Decree No. 11/1999/ND-CP On Prohibited Goods for Circulation and Prohibited Commercial Services; Restricted Business Goods and Conditionally Permitted Business Services

DECREE

Regarding goods prohibited from circulation and commercial services prohibited from implementation;

restricted goods trading and conditional commercial services trading

_____________________________

THE GOVERNMENT

Pursuant to the Law on the Organization of the Government dated September 30, 1992;

Pursuant to the Law on Commerce dated May 10, 1997;

At the proposal of the Minister of Trade,

DECREE:

Chapter 1

GENERAL PROVISIONS

Article 1. Scope of application

1. This Decree announces the List of Goods Prohibited from Circulation and Commercial Services Prohibited from Implementation; the List of Restricted Goods Trading and Commercial Services Trading; the List of Conditional Commercial Services Trading; it stipulates the state management over goods and commercial services under these lists.

2. Business traders engaging in commercial trade must comply with the provisions of this Decree regarding goods prohibited from circulation and commercial services prohibited from implementation; restricted goods trading and conditional commercial services trading.

Article 2. The List of Goods Prohibited from Circulation and Commercial Services Prohibited from Implementation; the List of Restricted Goods Trading and Commercial Services Trading and the List of Conditional Commercial Services Trading

1. Annexed to this Decree are the following lists:

List 1: Goods Prohibited from Circulation and Commercial Services Prohibited from Implementation.

List 2: Restricted Goods Trading and Commercial Services Trading.

List 3: Conditional Commercial Services Trading.

2. Based on production and business conditions and requirements for managing commercial activities at each period, the Ministry of Trade shall take the lead in coordination with relevant sectoral ministries to submit to the Government decisions to amend and supplement the lists prescribed in Clause 1 of this Article.

3. Within sixty days from the date this Decree takes effect, sectoral ministries shall establish detailed lists of goods prohibited from circulation and commercial services prohibited from implementation; restricted goods trading and commercial services trading based on management requirements and the lists specified in Clause 1 of this Article, in coordination with the Ministry of Trade to compile and submit to the Prime Minister for decision.

4. In cases where it is necessary to amend and supplement the detailed lists mentioned in Clause 3 of this Article, specialized sectoral ministries shall provide written opinions to the Ministry of Trade by November each year for compilation and submission to the Prime Minister.

Chapter 2

STATE MANAGEMENT OVER GOODS PROHIBITED FROM CIRCULATION, COMMERCIAL SERVICES PROHIBITED FROM IMPLEMENTATION; RESTRICTED GOODS TRADING AND CONDITIONAL COMMERCIAL SERVICES TRADING

Article 3. For goods prohibited from circulation and commercial services prohibited from implementation

1. Strictly prohibit Vietnamese business traders and foreign business traders operating in Vietnam from trading in goods and services listed in the List of Goods Prohibited from Circulation and Commercial Services Prohibited from Implementation.

2. In special cases, the supply of prohibited goods and services must be approved by the Prime Minister.

Article 4. For restricted goods trading and commercial services trading

1. Trading in goods and commercial services listed in the Special Restricted Trading category can only be carried out when a Business License issued by the sectoral ministry according to the provisions of this Decree is obtained.

2. The Minister of Trade shall specify the trading conditions and issuance of Business Licenses for goods and commercial services listed in the Restricted Trading category in Section II of List 2 as prescribed in this Decree.

Article 5. For conditional commercial services trading

1. For goods and services listed in Section I of List 3, traders may only conduct trading activities after registering their business and obtaining a Certificate of Eligibility for Business issued by the competent state management agency according to Articles 6 and 7 of this Decree.

2. For goods and services listed in Section II of List 3, traders may engage in trading activities after registering their business and meeting all conditions stipulated in Article 6 of this Decree, without necessarily having a Certificate of Eligibility for Business.

Article 6. Conditions for trading goods and services listed in the Catalogue of Goods and Services Subject to Trading Conditions

1. The conditions for trading goods and services listed in the Catalogue of Goods and Services Subject to Trading Conditions (Catalogue 3):

a) Must be a trader;

b) Possess material and technical facilities and equipment in accordance with standards prescribed by competent state management agencies;

c) Have managerial and technical staff with appropriate professional qualifications for the industry or trade being conducted;

d) Directly involved personnel must meet health requirements;

e) Ensure environmental protection and fire prevention requirements.

2. Specific conditions applicable to each type of goods and service subject to trading conditions are stipulated in Catalogue 2 and Catalogue 3 issued together with this Decree.

3. The Minister of the relevant sector shall provide detailed regulations on the trading conditions for goods and services specified in Catalogue 2 and Catalogue 3 issued together with this Decree.

4. During the course of business operations, traders must continuously ensure compliance with trading conditions.

Article 7. Authority, Procedures and Sequence for Issuing Business Licenses and Certificates of Eligibility for Trading

1. The sectoral ministry is the authority issuing Business Licenses for particularly restricted goods and services (Item I) listed in the Catalogue of Restricted Goods and Services (Catalogue 2).

2. The provincial sectoral department is the authority issuing Certificates of Eligibility for Trading for goods and services subject to trading conditions (Item I) listed in the Catalogue of Goods and Services Subject to Trading Conditions (Catalogue 3).

3. Documents required for applying for Business Licenses and Certificates of Eligibility for Trading include:

a) Application form for Business License and Certificate of Eligibility for Trading (in accordance with the model attached to this Decree);

b) Decision or business license for establishment issued by the competent authority (certified true copy);

c) Documentation proving compliance with trading conditions for goods and services.

4. The authority issuing Business Licenses and Certificates of Eligibility for Trading shall be responsible for:

a) Receiving applications;

b) Checking trading conditions;

c) Issuing Business Licenses and Certificates of Eligibility for Trading (in accordance with the model attached to this Decree) or providing a written response stating the reasons for refusing issuance within fifteen days from receipt of complete application documents.

5. Traders who obtain Business Licenses and Certificates of Eligibility for Trading must pay a registration fee. The Ministry of Finance shall specify the amount of the fee to be uniformly applied nationwide.

Chapter 3

HANDLING VIOLATIONS

Article 8. Handling Violations by Traders

Traders who violate provisions of this Decree may be subject to administrative penalties or criminal prosecution depending on the severity of the violation, as provided by law.

Article 9. Handling Violations by State Officials

State officials who abuse their positions or powers, fail to comply with the provisions of this Decree, may be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the severity of the violation, as provided by law.

Chapter 4

IMPLEMENTING PROVISIONS

Article 10. Effective Date

1. This Decree shall take effect fifteen days from the date of signature.

2. Goods and services prohibited from trading under Appendix 1 and goods and services subject to trading conditions except for points 7; 8; 18 and 22 under Appendix 2 issued together with Government Decree No. 02/CP dated January 5, 1995 on Prohibited Commercial Goods and Services and Commercial Goods and Services Subject to Trading Conditions in the Domestic Market cease to be effective.

3. Within sixty days from the date this Decree takes effect, the Minister and the head of the sectoral management agency within their respective functions shall be responsible for issuing guiding documents to implement this Decree after coordinating with the Minister of Commerce.