Decision No. 2212/2005/QD-BTM Issuing the Business Regulations for Construction Steel

Pursuant to …;

Issuing the Steel Construction Business Regulation

THE MINISTER OF TRADE

Pursuant to Decree No. 29/2004/NĐ-CP dated January 16, 2004 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Trade;

Pursuant to Directive No. 30/2004/CT-TTg dated August 5, 2004 of the Prime Minister on measures to control the rate of price increase in the market in the short term;

In order to gradually build a steel construction business system that develops in accordance with a market mechanism under state management; ensuring supply-demand balance and quality of steel construction;

At the proposal of the Director of the Domestic Market Policy Department,

DECISION:

Article 1. This Decision promulgates the Steel Construction Business Regulation attached hereto.

Article 2. This Decision takes effect fifteen days from the date of publication in the Official Gazette.

Article 3. Chairmen of People's Committees of provinces and centrally governed cities, Heads of units under the Ministry of Trade, organizations and individuals participating in steel construction business in all economic sectors, and related organizations and individuals are responsible for implementing this Decision./.

REGULATIONS

STEEL CONSTRUCTION BUSINESS

(Attached to Decision No. 2212/2005/QĐ-BTM dated August 15, 2005)

of the Minister of Trade)

 

PART I
GENERAL PROVISIONS

Article 1. Scope of application

This Regulation governs the activities of steel construction business in the Vietnamese market.

Article 2. Applicability

This Regulation applies to organizations and individuals engaged in steel construction business in all economic sectors.

Article 3. Definitions

In this Regulation, the following terms shall be understood as follows:

1. "Steel construction" refers to types of steel used in construction, including: round coil steel, smooth round bar steel, ribbed bar steel, and steel bars with ribs.

2. "Steel construction supplier" means a manufacturer or importer of steel construction products for sale in the Vietnamese market (hereinafter referred to as the supplier).

3. "Steel construction distributor" means a wholesaler, retailer, or both wholesaler and retailer of steel construction products (hereinafter referred to as the distributor).

4. "Steel construction general agent" means a trader with a network of retail agents under its control to undertake the receipt of steel construction products from suppliers and distributors and deliver them to its own retail steel construction agents (hereinafter referred to as the general agent).

5. "Retail steel construction agent" means a trader receiving steel construction products from suppliers, distributors, or general agents to directly sell to end consumers (hereinafter referred to as the retail agent).

Chapter II
SYSTEM OF STEEL CONSTRUCTION BUSINESS

Article 4. Participants in the steel construction business system

The steel construction business system in the Vietnamese market includes participants such as suppliers, distributors, general agents, retail agents, and units affiliated with these participants such as branches, factories, retail stores.

Article 5. Rights and responsibilities of suppliers

1. Suppliers have the following rights:

a) Establishing a distribution system of steel construction products under their control, including branches, factories, and retail stores;

b) Selecting and signing purchase and sale contracts for steel construction products with distributors;

c) Choosing traders and establishing a general agency and retail agent system;

d) Setting prices for steel construction products delivered to general agents and retail agents, setting retail prices for steel construction products within their own distribution system and their own retail agent system;

đ) Choosing remuneration or trade discount forms for distributors, general agents, and retail agents according to regulations;

e) Inspecting and supervising the implementation of agency contracts by general agents and retail agents;

g) Protecting their brand, reputation, and product quality;

h) Other rights as prescribed by law.

2. Suppliers have the following responsibilities:

a) Signing purchase and sale contracts for steel construction products in writing with distributors;

b) Signing agency contracts in writing with general agents and retail agents;

c) Guiding, providing information, and creating conditions for distributors, general agents, and retail agents to implement contracts;

d) Being responsible for the legality of business operations, quality, and retail prices of steel construction products supplied by themselves on the market;

đ) Paying remuneration or trade discounts based on agreements according to current regulations and must be clearly stated in the contract;

e) Other responsibilities as prescribed by law.

Article 6. Rights and responsibilities of distributors

1. Distributors have the following rights:

a) Establishing a distribution system of steel construction products under their control, including branches, factories, and retail stores;

b) Selecting and signing purchase and sale contracts for steel construction products with suppliers;

c) Choosing traders and establishing a general agency and retail agent system;

d) Setting prices for steel construction products delivered to general agents and retail agents;

đ) Choosing remuneration or trade discount forms for general agents and retail agents according to regulations;

e) Inspecting and supervising the implementation of contracts by general agents and retail agents;

g) Other rights as prescribed by law.

2. Distributors have the following responsibilities:

a) Signing purchase and sale contracts for steel construction products in writing with suppliers;

b) Signing agency contracts in writing with general agents and retail agents;

c) Guiding, providing information, and creating conditions for general agents and retail agents to implement contracts;

d) Jointly being responsible for the legality of business operations, quality, and prices of steel construction products already delivered to general agents, retail agents, and their own distribution system;

đ) Paying remuneration or trade discounts based on agreements according to current regulations and must be clearly stated in the contract;

e) Other responsibilities as prescribed by law.

Article 7. Rights and responsibilities of general agents

1. General agents have the following rights:

a) Selecting suppliers and distributors to act as general agents;

b) Choosing traders and establishing a network of retail agents for steel construction products;

c) Setting prices for steel construction products delivered to retail agents according to agreements in contracts with suppliers and distributors;

d) Choosing remuneration or trade discount forms for retail agents according to regulations;

đ) Requesting suppliers and distributors to guide, provide information, and relevant conditions to implement agency contracts;

e) Inspecting and supervising the implementation of contracts by agents;

g) Other rights as prescribed by law.

2. General agents have the following responsibilities:

a) Signing general agency contracts in writing with suppliers and distributors;

b) Signing agency contracts in writing with retail agents;

c) Guiding, providing information, and creating conditions for retail agents to implement agency contracts;

d) Jointly being responsible for the legality of business operations, quality, and prices of steel construction products already delivered to retail agents;

đ) Paying agency remuneration and trade discounts based on agreements according to current regulations and must be clearly stated in the contract;

e) Subject to inspection, supervision, and regularly reporting on operational status to suppliers and distributors;

g) Other responsibilities as prescribed by law.

Article 8. Rights and Obligations of Retail Agents

1. Retail agents have the following rights:

a) To select suppliers, distributors, and general agents to act as retail agents;

b) To request suppliers, distributors, and general agents to provide guidance, information, and related conditions necessary for contract performance;

c) To enjoy remuneration and other lawful benefits derived from agency activities.

2. Retail agents have the following obligations:

a) To sell construction steel at prices set by the party entrusting the agency;

b) To jointly bear legal responsibility for business operations, quality, and selling prices of construction steel sold to consumers;

c) To be subject to inspection, supervision, and regularly report agency activities to suppliers, distributors, and general agents;

d) Other responsibilities as prescribed by law.

Article 9. Labeling Construction Steel

Construction steel traded on the Vietnamese market must comply with current legal regulations regarding product labeling. Labeling for construction steel can be done directly on the product, attached as a label accompanying the displayed product, or recorded on a separate sheet provided to customers. The specific content of the product label for construction steel shall be carried out according to Circular No. 06/2000/TT-BXD dated July 4, 2000, issued by the Ministry of Construction.

Article 10. Publicizing Prices for Construction Steel

1. Suppliers, distributors, general agents, and retail agents must publicly display prices for construction steel at transaction locations. Price displays must be clear and not cause confusion for customers.

2. Suppliers, distributors, general agents, and retail agents must strictly sell construction steel at the prices already publicized.

Article 11. Price Stabilization

1. In cases where the market price of construction steel fluctuates abnormally, the State will use price stabilization measures as prescribed by current laws.

2. Suppliers, distributors, general agents, and retail agents are responsible for implementing price stabilization measures as directed by competent state authorities.

Article 12. Reporting System

When necessary, to serve the purpose of stabilizing the construction steel market, competent state management agencies (central and local) have the right to require organizations and individuals engaged in construction steel trade to report on their trading activities and factors influencing the selling price of construction steel.

Chapter III
IMPLEMENTING PROVISIONS

Article 13. Responsibilities of Provincial People's Committees and Municipal People's Committees under Central Government

Provincial People's Committees and Municipal People's Committees under the Central Government are responsible for directing the Commerce Departments, Finance Departments, and other relevant local agencies to inspect and supervise compliance with this Regulation and other current legal provisions within their jurisdictions, including:

1. Regular or spot inspections when necessary for all suppliers, distributors, general agents, and retail agents of construction steel operating within their jurisdictions.

2. Promptly handling violations of this Regulation and other current legal provisions to ensure stability in the construction steel market within their jurisdictions.

Article 14. Handling Violations

Organizations and individuals who violate the provisions of this Regulation shall be subject to administrative penalties or criminal liability depending on the nature and severity of the violation; if damage is caused, they must compensate according to current legal provisions.

Article 15. Implementation

1. The Ministry of Trade leads and coordinates with the Ministry of Industry, the Ministry of Finance, and Provincial People's Committees and Municipal People's Committees under the Central Government to direct and guide the implementation of the provisions of this Regulation and related documents to prevent violations, ensure stability in the construction steel market, and meet economic and social development needs at both local and national levels.

2. During the implementation process, organizations and individuals involved are responsible for promptly reporting any arising issues to the Ministry of Trade for resolution./.