Decree No. 24/2012/ND-CP on the management of gold trading activities

DECREE

On the management of gold trading activities

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Government Decree No. 81/2018/NĐ-CP dated May 22, 2018, detailing the Trade Law on trade promotion activities;

Pursuant to the Enterprise Law dated November 29, 2005;

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

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

At the proposal of the Governor of the State Bank of Vietnam;

The Government issues the Decree on management of gold trading activities,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

2. The provisions of this Decree shall not apply to the activities of mining and refining gold by gold mining enterprises.

Article 2. Applicability

This Decree applies to organizations and individuals engaged in gold trading activities within the territory of Vietnam and other agencies, organizations, and individuals related to gold trading activities.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Gold jewelry and artworks are gold products with a fineness of 8 Karat (equivalent to 33.33%) or higher, processed and crafted for personal adornment and artistic decoration purposes.

3. Raw gold is gold in block, ingot, grain, bar forms, and other types of gold.

4. Gold trading on accounts refers to gold trading through accounts in the form of margin trading and net value continuously revalued according to fluctuations in gold prices.

1. The lawful ownership of gold of organizations and individuals is recognized and protected in accordance with the provisions of the law.

2. The State Bank is the agency representing the Government to uniformly manage gold trading activities in accordance with the provisions of this Decree.

4. Management of gold trading activities aims to develop a stable and sustainable gold market, ensuring gold jewelry and art production and processing activities serving the domestic market and exports in accordance with the law.

5. Organizations and individuals engaged in gold trading activities must comply with the provisions of this Decree and other relevant laws.

7. Buying and selling gold jewelry and artworks is a conditional business activity without issuance of a certificate of eligibility for business.

9. Other gold trading activities, excluding gold raw material export and import activities, gold raw material trading within the country by gold jewelry and art manufacturing enterprises and gold jewelry and art trading enterprises, and activities specified in Clauses 6, 7, and 8 of this Article, are restricted business operations. Organizations and individuals may only carry out other gold trading activities after obtaining approval.

Chapter II

PRODUCTION, PROCESSING AND PURCHASE AND SALE OF GOLD JEWELRY AND ARTWORKS

Article 5. Conditions for operating in the production of gold jewelry and decorative items

1. A business producing gold jewelry and decorative items shall be granted a Certificate of Eligibility for Producing Gold Jewelry and Decorative Items by the State Bank when it meets the following conditions:

a) It is a business established in accordance with the law, having registered to produce gold jewelry and decorative items in its Business Registration Certificate.

b) It has a location, material facilities, and necessary equipment to serve the production of gold jewelry and decorative items.

2. The State Bank shall stipulate the procedures and documents for the Certificate of Eligibility for Producing Gold Jewelry and Decorative Items.

Article 6. Responsibilities of businesses operating in the production of gold jewelry and decorative items

1. Implement marking of identification codes and gold content on products, announce applicable standards and product quantities according to legal regulations, and bear legal responsibility for announced standards and product quantities by the producing enterprise.

2. Bear legal responsibility for announced standards and product quantities of products processed by the business under contract.

3. Comply with legal regulations on accounting systems, issuance and use of invoices and vouchers.

4. Have plans to ensure safety in production and business activities, protect the environment, and prevent fires and explosions.

6. Adhere to the provisions of this Decree and other relevant laws.

Article 7. Processing of gold jewelry and decorative items

Individuals, households, cooperatives, and businesses may engage in processing for gold jewelry and art manufacturing enterprises and must register gold jewelry and art processing in their Business Registration Certificate, Enterprise Registration Certificate, or Business Registration Certificate.

Article 8. Conditions for operating in the purchase and sale of gold jewelry and decorative items

Businesses engaged in purchasing and selling gold jewelry and decorative items must meet the following conditions:

1. It is a business established in accordance with the law, having registered to purchase and sell gold jewelry and decorative items in its Business Registration Certificate.

2. It has a location, material facilities, and necessary equipment to serve the purchase and sale of gold jewelry and decorative items.

Article 9. Responsibilities of businesses engaged in the purchase and sale of gold jewelry and decorative items

1. Publicly display at transaction locations the quantity, gold content, purchase price, and sale price of various gold jewelry and art products and bear legal responsibility for the quality of products sold to the market.

2. Comply with legal regulations on accounting systems, issuance and use of invoices and vouchers.

3. Adhere to legal regulations on measurement.

4. Have measures and equipment to ensure safety in business operations.

5. Adhere to the provisions of this Decree and other relevant laws.

GOLD BAR TRADING ACTIVITIES

Article 10. Management of Gold Bullion Trading Activities

The purchase and sale of gold bullion by organizations and individuals shall only be conducted at credit institutions and enterprises that have been granted a License for Gold Bullion Trading by the State Bank of Vietnam.

1. An enterprise shall be considered for issuance of a License for Gold Bullion Trading by the State Bank of Vietnam if it meets the following conditions:

a) It is an enterprise established and operating in accordance with the provisions of the law.

b) It has a charter capital of VND 100 billion or more.

c) It has experience in trading gold bullion for at least two years.

d) Its tax payments from gold trading activities amount to VND 500 million or more per year for the last two consecutive years (confirmed by the tax authority).

đ) It has a network of branches and sales locations in at least three provinces or centrally-administered cities in Vietnam.

2. A credit institution shall be considered for issuance of a License for Gold Bullion Trading by the State Bank of Vietnam if it meets the following conditions:

a) It has a charter capital of VND 3,000 billion or more.

b) It has registered to engage in gold trading activities.

c) It has a network of branches in at least five provinces or centrally-administered cities in Vietnam.

3. The State Bank of Vietnam shall stipulate the procedures and documentation required for issuing a License for Gold Bullion Trading to enterprises and credit institutions.

Enterprises and credit organizations engaged in gold bar trading activities have the responsibility to:

1. Only be permitted to trade in gold bars as defined in Clause 2 of Article 3 of this Decree.

2. Not be allowed to conduct gold bar trading through authorized agents.

3. Comply with legal regulations on accounting systems, establishment and use of invoices and certificates.

4. Publicly display at transaction locations the purchase and sale prices of gold bars.

5. Have measures and equipment to ensure safety in trading activities.

6. Adhere to the provisions of this Decree and other relevant laws.

Chapter IV

ACTIVITIES OF GOLD EXPORT AND IMPORT

Article 13. Export and import of jewelry and decorative gold products

1. The export and import of jewelry and decorative gold products shall be carried out based on the Business Registration Certificate or the Enterprise Registration Certificate.

2. The export and import of jewelry and decorative gold products for participation in international exhibitions and trade fairs shall be conducted in accordance with the Government's regulations on international exhibitions and trade fairs.

1. Based on monetary policy objectives and the supply-demand situation of gold during each period, the State Bank shall organize the implementation of exporting raw gold, importing raw gold for production of gold bars, issuing import permits for raw gold to enterprises according to Clauses 3, 4, 5, and 6 of this Article, and issuing export permits for raw gold to enterprises holding Mining Licenses according to Clause 7 of this Article.

2. The State Bank's activities of exporting and importing raw gold are exempt from export tax and import tax pursuant to the decision of

3. The State Bank shall consider issuing Import Permits for raw gold for production of jewelry and decorative gold products to enterprises that have been issued Certificates of Eligibility for Production of Jewelry and Decorative Gold Products by the State Bank.

4. Enterprises engaged in gold business with foreign contracts for processing jewelry and decorative gold products shall be granted Temporary Import Permits for raw gold by the State Bank for re-export of finished products.

5. Annually, the State Bank shall consider issuing Import Permits for raw gold for the planned year to foreign-invested enterprises based on their production capacity and reports on the export of jewelry and decorative gold products of the previous year.

6. Enterprises investing abroad in the field of gold mining which require importing gold mined overseas shall be considered for Import Permits for raw gold by the State Bank.

7. Enterprises holding Mining Licenses shall be considered for Export Permits for raw gold mined by them by the State Bank.

8. Exporting and importing raw gold in the form of powder, solution, solder flakes, gold salts, and semi-finished jewelry gold products shall be carried out according to Business Registration Certificates or Enterprise Registration Certificates.

9. The State Bank shall stipulate conditions, procedures, and documentation for issuing Export and Import Permits for raw gold as provided in Clauses 3, 4, 5, 6, and 7 of this Article.

Article 15. Carrying Gold When Exiting and Entering the Country by Individuals

Vietnamese individuals and foreigners exiting and entering through international border gates may carry gold according to the regulations of the State Bank.

Chapter V

STATE MANAGEMENT OF GOLD BUSINESS ACTIVITIES

1. The State Bank shall be responsible for drafting and submitting to competent authorities for promulgation strategies and plans for developing the gold market and issuing regulatory legal documents governing gold trading activities according to this Decree.

2. The State Bank may include gold bars in the State Foreign Exchange Reserve.

3. The State Bank shall intervene and stabilize the gold market through the following measures:

a) Exporting and importing raw gold as prescribed in Clause 1 of Article 14 of this Decree.

b) Organizing and managing the production of gold bars through decisions on production quotas, timing, and methods suitable for each period. Costs associated with organizing gold bar production shall be accounted for in the State Bank's operational expenses.

c) Conducting purchases and sales of gold bars in the domestic market and organizing gold collection as prescribed by the Prime Minister.

4. The State Bank shall issue and revoke:

a) Certificates of Eligibility for Production of Jewelry and Decorative Gold Products.

b) Licenses for buying and selling gold bars.

c) Licenses for exporting and importing raw gold.

d) Licenses for carrying gold when exiting or entering the country exceeding specified limits.

đ) Licenses for other gold trading activities after approval by the Prime Minister.

5. The State Bank shall conduct inspections and audits of activities related to the production of jewelry and decorative gold products; buying and selling of gold bars, jewelry, and decorative gold products; exporting and importing raw gold; and other gold trading activities.

6. The State Bank shall perform other tasks and powers related to managing gold trading activities as decided by the Prime Minister.

Within their functions, tasks, and authorities, Ministries, ministerial-level agencies, and provincial People's Committees under the Central Government shall be responsible for state management of gold trading activities as follows:

1. The Ministry of Industry and Trade shall be responsible for coordinating with relevant agencies to perform functions of managing, inspecting, and auditing activities related to gold jewelry and art production; gold jewelry and art trading activities; and compliance with legal regulations by gold trading enterprises.

2. The Ministry of Planning and Investment shall be responsible for stipulating and guiding the issuance of business registration certificates for gold trading enterprises and sending copies of issued business registration certificates to the State Bank of Vietnam branch in provinces and centrally-administered cities within their jurisdiction for coordination purposes.

3. The Ministry of Finance shall take the lead and coordinate with the State Bank of Vietnam to submit to competent authorities for promulgation or promulgate according to their authority policies on export tax, import tax, value-added tax, special consumption tax, and income tax applicable to gold trading activities during each period.

4. The Ministry of Science and Technology shall take the lead and coordinate with relevant agencies to issue quality standards for gold jewelry and art; inspect, audit, and manage the quality of circulating gold jewelry and art; and calibrate measuring instruments of gold trading enterprises.

5. The Ministry of Public Security shall be responsible for coordinating with relevant ministries and sectors in combating, investigating, and handling violations of laws on gold trading within their functions, tasks, and authorities as prescribed by law.

6. Provincial People's Committees under the Central Government shall be responsible for state management of gold trading activities at the local level in accordance with this Decree and other relevant legal provisions within their tasks and authorities.

Article 18. Interdepartmental Coordination in Managing Gold Business Activities

Based on actual requirements, relevant ministries and sectors shall be responsible for coordinating and sharing information to serve the management of gold trading activities; coordinating to implement inspections and audits of gold trading activities in accordance with the law.

Chapter VI

VIOLATIONS

Article 19. Violations in Gold Business Activities

Violations of legal provisions in gold business activities include:

1. Engaging in the production of gold jewelry and artworks without a Certificate of Eligibility for Business issued by the State Bank.

3. Carrying gold when exiting or entering the country exceeding the prescribed limit without a permit issued by the State Bank.

4. Using gold as a means of payment.

5. Producing gold bars contrary to the provisions of this Decree.

6. Other gold trading activities that have not been

7. Violating other provisions of this Decree and related legal provisions.

Chapter VII

IMPLEMENTING PROVISIONS

Enterprises and credit organizations engaged in gold trading must report on the situation of gold jewelry and art production; gold bar buying and selling situations; and gold exporting and importing situations in accordance with the State Bank and competent authorities' regulations.

Article 21. Transitional Provisions

1. Within twelve months from the date this Decree takes effect:

a) Organizations currently engaged in gold jewelry and art production must re-register their business with the business registration agency and complete procedures to obtain a certificate of eligibility for gold jewelry and art production from the State Bank in accordance with this Decree and relevant legal provisions.

b) Organizations currently engaged in the purchase and sale of gold jewelry and artworks must re-register with the business registration authority.

2. The State Bank will specify transition periods and procedures for enterprises and credit institutions currently engaged in the purchase and sale of gold bars.

3. Licenses for gold bar production issued by the State Bank will expire from the date this Decree takes effect.

Article 22. Effectiveness

This Decree takes effect from May 25, 2012, and replaces Government Decree No. 174/1999/ND-CP dated December 9, 1999, on the management of gold trading activities, and Government Decree No. 64/2003/ND-CP dated June 11, 2003, amending and supplementing Government Decree No. 174/1999/ND-CP dated December 9, 1999.

Article 23. Responsibility for Implementation

1. The Governor of the State Bank of Vietnam is responsible for guiding and implementing this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of provincial People's Committees under the Central Government, and related organizations and individuals are responsible for implementing this Decree./.