Legal Document Updates in English (12/2011)

CUSTOMS PROCEDURE AGENT MUST GET 4 CONDITIONS
 

On February 06, 2011, the Government issued the Decree No. 14/2011/ND-CP stipulating on conditions for registration and operation of customs procedure agent (hereafter called custom agent); accordingly, customs procedure agent (hereinafter summary called as customs agency) is a trader who is representative persons have export and import goods (hereinafter general called as goods owner) to implement the obligations of Customs declarers and implement other activities on customs procedures in accordance with negotiations in contract.

Trader who is representative persons must get 4 conditions as: having Business Registration under the provisions of law; having branches of business and service of handover and receipt of export and import goods or the service of making customs declarations on others’ behalf which are written in the Business Registration Certificates; having at least one (01) customs agent employee; satisfying conditions for connecting with computer networks of customs offices in order to execute electronic customs procedures.

Customs agent staff member must be a Vietnamese Citizen; have intermediate or higher diplomas in economics or law; have a customs professional Certificate; have working experiences for the Customs Agent where issued the card are at least 3 (three) months.

Customs agent must take responsibility before the law in cases failing to properly perform authorized jobs, or declaring untruthfully of information and related documents supplied by goods owners.

According to the Decree, the customs office freely assistant to the customs agent in technical assistance in connecting the networks between the customs office and the customs agent; assistance of the customs and tax procedures on the export or import goods; updating new provisions in related to the Customs Law and practicing and fostering in customs law.

RICE EXPORT CONTRACT’S CONTENTS
 

On December 31, 2010, the Ministry of Industry and Trade issued the Circular No. 44/2010/TT-BCT detailing a number of articles of the Government's Decree No. 109/2010/ND-CP dated November 4, 2010, on rice export business.

Accordingly, a rice export contract must comply with Vietnamese law and international practices and contain the following information: names and addresses of the buyer and seller; name, quantity, type, quality, packing specification and packaging of goods. Allowable quantitative error is five per cent at most (± 5%); goods delivery mode and time, loading and unloading ports; transshipment ports (if any); price and payment mode and time.

Besides, a rice export contract must contain a term on rice export to a third country (re-export term), the time limit for delivering the first lot of rice under a rice export contract is 90 (ninety) days after the contract is signed.

As per performance of centralized contracts, the Circular also regulates that after consulting concerned agencies and organizations, the Ministry of Industry and Trade shall designate key traders for centralized contract transactions in 03 criteria: the trader's rice export performance in the market expected for centralized contract transactions in the latest 2 (two) years; the trader's rice export performance in the latest 2 (two) years; transactions with foreign partners designated or to be designated as key rice importers.
A key trader shall, based on commodity rice sources, negotiate rice volumes and delivery schedules suitable to domestic harvests without adversely affecting domestic market prices of rice. The export price of rice under a centralized contract must not be lower than the export market price under a commercial contract at the same time to ensure efficient export.
This Circular takes effect on February 14, 2011. Rice export contracts registered and centralized contracts allocated before the effective date of this Circular may be performed without re-registration or re-allocation.

POWER DISPUTES ARE SOLVED IN ELECTRICITY
REGULATORY AUTHORITY OF VIETNAM
 

On December 13, 2010, the Ministry of Industry and Trade issued the Circular No. 40/2010/TT-BCT on order and procedures for settlement of disputes in the power market.

Accordingly, when a dispute occurs, disputing parties shall negotiate to settle the dispute themselves within sixty (60) days, past the time limit specified in Clause 1 of this Article, if the two parties fail to settle their dispute, either or both of them may refer the case to the Electricity Regulatory Authority of Vietnam for settlement according to the order and procedures provided in this Circular. Themselves dispute settlement is the compulsory conditions for the Electricity Regulatory Authority to handle requirements on disputes.

This Circular provides the order and procedures for the settlement of the following disputes in the power market: disputes related to electricity trading contracts and supportive service provision contracts between power units, except foreign-involved

contracts; other disputes in the generation, transmission, distribution, wholesale and retail of electricity, regulation of the power system and administration of power market transactions.

At the same time, a dispute settlement dossier shall not be processed when the statute of limitations for requesting dispute settlement has expired; the Electricity Regulatory Authority of Vietnam has no authority to settle the dispute; the dispute has been brought to a commercial arbitration or court for settlement or it has been settled under an effective judgment or decision of a commercial arbitration or court; the involved parties have not negotiated to settle the dispute themselves under Clause 1, Article 5 of this Circular; the requesting party fails to supplement its dossier within the time limit; the requesting or requested party fails to advance funds for dispute settlement.

ORGANIZATIONS AND INDIVIDUALS ARE ALLOWED STATISTICAL
SURVEY IN MONETARY, BANKING ACTIVITIES
 

The State Bank of Vietnam issued the Circular No. 06/2011/TT-NHNN dated March 22, 2011 stipulation of statistical survey in monetary, banking activities and foreign exchange transactions on promulgating State management functions and central bank functions under regulations.

Subjects of application are the units of the State Bank; credit Institutions; the branches of the foreign banks; the representative offices of the foreign credit institutions; the organizations not belong to the and individuals, households in related to the monetary and banking statistical survey.

Statistical survey program in monetary and banking field include the statistical surveys in monetary and banking field which are belong to the national statistical survey program decided by Prime Minister and assigning the State Bank to implement and the statistical surveys in monetary and banking field implemented

by the State Bank as the main responsible agency without the national statistical survey program.

The entities under the State Bank’s management propose the next year statistical surveys to send to the Monetary Statistics and Forecast Department (before the first of May every year for the statistical survey belong to the national statistical survey program and before the first of October every year for the statistical survey outside the national statistical survey program).

Every statistical survey that the State Bank is the main responsible person to implement must be decided by the Governor. The Governor publishes the statistical survey result under the regulations of statistics law and not later 45 working days since the Governor have approved the statistical survey result.

VND/USD EXCHANGE RATE SHALL NOT EXCEED +1% TO
INTER-BANK FOREIGN CURRENCY
 

The Governor of the State Bank of Vietnam signed the Decision No. 230/QD-NHNN on February 11, 2010 on the issuance of some provisions relating to foreign currency transaction of credit institutions authorized to engage in foreign exchange activity.

Accordingly, the Governor allows General Directors (Directors) of credit institutions authorized to engage in foreign exchange activity shall be permitted to determine the buying and selling rate for spot transaction between Vietnamese Dong and foreign currencies under the principles.

For USD: the maximum exchange rate shall not exceed +1% (one per cent) of the

average exchange rate in the inter-bank foreign currency market applicable to the previous latest transaction date, which is announced by the State Bank (the previous exchange rate is +3%) . General Directors (Directors) of credit institutions authorized to engage in other foreign exchanges; defining the difference between the buying rate and selling rate.

This Decision shall be effective from its signing date and replace the Decision No.2666/QD-NHNN dated 25 November 2009 on the issuance of several provisions relating to foreign currency transaction of credit institutions authorized to engage in foreign exchange activity.