Circular No. 41/2012/TT-BCT on mineral exports

CIRCULAR

Regulations on Export of Minerals

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Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 15/2012/NĐ-CP dated March 9, 2012, issued by the Government detailing the implementation of certain provisions of the Minerals Law;

Pursuant to Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Trade regarding international trade activities and agency buying, selling, processing, and transiting goods with foreign countries;

Pursuant to Decision No. 2427/QĐ-TTg dated December 22, 2011 of the Prime Minister approving the Mineral Strategy until 2020, vision until 2030;

Pursuant to Directive No. 02/CT-TTg dated January 9, 2012 of the Prime Minister on strengthening state management over exploration, exploitation, processing, utilization, and export of minerals;

At the proposal of the Director of the Heavy Industry Department,

The Minister of Industry and Trade promulgates this Circular on export of minerals as follows:

Article 1. Scope of Regulation

1. This Circular stipulates the list, standards, quality of minerals for export and conditions for exporting minerals.

2. Minerals for export include metallic minerals, non-metallic minerals, and industrial minerals.

Coal, oil, natural gas, condensate, shale oil, mineral water, natural hot water, construction materials, raw materials for cement production, alloys, and metals not falling within the scope of this Circular.

3. Exporting minerals through temporary import for re-export or accepting processing for foreign traders for export shall be carried out in accordance with Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Trade regarding international trade activities and agency buying, selling, processing, and transiting goods with foreign countries. When a new Decree replaces Decree No. 12/2006/NĐ-CP, the export of minerals mentioned in this Clause shall be implemented according to the new Decree.

Article 2. Applicability

This Circular applies to state management agencies and enterprises involved in mineral exports.

Article 3. Explanation of Terms

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

1. VILAS Standard: Is the standard of the Vietnam Laboratory Accreditation System (Vietnam Laboratory Accreditation Scheme).

2. Competent State Authority: Are central state management agencies (Ministries) and People's Committees of provinces and centrally-administered cities (Provincial People's Committees).

Mineral Processing: Is the process of using separately or combining mechanical, physical, and chemical methods to alter raw minerals to produce one or more products in the form of concentrate, metal, alloy, chemical compound, industrial mineral with specifications and properties suitable for use, having higher value and commercial value than raw minerals.

Article 4. Conditions for Exporting Minerals

1. Only enterprises are permitted to export minerals. An enterprise exporting minerals is an enterprise established and operating in accordance with the Enterprise Law, meeting the conditions stipulated by the Law on Trade regarding export, import, processing, and agency buying and selling of goods with foreign countries.

2. Minerals are allowed to be exported when they meet the following conditions simultaneously:

a) They have been processed and listed in the List attached to this Circular.

b) They meet quality standards not lower than those specified in the List attached to this Circular.

c) They have a legal origin, specifically:

- Extracted from mines or mining points with valid Mining Licenses or Mining Recovery Licenses issued by competent state authorities;

 - Legally imported; or

- Seized and auctioned by competent state authorities.

Imported minerals (for re-export or for processing for export) are considered legal if they have a Customs Declaration for mineral imports confirmed by the customs office (a certified copy in accordance with regulations).

For seized and auctioned minerals, the following documents must be provided: Sales Invoice for Seized Assets, Confiscated Assets Transferred to Public Treasury, Inventory Removal Form, Administrative Violation Asset Seizure Auction Transfer Record (certified copies in accordance with regulations).

Article 5. Export Procedures for Minerals

1. When enterprises handle export procedures for minerals, in addition to complying with customs regulations, they must also present the following documents:

- A sample analysis certificate confirming the compliance of the exported goods with quality standards, issued by a laboratory accredited under the VILAS standard.

- Documentation proving the legitimate origin of the exported minerals, specifically:

a) For mineral extraction enterprises: Valid mining permits or valid residual mining permits.

b) For mineral processing enterprises: Investment certificates for processing plants and purchase contracts for minerals from legitimate mineral extraction enterprises, or valid import documents for minerals (in cases where enterprises use imported mineral raw materials as stipulated in Point c Clause 2 Article 4).

c) For trading enterprises engaged in mineral import and export: Purchase contracts for minerals accompanied by copies of value-added tax invoices, or consignment export contracts signed with enterprises mentioned in Points a) and b) of this Clause; or valid documents for purchasing minerals confiscated or auctioned by competent state agencies (as stipulated in Point c Clause 2 Article 4).

2. When handling clearance procedures, if the customs office at the border gate has grounds to suspect that the exported mineral shipment does not meet the quality standards specified in this Circular, it may still allow clearance while simultaneously establishing a Record and taking samples for retesting. The retesting shall be conducted by a laboratory accredited under the VILAS standard. If the test results confirm the suspicion, the exporting enterprise will bear penalties according to current regulations and testing costs. If the test results show that the shipment meets the prescribed quality standards, the testing costs will be borne by the customs office at the border gate.

Article 6. Special Cases

1. In the following cases, if enterprises have a need to export minerals, they must report to the People's Committee of the province (where the minerals are extracted or processed) so that the People's Committee can organize inspections, confirmations, and submit a request to the Ministry of Industry and Trade for consideration and resolution:

- Minerals listed in the export directory that have been processed but cannot meet the prescribed quality standards due to objective reasons (such as geological characteristics of the mine, minerals being by-products recovered during the processing of main minerals, tailings recovered but current technology cannot increase their concentration, etc.).

- Stockpiled minerals from mines with valid extraction permits that have expired.

- Minerals not included in the export directory, but there is no domestic demand for consumption or complete consumption.

- Minerals exported for barter imports of necessary goods for production needs within the country.

Based on the request letter from the provincial People's Committee, the Ministry of Industry and Trade shall take the lead and coordinate with relevant agencies to consider and decide each specific case.

Article 7. Reporting on Mineral Exports

1. The content of reports on mineral exports includes:

- Results regarding types, quantities, export turnover of minerals, and the origin of exported minerals.

- Compliance with export regulations for minerals.

2. Reports on mineral exports are divided into two types:

- Reports by mineral exporting enterprises: These are prepared periodically. The periodicity of these reports is determined by the Provincial People's Committee based on local management requirements. The reports are submitted to the Department of Industry and Trade and the Department of Natural Resources and Environment where the mineral exporting enterprises operate.

- Comprehensive reports by the provincial People's Committee (or functional agencies assigned tasks by the provincial People's Committee) where minerals are exported: These are prepared annually (covering the period from January 1 to December 31) and submitted to the Ministry of Industry and Trade before January 15 of the following year (Form 01).

3. Mineral exporting enterprises are responsible for the accuracy and truthfulness of the data and information in the reports.

4. When competent state authorities require urgent reports on mineral export situations for management purposes, mineral exporting enterprises must fulfill such requests.

Article 8. Management Responsibility

1. The Heavy Industry Department (Ministry of Industry and Trade) shall be responsible for leading and coordinating with relevant ministries, sectors, and localities to periodically inspect compliance with export regulations for minerals as stipulated in this Circular and related laws.

2. Based on the actual situation of mineral exploitation, processing, domestic consumption, and export activities, the Heavy Industry Department shall have the responsibility to report to the Ministry for consideration and supplementation of this Circular when necessary.

Article 9. Effective Date

This Circular takes effect from February 4, 2013, and replaces Circular No. 08/2008/TT-BCT dated June 18, 2008, issued by the Ministry of Industry and Trade guiding mineral exports.

Article 10. Implementation Organization

1. Valid export contracts for minerals (according to Circular No. 08/2008/TT-BCT dated June 18, 2008, of the Ministry of Industry and Trade) signed before the effective date of this Circular, but not contrary to Directive No. 02/CT-TTg dated January 9, 2012,

2. The export of certain types of legally mined minerals that are in stock from 2012 (to address difficulties for enterprises) shall be carried out according to the Prime Minister's directives. provisions of this Circular and guidance from the Ministry of Industry and Trade.

3. The Ministry of Industry and Trade has the authority to require the cessation of mineral exports for enterprises found to be in violation of the provisions of this Circular.

4. State management agencies and enterprises involved in mineral exports shall be responsible for implementing this Circular. In case of any difficulties during implementation, agencies and enterprises shall promptly reflect in writing to the Ministry of Industry and Trade for consideration and resolution.