Decree No. 59/2006/ND-CP detailing the Law on Trade regarding goods and services prohibited from trade, restricted trade, and conditional trade.

DECREE

Detailed regulations on goods and services prohibited from trade, restricted trade, and conditional trade under the Commercial Law

THE GOVERNMENT

Pursuant to the Government Organization Law dated December 25, 2001.

Pursuant to the Commercial Law dated June 14, 2005.

Considering the proposal of the Minister of Trade.

DECREE

Article 1. Scope of Regulation

This Decree stipulates detailed regulations on goods and services prohibited from trade; goods and services restricted from trade; goods and services subject to conditional trade; and conditions for engaging in such trade.

Article 2. Applicability

This Decree applies to traders as defined by the Commercial Law and other organizations and individuals conducting activities related to trade in Vietnam.

Article 3. Application of relevant laws and international treaties

1. Activities of trade involving goods and services prohibited from trade; goods and services restricted from trade; and goods and services subject to conditional trade must comply with this Decree and relevant laws.

2. In cases where international treaties to which the Socialist Republic of Vietnam is a party provide different provisions regarding goods and services prohibited from trade; goods and services restricted from trade; and goods and services subject to conditional trade than those stipulated in this Decree, the provisions of such international treaties shall apply.

Article 4. List of goods and services prohibited from trade, restricted from trade, and subject to conditional trade

1. The following lists of goods and services are attached to this Decree:

a) List of goods and services prohibited from trade (Annex I);

b) List of goods and services restricted from trade (Annex II);

2. In necessary cases, the Minister of Trade shall submit to the Government for supplementation and amendment of the lists specified in Clause 1 of this Article.

Article 5. Goods and services prohibited from trade

1. It is strictly forbidden for traders and other organizations and individuals conducting activities related to trade in Vietnam to engage in trade of goods and services listed in the List of goods and services prohibited from trade, except as provided for in Clause 2 of this Article.

2. The supply of goods and services listed in the List of goods and services prohibited from trade attached to this Decree in specific cases must be approved by the Prime Minister.

1. Engaging in trade of goods and services listed in the List of goods and services restricted from trade must meet the following conditions:

a) The goods and services traded must fully comply with legal provisions;

b) The trader must be a business entity established and registered for business in accordance with legal provisions;

c) The trading premises must ensure technical requirements, equipment, trading procedures, and other standards as prescribed by law;

d) Management staff, technical staff, and direct sales personnel, as well as direct service providers, must meet the requirements for professional qualifications, expertise, work experience, and health as prescribed by law;

đ) The scope, scale, duration, location of trade, and number of traders participating in the trade of restricted goods and services must be consistent with special management requirements and development plans for trading networks of such goods and services during each period;

e) The trader must have a Business License for restricted goods and services issued by the competent authority in accordance with legal provisions.

2. The Ministry of Industry shall take the lead and coordinate with the Ministry of Trade to develop and submit to the Government for promulgation regulations on the trade of tobacco products and alcoholic beverages in accordance with the provisions of Clause 1 of this Article.

3. During the course of trade, the trader must continuously ensure compliance with legal provisions concerning restricted goods and services.

4. Based on the provisions of Clause 1 of this Article, the Minister and the head of the sectoral management agency shall be responsible for providing detailed guidance on each type of restricted goods and services and the issuance of Business Licenses.

1. Activities involving the trading of goods and services listed in the Catalogue of Goods and Services Subject to Conditions must meet the following conditions:

a) The goods and services traded must fully comply with legal provisions;

b) The business subject must be a trader as defined by the Commercial Law;

c) The business premises must satisfy technical requirements, equipment standards, business procedures, and other standards prescribed by law; the location of the business premises must be consistent with the development plan for the network of goods and services subject to conditions;

d) Management staff, technical staff, and employees directly involved in buying and selling goods, as well as those directly performing services, must meet the requirements regarding professional qualifications, expertise, work experience, and health as stipulated by law;

đ) A trader engaging in business must have a Business Registration Certificate in cases where the law requires such a certificate to be issued by the competent authority when conducting business;

2. The Ministry of Trade shall take the lead and coordinate with relevant agencies to develop and submit to the Government for issuance regulations on trading petroleum products, natural gas, and liquefied petroleum gas that are consistent with the provisions of Clause 1 of this Article;

3. During the course of business operations, traders must continuously ensure compliance with the conditions prescribed by law for goods and services subject to conditions;

4. Based on the provisions of Clause 1 of this Article, the Minister or Head of the Sectoral Management Agency shall be responsible for providing specific guidance for each type of goods and services subject to conditions and for issuing the Business Registration Certificate;

1. Content of inspection of business conditions:

Traders dealing with restricted goods or services or goods and services subject to conditions must undergo inspections by authorized agencies regarding their business conditions and compliance with these conditions during the course of business;

2. Forms of inspection of business conditions:

a) Periodic inspection: inspection at regular intervals to check compliance with business conditions for goods and services registered for trade. The Minister or Head of the Sectoral Management Agency shall specify and announce the time for periodic inspections;

b) Non-periodic inspection: inspection when there are signs that the trader is not complying with the prescribed conditions;

3. The Minister or Head of the Sectoral Management Agency, and the Chairman of the People's Committee of provinces and centrally governed cities shall be responsible for directing functional agencies to organize inspections of traders' compliance with business conditions as stipulated in Articles 6 and 7 of this Decree;

Article 9. Handling Violations

1. Traders and other organizations or individuals engaged in commercial activities in Vietnam who commit any of the following violations shall be subject to administrative penalties or criminal prosecution depending on the nature and severity of the violation as prescribed by law:

a) Trading prohibited goods or services, except as provided for in Clause 2 of Article 5 of this Decree;

b) Trading restricted goods or services or goods and services subject to conditions without meeting the required business conditions or failing to comply with these conditions during the course of business as prescribed by law;

e) Renting or lending a Business Registration Certificate or a Business Condition Compliance Certificate;

d) Altering, erasing, or modifying contents within a Business Registration Certificate or a Business Condition Compliance Certificate;

đ) Trading outside the scope specified in a Business Registration Certificate or a Business Condition Compliance Certificate;

e) Continuing business operations after having had a Business Registration Certificate or a Business Condition Compliance Certificate revoked or withdrawn;

g) Violating other provisions of this Decree and related laws;

2. Officials or civil servants who abuse their positions or powers to violate the provisions of this Decree and related laws shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation; if damage is caused, they must compensate according to the law;

Article 10. Effective Date

1. This Decree takes effect fifteen days from the date of publication in the Official Gazette;

2. This Decree replaces Decree No. 11/1999/NĐ-CP dated March 3, 1999 of the Government on Prohibited Goods and Services, Restricted Goods and Services, and Goods and Services Subject to Conditions; and Decree No. 73/2002/NĐ-CP dated August 20, 2002 of the Government supplementing goods and services to Catalogue 1 on Prohibited Goods and Services and Catalogue 3 on Goods and Services Subject to Conditions issued together with Decree No. 11/1999/NĐ-CP dated March 3, 1999 of the Government;

Article 11. Responsibility for Implementation

1\. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial and centrally-administered city People's Committees shall be responsible for implementing this Decree.

2. The Minister of Trade shall be responsible for monitoring and supervising the implementation of this Decree./.