Legal Document Updates in English (35/2011)

THE LAW ON INDEPENDENT AUDIT IS FORMALLY APPROVED
 

The Law No.  67/2011/QH12 on Independent Audit was passed on March 29, 2011, by the XIIth National Assembly of the Socialist Republic of Vietnam at its 9th session with closer regulations on audit in Vietnam.

The Law on Independent Audit is the the highest legal document on independent audit and firstly build basing on the inheritance from Government’s current regulations on order to establish legal frame on developing independent audit service in Vietnam. The Law regulates much more strictly all conditions on establishment and operation of audit enterprises, conditions for certified public accountants, conditions for audit practice registration certificate.

In particular, the Law regulates strictly conditions for establishing audit firms; accordingly, it is compulsory for audit firms to have at least 05 certified public accountants instead of 03 certified public accountants as previous regulations.

Relating to standards of auditors and audit practice registration, the Law also regulates clearly “auditors” and “certified public accountants”. Within that an auditor must fully meet the standards having full civil act capacity; having good ethics and sense of responsibility, and being upright, honest and objective; possessing a university or higher degree in finance, banking, accounting, audit; possessing an auditor certificate.

Persons who fully satisfy the conditions as having actually practiced audit for full thirty six months or more; having participated in all knowledge-updating programs shall register for audit practice and be granted audit practice registration certificates and sign the audit reports.

Businesses and organizations of which annual financial statements are required by law to be audited by audit firms or Vietnam-based branches of foreign audit firms include: foreign-invested businesses; credit institutions established and operating under the Law on Credit Institutions; financial institutions, insurance businesses, insurance brokerage businesses; public companies, issuing organizations and securities-trading organizations.

At the same time, audit is compulsory for reports on settlement of completed projects audited and other financial information for State enterprises; businesses and organizations implementing projects of national importance or state-funded group-A projects; businesses and organizations with state capital contributions and other state-funded projects; audit firms and Vietnam-based branches of foreign audit firms.

12 PROHIBITED ACTS IN THE LAW ON HUMAN TRAFFICKING PREVENTION AND COMBAT
 

On March 29, 2011, the National Assembly passed the Law No. 66/2011/QH12 on Human Trafficking Prevention and Combat.

The Law includes 8 Chapters and 58 Articles provides the prevention, detection and handling of human trafficking acts and other acts in violation of the law on human trafficking prevention and combat; receipt, verification and protection of and support for victims; international cooperation in human trafficking prevention and combat; and responsibilities of the Government, ministries, sectors and localities for human trafficking prevention and combat.

The most prominent points in the Law are 12 prohibited acts which are considered as the legal bases for nature and severity of violation and being administratively handled or examined in accordance with legal regulations. Within that, prohibit acts such as: Trafficking in persons under Articles 119 and 120 of the Penal Code; transferring or receiving persons for sexual exploitation, forced labor or removal of human organs or other inhuman purposes; recruiting, transporting or harboring persons for sexual exploitation, forced labor, removal of human organs or other inhuman purposes; forcing others to commit an act; acting as a broker for others to

commit an act; taking revenge or threatening to take revenge on victims, witnesses, reporting persons, denunciators or their relatives or persons stopping the acts; taking advantage of human trafficking prevention and combat activities for self-seeking purposes or for committing unlawful acts; obstructing the reporting, denunciation and handling of the acts; stigmatizing or discriminating against victims; disclosing information on victims without their consent or their lawful representatives; impersonating victims and other violations.

Besides, the Law also regulates clearly bases for identifying victims. A person may be identified as victim when: he/she is trafficked or transferred or received under Clause 1 or 2, Article 3 of this Law; or he/she is recruited, transported or harbored under Clause 3, Article 3 of this Law.

When detecting and stopping violations through professional crime prevention and combat, agencies, units and individuals must have responsibilities to take necessary measures to protect victims, reporting persons and witnesses and their relatives when these persons have or are threatened to have their life, health, honor, dignity or property infringed upon.

MOBILE PHONES ARE NOT GRANTED ON AUTOMATIC IMPORT LICENSE
 

On September 05, 2011, the Ministry of Industry and Trade issued the Circular No. 32/2011/TT-BCT amending and supplementing the Circular No. 24/2010/TT-BCT dated May 28, 2010 on the application of regulations on automatic import licensing to a number of goods items.

Also according to this Circular, not apply regulations on automatic import licensing to Line telephone sets with cordless handsets in the Code 8517.11.00.00 and Telephones for cellular networks or telephones used for other wireless networks in the Code 8517.12.00.00 in Chapter 85 of the List regulated at the Appendix to the Industry and Trade Minister’s Circular No. 24/2010/TT-BCT of May 28, 2010, on the application of regulations on automatic import licensing to a number of goods items.

Import licensing to mobile phones shall be implemented in accordance with the Circular No. 14/2011/TT-BTTTT dated June 7, 2011 of the Ministry of Information and Communication detailing the Government’s Decree No. 12/2006/ND-CP of January 23, 2006, regarding goods subject to specialized management by the Ministry of Information and Communications.

FROM AUGUST 18, IMPORT DUTY IS EXEMPTED FOR SUPPORTING INDUSTRIES
 

On July 04, 2011, the Ministry of Finance issued the Circular No. 96/2011/TT-BTC guiding the financial policies specified in the Prime Minister’s Decision No. 12/2011/QD-TTg of February 24, 2011, on policies on development of a number of supporting industries.

According to regulations in this Decree, the development of supporting industries of mechanical engineering, electronics-informatics, automobile manufacture and assembly, textile and garment, leather-footwear and hi-tech industry development will receive import duty and export duty incentives; land use levy, land and water surface rent and non-agricultural land use tax.

In particular, projects to manufacture supporting industry products for hi-tech industry development on the list of domains eligible for import duty incentives will be exempted from import tax for machinery, equipment and special-use means of transport; parts, details, knocked-down parts, spare parts, fittings, molds, models and accessories; domestically unavailable materials and supplies.

Goods manufactured, processed, re-processed or assembled in non-tariff zones without the use of imported raw materials and parts, when being imported into the domestic market, are exempt from import duty; for those manufactured, processed, re-processed or assembled with the use of imported raw materials or parts, when imported into the domestic market, import duty shall be paid only for volumes of imported raw materials and parts constituting these goods.

Projects to manufacture supporting industry products shall be considered for borrowing state development investment credit to meet part of their funding needs under the Government’s regulations on state investment and export credit and guiding documents.

Projects to manufacture supporting industry products for hi-tech industry development belonging to enterprises newly formed under investment projects in hi-tech sectors, scientific research and technological development or software production or enterprises newly formed under investment projects in geographical areas facing socio-economic difficulties or extreme socio-economic difficulties are eligible for  enterprise income tax rates and tax exemption or reduction.

50 TYPES OF MEDICAL DEVICES ARE ALLOWED TO BE IMPORTED
 

On June 21, 2011, the Ministry of Health issued the Circular No. 24/2011/TT-BYT guiding the import of medical devices.

According to regulations in this Circular, medical devices include devices, instruments, supplies and chemicals, including necessary software, for separate or combined use to serve humans for the following purposes: preventing, examining, diagnosing, treating or lessening diseases or treating injuries; examining, replacing, modifying or supporting surgeries during medical examination and treatment; supporting or maintaining life; controlling conception; medical sterilization; specialized transportation to serve health activities.
Medical device importers must satisfy all legal, personnel and physical foundation conditions. In particular, importers must have a business registration certificate or investment certificate for the trading and import of medical devices; officers in charge of technical matters; having technical staff capable of guiding the installation, warranty and maintenance of medical devices; having facilities and storehouses for proper preservation of medical devices in appropriate conditions avoiding the impacts of light, temperature and humidity and other conditions; having fire and explosion prevention and fighting equipment and ensure environmental sanitation as provided by law.

The Circular also issues List of brand new medical devices allowed to be imported, the Ministry of Health shall consider and grant import licenses for medical equipment in Appendix 1 within 15 working days after receiving complete and valid dossiers. In case of refusal to grant licenses, the Ministry of Health (the Medical Devices and Works Department) shall issue written replies clearly stating the reasons to importers.

For medical devices outside the list in Appendix 1 to this Circular, import licenses are required if they are to be used for implementing new methods of diagnosis and treatment and imported for the first time into Vietnam.