Circular No. 07/NH-TT guiding the implementation of Decree No. 63/CP dated September 24, 1993 of the Government on state management of gold trading activities.

CIRCULAR

OF THE STATE BANK OF VIETNAM

Guidelines for Implementing Decree No. 63/CP

dated September 24, 1993 of the Government on State Management of Gold Trading Activities

On September 24, 1993, the Government issued Decree No. 63/CP on State Management over Gold Trading Activities. Pursuant to Article 7 of the aforementioned Decree, the Governor of the State Bank of Vietnam hereby provides guidance as follows:

 

I. RIGHTS TO OWN GOLD AND THE SCOPE OF STATE MANAGEMENT OVER GOLD TRADING ACTIVITIES (ARTICLES 1 AND 2)

1. Organizations and individuals who legally own gold in any form, regardless of quantity, have the right to pledge, transfer, store, transport, or deposit gold with banks. Banks shall implement gold custody services upon request from organizations and individuals owning gold.

2. The State Bank of Vietnam shall manage state activities related to gold trading within the scope of purchasing, selling, processing, manufacturing, pawnbroking, exporting, and importing gold for the subjects specified in Section II below.

 

II. SUBJECTS, CONDITIONS, PROCEDURES, BUSINESS SCOPE, AND RESPONSIBILITIES (ARTICLES 3, 4, AND 6)

1. Subjects permitted to engage in gold trading activities are enterprises (State-owned Enterprises, Limited Liability Companies, Joint Stock Companies, Private Enterprises, Foreign-Invested Enterprises) established in accordance with the law (documents on enterprise establishment and dissolution, Company Law, Private Enterprise Law, Foreign Investment Law).

2. Conditions for obtaining a license to conduct gold trading from the State Bank of Vietnam

a. Legal capital requirement

a-1: For State-owned Enterprises, the legal capital must be equivalent to VND 250 million in cash or gold.

In cases where enterprises wish to open additional business premises for gold trading (within or outside their jurisdiction), they must submit a request to the Director of the Provincial Branch of the State Bank of Vietnam for individual consideration. Licensing for these cases will not be based on the legal capital requirements stipulated above.

a-2: For private enterprises engaged in gold trading:

In Hanoi and Ho Chi Minh City, the legal capital must be equivalent to VND 150 million in cash or gold.

In provinces located in the delta region, the legal capital must be equivalent to VND 50 million in cash or gold.

In mountainous regions, the legal capital must be equivalent to VND 25 million in cash or gold.

a-3: For Limited Liability Companies and Joint Stock Companies:

In Hanoi and Ho Chi Minh City, the legal capital must be equivalent to VND 200 million in cash or gold.

In provinces located in the delta region, the legal capital must be equivalent to VND 60 million in cash or gold.

In mountainous regions, the legal capital must be equivalent to VND 30 million in cash or gold.

b. Technical expertise requirements

Enterprises engaging in gold trading must have:

At least one technician at level 3 or higher specializing in gold. Such technicians must hold a Technician Certificate issued by training centers or schools. These training centers and schools must be established according to the law. Enterprises must submit the Technician Certificates to the Provincial Branches of the State Bank of Vietnam for verification.

Accurate weighing and measuring equipment that has been certified for use by the provincial or municipal Measurement Inspection Bureau where the enterprise is headquartered.

c. Business address:

The enterprise's headquarters must clearly indicate its address (house number, street, ward, town, district, county, city) and must be approved by the People's Committee of the town, district, or county for setting up the headquarters (store, shop).

When changing the headquarters, enterprises must notify and re-register the new location according to the provisions of this Circular with the Provincial Branch of the State Bank of Vietnam.

3. Licensing procedures

Enterprises wishing to engage in gold trading must submit an application for a gold trading license to the Director of the Provincial Branch of the State Bank of Vietnam where the headquarters is located. The application package includes:

Application for a gold trading license;

Enterprise establishment permit;

Articles of operation;

The Bank's confirmation regarding the amount of money (Vietnamese dong, foreign currency, gold) held in the enterprise's deposit account at the Bank;

Certificate of trade skill level, Confirmation document for trading premises.

The Director of the Branch of the State Bank of Vietnam in provinces and cities shall base on the provisions concerning the objects and conditions mentioned above to consider and issue business licenses for gold to enterprises.

4. Scope of business:

Enterprises with a gold business license are entitled to:

Buy and sell domestically gold bars, gold ingots, gold blocks, gold sheets, gold powder, and gold jewelry.

Craft, pawn, or accept gold processing for organizations and individuals both domestically and internationally.

Export gold jewelry abroad to earn foreign currency when having permission from the State Bank.

Joint venture with foreign organizations and individuals in the field of gold business according to the provisions of the Investment Law.

5. Responsibilities of gold trading enterprises

When buying and selling gold, enterprises must comply with the following regulations:

Use invoices in the format prescribed by the Ministry of Finance. Invoices must clearly state the quantity, weight, quality, and value of the gold purchased or sold to customers.

Implement accounting systems and maintain books and vouchers in accordance with the Accounting and Statistics Ordinance.

Products of gold trading enterprises sold out must meet the quality, weight, code, and model registered with the Branch of the State Bank of Vietnam in provinces and cities.

Strictly comply with the country's tax policies, subject to inspection and supervision by the Branch of the State Bank of Vietnam in provinces and cities regarding business conditions, scope, quality, weight, and listed prices. Subject to management and oversight by the People's Committee, Economic Arbitration, Measurement Bureau, Department of Finance, and Market Management Steering Board in provinces and cities regarding compliance with national regulations.

Pay the fee for issuing the Gold Business License as stipulated by the State Bank and the Ministry of Finance.

6. For individuals with technical skills from level 4 upwards but lacking the conditions to establish an enterprise, the Director of the Branch of the State Bank of Vietnam in provinces and cities may permit the opening of shops or stores for gold processing and crafting.

Individuals wishing to open shops or stores for gold processing and crafting must submit an application to the Director of the State Bank of Vietnam in provinces and cities. The application includes:

a. Application for gold processing and crafting. The applicant must commit to only processing and crafting gold. If operating beyond the permitted scope, the license will be revoked or administrative penalties will be imposed.

b. Certificate of skill level issued by Training Centers or Schools (established under the law).

c. Approval of the People's Committee of towns, districts, or counties for the establishment of premises (shops, stores).

 

III. EXPORT AND IMPORT OF GOLD (ARTICLE 5)

1. Gold importation is carried out by the State Bank. In necessary cases, the Governor of the State Bank may allow certain gold trading enterprises to import gold through the State Bank on a commission basis, provided that the enterprises have good reputation and sufficient capital for gold imports (as confirmed by the Bank's account).

2. All gold exports by enterprises in the form of jewelry must have an export permit issued by the Director of the Branch of the State Bank of Vietnam in provinces and cities. In the case of exporting gold-plated handicrafts, only a sales contract signed with foreign countries and a quality certification from the Branch of the State Bank of Vietnam in provinces and cities need to be presented to customs authorities, without requiring an export permit from the Director of the State Bank of Vietnam in provinces and cities.

The conditions and procedures for issuing export permits for gold jewelry for gold trading enterprises are as follows:

2.1. Possess a gold business license issued by the Governor of the State Bank Branch in the province/city.

2.2 Have a purchase and sale contract for gold jewelry with foreign countries, clearly stating quantity, weight, quality, value, payment method, delivery conditions, time, and market in the contract.

2.3. Possess a quality inspection certificate for gold issued by the State Bank Branch in the province/city.

2.4. Submit an application for exporting gold jewelry to the Governor of the State Bank in the province/city, clearly indicating the exit port and the provisions stipulated in Point 2.2.

3. Enterprises engaged in gold mining, processing, and manufacturing wishing to export raw gold or gold bars, gold ingots shall have their export permits reviewed and issued on a trip-by-trip basis by the Governor of the State Bank.

4. Enterprises must pay the fee for issuing import/export licenses for gold and inspection fees according to the regulations of the State Bank and the Ministry of Finance.

5. Vietnamese citizens and foreign citizens when exiting or entering the country may carry gold in accordance with the provisions in the "Regulations on Foreign Exchange Management" of the Socialist Republic of Vietnam and other regulations of the Governor of the State Bank regarding gold management.

 

IV. RIGHTS AND LIMITS ON HANDLING (ARTICLE 8)

1. Based on Articles 11, 13, 14, 15, and 16 of Chapter II in the "Administrative Sanctions Ordinance," gold trading enterprises violating the provisions of Decree No. 63/CP dated September 24, 1993, of the Government and this Circular will be subject to handling in the form of confiscation of goods and a fine three times the value of confiscated goods, or revocation of the Gold Business License, depending on the severity of the violation. In cases of serious violations, criminal responsibility may be pursued.

Cases where the Gold Business License is revoked will be announced on local radio and newspapers.

2. Authority to impose penalties and rewards:

Depending on the nature and degree of violation, the implementation of these provisions will be carried out by state agencies and persons authorized under Article 17, Chapter III, of the "Administrative Sanctions Ordinance."

 

V. IMPLEMENTATION PROVISIONS (ARTICLES 7, 8, 9)

Gold trading enterprises must report monthly on their business situation and results to the State Bank Branch in the province/city where they are headquartered.

The Governor of the State Bank Branch in the province/city has the responsibility to supervise and ensure that gold trading enterprises comply with the provisions of this Circular. Quarterly (no later than the 15th day of the next quarter), a report on the implementation status must be submitted to the Governor of the State Bank (Department of Foreign Exchange Management).

Within 60 days from the date of issuance of this Circular, enterprises that were previously granted a Gold Business License before the issuance of this Circular must complete the procedures to reapply for a new Gold Business License. Within 15 days, the Governor of the State Bank Branch is responsible for responding to the enterprise.

The State Bank Branches in the provinces/cities now refund the capital fund to organizations and individuals who were previously granted a Gold Business License.

Ministries, sectors, government-affiliated agencies, provincial/municipal People's Committees shall coordinate in implementing this Circular according to their respective functions and responsibilities.

This Circular takes effect from the date of signing previous guiding documents (Circular No. 01-NH/TT dated June 16, 1981, and Circular No. 75/NH/TT dated June 5, 1989). Any provisions contrary to this Circular are hereby abolished.

 

ANNEX 1

THE STATE BANK OF THE SOCIALIST REPUBLIC OF VIETNAM

VIETNAM Independence - Freedom - Happiness

State Bank Branch

Province/City... Legal Representative of

DIRECTOR OF THE STATE BANK BRANCH

PROVINCE/CITY...

Pursuant to the Bank of Vietnam Ordinance promulgated by Decree No. 38/HĐNN8 dated May 24, 1990;

Pursuant to Decree No. 63/CP dated September 24, 1993 of the Government on "State Management of Gold Trading Activities";

Pursuant to Circular No. 07/TT-NH7 dated October 29, 1993 of the Governor of the State Bank.

Considering the application for permission to engage in gold trading of...

 

DECISION:

Article 1: Permission granted to...

Establishment Permit No.:...dated... month... year...

Main office address:...

Is granted to...

Article 2:......................

Must conduct business strictly in accordance with the contents stated in this Permit and comply with the provisions of Decree No. 63/CP dated September 24, 1993 of the Government and Circular No. 07/TT-NH7 dated October 29, 1993 of the Governor of the State Bank.

Article 3: This Permit becomes effective from the date of signature

Director of the State Bank Branch

Province/City...

ANNEX 2

NAME OF UNIT SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

Date... month... year 199

APPLICATION FOR PERMIT

GOLD TRADING

Respectfully submitted to Comrade Director of the State Bank

Province/City...

ENTERPRISE NAME:...

Establishment Permit No... dated... month... year...

Main office address:

Telephone number:...; Fax:

Statutory capital:

By cash:

By gold:

Total number of employees:

Technical staff:

Workers:

Technical conditions (existing technical equipment):

Scope of business (purchase, processing, manufacturing, export):

We hereby solemnly declare that the information provided above is accurate and we will strictly comply with the current state management regulations for gold trading.

Confirmation by the supervising authority / Head of the unit

(Signature, stamp)