Circular No. 16/2012/TT-NHNN guiding certain provisions of Decree No. 24/2012/NĐ-CP dated April 3, 2012 of the Government on the management of gold trading activities

CIRCULAR

GUIDELINES FOR CERTAIN PROVISIONS OF THE GOVERNMENT DECREE NO. 24/2012/NĐ-CP DATED APRIL 3, 2012

ON MANAGEMENT OF GOLD BUSINESS ACTIVITIES

______________________

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

No. 06/2013/UBTVQH13 dated March 18, 2013;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Pursuant to Decree No. 24/2012/NĐ-CP dated April 3, 2012 of the Government on gold trading activities management;

CONSIDERING THE PROPOSAL OF THE HEAD OF THE FOREIGN EXCHANGE MANAGEMENT DEPARTMENT;

THE GOVERNOR OF THE STATE BANK OF VIETNAM ISSUES THIS CIRCULAR TO PROVIDE GUIDANCE ON CERTAIN PROVISIONS OF THE GOVERNMENT DECREE NO. 24/2012/NĐ-CP DATED APRIL 3, 2012 ON MANAGEMENT OF GOLD BUSINESS ACTIVITIES,

Section 1

GENERAL PROVISIONS

Article 1. Scope of Regulation

THIS CIRCULAR GUIDES THE ACTIVITIES OF PRODUCING JEWELRY AND ART GOLD; BUYING AND SELLING GOLD BARS AND EXPORTING AND IMPORTING RAW GOLD MATERIALS BY ENTERPRISES AND CREDIT INSTITUTIONS AS PROVIDED FOR IN THE GOVERNMENT DECREE NO. 24/2012/NĐ-CP DATED APRIL 3, 2012 ON MANAGEMENT OF GOLD BUSINESS ACTIVITIES (HEREINAFTER REFERRED TO AS DECREE NO. 24/2012/NĐ-CP).

Article 2. Applicability

This Circular applies to enterprises and credit institutions conducting gold trading activities within the territory of Vietnam and related organizations and individuals.

Section 2

CONDITIONS FOR GRANTING PERMITS FOR EXPORTING AND IMPORTING RAW GOLD MATERIALS

Article 3. Conditions for issuing a Gold Raw Material Import Permit for enterprises engaged in jewelry and art gold production

1. A BUSINESS REGISTRATION CERTIFICATE THAT INCLUDES REGISTRATION FOR JEWELRY AND ART GOLD PRODUCTION ACTIVITIES.

2. A CERTIFICATE OF SUITABILITY FOR JEWELRY AND ART GOLD PRODUCTION ACTIVITIES ISSUED BY THE STATE BANK OF VIETNAM (HEREINAFTER REFERRED TO AS THE STATE BANK).

3. A NEED FOR IMPORTING RAW GOLD MATERIALS THAT IS CONSISTENT WITH THE PRODUCTION PLAN FOR JEWELRY AND ART GOLD.

4. NO VIOLATION OF LAWS ON MANAGEMENT OF GOLD BUSINESS ACTIVITIES IN THE 12-MONTH PERIOD IMMEDIATELY PRECEDING THE APPLICATION DATE FOR THE IMPORT PERMIT FOR RAW GOLD MATERIALS.

ARTICLE 4. CONDITIONS FOR GRANTING TEMPORARY IMPORT PERMITS FOR RAW GOLD MATERIALS FOR REEXPORT OF PRODUCTS FOR ENTERPRISES WITH OVERSEAS JEWELRY AND ART GOLD PROCESSING CONTRACTS

1. A BUSINESS REGISTRATION CERTIFICATE THAT INCLUDES CONDITIONS FOR JEWELRY AND ART GOLD PRODUCTION ACTIVITIES.

2. A CERTIFICATE OF SUITABILITY FOR JEWELRY AND ART GOLD PRODUCTION ACTIVITIES ISSUED BY THE STATE BANK.

3. A NEED FOR IMPORTING RAW GOLD MATERIALS THAT IS CONSISTENT WITH THE PRODUCTION PLAN FOR JEWELRY AND ART GOLD AND THE OVERSEAS JEWELRY AND ART GOLD PROCESSING CONTRACT.

4. NO VIOLATION OF LAWS ON MANAGEMENT OF GOLD BUSINESS ACTIVITIES IN THE 12-MONTH PERIOD IMMEDIATELY PRECEDING THE APPLICATION DATE FOR THE TEMPORARY IMPORT PERMIT FOR RAW GOLD MATERIALS FOR REEXPORT OF PRODUCTS.

ARTICLE 5. CONDITIONS FOR GRANTING PERMITS FOR IMPORTING RAW GOLD MATERIALS FOR FOREIGN-INVESTED ENTERPRISES TO PRODUCE JEWELRY AND ART GOLD

1. AN ENTERPRISE ESTABLISHED IN ACCORDANCE WITH THE LAW, WITH REGISTRATION FOR JEWELRY AND ART GOLD PRODUCTION ACTIVITIES.

2. A NEED FOR IMPORTING RAW GOLD MATERIALS THAT IS CONSISTENT WITH THE PRODUCTION CAPACITY, PRODUCTION AND BUSINESS PLANS, AND THE JEWELRY AND ART GOLD PROCESSING CONTRACTS.

3. NO VIOLATION OF LAWS ON MANAGEMENT OF GOLD BUSINESS ACTIVITIES IN THE 12-MONTH PERIOD IMMEDIATELY PRECEDING THE APPLICATION DATE FOR THE IMPORT PERMIT FOR RAW GOLD MATERIALS.

ARTICLE 6. CONDITIONS FOR GRANTING PERMITS FOR IMPORTING RAW GOLD MATERIALS FOR DOMESTIC ENTERPRISES INVESTING ABROAD IN THE FIELD OF GOLD MINING

1. AN ENTERPRISE ESTABLISHED IN ACCORDANCE WITH THE LAW, WITH REGISTRATION FOR GOLD MINING ACTIVITIES IN THE INVESTMENT CERTIFICATE.

2. DOCUMENTS PROVING THAT THE RAW GOLD MATERIALS TO BE IMPORTED ARE OBTAINED FROM GOLD MINING OPERATIONS ABROAD OR DISTRIBUTED ACCORDING TO AGREEMENTS ON GOLD MINING ABROAD.

3. THE IMPORTED RAW GOLD MATERIALS SHALL BE USED SOLELY FOR THE PRODUCTION OF JEWELRY AND ART GOLD.

4. NO VIOLATION OF LAWS ON MANAGEMENT OF GOLD BUSINESS ACTIVITIES IN THE 12-MONTH PERIOD IMMEDIATELY PRECEDING THE APPLICATION DATE FOR THE IMPORT PERMIT FOR RAW GOLD MATERIALS.

Article 7. Conditions for Issuing Export Permit for Gold Raw Materials for Enterprises with Gold Mining Licenses in Vietnam

1. Is a foreign-invested enterprise established in accordance with the provisions of the law.

2. Holds a Gold Mining License.

3. Has documents proving that the gold raw materials intended for export were mined domestically by the enterprise.

4. NO VIOLATION OF LAWS ON MANAGEMENT OF GOLD BUSINESS ACTIVITIES IN THE 12-MONTH PERIOD IMMEDIATELY PRECEDING THE APPLICATION DATE FOR THE IMPORT PERMIT FOR RAW GOLD MATERIALS.

Section 3

APPLICATION FOR ISSUANCE OF CERTIFICATE OF ELIGIBILITY TO PRODUCE JEWELRY AND ART GOLD, LICENSES FOR PURCHASE AND SALE OF GOLD BARS, AND EXPORT AND IMPORT PERMITS FOR GOLD RAW MATERIALS

2. Certificate of Enterprise Registration with business activities in gold trading.

Article 8. Documents for applying for a Certificate of Eligibility for Gold Jewelry and Artisanal Gold Production

1. Application form for a Certificate of Eligibility for Jewelry and Art Gold Production (according to Form 1 attached to this Circular).

3. Written documentation or evidence proving lawful ownership or usage rights to the business location; inventory of facilities and equipment serving jewelry and art gold production activities.

b) Certificate of Enterprise Registration with business activities in gold trading;

Article 9. Documents for applying for a License for Buying and Selling Gold Bars

1. Documents for applying for a Permit for Buying and Selling Gold Bars for enterprises include:

a) Application form for a Permit for Buying and Selling Gold Bars (according to Form 2 attached to this Circular);

c) Certificate of Branch Registration;

d) Confirmation from the tax authority regarding the amount of tax paid on gold trading activities in the two consecutive years prior to the application.

b) License for establishment and operation of credit organizations with business activities in gold trading.

2. Documents for applying for a Permit for Buying and Selling Gold Bars for credit institutions include:

a) Application form for a Permit for Buying and Selling Gold Bars (according to Form 3 attached to this Circular);

Article 10. Documents for Application for Import Permit for Gold Raw Materials for Enterprises Engaged in Jewelry and Art Gold Production and Trading

1. Application form for Import Permit for Gold Raw Materials (as specified in Appendix 4 of this Circular).

3. Certificate of Eligibility to Produce Jewelry and Art Gold.

2. Business registration certificate.

4. Report on the importation of gold raw materials and production of jewelry and art gold by the enterprise over the past twelve months preceding the reporting period, accompanied by Customs Declaration forms for gold imports and deferred deduction certificates confirmed by Customs (as specified in Appendix 6 of this Circular).

5. The enterprise's production plan for jewelry and art gold.

Article 11. Documents for Application for Temporary Import Permit for Gold Raw Materials for Re-exporting Products for Enterprises with Overseas Processing Contracts for Jewelry and Art Gold

4. Processing contract for jewelry and art gold with overseas entities.

"1. Application form for a Temporary Import Permit for raw gold to re-export finished products (in accordance with the form at Appendix 4 of this Circular)."

2. Business registration certificate.

4. Report on the importation of gold raw materials and production of jewelry and art gold by the enterprise over the past twelve months preceding the reporting period, accompanied by Customs Declaration forms for gold imports and deferred deduction certificates confirmed by Customs (as specified in Appendix 6 of this Circular).

5. Report on the importation of gold raw materials, production, and export of jewelry and art gold by the enterprise over the past twelve months preceding the reporting period, accompanied by Customs Declaration forms for temporary import-reexport of gold and deferred deduction certificates confirmed by Customs (as specified in Appendix 7 of this Circular).

6. The enterprise's production plan for jewelry and art gold.

Article 12. Documents for Application for Import Permit for Gold Raw Materials for Foreign-Invested Enterprises for Jewelry and Art Gold Production

By no later than December 15th of the year preceding the planning year or when additional quantities of imported gold raw materials need to be supplemented according to the plan, foreign-invested enterprises shall submit applications for Import Permit for Gold Raw Materials. The application includes:

1. Application form for Import Permit for Gold Raw Materials (as specified in Appendix 5 of this Circular);

2. Investment Certificate;

3. Report on the implementation of exports, imports, and consumption of gold products in the domestic market over the past twelve months preceding the reporting period, accompanied by Customs Declaration forms for exports and imports and deferred deduction certificates confirmed by Customs (as specified in Appendix 8 of this Circular);

4. Business plan of the enterprise; documents and evidence proving the production capacity of the enterprise;

5. Processing contract for jewelry and art gold with overseas entities.

5. Contract for processing jewelry, precious metals, and art products with foreign countries.

Article 13. Documents for requesting a Permit to import gold raw material for enterprises investing abroad in the field of gold mining.

3. Certificate of Eligibility to Produce Jewelry and Art Gold.

2. Investment Certificate.

3. Documentation proving that the expected imported raw gold is mined by the enterprise abroad or is allocated from the product according to an agreement on gold mining abroad.

4. Documents and evidence proving the appropriate use of imported gold raw material in accordance with Clause 3, Article 6 of this Circular.

5. Report on the situation of gold raw material mining and importing by the enterprise in the last 12 (twelve) months immediately preceding the reporting date, accompanied by the Customs Declaration for gold imports and the deferred deduction form confirmed by Customs (in the form attached at Appendix 9 of this Circular).

Article 14. Documents for requesting a Permit to export gold raw material for enterprises holding a Permit to mine gold.

1. Application for a Permit to export gold raw material (in the form attached at Appendix 4 of this Circular).

2. Investment Certificate.

3. Evidence proving that the expected imported gold raw material is mined by the enterprise.

4. Report on the situation of gold raw material mining and exporting by the enterprise in the last 12 (twelve) months immediately preceding the reporting date, accompanied by the Customs Declaration for gold exports and the deferred deduction form confirmed by Customs (in the form attached at Appendix 9 of this Circular).

Section 4

PROCEDURE FOR ISSUING PERMITS TO BUY AND SELL GOLD BARS; PERMITS TO EXPORT AND IMPORT GOLD RAW MATERIAL AND CERTIFICATES OF ELIGIBILITY FOR PRODUCTION OF JEWELRY AND ART GOLD

RAW MATERIALS AND CERTIFICATES OF ELIGIBILITY FOR PRODUCTION OF JEWELRY AND ART GOLD

Article 15. Procedure for issuing Permits to buy and sell gold bars; Permit to export gold raw material; Permit to import gold raw material for foreign-invested enterprises and enterprises investing abroad in the field of gold mining.

1. Enterprises and credit institutions wishing to engage in buying and selling gold bars; foreign-invested enterprises wishing to import gold raw material for producing jewelry and art gold; enterprises investing abroad in the field of gold mining wishing to import gold raw material mined abroad; and enterprises holding a Permit to mine gold wishing to export gold raw material mined by the enterprise shall directly submit or send via postal service one set of documents stipulated in Articles 9, 12, 13, and 14 of this Circular to the State Bank of Vietnam (Department of Foreign Exchange Management) to obtain a Permit to buy and sell gold bars or a Permit to export or import gold raw material.

2. Based on the provisions regarding conditions, documents, and procedures under Decree No. 24/2012/ND-CP and this Circular, the Department of Foreign Exchange Management will present to the Governor for consideration and decision on issuing a Permit to buy and sell gold bars.

3. Based on monetary policy objectives, gold supply and demand in each period, and the provisions regarding conditions, documents, and procedures under Decree No. 24/2012/ND-CP and this Circular, the Department of Foreign Exchange Management will present to the Governor for consideration and decision on issuing a Permit to export or import gold raw material.

4. Within 30 (thirty) working days from the date of receiving complete and valid documents from the enterprise or credit institution, the State Bank of Vietnam will issue or refuse to issue (with clear reasons) a Permit to buy and sell gold bars; a Permit to export gold raw material or a Permit to import gold raw material (in the form attached at Appendices 13, 14, or 15 of this Circular). The Permit to buy and sell gold bars issued by the State Bank of Vietnam to credit institutions is an integral part of the Permit for establishment and operation of the credit institution.

Article 16. Procedures for Issuing Certificates of Eligibility for Gold Jewelry and Artisanal Gold Production and Permits for Temporary Import of Raw Gold for Re-export of Products

1. Enterprises wishing to produce gold jewelry and artisanal gold and enterprises wishing to import raw gold for processing gold jewelry and artisanal gold for foreign countries shall submit directly or send via postal service one (1) set of documents specified in Article 8 and Article 11 of this Circular to the State Bank of Vietnam branch in the province or centrally-administered city where the enterprise's main office is located (hereinafter referred to as the State Bank branch) to obtain the Certificate of Eligibility for Gold Jewelry and Artisanal Gold Production and the Permit for Temporary Import of Raw Gold for Re-export of Products.

2. Based on the provisions on conditions, documents, and procedures stipulated in Decree 24/2012/ND-CP and this Circular, the State Bank branch shall examine and decide on issuing the Certificate of Eligibility for Gold Jewelry and Artisanal Gold Production and the Permit for Temporary Import of Raw Gold for Re-export of Products.

3. Within thirty (30) working days from the date of receiving complete and valid documents from the enterprise, the Director of the State Bank branch shall issue or refuse to issue (specifying the reasons) the Certificate of Eligibility for Gold Jewelry and Artisanal Gold Production and the Permit for Temporary Import of Raw Gold for Re-export of Products (in accordance with Form 16 and Form 17 of this Circular).

Article 17. Procedures for Issuing Import Permits for Raw Gold for Jewelry and Artisanal Gold Production

1. Enterprises wishing to import raw gold for producing gold jewelry and artisanal gold shall submit directly or send via postal service two (2) sets of documents specified in Article 10 of this Circular to the State Bank branch to obtain the Permit for Importing Raw Gold.

2. Within seven (7) working days from the date of receiving complete and valid documents from the enterprise, the State Bank branch shall forward the application for examination of the issuance of the Permit for Importing Raw Gold to the State Bank of Vietnam (Department of Foreign Exchange Management). The documents include:

a) A document from the State Bank branch expressing its opinion on whether the enterprise meets the conditions stipulated in Article 3 of this Circular or not.

b) The enterprise’s application for a permit.

3. Within thirty (30) working days from the date of receiving the documents from the State Bank branch, the State Bank of Vietnam shall send a notification of approval or refusal to issue the permit to the State Bank branch.

4. Within three (3) working days from the date of receiving the notification from the State Bank, the Director of the State Bank branch shall issue or refuse to issue (specifying the reasons) the Permit for Importing Raw Gold for Producing Gold Jewelry and Artisanal Gold (in accordance with Form 15 of this Circular).

Article 18. Principles for Preparing Documents

1. All documents and materials in the documents specified in Section 3 of this Circular must be original or certified copies in accordance with the provisions of the law.

2. Enterprises and credit institutions shall bear responsibility for the accuracy and honesty of all documents and materials in the documents.

Section 5

REPORTING REGIME AND INSPECTION AND SUPERVISION RESPONSIBILITIES

Article 19. Reporting Obligations of the State Bank Branches in Provinces and Cities

1. Monthly and annually, the State Bank branch shall compile and report to the Governor of the State Bank of Vietnam (through the Department of Foreign Exchange Management) the situation of managing gold trading activities in the area (in accordance with Form 12 of this Circular). The deadline for submitting monthly reports is the fifth (5th) day of the following month, and for annual reports, it is January 15 (15th) of the following year.

2. When issuing the Certificate of Eligibility for Gold Jewelry and Artisanal Gold Production, the Permit for Importing Raw Gold for Producing Gold Jewelry and Artisanal Gold, and the Permit for Temporary Import of Raw Gold for Re-export of Products to enterprises, the State Bank branch shall send one (1) copy to the State Bank of Vietnam (Department of Foreign Exchange Management).

Article 20. Reporting Responsibilities of Enterprises and Credit Institutions Engaged in Gold Trading

1. Monthly and annually, enterprises and credit institutions granted the Permit for Buying and Selling Gold Bars shall report their situation of buying and selling gold bars to the State Bank of Vietnam (Department of Foreign Exchange Management) and the State Bank branch (in accordance with Form 10 of this Circular). The deadline for submitting monthly reports is the fifth (5th) day of the following month, and for annual reports, it is January 15 (15th) of the following year.

2. Quarterly and annually, gold trading enterprises shall report their situation of gold trading to the State Bank (Department of Foreign Exchange Management) and the State Bank branch according to the following regulations:

a) Enterprises granted the Certificate of Eligibility for Gold Jewelry and Artisanal Gold Production shall report their production situation of gold jewelry and artisanal gold (in accordance with Form 11 of this Circular);

b) Enterprises producing gold jewelry and artisanal gold granted the Permit for Importing Raw Gold shall report their situation of importing raw gold for producing gold jewelry and artisanal gold (in accordance with Form 6 of this Circular);

c) Enterprises engaged in gold trading with contracts for processing gold jewelry and artisanal gold for foreign countries granted the Permit for Temporary Import of Raw Gold for Re-export of Products shall report their situation of importing raw gold, producing, and exporting gold jewelry and artisanal gold (in accordance with Form 7 of this Circular);

d) Enterprises engaged in gold trading with foreign investment capital granted the Permit for Importing Raw Gold shall report their situation of exporting and importing gold and consuming gold products in Vietnam (in accordance with Form 8 of this Circular).

3. The deadline for submitting reports as stipulated in Clause 2 of this Article is the fifteenth (15th) day of the first month of the next quarter for quarterly reports and January 15 (15th) of the following year for annual reports.

4. Annually, no later than January 15, enterprises investing abroad in gold mining and enterprises holding a Gold Mining License shall report on the situation of importing and exporting raw gold to the State Bank of Vietnam (Department of Foreign Exchange Management) and the State Bank branch of the province/city (in accordance with Form 9 attached to this Circular).

5. Within ten working days from the date of any change in the network of branches or locations for buying and selling gold bars, enterprises and credit institutions must notify in writing the State Bank of Vietnam (Department of Foreign Exchange Management) and attach certified copies of the Enterprise Registration Certificate and Branch Operation Registration Certificate (which have been reissued, newly issued, or amended and supplemented).

Article 21. Responsibilities for Inspection and Supervision

The banking inspection and supervision agencies, and the State Bank branch of the province/city are responsible for inspecting, checking, and handling violations related to gold trading activities as stipulated in Decree No. 24/2012/ND-CP, this Circular, and relevant laws.

Chapter 6

IMPLEMENTING PROVISIONS

Article 22. Transitional provisions

1. Within six months from the effective date of this Circular, enterprises and credit institutions currently engaged in buying and selling gold bars may continue such activities and must complete the procedures for re-registering their business with the registration authority and complete the procedures for applying for a Gold Buying and Selling License from the State Bank of Vietnam in accordance with this Circular and other relevant legal provisions.

2. After the transition period specified in Clause 1 of this Article, enterprises and credit institutions currently engaged in buying and selling gold bars without a Gold Buying and Selling License issued by the State Bank are not permitted to conduct such activities.

3. After the transition period specified in Article 21 of Decree No. 24/2012/ND-CP, enterprises currently producing jewelry and decorative gold products without a Certificate of Eligibility for Jewelry and Decorative Gold Product Production are not permitted to produce such products.

Article 23. Effectiveness of Implementation

1. This Circular takes effect from July 10, 2012.

2. Repeal Circular No. 10/2003/TT-NHNN dated September 16, 2003, guiding the implementation of Decree No. 174/1999/NĐ-CP dated December 9, 1999, on the management of gold trading activities, and Decree No. 64/2003/NĐ-CP dated June 11, 2003, amending and supplementing Decree No. 174/1999/NĐ-CP; repeal Decision No. 1703/2004/QĐ-NHNN dated December 28, 2004, amending and supplementing Circular No. 10/2003/TT-NHNN.

3. The Director of the Office, Heads of the Department of Foreign Exchange Management and heads of units under the State Bank of Vietnam, Governors of the State Bank branches of provinces/cities directly under the Central Government; Chairmen of the Board of Directors, Chairmen of the Board of Members, General Managers (Directors) of credit institutions, enterprises engaged in gold trading activities, and other related organizations and individuals are responsible for implementing this Circular./.