Circular No. 34/2014/TT-NHNN guiding the management of deposit guarantees for international travel agencies

CIRCULAR

Guidelines on managing deposit guarantees for international travel agencies of enterprises

 international travel agencies)

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Based on the Civil Code 2005;

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

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

Based on the Tourism Law No. 44/2005/QH11 dated June 14, 2005;

On the basis of Government Decree No. Decision No. 92/2007/NĐ-CP January 1 the June 2007 detailing the implementation of certain provisions of the Tourism Law (hereinafter referred to as Government Decree No. Decision No. 92/2007/NĐ-CP);

Decree No. Decision No. 180/2013/NĐ-CP November 14, 2013 amending, MANAGEMENT AND USE OF DEPOSITS AT THE ENVIRONMENT PROTECTION FUND detailed information in the system, 1. NATIONAL UNIVERSITIES ARE PUBLIC HIGHER EDUCATION INSTITUTIONS MANAGED BY THE MINISTRY OF EDUCATION AND TRAINING, HAVE LEGAL PERSONALITY, SEPARATE ACCOUNTS, AND USE STAMPS WITH THE NATIONAL EMBLEM. provisions of Decree No. Decision No. 92/2007/NĐ-CP June 1, 2007 detailing the implementation of certain provisions of the Tourism Law (hereinafter referred to as Government Decree No. Decision No. 180/2013/NĐ-CP);

Pursuant to the Government Decree November 11, dated November 11, 2013 of At the proposal of stipulating functions, tasks, powers, and organizational structure organization of the State Bank of Vietnam;

At the proposal of the Payment Department Director;

The Governor of the State Bank of Vietnam issues this Circular guiding the management of deposit guarantees for international travel agencies.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the management of deposit guarantees for international travel agencies.

Article 2. Applicability

1. International travel agencies (hereinafter referred to as enterprises).

2. Commercial banks, cooperative banks, and foreign bank branches operating in Vietnam (hereinafter collectively referred to as banks).

3. Agencies, organizations, and individuals related to the deposit guarantees of international travel agencies.

Article 3. Deposit Guarantee Amount

1. Enterprises shall make deposit guarantees in Vietnamese dong according to the amount specified in Clause 2, Article 15 of Decision No. 92/2007/NĐ-CP (amended and supplemented by Decision No. 180/2013/NĐ-CP).

2. The deposit guarantee amount must be maintained throughout the period of operation of the international travel agency.

Article 4. Interest Rate on Deposit Guarantees and Payment of Interest on Deposit Guarantees

1. Enterprises shall be entitled to interest on the balance of their deposit guarantees at rates agreed upon with the bank, which must comply with the State Bank of Vietnam's (State Bank) regulations on interest rates for deposits in Vietnamese dong during each period.

2. Based on the interest rate agreement recorded in the deposit guarantee contract between the enterprise and the bank, the bank where the deposit guarantee is made calculates and pays interest on the balance of the deposit guarantee and transfers it to the appropriate account as requested by the enterprise or pays it in cash.

Chapter II

MANAGEMENT OF DEPOSIT GUARANTEES

Article 5. Submission of Deposit Guarantees and Issuance of Deposit Guarantee Certificates

1. When an enterprise requests to submit a deposit guarantee to a bank account, the receiving bank accepts the deposit guarantee and the enterprise enters into a deposit guarantee contract consistent with the provisions of this Circular and relevant laws. On the basis of the deposit guarantee contract, the receiving bank freezes the deposit guarantee amount deposited by the enterprise at the bank.

2. The main contents of the deposit guarantee contract include: Name, address, representative of the enterprise; Name, address, representative of the bank; Deposit guarantee amount; Interest rate on deposit guarantees; Payment of interest on deposit guarantees; Use of deposit guarantees; Withdrawal of deposit guarantees; Refund of deposit guarantees; Obligations of the parties involved and other agreements in accordance with the law and not contrary to the provisions of this Circular.

3. After freezing the deposit guarantee amount, the receiving bank issues a deposit guarantee certificate for international travel agencies to the enterprise (attached as an appendix to this Circular).

Article 6. Withdrawal of Deposit Money

The withdrawal of deposit guarantees is carried out in accordance with Clause 3, Article 15 of Decision No. 92/2007/NĐ-CP (amended and supplemented by Decision No. 180/2013/NĐ-CP) and relevant legal provisions.

Article 7. Deposit of Additional Security Deposit

1. Within thirty days from the date the funds are withdrawn from the security deposit account, the enterprise must deposit the full amount of the security deposit as prescribed in Clause 1, Article 3 of this Circular.

2. After the period specified in Clause 1 of this Article, if the enterprise fails to deposit the full amount of the security deposit as prescribed, the bank shall promptly notify the Ministry of Culture, Sports and Tourism (Tourism Administration) to take appropriate measures.

Article 8. Procedures for Refunding the Security Deposit and Closing the Security Deposit Account

1. The bank shall refund the security deposit on the security deposit account and close the security deposit account for the enterprise in the cases prescribed in Clause 4, Article 15 of Decree No. 92/2007/ND-CP (amended and supplemented by Decree No. 180/2013/ND-CP).

2. Refund procedures

a) When requesting the bank to refund the security deposit, the enterprise shall follow the procedures as follows:

- Prepare and submit to the bank a request letter and supporting documents for the refund of the security deposit according to the model provided by the receiving bank;

- Present a document from the Ministry of Culture, Sports and Tourism or a decision from the investment certificate issuing authority as prescribed in Clause 4, Article 15 of Decree No. 92/2007/ND-CP (amended and supplemented by Decree No. 180/2013/ND-CP);

- Present personal identification documents (valid identity card/passport) of the authorized representative of the enterprise. In case of an authorized person, present a power of attorney.

b) The receiving bank shall be responsible for checking the supporting documents and necessary papers mentioned above. If they are lawful and valid, the bank shall proceed with the refund of the security deposit and closure of the security deposit account for the enterprise.

Chapter III

RESPONSIBILITIES OF THE RECEIVING BANK AND RELATED UNITS UNDER THE STATE BANK

Article 9. Responsibilities of the Receiving Bank

1. Guide enterprises to implement the security deposit in accordance with this Circular and relevant laws.

2. Issue a Certificate of Security Deposit to international travel agencies after the enterprise has deposited the full amount of the security deposit as prescribed.

3. Pay interest on the balance of the security deposit account to the enterprise in accordance with Article 4 of this Circular.

4. Notify the Ministry of Culture, Sports and Tourism (Tourism Administration) in the event that the enterprise fails to deposit the full amount of the security deposit as prescribed.

5. Report the situation regarding the security deposit of enterprises to the State Bank as required.

Article 10. Responsibilities of Related Units under the State Bank

1. The Payment Department is responsible for monitoring, guiding, and resolving issues arising during the implementation of this Circular.

2. Banking inspection and supervision agencies, State Bank branches in provinces and centrally-administered cities have the responsibility to cooperate in inspecting and supervising the management of enterprises' security deposits at banks in accordance with this Circular and relevant laws.

Chapter IV

IMPLEMENTING PROVISIONS

Article 11. Effective Date

This Circular takes effect from January 15, 2015, and replaces Circular No. 03/2002/TT-NHNN dated April 5, 2002, issued by the Governor of the State Bank on the management of security deposits of travel agencies.

Article 12. Implementation Organization

The Head of the Office, the Head of Banking Inspection and Supervision, the Director of the Payment Department, the Heads of related units under the State Bank, the Directors of State Bank branches in provinces and centrally-administered cities; the Chairmen of the Board of Directors, the Chairmen of the Board of Members, the General Managers (Directors) of banks, foreign bank branches; the Chairmen of the Board of Directors, the Chairmen of the Board of Members, the General Managers (Directors) of international travel agencies are responsible for implementing this Circular./.