THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
174/1999/ND-CP
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Hanoi,
December 9, 1999
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DECREE
ON THE MANAGEMENT
OF GOLD BUSINESS ACTIVITIES
THE GOVERNMENT
Pursuant to the Law on Organization of the
Government of September 30, 1992;
Pursuant to the Vietnam State Bank Law No. 01/1997/QH10 of December 12, 1997;
At the proposal of the Governor of the Vietnam State Bank,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Subjects and scope of
regulation
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2. This Decree’s scope of regulation covers activities of
dealing in gold other than gold of international standard, including: gold
jewelry, gold fine art items, ingot gold and raw material gold.
3. Dealing in gold of international standard
shall comply with the Government’s Decree No. 63/1998/ND-CP of August 17,
1998 on the management of foreign exchange.
Article 2.- Interpretation
of terms
In this Decree the following phrases shall be
construed as follows:
1. "Gold business activities" mean
activities of producing, processing gold products; gold purchase and sale,
export and import in accordance with the provisions of law.
2. "Gold jewelry" means gold products
whether or not set with gemstone, precious metals or other materials to meet
people’s
adornment needs, such as rings, necklaces, bracelets, earrings, pins, statues
and other kinds.
3. "Gold fine art items" mean gold
products whether or not set with gemstone, precious metals, or other materials
to meet the artistic decoration needs, such as picture frames, statues, and
other kinds.
4. "Ingot gold" mean gold beaten in
ingots with various forms, stamped with figures indicating weight, quality and
the manufacturer’s
symbol and sign.
5. "Raw material gold" means gold in
the forms of: pieces, bars, leaves, granules, wires, solution, powder,
ornamental semi-finished products and other kinds, which are not gold of
international standard.
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1. The Vietnam State Bank (hereinafter referred
to as the State Bank) is the agency exercising the State management over gold
business activities according to the provisions in this Decree.
2. The ministries, ministerial-level agencies,
agencies attached to the Government and the People’s Committees of the provinces and
centrally-run cities shall have the responsibility to exercise State management
over gold business activities within the ambit of their respective functions,
tasks and powers.
Article 4.- Tasks and
powers of the State Bank
1. To elaborate legal documents on gold business
activities and submit them to the competent authorities for promulgation or
promulgate them according to its competence;
2. To grant and withdraw licenses for:
a/ Production of ingot gold;
b/ Gold export and import as prescribed in this
Decree;
c/ Individuals to carry extra-quota gold upon
entry or exit.
3. To supervise, inspect or coordinate with the
functional agencies in supervising and inspecting the observance of law
provisions on the management of gold business activities within the ambit of
its functions and powers.
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Article 5.- The gold
business association
Gold business organizations and individuals may
establish a gold business association for coordinating and raising the quality
of gold production and business activities, ensuring its members’
legitimate rights and interests as well as the national interests.
The establishment of the gold business
association and its charter must be approved by the State Bank before
submission to the competent authorities for decision.
Article 6.- Activities of
foreign-invested enterprises
Foreign-invested enterprises licensed by the
competent State agencies to operate in the field of production and processing
of gold jewelry and fine art items shall, in the process of operation, have to
strictly observe the provisions of the Law on Foreign Investment in Vietnam,
the provisions of their investment licenses and the provisions of this Decree.
Article 7.- Competence to
adjust the level of legal capital
The adjustment of the level of legal capital
prescribed in Articles 8, 9 and 12 of this Decree shall be decided by the Prime
Minister.
Chapter II
GOLD BUSINESS ACTIVITIES
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1. If organizations and individuals wish to
carry out activities of gold purchase and sale and/or processing of gold
jewelry and fine art items, they must fully meet the following conditions:
a/ Making business registration as prescribed by
law;
b/ Having the technical and material base as
well as equipment, which satisfy the requirements of gold purchase and sale and
processing activities;
c/ Employing skilled workers who satisfy the
requirements of gold business activities.
For individuals who are goldsmiths of
professional grade 5 (five) or higher and have registered for processing gold
jewelry and fine art items and/or producing single jewelry and fine art items,
the regulations of the State Bank shall apply.
2. If organizations or individuals wish to carry
out the production of gold jewelry and fine art objects, they must fully meet
the following conditions:
a/ They must be enterprises established and
making business registration under the provisions of law;
b/ Having the technical and material base as
well as equipment, which satisfy the requirements of gold jewelry and fine art
items production activities;
c/ Employing qualified managerial personnel and
skilled workers, who meet the requirements of gold jewelry and fine art items
production activities;
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3. For the following activities, the State Bank’s
permission is required:
a/ Producing ingot gold as prescribed in Article
9 of this Decree;
b/ Exporting and importing gold fine art items
of three or more kilograms in weight as prescribed in Clause 3, Article 11 of
this Decree;
c/ Exporting and importing raw material gold and
ingot gold as prescribed in Article 12 of this Decree.
Article 9.- Ingot gold
production
Basing itself on the monetary policy objectives
in each period of time, the State Bank shall consider and grant ingot gold
production licenses to a number of gold business enterprises which meet the
following conditions:
1. Having made business registration for gold
jewelry and fine art items production and having a legal capital of 50 (fifty)
billion Vietnam dong or more;
2. Having the technical and material base as
well as equipment, which meet the requirements of ingot gold production;
3. Employing managerial personnel, technicians
and skilled workers fully qualified for ingot gold production activities.
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1. To strictly observe the provisions of this
Decree and other relevant law provisions;
2. To publicly put up at the transaction place
the quality, buying and selling prices of various kinds of gold products and
take responsibility before law for their sold products;
3. Having a plan to ensure security in their
business activities, to protect the environment and prevent and fight fires and
explosions;
4. All enterprises that produce gold jewelry,
gold fine art items and ingot gold shall have to register their signs and
symbols with the State Bank and stamp their signs and symbols and the quality
on their products. Particularly for the production of ingot gold, enterprises
shall have to register their product quality with the State Bank.
Chapter III
GOLD IMPORT AND EXPORT
Article 11.- Import and
export of gold jewelry and fine art items
1. The import and export of gold jewelry shall
comply with the enterprises’ business registration certificates and
the Prime Minister’s
regulations on the import and export management;
2. The import and export of gold fine art items
of less than three kilograms in weight shall comply with the enterprises’
business registration certificates and the Prime Minister’s
regulations on the import and export management;
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4. The import and export of gold jewelry and
fine art items for exhibitions and fairs shall comply with the Government’s
regulations on trade exhibitions and fairs.
Article 12.- Import and
export of raw material gold and ingot gold
1. Basing itself on the demands for raw
materials for the production of gold jewelry and fine art items and ingot gold
as well as the monetary policy objectives in each period of time, the State
Bank shall consider and permit enterprises which have made gold business
registration to import and export ingot gold and raw material gold in the forms
of pieces, bars, leaves, granules, wires and powder if they fully meet the
following conditions:
a/ Having a minimum legal capital of 5 (five)
billion Vietnam dong;
b/ Conducting business with profit in the latest
year.
2. Enterprises that have made gold business
registration may import and export various kinds of gold jewelry in the form of
semi-finished products, solution, soldering flakes and gold salt without having
to apply for the State Bank’s permit.
3. Gold business organizations and individuals
which have gold-processing contracts with a foreign country(ies) shall be
permitted by the State Bank to import raw material gold on condition that their
products must be re-exported.
4. Enterprises with gold mining licenses shall
be considered and permitted by the State Bank to export raw material gold.
Article 13.- Gold import
and export by foreign-invested enterprises
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Article 14.- Individuals
carrying gold upon entry and exit
Upon entry and exit, Vietnamese individuals and
foreigners shall be allowed to carry gold according to the State Bank’s
regulations.
Chapter IV
HANDLING OF VIOLATIONS
Article 15.- Handling of
violations of gold business organizations and individuals
Organizations and individuals that violate the
provisions of this Decree shall, depending on the nature and seriousness of the
violations, be administratively sanctioned or examined for penal liability as
prescribed by law.
Article 16.- Handling of
violations committed by State officials and employees
State officials and employees who abuse their
positions, powers or fail to comply with the provisions of this Decree shall,
depending on the nature and seriousness of the violations, be disciplined,
administratively sanctioned or examined for penal liability as prescribed by
law.
Chapter V
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Article 17.- Reporting
regime
Quarterly, annually or when necessary, gold
business organizations and individuals shall have to report the situation of
their gold business activities and the situation of gold import and export
according to the regulations of the State Bank and the competent State
agencies.
Article 18.- Effect
1. This Decree takes effect 15 days after its
signing and replaces the Government’s Decree No. 63/CP of September 24, 1993
on the State management over gold business activities
2. Within 90 days after the effective date of
this Decree, organizations and individuals that are carrying gold business
activities must adjust their gold business activities in accordance with the
provisions of this Decree.
Article 19.-
Implementation of the Decree
1. The State Bank Governor shall have to guide
the implementation of this Decree.
2. The Ministry of Science, Technology and
Environment shall coordinate with the State Bank in defining the Vietnam’s
gold standard and testing methods.
3. The ministers, the heads of ministerial-level
agencies, the heads of agencies attached to the Government and the presidents
of the People’s
Committees of the provinces and centrally-run cities shall have to implement
this Decree.
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ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai