Circular No. 17/2001/TT-BTM guides the implementation of promotional activities as stipulated in Decree No. 32/1999/NĐ-CP dated May 5, 1999 of the Government on promotions, advertising, and trade fairs.

CIRCULAR

OF THE MINISTRY OF TRADE NUMBER 17/2001/TT-BTM DATE JULY 12, 2001 GUIDING THE IMPLEMENTATION OF PROMOTION ACTIVITIES PROVIDED FOR IN DECREE NO. 32/1999/NĐ-CP OF THE GOVERNMENT ON PROMOTIONS, ADVERTISING AND TRADE FAIRS AND EXHIBITIONS
OF THE GOVERNMENT ON PROMOTIONS, ADVERTISING, AND TRADE FAIRS AND EXHIBITIONS
AND TRADE FAIRS

Pursuant to Decree No. 32/1999/NĐ-CP dated May 5, 1999 of the Government on promotions, advertising, and trade fairs and exhibitions, hereinafter referred to as Decree No. 32/1999/NĐ-CP;

After exchanging opinions with relevant agencies and receiving approval from the Prime Minister (document No. 501/CP-KTTH dated June 8, 2001 of the Government regarding guidance on Decree No. 32/1999/NĐ-CP), the Ministry of Trade provides specific guidance on promotion activities to be implemented uniformly as follows:

I. RIGHTS TO CONDUCT PROMOTIONS

Vietnamese traders, foreign-invested enterprises in Vietnam, branches of Vietnamese traders, branches of foreign traders in Vietnam, collectively referred to as traders, may conduct various forms of promotions for goods and services within their business scope and must comply with the provisions of Article 183, Article 185 of the Commercial Law, and the provisions of Decree No. 32/1999/NĐ-CP and this Circular.

Representative offices of Vietnamese traders, foreign-invested enterprises in Vietnam, and foreign traders in Vietnam shall not conduct promotions.

II. GOODS AND SERVICES FOR PROMOTION AND GOODS USED FOR PROMOTION
SERVICES USED FOR PROMOTION

1. Goods and services for promotion

a) Goods and services for promotion are goods and services traded by traders, which are used by traders through various promotional methods to promote the sale and supply of such goods and services.

b) Goods and services for promotion must not be included in the list of prohibited goods and services and must comply with the legal regulations applicable to goods and services circulating and supplied in the market.

2. Goods and services used for promotion

a) Goods and services used for promotion are goods and services within or outside the business scope of traders, which are given to customers as gifts or rewards.

b) Goods and services used for promotion must not be included in the list of prohibited goods and services according to the legal regulations at the time of promotion and must comply with the legal regulations applicable to goods circulating in the market.

c) It is prohibited to use alcohol, beer, or tobacco for promoting to children under 16 years old.

d) The value of goods and services used for promotion for each unit of promoted goods and services shall not exceed 30% of the price of the promoted goods and services immediately before the start of the promotion, except for the forms of promotion provided for in Articles 8, 9, and 10 of Decree No. 32/1999/NĐ-CP.

The price of goods and services for promotion is the payment price of such goods and services immediately before the promotion period.

III. PROCEDURES FOR IMPLEMENTING PROMOTION FORMS

1. To implement the promotion forms prescribed in Articles 5, 6, 7, 8, and 9 of Decree No. 32/1999/NĐ-CP, traders only need to notify in writing about the form of promotion, the start time, and the end time of the promotion to the Department of Commerce where the trader organizes the promotion before implementing the promotion.

For the implementation of the promotion form "selling goods and providing services with attached purchase vouchers or other forms to win prizes according to the rules and announced awards" (Article 8) and "selling goods and providing services with attached contest entry forms for customers to select prize winners according to the rules and announced awards" (Article 9), after the end of the promotion, the trader must notify the Department of Commerce where the trader organizes the promotion about the results of winning prizes according to the announced rules within thirty days from the end date of the promotion, and simultaneously announce the results of winning prizes on at least one mass media outlet.

2. For the promotion form "selling goods and providing services with attached lottery tickets for prizes according to the rules and announced awards" (Article 10), prior to implementation, the trader must obtain written approval from the competent state agency, specifically as follows:

a) For promotion within the territory of a province or centrally-administered city, the trader must obtain written approval from the Department of Commerce where the trader organizes the draw.

b) For promotion within the same period and within the territory of two or more provinces or centrally-administered cities, the trader must obtain written approval from the Ministry of Trade.

c) The application dossier and the time for examination and approval shall be carried out in accordance with Clause 2 of Article 10 of Decree No. 32/1999/NĐ-CP.

3. In cases of conducting promotions outside the forms of promotions already stipulated in the Decree No. 32/1999/NĐ-CP, prior to implementation, the trader must obtain written approval from the Ministry of Trade.

a) The trader submits the application dossier to request permission to organize the promotion to the Ministry of Trade at least fifteen days before the planned start date of the promotion.

b) The application dossier to request permission to organize the promotion includes:

- Application requesting permission to organize the promotion. The content includes: form of promotion; goods and services for promotion; goods and services used for promotion; promotion period; location of promotion.

- Promotion rules.

c) The Ministry of Trade examines and approves or does not approve (with clear reasons) in writing for the trader to organize the promotion and sends a copy of this document to the Department of Commerce of the province or centrally-administered city where the trader conducts the promotion within seven working days from the date of receipt of a complete and valid dossier.

d) The trader conducting the promotion reports the results of the promotion program to the Ministry of Trade and the Department of Commerce where the trader organizes the promotion within thirty days from the end date of the promotion.

IV. ORGANIZATION OF IMPLEMENTATION AND HANDLING OF VIOLATIONS

1. The Department of Commerce where the trader conducts the promotion has the responsibility to supervise, inspect, and handle violations of traders conducting promotions in accordance with the provisions of the law.

2. A trader who violates the provisions set forth in Decree No. 32/1999/NĐ-CP and this Circular, depending on the level of violation, shall be handled in accordance with the provisions of the law.

3. This Circular takes effect fifteen days from the date of signature and replaces the previous regulations on promotions in legal documents issued by the Ministry of Trade.