Legal Document Updates in English (14/2012)

ENHANCING THE STATE MANAGEMENT FOR EXPLORATION OF MINERALS
 

In the recent times, the exploration, mining, processing, use and export of minerals had some complicated happenings. The number of licenses mining, processing minerals granted with large increase, while the investment in the deep processing projects poorly paid attention. Mining activity remains illegal in many localities… The main reason leading to this situation is partly due to weaknesses in State management of mineral resources and the coordination between the authorities at central and local level is not close. The handling of violations in the exploration, mining, processing of minerals are lack of strict and clear.

In order to reorganize and strengthen the State management for the exploration, mining, processing, use and export of mineral, the Prime Minister issued the Directive No. 02/CT-TTg dated January 09, 2012 on enhancing the state management for exploration, mining, processing, use and export of minerals.

Under the Directive, the Prime Minister stressed that minerals are non-renewable natural resources required to be managed, protected, exploited and used rationally, economically and effectively. Basic survey, mineral assessment must take one step forward to clarify the potential, value for the planning, plans to use in each period.

Ministry of Natural Resources and Environment must step up the basic geological surveys of mineral resources on land and sea and islands. To delimit and submit to the Prime Minister for approving the area of not auctioning ​​mining rights; areas with minerals scattered in small numbers; the areas of national mineral reserves; to intensify the inspection, examination of mineral activities and strict handle and suspend and revoke licenses for mineral activities contrary to law.

THE LEGAL CAPITAL REQUIRED FOR BUSINESSES OPERATING ONLY IN
 HEALTH INSURANCE IS VND 300 BILLION

reinsurance business or life and health reinsurance business; VND 1.1 trillion, for life, non-life and health reinsurance business

A Vietnamese organization establishing a limited liability insurance or insurance brokerage company must be a business operating in finance, banking or insurance; its total asset value is equivalent to at least VND 2 trillion, for establishing single-member limited liability companies; or VND 1.5 trillion, for establishing limited liability companies with 2 or more members. It makes profits for 3 consecutive fiscal years preceding the year of applying for a license;

This Decree takes effect on February 15, 2012.

 
TO PROVIDE OFFSHORE LOANS, A CREDIT INSTITUTION MUST CLASSIFY DEBTS
 

On December 30, 2011, the State Bank of Vietnam issued the Circular No. 45/2011/TT-NHNN stipulating foreign exchange management for foreign loan provision and debt collection of credit institutions. Accordingly, to provide offshore loans, a credit institution must classify debts.

Besides the conditions of classifying debts, setting up credit risk provisions for offshore loans under the State Bank’s current regulations on classification of debts, setting up and use of provisions for handling credit risks in credit institutions’ banking operations, credit institutions must satisfy some other conditions.

Specifically, credit institutions are licensed by the State Bank to trade in and provide foreign exchange 

services on the international market, including providing loans on the international market; Complying with the State Bank’s current regulations on credit growth rate and prudential ratios in credit institutions’ operations; Applying a process of approving offshore lending on the principle of ensuring independence and clearly defining individual responsibilities, responsibilities in the appraisal and decision on offshore lending; Ensuring that contents of lending agreements and agreements related to offshore loans do not run counter to current Vietnamese laws.

This Circular takes effect on February 13, 2012.

 
PROMULGATING 06 FORMS OF DECLARATION FOR EXPORTS, IMPORTS
 

On February 08, 2012, the Ministry of Finance issued the Circular No. 15/2012/TT-BTC promulgating forms of declaration for exports, imports.

Declaration forms of exports or imports comprise of exports declaration; imports declaration; appendix of exports declaration; appendix of imports declaration; declaration form amended and supplemented used for both exports declaration and imports declaration; slip to record inspection results used for both exports declaration and imports declaration.

The forms prescribed above are printed in black ink, white A4 paper; users may self-print in the

information systems of the customs declaration, from the website of the customs authorities.

The customs declaration and inscription on the declaration of imports, exports, appendix of imports declaration, appendix of exports declarations and slip to record the inspection results of customs authorities are provided in the Appendices issued together with this Circular.

This Circular takes effect from April 01, 2012 and replaces the Decision No.1257/2001/QD-TCHQ dated 04/12/2001 of the General Department of Customs.

GUIDELINES ON THE CUSTOMS CLEARANCE OF IMPORTS
AND EXPORTS SUBJECT TO QUARANTINE
 

The Ministry of Finance issued the Circular No. 01/2012/TT-BTC of January 3, 2012, guiding the customs clearance of imports and exports subject to quarantine.

Under the Circular, when carrying out export procedures for goods subject to quarantine, goods owners shall submit 1 copy and produce original quarantine certificates or documents proving eligibility for export quarantine (below collectively referred to as quarantine certificates) granted by quarantine agencies to district-level customs departments with which they register declarations for carrying out export procedures.

For exports in border-gate transfer which have been quarantined and granted inland quarantine

certificates, upon their arrival at border gates, their export quarantine certificates may be converted at the goods purchasers’ request or under countries of importation’s regulations and goods owners shall submit 1 copy and produce the original of export quarantine certificates for border-gate customs departments to carry out export procedures, give certification in the copy and send it to district-level customs departments outside border gates for monitoring…

This Circular takes effect on February 15, 2012, and replaces the guidance on customs clearance procedures for imports and exports subject to quarantine specified in Joint Circular No. 17/2003/TTLT-BTC-BNN-BTS of March 14, 2003.

GIVING THE PRIORITY FOR BUDGET ALLOCATION
IN THE ENVIRONMENTAL PROTECTION OF CRAFT VILLAGES
 

On December 26, 2012, the Ministry of Natural Resources and Environment issued the Circular No. 46/2011/TT-BTNMT providing for the environmental protection of craft villages. Accordingly, giving the priority in budget allocation and investment in the construction of environmental protection infrastructure is one of the preferential policies applicable to recognized establishments and craft villages.

Under the Circular, in addition to prioritizing budget allocation and investment in the construction of environmental protection infrastructure under the guidance in the Ministry of Finance's Circular No. 113/ 2006/TT-BTC of December 28, 2006, guiding a number of contents regarding state budget support for development of rural production and business lines under the Government's Decree No. 66/2006/ND-CP of July 7, 2006, and other relevant regulations, craft villages  also enjoy some other preferential policies.

Specifically, to be prioritized in environmental protection knowledge training and dissemination for their communities, environmental protection self-management organizations and commune-level environment management officers; To be prioritized in consideration and approval of preferential loans of environment-related credit institutions such as the Vietnam Environmental Protection Fund, sector environmental protection funds and local environmental protection funds; to be prioritized in consideration and selection as implementation locations for receipt of waste treatment models and other activities of international projects and state-funded tasks and projects.

 This Circular takes effect on March 1, 2012