Vietlaw Weekly Newsletter No. 358
Guidelines on settlement of disputes in credit contract and settlement of bad debts
Dispatch No. 152/TANDTC-PC dated July 19th, 2017 of the Supreme People’s Court on settlement of disputes in credit contract, settlement of bad debts
The document is provide guidelines on some issues relating to procedures for settlement of disputes in credit contracts and settlement of bad debts of banks, including:
1. Identification of entities in civil relations with the participation of households using land.
3. Security for performance of obligations.
4. Transfer of right to demand.
5. Settlement of civil transactions established before the effective date of the Civil Code 2015.
6. Inheritance of procedural rights and obligations.
7. Periods of prescription for lawsuits.
8. Lawsuit institution and acceptance of cases.
9. Treatment of collateral of insolvent enterprises, cooperatives and enterprises, cooperatives subject to bankruptcy procedures for interests of secured creditors.
CV152_19072017TAND[ENGLISH].pdf (English translation)
Amending to statistical reporting system applied to credit institutions and foreign bank branches
Circular No. 11/2018/TT-NHNN dated April 17th, 2018 of the State Bank on amending and supplementing certain articles of the Circular No. 35/2015/TT-NHNN dated December 31, 2015 of the Governor of the State Bank of Vietnam on the statistical reporting system applied to credit institutions and foreign bank branches
This Circular takes effect from October 1st, 2018.
TT11_17042018NHNN[ENGLISH].pdf (English translation)
New procedures for modifications to licenses of non-bank credit institutions
Circular No. 25/2017/TT-NHNN dated December 29th, 2017 of the State Bank on application and procedures for approval for changes of non-bank credit institutions
This Circular provides for the application and procedures for approval for changes and revisions of licenses applied to non-bank credit institutions (financial companies and financial leasing companies), including:
1. Location of the headquarters;
2. License validity period;
3. Charter capital;
4. Transfer of stakes, shares;
5. Business suspension of 05 working days or more;
6. Revisions to licenses other than the above – mentioned cases.
Particularly, application and procedures for approval for license changes and revisions of the contents and scope of operation; relocation of headquarters; listing of shares on a foreign securities market and transfer of shares and stakes that leads to conversion of business types shall comply with other provisions.
According to Article 4 of this Circular, the application for license changes and revisions of financial companies and financial leasing companies must be made in Vietnamese. The applications in foreign language shall be consularly legalized. The application shall be submitted via post offices.
Competence to approve changes and revisions of licenses of financial companies and financial leasing companies belongs to the State Bank or the Bank Supervision and Inspection Agency.
TT25_29122017NHNN[ENGLISH].pdf (English translation)
Regarding online bidding for public investment projects from 2018
Official letter No. 371/BTC-KHTC dated January 11th, 2018 of the Ministry of Finance regarding deployment of implementation of Directive No. 47/CT-TTg
Relating to the bidding for public investment projects from 2018, the Ministry of Finance requests to carry out online at least 40% of bids under the shopping procedure and 30% of small-scale bids
With regard to the process of online contractor selection, it is required to comply with Circular No. 07/2016/TT-BKHDT and Circular No. 04/2017/TT-BKHDT (take effect from March 1st, 2018).
CV371_11012018BTC[VLO].pdf (English translation)
Regarding import duty refund
Official letter No. 2688/TXNK-CST dated May 28th, 2018 of the General Department Vietnam Customs regarding of import duty refund
According to Clause 1 Article 36 of Decree No. 134/2016/ND-CP, import duty refund is only given to goods which are imported for manufacture or business operation and eventually used for manufacture of goods for export and the products have been exported abroad or exported to non-tariff zones.
Accordingly, with regard to goods which are imported for business operation but eventually used for manufacture of goods for export and the products are exported on the spot, import duty shall not be refunded.
CV2688_28052018TCHQ[VLO].pdf (English translation)
Measures to improve business environment in 2018
Resolution No. 19/2018/NQ-CP dated May 15th, 2018 of the Government on going implementation of major duties and measures to improve business environment and enhance national competitiveness in 2018 and subsequent years
Aiming to further improve business environment in 2018 and the following years, the Government requested Ministries, Sectoral administrations to implement the following important measures:
1. Investment and business sector: Complete elimination and simplification of 50% of investment and business conditions in quarter II/2018 at the latest. At the same time, request elimination of business sectors and industries subject to prescribed conditions; Recommend reducing corporate information release fee by at least 50%.
2. Import and export sector: Cut down on at least 50% of the list of commodities and products subject to specialized inspections in 2018. At the same time, robustly change the state management approach from mainly pre-inspection to mainly post-inspection and do not apply the inspection of each consignment, except from quarantine.
3. Administrative procedure sector: Facilitate application of information technology to deal with administrative procedures and provide public services online. By the end of 2018, most of the public services which are common and related to people and enterprises are provided at the 3rd and 4th level.
4. Enter and exit sector: Research and propose perfection of currently enforceable policies on visa, including visa waiver, grant of visitor visa and e-visa, as follows: Expanding the scope of the visitor visa waiver program to cover more eligible visa applicants, granting visa online (Visa Online), simplifying procedures for application for and approval of grant of visa at the immigration checkpoint (Visa On Arrival); granting citizens of 12 countries already exempted from visa an extension of the duration of visa waiver from 15 days to 30 days.
5. Announcement of regulation, standard conformity: Scrutinizing radical revision of enforceable regulations on procedures for declaration of conformity with prescribed standards and regulations wherein manufacturers shall be responsible to make such declaration which is required for a line of products but not for each product item or batch; relief of the situation under which an imported item is subject to both declaration of conformity and inspection of quality.
6. Labor and social insurance sector: Continuing to promote application of information technology to submit social security declarations, collect social security contributions and process application for payment of social security, health insurance and unemployment insurance benefits online.
NQ19_15052018CP[ENGLISH].pdf (English translation)
FDI enterprises are allowed to export scraps containing gold
Official letter No. 1561/GSQL-GQ2 dated May 28th, 2018 of the General Department of Vietnam Customs regarding export of scraps containing gold
Relating to the export of scraps obtained from the product production process of foreign direct investment (FDI) enterprises, the General Department of Vietnam Customs requests to comply with the guidelines provided in point 1 of Official letter No. 3765/BCT-XNK dated April 17th, 2015.
CV1561_28052018TCHQ[VLO].pdf (English translation)
Some issues relating to PIT incurred by foreign workers
Official letter No. 1801/TCT-TNCN datd May 16th, 2018 of the General Department of Taxation regarding personal income tax (PIT) policy
According to point dd.7 Clause 2 Article 2 of Circular No. 111/2013/TT-BTC , payments for foreign workers such as payments for tax counseling service, charges for making temporary residence cards, visas are all subject to PIT.
Particularly, the tuition fees (from preschool to high school) for children of foreign workers in Vietnam to study in Vietnam shall be exempt from PIT according to point g.7 Clause 2 Article 2 of Circular No. 111/2013/TT-BTC .
For benefits paid to workers (both Vietnamese and foreign workers), currently, these amounts are exempt from PIT: The payments for refresher courses for workers (point dd. 6 Clause 2 Article 2); supports provided for medical examination and treatment of fatal diseases suffered by workers and their families (point g.1 Clause 2 Article 2).
For workers who face with difficulties caused by natural disasters, fires, accidents or severe diseases, they may be considered for PIT reduction corresponding to the extent of damage they suffer from but not exceeding payable tax amount (Article 5 of Decree No. 65/2013/ND-CP).
Regarding airfares, charges for accommodation, travelling expenses incurred by foreign contractors, enterprises shall carry out according to Official letter No. 594/TCT-TNCN dated February 12th, 2015 and Official letter No. 4345/TCT-TNCN dated September 20th, 2016.
CV1801_16052018TCT[VLO].pdf (English translation)
Import and export policies
Issues relating to origin of products processed in Vietnam
Official letter No. 1548/GSQL-GQ4 dated May 28th, 2018 of the General Department regarding issues relating labeling on exports
According to Clause 9 Article 39 of Decree No. 69/2018/ND-CP “goods origin” is one of the terms which must be indicated in the processing contract signed with foreign trader.
Accordingly, in case products are processed in Vietnam but the origin presents another country under designation of the foreign trader, it is required to indicate in the processing contract.
The enterprise that exports the processed products must be self-responsible for goods origin according to Circular No. 05/2018/TT-BTC and declare goods origin on the export declaration according to Annex 2 of Circular No. 38/2015/TT-BTC .
CV1548_28052018TCHQ[VLO].pdf (English translation)
Guidelines on infection control in health care facilities
Decision No. 3916/QD-BYT dated August 28th, 2017 of the Ministry of Health on approval for guidelines on infection control in health care facilities
Guidelines on infection control in health care facilities issued together with this Decision include:
1. Guidelines on controlling hospital-acquired infections in health care facilities.
2. Guidelines on controlling post-operative infection in health care facilities.
3. Guidelines on preventing urinary tract infection regarding urinary catheterization in health care facilities.
4. Guidelines on processing endoscopes and flexible endoscopes in health care facilities.
5. Guidelines on hand hygiene in health care facilities.
This Decision takes effect from the date of signing.
QD3916_28082017BYT[ENGLISH].pdf (English translation)
Pharmaceutical - Cosmetics
Material for manufacture of Atropin Sulphat drug is subject to import license
Official letter No. 9753/QLD-DK dated May 30th, 2018 of the Ministry of Health regarding proclamation of the List of materials for drug manufacture subject to the issuance of import license of drugs to which registration numbers are already granted
According to this Official letter, Atropin sulphat substance which is used as material for manufacture of Atropin Sulphat drug is subject to import license.
The proclaimed contents about Atropin Sulphat drug in the list attached with this Official letter shall replace the contents about the aforesaid drug already proclaimed according to Official letter No. 24354/QLD-DK dated December 12th, 2016 of the Drug Administration of Vietnam.
CV9753_30052018BYT[VLO].pdf (English translation)
New guidelines on management of quality of herbal ingredients and traditional drugs
Circular No. 13/2018/TT-BYT dated May 15th, 2018 of the Ministry of Health on quality of herbal ingredients and traditional drugs
This Circular provides for the application of quality standards for herbal ingredients and traditional drugs; origins of herbal ingredients and traditional drugs; inspection and handling of inspection results of quality of herbal ingredients and traditional drugs during the manufacture, cultivation, export, import, distribution, wholesaling, retailing, sale and use of herbal ingredients and traditional drugs in Vietnam, and herbal ingredients and traditional drugs prepared and prescribed within health facilities; procedures for recalling traditional drugs and disposal of recalled drugs.
According to Article 8 of this Circular, herbal ingredients and primary packages of traditional drugs must be tested by the traditional drug manufacturer and meet quality standards before their manufacture is commenced.
Concurrently, finished traditional drugs/ herbal ingredients must be tested by their manufacturers and meet quality standards before being released.
In addition, facilities trading in herbal ingredients/ traditional drugs must carry out the appraisal of testing methods specified in the quality standards for herbal ingredients/ traditional drugs announced and applied by manufacturers at a testing laboratory meeting Good Laboratory Practice (GLP) requirements.
With regard to herbal ingredients/ traditional drugs used by a health facility, they must be tested by a testing laboratory that meets GLP requirements.
This Circular takes effect from June 30th, 2018.
TT13_15052018BYT[ENGLISH].pdf (English translation)
List of drugs and cosmetics whose HS codes have been standardized from 2018
Circular No. 06/2018/TT-BYT dated April 6th, 2018 of the Ministry of Health on promulgating the nomenclature of imported and exported drugs and medicinal ingredients for human use and cosmetics whose HS codes have been assigned in the Vietnam’s nomenclature of exports and imports
This Circular is to promulgate 10 Nomenclatures of drugs and cosmetics whose HS codes have been standardized according to the Nomenclature of exports and imports 2018 issued together with Circular No. 65/2017/TT-BTC, including:
1. Nomenclature 1: Nomenclature of imported and exported toxic drugs and toxic medicinal ingredients whose HS codes have been assigned;
2. Nomenclature 2: Nomenclature of imported and exported medicinal ingredients that are narcotic active ingredients whose HS codes have been assigned;
3. Nomenclature 3: Nomenclature of imported and exported medicinal ingredients that are psychotropic active ingredients whose HS codes have been assigned;
4. Nomenclature 4: Nomenclature of imported and exported medicinal ingredients that are drug precursors whose HS codes have been assigned;
5. Nomenclature 5: Nomenclature of imported and exported drugs and active ingredients that are banned from certain fields and whose HS codes have been assigned;
6. Nomenclature 6: Nomenclature of imported and exported medicinal ingredients that are radioactive substances for medical use whose HS codes have been assigned;
7. Nomenclature 7: Nomenclature of imported and exported medicinal ingredients that are active ingredients and semi-finished drugs whose HS codes have been assigned;
8. Nomenclature 8: Nomenclature of imported and exported drugs containing 01 active ingredient whose HS codes have been assigned;
9. Nomenclature 9: Nomenclature of imported and exported combined drugs whose HS codes have been assigned;
10. Nomenclature 10: Nomenclature of imported and exported cosmetics whose HS codes have been assigned.
The aforesaid Nomenclatures serve as a basis for enterprises to make customs declaration upon import and export of drugs and cosmetics.
In case of any disputes over HS codes on the Nomenclature promulgated together with this Circular, the Ministry of Health shall cooperate with the Ministry of Finance in considering reaching an agreement and deciding on HS codes according to the rules specified in Clause 4 Article 19 of Decree No. 08/2015/ND-CP.
Notably, the Nomenclature of drugs issued together with this Circular only include modern drugs, herbal drugs, vaccines, biologicals; medicinal ingredients that are active ingredients. It does not include traditional drugs and medicinal ingredients that are herbal ingredients, excipients and capsule shells.
This Circular takes effect from May 21st, 2018.
To replace Nomenclatures 1, 2, 3, 4 and 8 promulgated together with the Circular No. 45/2016/TT-BYT dated December 20th, 2016.
TT06_06042018BYT[ENGLISH].pdf (English translation)
Regarding quality inspection with regard to goods derived from import
Official letter No. 1568/GSQL-GQ2 dated May 28th, 2018 of the General Department of Vietnam Customs regarding application of specialized management with regard to imported goods
According to Clause 3 Article 56 and Clause 3 Article 57 of the Law on foreign trade management No. 05/2017/QH14, from January 1st, 2018 the measures for management of imports, exports of customs-controlled areas shall be imposed only once.
Accordingly, in case an export processing enterprise (EPE) buys goods derived from import from a foreign country and the goods have been undergone the specialized inspection of quality upon the import from the foreign country into Vietnam, the EPE must not conduct the specialized inspection when it buys such goods.
CV1568_28052018TCHQ[VLO].pdf (English translation)
Steel and Iron
Regarding steel products which shall be subject to safeguard duty
Official letter No. 2994/TCHQ-TXNK dated May 29th, 2018 of the General Department of Vietnam Customs regarding imposition of safeguard duty on steel products
Currently, imported steel products are imposed safeguard duty under these 2 decisions: Decision No. 2968/QD-BCT dated July 18th, 2016 and Decision No. 1931/QD-BCT dated May 31st, 2017.
In which, entities which are subject to safeguard duty under Decision No. 2968/QD-BCT are steel ingots and steel bars of 12 these HS codes: 7207.11.00; 7207.19.00; 7207.20.29; 7207.20.99; 7224.90.00; 7213.10.00; 7213.91.20; 7214.20.31; 7214.20.41; 7227.90.00; 7228.30.10; 9811.00.00. If steel ingots and steel bars belong to HS code 9811.00.00, the safeguard measure shall be applied only when they are referred 3 original HS codes 7224.90.00; 7227.90.00; 7228.30.10.
Entities which are subject to safeguard duty under Decision No. 1931/QD-BCT are color galvalume items of 8 these HS codes: 7210.70.10, 7210.70.90, 7212.40.10, 7212.40.20, 7212.40.90, 7225.99.90, 7226.99.19, 7226.99.99.
According to point 1.94 Section II Annex II issued together with Circular No. 38/2015/TT-BTC , enterprises have to import codes of application of duty rate/duty amount in case goods are subject to safeguard duty.
Table of codes of application of duty rate/duty amount and codes of taxes are posted at website www.customs.gov.vn.
CV2994_29052018TCHQ[VLO].pdf (English translation)
Inland Water transportation
Curriculums for training crewmembers applicable from 2017
Circular No. 03/2017/TT-BGTVT dated January 20th, 2017 of the Ministry of Transport on contents and curriculums for training crewmembers and operators of inland waterway vessels
This Circular takes effect from March 15th, 2017 and replaces Circular No. 57/2014/TT-BGTVT dated October 24th, 2014.
TT03_20012017BGTVT[ENGLISH].pdf (English translation)
Amendments to procedures for issuing testing facilities with the certificate of biosafety
Decision No. 7248/QD-BYT dated December 8th, 2016 of the Ministry of Health on announcing administrative procedures amended and supplemented under the Government’s Decree No. 103/2016/ND-CP dated July 1, 2016 providing for biosafety in laboratories
This Decision is to proclaim and provide guidelines on amended, supplemented administrative procedures for issuance, reissuance of certificate of biosafety levels III and IV.
This Decision takes effect from the date of signing.
To annul 09 sets of administrative procedures issued in the Decision No. 4695/QD-BYT dated November 4th, 2015 of the Minister of Health (Appendix I issued together with this Decision).
QD7248_08122016BYT[ENGLISH].pdf (English translation)
National technical regulation on gasolines, diesel fuel oils and biofuels
National technical regulation QCVN 1:2015/BKHCN dated November 11th, 2015 of the Ministry of Science and Technology on gasolines, diesel fuel oils and biofuels
This technical regulation provides for limits of specifications for safety, health and environment, and requirements for quality management of gasolines, diesel fuel oils and biofuels, including:
- Unleaded gasolines, E5 and E10 gasolines;
- Diesel fuel oils and B5 diesel fuel oils;
- Biofuels: fuel ethanol and B-100 biodiesel fuel blend stock.
This technical regulation does not apply to fuels used for aviation and defense purposes.
QCVN 1:2015/BKHCN replaces QCVN 1:2009/BKHCN.
QCVN 1:2015/BKHCN issued together with Circular No. 22/2015/TT-BKHCN dated November 11th, 2015, which takes effect from January 1st, 2016.
QCVN1_11112015BKHCN[ENGLISH].pdf (English translation)
Regulations on management and protection of railway
Decree No. 56/2018/ND-CP dated April 16th, 2018 of the Government on management and protection of railway
This Decree provides for management and protection of railway infrastructure, including: naming of railway lines and railway stations; removal of railway lines; safety perimeter of railway works and railway safety corridor; management and use of land area for rail transport; responsibility for management and protection of railway infrastructure.
This Decree takes effect from July 1st, 2018.