THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
65-CP
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Hanoi,
October 13, 1995
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DECREE
PROMULGATING THE REGULATION ON THE MANAGEMENT OF ACTIVITIES
IN GEM BUSINESS
THE GOVERNMENT
Pursuant to the Law on
Organization of the Government of September 30, 1992;
Pursuant to the Law on State Enterprises of April 20, 1995;
Pursuant to the Ordinance on Mineral Resources of July 28, 1989;
At the proposals of the Minister of Heavy Industry, the Minister of Finance,
the Minister of the Interior, the Governor of the State Bank, and on the
suggestion of the leadership of the concerned ministries, branches and
localities,
DECREES:
Article 1.-
To issue together with this Decree the "Regulation on the Management of
Activities in Gem Business".
Article 2.-
1. This
Decree replaces Decree No.67-CP of October 7, 1993 of the Government
promulgating the "Regulation on the Management of Activities in Geological
Survey, Mining, Fashioning and Trading in Gems".
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Article 3.-
The Minister of Heavy Industry , the Minister of Finance , the Minister of the
Interior , the Minister of Trade, the General Director of the General Customs
Department shall issue documents to guide the implementation of the Regulation
promulgated together with this Decree.
Article 4.-
This Decree takes effect on the date of its promulgation. The earlier
regulations which are contrary to this Decree are now annulled .
The Ministers, the Heads of the
ministerial-level agencies, the Heads of the agencies attached to the
Government, and the Presidents of the People's Committees of the provinces and
cities directly under the Central Government shall have to implement this
Decree.
ON
BEHALF OF THE GOVERNMENT
PRIME MINISTER
Vo Van Kiet
REGULATION
ON THE MANAGEMENT OF ACTIVITIES IN GEM BUSINESS
(issued together with Decree No.65-CP of October 13, 1995)
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GENERAL PROVISIONS
Article
1.- Precious stones referred to in this Regulation are natural minerals
having gem quality. Depending on their commercial value, precious stones are
divided into two groups:
- Group 1: diamond, ruby,
sapphire and emerald.
- Group 2: other precious
stones.
Article
2.- All activities in survey, exploration, exploitation, manufacture and
fashioning of precious stones; making jewelry and art articles; trading, exporting
and importing precious stones (hereunder referred to as activities in gem
business) on Vietnamese territory must abide by the provisions of this
Regulation and related stipulations of law.
Article
3.- The Ministries, the ministerial-level Agencies and the Agencies
attached to the Government shall perform their State management function with
regard to the activities in gem business according to their tasks and powers.
Article
4.- The People's Committees at various levels shall perform their State
management functions with regard to the precious stone resources and the
activities in gem business according to this Regulation and other related
stipulations of law; they have the responsibility to protect the areas of
precious stones which are not yet assigned to the management of any unit; they
shall have to coordinate with the assigned units to protect the mine areas
under exploration or exploitation, to prevent the illegal activities of
exploitation and trading of precious stones in the localities.
The People's Committee of the
province where precious stones are located is entitled to set up a fund to
support the protection of the precious stone resource. The precious stone
exploiting units shall deduct 1% (one per cent) of the revenue from the
precious stones exploited for the Provincial People's Committee to set up this
fund.
Aside from the general annual
budget balance already approved, the State shall devote 50% (fifty per cent) of
the revenue deriving from the tax imposed on the value of the precious stones
exploited by the exploiting units, and 50% (fifty per cent) of the revenue of
the Corporation as stipulated in Article 16 of this Regulation for the province
to invest in infrastructure development, the construction of medical,
educational and cultural projects in the mining locality .
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Foreign economic organizations
and individuals are allowed to invest in the gem business under the Law on
Foreign Investment in Vietnam and other related stipulations of law.
The State encourages and creates
conditions for the research institutes, universities, economic units and
individuals in the country to invest in research and production of equipment
for the exploitation and fashioning of precious stones; in the training of
gemmologists and technical workers in gem fashioning; in the application of
scientific- technical advances with a view to raising the value of Vietnam's
gems in compliance with Resolution No.35-HDBT of January 28, 1992 of the
Council of Ministers (now the Government) on the management of science and
technology.
Article 6.-
The State recognizes the lawful ownership of precious stones in the form of raw
material or fashioned products by organizations and individuals .
The State protects the lawful
interests of all organizations and individuals operating in the gem business as
provided for by this Regulation and related stipulations of law.
Article 7.-
The Vietnam Gem and Gold Corporation (hereafter referred to as Corporation) is
a State enterprise set up to serve as the core in the building and development
of the gem industry and the manufacture of jewelry in Vietnam.
The function, tasks, powers,
organization and activities of the Corporation shall be defined in the Statute
on Organization and Activities of the Corporations ratified by the Government.
Chapter II
GEOLOGICAL
INVESTIGATION, SURVEY AND EXPLORATION OF GEM MINES
Article 8.-
The Ministry of Heavy Industry shall organize the research and geological
investigation of precious stones, and evaluation of gem reserves in the process
of basic geological and mineral research and investigation with State allocated
funds.
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The Corporation shall organize
the survey and search for precious stones in the mining areas assigned to it,
under the provisions of and with funds allocated by the State budget. The mine
prospection shall be conducted by the Corporation with its own investment
funds.
The investigation, survey,
prospection and exploitation of precious stones of Group 2 shall be conducted
as currently stipulated for hard minerals.
Article 9.-
The geological documents and samples of precious stones collected in the
process of geological investigation, research and prospection must be preserved
according to prescriptions of law.
CHAPTER
III
EXPLOITATION OF PRECIOUS
STONES
Article
10.- The Corporation is assigned the task of organizing the exploitation of
mines of gems of Group 1 and fully collecting the accompanying minerals;
protecting and making rational use of the resources, protecting the environment
and the ecology in the process of exploitation .
The gem deposits of small scale
which lie scattered and do not form a concentrated mine and where exploitation
on industrial or semi-contractual scale is not economically efficient shall be
zoned off and assigned to the management of the People's Committee of the local
province which shall organize its exploitation by the local population. The
exploitation must ensure safety, order, social security and protection of the
environment and the ecology.
Article
11.- The Vietnamese economic organizations and individuals (hereafter
referred to as units) that wish to exploit precious stones of Group 1 in the
mining areas already assigned to the Corporation, must do it through bidding
and the signing of production sharing exploitation with the Corporation ;
submit to control and supervision of the Corporation in the process of
exploitation.
The foreign economic
organizations and individuals that wish to exploit gems in Group 1 must enter
into joint ventures with the Corporation under the Law on Foreign Investment in
Vietnam and must have the permission of the Prime Minister.
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1. The legal capacity of the
organization or individual that is party to the Contract.
2. Object of the Contract;
3. Term of the Contract;
4. Conditions for terminating
the Contract before term, or extension of the Contract.
5. Rights and obligations of the
parties to the Contract.
6. Conditions for the transfer
of rights and obligations of the parties to the Contract.
7. Responsibility for the
protection of the environment and social order and safety during the process of
exploitation.
8. Modalities for the settlement
of disputes arising from the Contract.
Besides, the contracting parties
may agree on other terms in the Contract, provided they do not contravene this
Regulation and current law.
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Article
14.- The bidding floor price is the minimum price offered for the bidding
with regard to each gem-containing lot of land. It is based on a unified unit
price for all the lots in each mining area and shall be publicly announced.
The unit bidding floor price is
constituted by these factors: expenditures on geological investigation, mine
survey and prospection; expenditures in the utilization of the infrastructure
in service of the exploitation in the mining area; the land rent, the minimum
mineral resource tax and the expenditures on environmental rehabilitation, compensations
for crops and other compensations paid by the exploiting unit.
Article
15.- The President of the Managing Board of the Corporation shall sign the
decision to set up the Bidding Council for each gem mining area. The Council
shall comprise a representative of the Corporation who shall act as President
of the Council, a representative of the People's Committee of the province
where the mine is located, a representative of the Ministry of Heavy Industry,
and a representative of the Ministry of Finance.
The Bidding Council has the
tasks of examining and approving the bidding price proposed by the Corporation,
receiving the bidding dossier, opening the bidding, announcing the bidding
result and the winning unit.
The Regulation on bidding for
the gem mines shall be worked out by the Corporation and ratified by the
Minister of Heavy Industry.
Article
16.- The winning unit shall have to bear all expenditures in exploiting and
in organizing the internal protection of its exploiting area. The value of products
collected in the process of exploitation, after payment of different kinds of
tax (except the resource tax which has been paid earlier and accounted for in
the bidding price) and other expenditures, shall be divided according to this
ratio: 85 (eighty five per cent) for the exploiting unit, and 15% (fifteen per
cent) for the Corporation .
For the gems which sell for one
billion Vietnam Dong and more per piece, this ratio shall be 75% (seventy five
per cent) for the exploiting unit, and 25% (twenty five per cent ) for the
Corporation.
Article
17.- The revenue from the bidding and from the production- sharing
exploitation contract shall be recorded into separate revenues among the
revenues of the Corporation.
The Ministry of Finance shall
issue the regime of collection and remittance to the State budget of the
revenues of the Corporation after asking for the opinion of the Prime Minister.
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Article
19.- The Corporation has the duty to provide guidance in exploitation
technique in order to get the maximum of minerals, protect the environment,
ensure labor safety; inspect and supervise the whole process of exploitation
activity of the exploiting units.
The test on completion,
classification and evaluation of products in the process of exploitation shall
be conducted by the Test on Completion Committee. This committee shall be set
up by the Corporation and comprise an equal number of representatives of the
Corporation and the exploiting unit, each having at least two representatives.
Article
20.- The exploiting unit is entitled to transfer the exploiting right to
any eligible organization or individual that shall continue exercising the
rights and obligations which the unit has signed with the Corporation. In case
the State recovers or requisitions the mine for security or defense reason, the
exploiting unit shall be paid compensations according to current law.
Chapter IV
REFINING, FASHIONING AND
TRADING IN PRECIOUS STONES
Article
21.- Any Vietnamese economic organization and individual that wishes to
refine, fashion or trade in precious stones or to manufacture jewelry and art
articles in precious stones, must set up their production or business
establishments and register for operation as prescribed by law.
Article
22.- The State encourages and creates all favorable conditions for all
organizations and individuals to carry out the purchase and sale of precious
stones (raw materials or already refined and fashioned) at the precious stone
and jewelry centers of the Corporation. Aside from these centers, precious
stones can be purchased and sold only at the office of the enterprise and the
shops licensed for gem business, or precious stone markets in the mining areas
managed by the local administration with the participation of the Corporation.
The Corporation shall
periodically organize auction fairs of precious stones in the country or abroad
according to prescriptions of law.
The State encourages the
exportation of precious stones already refined and fashioned or gem-set jewelry
and the importation of various kinds of raw gems to process and fashion them
for re-export.
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The Ministry of Trade shall
coordinate with the General Customs Department and other concerned State
agencies to issue regulations on the management of the gem market and export
and import after asking for the opinion of the Prime Minister.
The Ministry of Finance shall
issue the model form of the Contract and the Receipts for Purchase and Sale in
the gem business according to its jurisdiction.
Chapter V
HANDLING OF VIOLATIONS
AND REWARDS
Article
24.- All activities in the survey and prospection of precious stones which
do not comply with the stipulations of this Regulation and other related
stipulations of law; the violation of the current stipulations of law on the
protection of secrets of gem geological documents shall be handled strictly
according to law.
Article
25.- The exploitation, processing, purchase and sale and export and import
of precious stones which do not comply with the stipulations of this Regulation
and other related stipulations of law shall, depending on their character and
the seriousness of the violation, be subject to administrative sanctions or
examined for penal liability as prescribed by law.
In all cases, the amount of
precious stones smuggled or dug up and panned illegally shall be confiscated
and remitted to the State Treasury.
Any individual or organization
credited with discovering, denouncing or preventing in time the acts of illegal
exploiting or smuggling precious stones shall be commended and rewarded
according to the common provisions.
Article
26.- The persons who abuse their positions and powers to contravene the
stipulations of this Regulation shall, depending on the character and
seriousness of the violation, be subjected to administrative sanctions, or
examined for penal liability according to prescriptions of law.
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IMPLEMENTATION PROVISIONS
Article
27.- This Regulation takes effect on the date of its promulgation. All
earlier stipulations which are contrary to this Regulation are now annulled.
Article
28.- Sixty days at the latest after the promulgation of this Regulation,
the concerned ministries and branches shall have to issue documents to guide
its implementation.