Directive No. 03/CT-NH7 On Strengthening State Management of Gold Trading Activities

DIRECTIVE

ON STRENGTHENING STATE MANAGEMENT OF GOLD TRADING ACTIVITIES

Implementing Decree No. 63/CP dated September 24, 1993 of the Government on State Management of Gold Trading Activities and Circular No. 07/TT-NH7 dated October 29, 1993 of the Governor of the State Bank of Vietnam, the work of managing gold trading activities by branches of the State Bank of Vietnam in provinces and cities has achieved good results, contributing positively to gradually bringing the gold market into order and stabilizing gold market prices.

However, during the process of gold trading activities, some enterprises have violated state regulations on gold trading management and those of the State Bank of Vietnam such as: processing and manufacturing gold products without sufficient quality, weight marked on the product, trading beyond permitted scope, and not implementing accounting records as stipulated by the Accounting and Statistics Ordinance...

To promptly address the shortcomings of enterprises in gold trading activities and guide enterprises to strictly comply with state regulations in the field of gold trading, the Governor of the State Bank of Vietnam requests the Directors of provincial and city branches of the State Bank of Vietnam to coordinate with People's Committees and Provincial Quality Standards Measurement Agencies, Planning and Investment Departments, Market Management Bureaus, and Tax Bureaus within their jurisdictions to implement the following contents:

1. Provincial and city branches of the State Bank of Vietnam require all gold trading enterprises to strictly comply with Article 5 of Part II of Circular No. 07/TT-NH7, specifically, gold trading enterprises must implement the following contents:

+ Must register with the provincial or city branch of the State Bank regarding the quality of gold products manufactured by the unit.

+ Gold products processed and traded must be stamped with quality, weight, and registered code marks with the provincial or city branch of the State Bank.

+ All weighing tools used for gold processing and trading must be registered and certified by the Provincial or City Standard Measurement Quality Center.

2. In areas lacking technical conditions, provincial and city branches of the State Bank of Vietnam should coordinate with gold, silver, and precious stone companies under the Vietnam Gold, Silver, and Precious Stones Corporation system to utilize equipment, machinery, and technology from relevant sectors to organize inspections of the quality and weight of gold sold by gold trading enterprises.

3. Rectify gold trading enterprises or units engaged in gold processing and manufacturing that operate beyond permitted scope as follows:

- Units granted certificates confirming their qualifications for gold processing and manufacturing may only engage in processing and manufacturing and are not allowed to participate in buying and selling gold.

- Enterprises granted certificates confirming their qualifications for gold trading are not permitted to buy and sell foreign currency (except for units appointed by the Bank as agents for foreign currency exchange as stipulated in Clause 4.4 of Circular No. 12/TT-NH7 dated September 5, 1994 guiding the implementation of Decision No. 396/TTg dated August 4, 1994 of the Prime Minister on supplementing and amending certain points regarding foreign currency management in the new situation).

- Enterprises without certificates confirming their qualifications for gold trading issued by the State Bank are not permitted to engage in gold trading activities.

4. Inspect and supervise gold trading enterprises in their implementation of accounting systems and preservation of books and vouchers according to the Accounting and Statistics Ordinance, creating conditions for strict compliance with state tax policies.

5. Regularly inspect gold trading enterprises to ensure they meet the conditions specified in Point 2 of Part II of Circular No. 07/TT-NH7 (capital, expertise, technology, premises...).

6. For border areas, provincial branches of the State Bank of Vietnam need to pay attention to coordinating with relevant sectors to strengthen inspections of gold smuggling across borders.

7. Administrative penalties for enterprises violating administrative regulations in gold trading activities shall be applied according to the Administrative Violation Handling Ordinance dated July 19, 1995 and Decree No. 01/CP dated January 3, 1996 of the Government on administrative penalties in the commercial sector, and Decree No. 18/CP dated February 24, 1997 of the Government on administrative penalties in the banking sector.

The above are some contents requested by the Governor for provincial and city branches of the State Bank of Vietnam to coordinate with relevant sectors to implement inspections and strengthen management of gold trading activities within their jurisdictions, thereby creating conditions for enterprises to trade in accordance with the law, ensuring fair competition, protecting consumer interests, and promoting the stability and development of the Vietnamese gold market.

During the implementation process, if there are any difficulties, provincial and city branches of the State Bank of Vietnam should promptly report to the Head Office of the State Bank of Vietnam (Department of Foreign Exchange Management) for timely resolution. Quarterly reports are required, please refer to Circular No. 122/CV-QLNH dated March 23, 1995.