Circular No. 10/2003/TT-NHNN guiding the implementation of Government Decree No. 174/1999/NĐ-CP dated December 9, 1999 on gold business management and Government Decree No. 64/2003/NĐ-CP dated June 11, 2003 amending and supplementing Government Decree No. 172/1999/NĐ-CP.

GENERAL PROVISIONS

1. The subjects to which this Circular applies are organizations and individuals engaged in gold business activities.

2. The scope of regulation of this Circular includes gold business activities such as jewelry gold, artistic gold, gold bars, and raw gold; it does not regulate the mining and refining activities of gold mining enterprises.

3. The international standard gold trading activities shall be carried out in accordance with Decree No. 63/1998/NĐ-CP dated August 17, 1998 of the Government on foreign exchange management and Circular No. 01/1999/TT-NHNN7 dated April 16, 1999 of the Governor of the State Bank of Vietnam guiding the implementation of Decree No. 63/1998/NĐ-CP of the Government.

4. The following gold business activities must have a license from the State Bank of Vietnam:

a) Exporting and importing raw gold in block, bar, bead, and ingot forms;

b) Producing gold bars.

5. Foreign-invested enterprises that are granted permission by competent state authorities to operate in the production and processing of jewelry and artistic gold must comply with the provisions of the Law on Foreign Investment in Vietnam, investment permit regulations, and the provisions of Section 5, Chapter III, Chapter IV, and Chapter V of this Circular during their operations.

GOLD PURCHASE, SALE, PRODUCTION, AND PROCESSING ACTIVITIES

6. Conditions for operation

a) Registering business in accordance with the law;

b) Having equipment meeting the requirements for producing and processing jewelry and artistic gold; having weighing tools certified by the state management agency for standards, measurement, and quality control;

c) Having staff and craftsmen with appropriate professional qualifications in accordance with the business registration certificate.

7. Scope of activity

a) Purchasing and selling various types of jewelry gold, artistic gold, gold bars, and raw gold;

b) Producing and processing jewelry and artistic gold.

8. Conditions for operation

Based on the monetary policy objectives in each period, the State Bank of Vietnam grants a license for gold bar production to enterprises meeting the following conditions:

a) Being an enterprise registered to engage in the production of jewelry and artistic gold;

b) Having material and technical facilities and equipment meeting the requirements for gold bar production;

c) Having managers and craftsmen with appropriate professional qualifications for gold bar production.

9. Scope of activity

a) Producing gold bars;

b) Accepting gold bar processing orders from organizations and individuals within the volume specified in the gold bar production license issued by the State Bank of Vietnam to the enterprise.

10. Application for a gold bar production license.

The application for a gold bar production license sent to the State Bank of Vietnam (Department of Foreign Exchange Management) includes:

a) An application form for a gold bar production license according to Appendix 1;

b) A certified copy of the business registration certificate (only submitted initially or when changes occur);

c) Report on factory premises, machinery, and equipment;

d) Report on managerial and technical staff and craftsmen (only submitted initially or when changes occur).

Within ten working days from the date of receiving complete and valid documents, the State Bank of Vietnam will consider granting a gold bar production license to the enterprise. In case of refusal, the State Bank of Vietnam will provide a written explanation of the reasons.

EXPORTING AND IMPORTING GOLD

11. Enterprises engaged in gold trading may export and import jewelry and art gold (including gold-plated jewelry and art items) based on their business registration certificate and the Prime Minister's regulations on export and import management; they do not need to obtain a permit from the State Bank of Vietnam.

12. Based on the demand for jewelry and art gold production and monetary policy objectives during each period, the State Bank of Vietnam will consider issuing permits for enterprises registered for export and import to export and import gold raw materials in block, bar, bead, and sheet forms.

13. Documents submitted to the State Bank of Vietnam (Foreign Exchange Management Department) include:

a) Application for export and import of gold according to Form 2 attached;

b) Certified copy of the business registration certificate for gold trading (only submitted once or when there is a change);

c) Report on the enterprise's business activities in the most recent six months.

Within ten working days from the date of receiving complete and valid documents, the State Bank of Vietnam will consider issuing an export and import permit to the enterprise.

In case of refusal, the State Bank of Vietnam must provide a written explanation of the reasons.

14. Enterprises registered for gold export and import may export and import gold raw materials in leaf, wire, powder, solution, solder flake, gold salt, and semi-finished jewelry products based on their business registration certificate and the Prime Minister's regulations on export and import management; they do not need to obtain a permit from the State Bank of Vietnam.

15. Organizations and individuals registered for gold trading with contracts for processing abroad may be permitted by the State Bank of Vietnam to import gold raw materials in block, bar, bead, and sheet forms for re-exporting processed gold products to foreign countries. The Governor of the State Bank of Vietnam branch in the province/city where the organization or individual is headquartered will consider issuing an import permit for gold raw materials according to Form 6 attached.

16. Documents submitted to the State Bank of Vietnam branch in the province/city where the organization or individual is headquartered include:

a) Application for import of gold according to Form 2 attached;

b) Certified copy of the business registration certificate for gold trading;

c) Contract for processing abroad.

Within ten working days from the date of receiving complete and valid documents, the Governor of the State Bank of Vietnam branch in the province/city will consider issuing an import permit for gold raw materials to the organization or individual. In case of refusal, the State Bank of Vietnam branch in the province/city must provide a written explanation of the reasons.

17. Enterprises with a mining license wishing to export post-mining refined gold in powder, bar, and lump forms must submit documents to the State Bank of Vietnam (Foreign Exchange Management Department) for consideration of issuance of a permit. The documents include:

a) Application for export of gold according to Form 2 attached;

b) Certified copy of the Gold Mining License.

Within ten working days from the date of receiving complete and valid documents, the State Bank of Vietnam will consider issuing an export permit for gold raw materials to the enterprise. In case of refusal, the State Bank of Vietnam must provide a written explanation of the reasons.

18. Based on the business plan of foreign-invested enterprises, the State Bank of Vietnam shall allocate quotas for importing gold raw materials in block, bar, grain, and sheet forms for the enterprise within the planning year. Foreign-invested enterprises are not required to apply for export and import permits for each shipment of gold.

19. Foreign-invested enterprises are allowed to export and import the following types of gold without requiring a permit from the State Bank of Vietnam:

a) Exporting and importing gold raw materials in leaf, wire, powder, solution, gold salt, solder flake, and semi-finished gold jewelry forms;

b) Exporting gold jewelry and decorative items produced from imported gold raw materials;

c) Temporarily importing and re-exporting gold jewelry and decorative items for sample purposes;

d) Exporting impurities containing recovered gold from production processes to recover gold raw materials.

The allocation document issued by the State Bank of Vietnam serves as the basis for enterprises to handle import procedures with customs authorities.

20. At the latest by December 15 of the year preceding the planning year or when it is necessary to adjust the quota, the enterprise must submit the application file to the State Bank of Vietnam (Department of Foreign Exchange Management) to request an allocation or adjustment of the quota. The file includes:

a) An application form for allocating the quota for importing gold raw materials according to the model at Appendix 3;

b) A report on the implementation of gold product exports, imports, and consumption in the domestic market of the year preceding the planning year (estimated in December) according to the model at Appendix 7.

21. If the enterprise is permitted to sell products domestically, before opening a store, it must notify the State Bank of Vietnam branch in the province or city where the enterprise's store is located about the sales location and the code mark stamped on gold products. Domestic sales can only be carried out in accordance with the provisions of the Investment License.

22. The export and import of gold products for participation in exhibitions and fairs shall be implemented in accordance with the laws on promotion, commercial advertising, trade fairs, and other related legal documents.

23. The export and import of non-commercial gold jewelry, decorative items, gold raw materials, and gold bars shall be carried out in accordance with the regulations stipulated by the Governor of the State Bank of Vietnam during each period.

RESPONSIBILITIES OF ORGANIZATIONS AND INDIVIDUALS ENGAGED IN GOLD BUSINESS

INDIVIDUALS ENGAGING IN GOLD BUSINESS ACTIVITY

24. Gold business activities shall be conducted within the scope specified in the business registration certificate and the provisions of this Circular.

25. Ensure compliance with the conditions prescribed by law throughout the course of business operations.

26. Publicly display copies of the gold business registration certificate, quality, purchase price, and selling price of various gold products at the transaction location and bear legal responsibility for the products sold.

27. Implement accounting and statistical systems in accordance with the laws on accounting and statistics.

28. Develop plans to ensure safety, environmental protection, and fire prevention and explosion control in business operations.

29. In addition to the provisions set forth in Points 24, 25, 26, 27, and 28 of this Circular, organizations and individuals engaged in the production of gold jewelry and decorative items shall have the responsibility to:

a) Label goods in accordance with the provisions of the law;

b) Send a notification letter of the company's code mark to the State Bank of Vietnam branch in the province or city where the company's headquarters is located for monitoring;

c) Stamp the organization's or individual's code mark and gold quality on products produced by the organization or individual;

d) Ensure that the gold quality marked on the product is correct and bear legal responsibility for the products produced by themselves.

30. Enterprises producing gold bars must comply with the provisions of the license; register the company's code mark and product quality with the State Bank of Vietnam (through the Department of Foreign Exchange Management) and stamp the company's code mark, quantity, quality, and continuous serial number on gold bars produced and processed by the enterprise itself.

REPORTING, INSPECTION, AND VIOLATION HANDLING

32. For organizations and individuals

a) Quarterly and annually, organizations and individuals engaged in gold trading that produce gold jewelry, art pieces, gold bars, export raw gold, gold bars, must report their gold trading activities according to Form 4 to the State Bank of Vietnam (Department of Foreign Exchange Management) and the State Bank of Vietnam branch where the enterprise's main office is located.

b) Quarterly and annually, organizations and individuals engaged in buying, selling, and processing gold must report their gold trading activities according to Form 5 to the State Bank of Vietnam branch where the enterprise's main office is located.

c) Quarterly and annually, foreign-invested enterprises engaged in the production and processing of gold jewelry and art pieces must report their implementation of exports, imports, and product consumption in Vietnam according to Form 7 to the State Bank of Vietnam (Department of Foreign Exchange Management) and the State Bank of Vietnam branch where the enterprise's main office is located.

33. For State Bank of Vietnam branches at provincial and municipal levels

Annually, State Bank of Vietnam branches at provincial and municipal levels must compile reports for the Governor of the State Bank of Vietnam (through the Department of Foreign Exchange Management) on the management of gold trading activities according to Form 8.

34. Reporting deadlines

- For quarterly reports: no later than the 10th day of the first month of the next quarter;

- For annual reports: no later than January 10 of the following year.

35. Organizations and individuals engaged in gold trading are subject to inspection and audit by the State Bank of Vietnam and other competent state agencies regarding compliance with national regulations on managing gold trading activities, this Circular, and related laws.

36. Organizations and individuals who violate the provisions of Decree 174/1999/NĐ-CP dated December 9, 1999, of the Government on managing gold trading activities, Decree 64/2003/NĐ-CP dated June 11, 2003, of the Government amending and supplementing certain articles of Decree 174/1999/NĐ-CP, this Circular, and other relevant laws may be subject to administrative penalties or criminal prosecution depending on the nature and severity of the violation. If damage is caused, compensation must be provided in accordance with the law.

IMPLEMENTING PROVISIONS

37. This Circular takes effect 15 days from the date of publication in the Official Gazette and replaces Circular No. 07/2000/TT-NHNN7 dated April 28, 2000, issued by the Governor of the State Bank of Vietnam guiding the implementation of Decree No. 174/1999/NĐ-CP dated December 9, 1999, of the Government on managing gold trading activities.

38. The Director of the Office, the Head of the Inspectorate, the Director of the Department of Foreign Exchange Management, the Heads of relevant units, and the Governors of State Bank of Vietnam branches at provincial and municipal levels directly under the central government, organizations, and individuals involved in gold trading activities are responsible for implementing this Circular./.