THE
MINISTRY OF TRADE
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
|
No.01/2005/TT-BTM
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Hanoi,
January 6, 2005
|
CIRCULAR
GUIDING THE LIQUIDATION OF MACHINERY, EQUIPMENT, TRANSPORT MEANS,
SUPPLIES AND RAW MATERIALS OF FOREIGN-INVESTED ENTERPRISES
- Pursuant to the
Governments Decree No.29/2004/ND-CP of January 16, defining the functions,
tasks, powers and organizational structure of the Ministry of Trade;
- Pursuant to the Governments Decree No.24/2000/ND-CP of January 31, 2000
detailing the implementation of the Law on Foreign investment in Vietnam;
- The Ministry of Trade hereby guides in detail the liquidation of machinery,
equipment, transport means, supplies and raw materials of foreign-invested
enterprises as follows:
I. GENERAL PROVISIONS:
1. Objects of application and
scope of regulation
Joint venture enterprises,
enterprises with 100% foreign capital, export-processing enterprises and
parties to business cooperation contracts (hereinafter referred collectively to
as foreign-invested enterprises) may liquidate machinery, equipments, transport
means, supplies and raw materials under their ownership according to the forms
and contents prescrib3ed in this Circular.
2. Liquidation forms
a. Sale on the Vietnamese
market;
b. Export;
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d. Destruction;
3. Liquidation contents
a. Supplies and equipment
redundant upon the completion of capital construction for the formation of
foreign-invested enterprises;
b. Assets of foreign-invested
enterprises after operation termination or dissolution;
c. Machinery, equipment,
transport means, supplies and raw materials of operating foreign-invested
enterprises.
4. Liquidation conditions
a. Foreign-invested enterprises
may conduct the liquidation according to the forms and contents prescribed in
this Circular only after obtaining the written approval of the Trade Ministry
or agencies authorized by the Trade Ministry and must fulfill the financial
obligations related to the liquidated assets according to the provisions of the
Law on Export Tax and Import Tax and other relevant law provisions.
b. Particularly for operating
foreign-invested enterprises, apart from complying with the provisions of this
Item, they must also meet the following conditions:
- They may liquidate machinery, equipment
and transport means only in one of the following cases:
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+ Where machinery, equipment or
transport means are broken;
+ Where machinery, equipment or
transport means are no longer suitable to enterprises production/business
activities;
+ Where their production scales
down or their operation objectives change;
+ Where their machinery,
equipment or transport means are replaced with new ones furnished with more
advanced technologies.
- They may liquidate supplies
and/or raw materials only in one of the following cases:
+ Where supplies and/ore raw
materials are redundant or left in stock;
+ Where supplies and/or raw
materials are not up to quality standards;
+ Where supplies and/or raw
materials are no longer suitable to their production/business activities.
II. PROCEDURES FOR
LIQUIDATION OF MACHINERY, EQUIPMENT, TRANSPORT MEANS, SUPPLIES AND RAW
MATERIALS
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a. A dossier of liquidation of
supplies and equipment redundant after the foreign-invested enterprises capital
construction completion consists of:
- The enterprises written
request, clearly stating the liquidation form and list of to be-liquidated
supplies and/or equipment, made according to a set form;
- The report on settlement of the
construction work, including the contents on settlement of imported supplies
and equipment, and proposed measures to deal with supplies or equipment
redundant after the work construction completion.
b. A dossier of liquidation of
assets upon the foreign-invested enterprises operation termination consists of:
- The written request of the
enterprises asset liquidation board, clearly stating the liquidation form and
list of to be-liquidated machinery, equipment, transport means supplies and/or
raw materials, made according to a set form;
- The investment-licensing
agencys decision approving the enterprises operation termination;
- The decision on establishment
of the asset liquidation board, issued by the joint-venture enterprise managing
board or the foreign investor (for enterprises with 100% foreign capital), or
business cooperation parties, except fro cases where the establishment of
liquidation boards is not required as prescribed in Article 47 of the Planning
and Investment Ministrys Circular No.12/2000/TT-BKH of September 15, 2000
guiding foreign investment activities in Vietnam;
- The liquidation plan, approved
by the joint-venture enterprises managing board or the foreign investor (for
enterprises with 100%foriegn capital), or business cooperation parties.
c. A dossier of liquidation of machinery, equipment and/or transport means of
operating foreign-invested enterprises consists of:
- The enterprises written
request, clearly stating the reasons for liquidation, liquidation form and list
of to be-liquidated machinery, equipment and/or transport means, made according
to a set form;
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- The record on assessment of
broken machinery, equipment and/or transport means, in case of liquidation for
replacement of broken ones;
- The investment-licensing
bodys written approval, in case of liquidation for reduction of operation
costs, renewal of technologies, or change of operation objectives.
d. A dossier of liquidation of
supplies and raw materials of operating foreign-invested enterprise consist of:
- The enterprises written
request, clearly stating the reasons for liquidation, liquidation form and list
of to be-liquidated supplies and/or raw materials, made according to a set
form;
- The quality assessment
certificate, proving that raw materials or materials are of inferior qualify
and not up to standards for production, issued by traders providing goods
assessment services, prescribed in the Governments Decree No.20/1999/ND-CP of
April 12, 1999 on commercial provision of goods assessment services and the
Trade Ministrys Circular No.33/1999/TT-BTM of November 18, 1999 guiding the
implementation of Decree No.20/1999/ND-CP.
2. Procedures for liquidation
of machinery, equipment, transport means, supplies and raw materials of
export-processing zones
The liquidation of machinery,
equipment, transport means, supplies and raw materials of export-processing
zones must comply with the provisions of this Circular and the provisions on
goods purchase and sale between export-processing enterprise and domestic
enterprise
3. Time limit for reply to
liquidation applicants
Within 15 days after receiving
the complete and valid dossiers, the Trade Ministry or agencies authorized by
the Trade Ministry shall reply in writing to the liquidation applicants. In
case of disapproving the liquidation, the Trade Ministry of agencies authorized
by the Trade Ministry must clearly state the reasons therefore in their written
replies to foreign-invested enterprises.
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1. Responsibilities of the
Trade Ministry
The Trade Ministry shall have to
consider and approve the liquidation of machinery, equipment, transport means,
supplies and raw materials for the following projects:
a. Investment projects on oil
and gas exploration and exploitation;
b. Projects which are granted
one investment license each, but have independent cost-accounting production
establishments located in different provinces:
c. Investment projects dealing
in duty-free shops;
d. Investment projects in the
banking sector, licensed by the State Bank;
e. Investment projects dealing
in prize-winning games.
2. Responsibilities of
agencies authorized by the Trade Ministry
Agencies authorized by the Trade
Ministry shall have to consider and approve the liquidation of machinery,
equipment, transport means, supplies and raw materials of foreign-invested
enterprises engaged in projects other than those mentioned in Item 1, Section
III of this Circular.
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1. Quarterly, agencies
authorized by the Trade Ministry shall report to the Trade Ministry on the
liquidation of machinery, equipment, transport means, supplies and raw
materials of foreign-invested enterprises within their authorized scope.
2. The Planning and
Investment Department shall periodically examine the liquidation of machinery,
equipment, transport means, supplies and raw materials of foreign-invested
enterprises by the agencies authorized by the Trade Ministry.
V. IMPLEMENTATION EFFECT
1. This Circular takes
effect 15 days after its publication in the Official Gazette.
2. This Circular replaces
the provisions of Section VIII, and Point 4, Item 1, Section IX, of the Trade
Ministrys Circular No.22/2000/TT-BTM of December 15, 2000 guiding the
implementation of the Governments Decree No.24/2000/ND-CP of July 31, 2000
which details the implementation of the Law on Foreign Investment in Vietnam
regarding export, import and other commercial activities of foreign-invested
enterprises; and item 3, Section I of the Trade Ministrys Circular
No.26/2001/TT-BTM of December 4, 2001 amending and supplementing above-said
Circular No.22/2000/TT-BTM.
ON
BEHALF OF MINISTER OF TRADE
VICE MINISTER
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Le Danh Vinh