20 million		upon each purchase; provide a contract on sale or processing of exported goods or entrusted processing of exported goods or a service provision contract signed with an organization or individual overseas or in a non-tariff area; provide non-cash payment documents for exported goods or services and other documents under law; and customs declarations, for exported goods… Cases not apply the value-added tax rate of 0% include: Technology transfer, intellectual property transfer abroad; services of reinsurance abroad; credit provision services abroad; capital transfer abroad; securities investment abroad; derivative financial services; services of post and telecommunication; the exported products being exploited natural resources and minerals not yet processed into other products; This Decree takes effect on January 01, 2014.

FROM FEBRUARY 1, 2014, ROYAL TARIFF ON SEVERAL NATURAL RESOURCES WILL BE RAISED
This content is regulated in Resolution No. 712/2013/UBTVQH13 dated December 16, 2013 of the Standing Committee of the National Assembly on promulgating the Royal tariff. Accordingly, from February 1, 2014, the royal tariff of 12% for iron will officially be applied, increasing by 2% in comparison with the previous tariff. Simultaneously, the royal tariff applied to several metallic minerals and non- metallic minerals is also increased respectively from 1% to 8%. Concretely, royal rate for sand increases from 10% to 11%; the rate applied for glass- making sand is 13%, increased by 2% in		comparison with the previous tariff; the rate applied for titanium, copper, soil used for brick making and rock is respectively hit at 16%, 13%, 10% and 7% which is increased by 5%, 3% and 1% as compared with existing rate (The previous rate is alternately 11%, 10%, 7% and 6%). For diamond, gold, rare earths, aluminum and bauxite, platinum, silver, tin, lead and zinc and serpentine, the applied tariff rate still stays at 22%; 15%; 10% and 3%... This Resolution takes effect on February 01, 2014.

Ü FINANCE - BANKING

SUBJECTS ALLOWED TO USE FOREIGN EXCHANGE WITHIN VIETNAM’S TERRITORY
On December 26th 2013, the State Bank of Vietnam issued Circular No. 32/2013/TT-NHNN on guiding the implementation of regulations on restricting the use of foreign exchange within the territory of Vietnam and residents are allowed to contribute capital in foreign currency by transfer in order to perform foreign investment projects in Vietnam. Besides, the Circular also details cases allowed to use foreign exchange within Vietnam’s territory. Concretely, customs agencies, police, border guard and other state agencies at border gates of Vietnam and bonded warehouses are allowed to list in foreign currency and collect in foreign currency by transfer or cash from non-residents for various taxes, charges for exit and entry visa, charges for provision of services and other charges and fees as prescribed by law; residents being entities with legal person status are allowed to transfer internal capital in foreign currency between their accounts with accounts of		their dependent units that have no legal person status and vice versa; residents and non-residents being organizations are allowed to make agreements and pay salaries, bonus and allowances in labor contracts in foreign currency by transfer or cash to non-residents and residents who are foreigners working in such organizations… Residents being exporting and processing enterprises shall be allowed to state prices in contracts in foreign currency and payment in foreign currency by wire transfer when they buy goods from domestic market for production, processing, reprocessing, and assembling of export goods or for export, except for goods banned export; they are also allowed for quotations, pricing and prices in contracts in foreign currency and payment, receipt of payments in foreign currency by transfer with other exporting and processing enterprises. This Circular takes effect on February, 10, 2014.

APPROVAL PROCEDURE FOR ACTIVITIES OF EXPORT, IMPORT OF FOREIGN CURRENCY IN CASH
On December 26, 2013, the Vietnam State Bank issued the Circular No. 33/2013/TT-NHNN providing guidelines upon approval procedure for activities of export, import of foreign currency in cash of permitted banks. Under this Circular, commercial banks, branches of foreign banks permitted that have demand on export and import of foreign currency in cash shall prepare a dossier for approval on each time and send it by post or submit it directly to the Vietnam State Bank’s Hanoi city or the Vietnam State Bank’s Ho Chi Minh city branch. The dossier must be in Vietnamese and includes the following documents: application for approval on export and import of foreign currency in cash signed by the legal representative or authorized person or persons that are classified authorization of permitted banks; contract of export and import of foreign		currency in cash with foreign bank or credit institutions; Internal regulations of permitted bank on activities of export, import of foreign currency in cash and power attorney if application signed by person being legal representative of that bank. Within two working days from receipt of a valid application, the Vietnam State Bank’s Hanoi branch, the Vietnam State Bank’s Ho Chi Minh City branch shall consider and approve the export and import of foreign currency in cash (according to the forms under Appendix No. 02). In the case of refusal, the Vietnam State Bank’s Hanoi branch, the Vietnam State Bank’s Ho Chi Minh City branch must specify the reasons in writing. This Circular takes effect from February 10, 2014 and replaces the Decision No. 19/2001/QD-NHNN dated January 12, 2001.

Ü COMMERCE

TO APPLY TEMPORARY ANTIDUMPING DUTIES FOR SEVERAL ITEMS OF STEEL
This is a content regulated in Decision No. 9990/QD-BCT dated December 25, 2013 of the Ministry of Industry and Trade of Vietnam on application of temporary antidumping duties. Concretely, from January 20, 2014, temporary antidumping duty will be applied on certain cold-rolled stainless steel in sheets or in coils, with thickness of 3.5 mm or less, that is annealed or otherwise heat treated and pickled or otherwise de-scaled to clean excess residue on the surface of stainless steel. These products are further processed (to be cut or split) provided that the process does not change the specification and size of the products. Product under investigation described above are classified under HS code: 7219.32.00; 7219.33.00; 7219.34.00; 7219.35.00; 7219.90.00; 7220.20.10; 7220.20.90;		7220.90.10; 7220.90.90 and imported into Vietnam from countries/territories such as: The People’s Republic of China, the Republic of Indonesia, Malaysia and Chinese Taipei. The procedures for applying temporary antidumping duties are implemented in accordance with Laws on application of antidumping measures on products imported into Vietnam and guidelines of Ministry of Finance on collecting, paying temporary antidumping duties as provided in Laws on Taxation Administration. This Decision takes effect on January 24, 2014.

Ü STRUCTURE – ORGANIZATIONS

TO CHANGE ORGANIZATIONAL STRUCTURE OF MINISTRY OF INFORMATION AND TELECOMMUNICATIONS
On October 16, 2013, the Ministry of Information and Telecommunications promulgated Decree No. 132/2013/ND-CP, defining the functions, tasks, powers and organizational structure of the Ministry of Information and Communications. According to this Decree, from December 2, 2013, the structure of Ministry of Information and Telecommunications consists of 29 attached units in which three Departments and two authorities are newly established, namely: The Enterprise Management Department, the Emulation and Commendation Department, the Grassroots Information Department; the Central Post Department and the Southern Affairs Department and the VTC Digital Television Station. Simultaneously, the Department of Information Technology Application was changed into the Computerization Authority; Publishing Department was named as the Publication, Printing and Distribution Authority; Department of Inspectorate, Office and		Management Department of Broadcasting, Television and Electronic Information were respectively changed into The Ministry’s Inspectorate, the Ministry’s Office and the Authority of Broadcasting and Electronic Information… The Ministry of Information and Telecommunications takes prime responsibility to guide, direct and organize the implementation of Prime Minister-approved master plans on networks of the press nationwide and overseas representative offices of Vietnamese press agencies; to manage advertisements on the press, online, on publications and integrated advertisements on post and telecommunications products, services and information technology; to define technical conditions and conditions for use of permit-exempt radio equipment and technical conditions (frequency, transmission capacity) for radio equipment before manufacture or import for use in Vietnam … This Decree takes effect on December 2, 2013.

Ü INDUSTRY

CONDITIONS APPLIED TO SIGN SALES AND PURCHASE CONTRACT OF DOMESTIC ELECTRICITY
On October 21, 2013, the Government issued Decree No. 137/2013/ND-CP on detailing implementation of several articles of the Electricity Law and the Law on amending and supplementing several articles of the Electricity Law and regulating several conditions for sales and purchase contract of domestic electricity. Specifically, electricity seller has a distribution power grid eligible for electricity supply, meeting the demand of electricity purchaser; the electricity purchaser must have full civil act capacity as prescribed by law and must have a request for electricity purchase enclosed with copy of one of the following papers: Permanent residence book or temporary residence book, certificate of house ownership or decision on house allocation; valid contract of house purchase and sale; contract of house rent with duration of 01 year or more…		The electricity purchaser is customer who uses electricity with average consumption electricity yield of 1,000,000 kWh/month or more and perform guarantee measures for implementation of contract before contract of electricity purchase and sale comes into effect. Value to guarantee implementation of contract is agreed by parties, but does not exceed 15-day electricity charge, calculated on the basis of monthly average consumption electricity yield registered in contract of electricity purchase and sale and the applied price of normal-hour electric power. Voltage and frequency for electricity use must ensure the following standards: In normal conditions, the permitted difference of voltage is about ± 5% in comparison with nominal voltage of power grid; the permitted frequency difference of electrical system is about ± 0,2Hz in comparison with nominal frequency of 50Hz… This Decree takes effect on December 10, 2013.

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