New policies take effect in March 2016

1.Requirements for grant of Licenses for Establishment of representative offices of foreign traders:

Since March 10th 2016, foreign traders are granted with Licenses for Establishment of representative offices in case they meet the four following requirements:

– The foreign trader is incorporated and registers for doing business in accordance with provisions of laws of countries or territories being parties to treaties to which Vietnam is a signatory or is recognized by the aforesaid countries or territories;

– The foreign trader has come into operation for at least 01 year from the date of establishment or registration;

– The Certificate of Business Registration or the equivalent document is valid for at least 01 more year from the date of submission of the application;

– The scope of operation of the representative office is consistent with that in Vietnam’s Commitments to treaties to which Vietnam is a signatory;

– Where the scope of operation of the representative office is inconsistent with Vietnam’s Commitments or the foreign trader is not located in the country or territory being party to treaties to which Vietnam is a signatory, the representative office can be established only if relevant Ministers, Heads of ministerial agencies (hereinafter referred to as “relevant Ministers”) have given approval for establishment of the representative office.

These regulations are mentioned in Decree No 07/2016/NĐ-CP dated Jan 25th 2016.

This Decree shall replace the Decree No.72/2006/ND-CP dated July 25, 2006 of the Government detailing regulations on establishment of representative offices and branches of foreign traders in Vietnam under the Law on Commerce.

The Article 2 of the Decree No. 120/2011/ND-CP amending and supplementing a number of administrative procedures promulgated in Decrees detailing the implementation of the Law on Commerce dated December 16, 2011 by the Government shall be null and void;

2. Amendments on import tax rate incentives

Circular 16/2016/TT-BTC amends import tax rate incentives for commodities in group 27.07, 29.02, 39.02 in List of import tax rate incentive, takes effect from March 6^th 2016.

– Amending import tax rate incentives for a number of commodities in group 27.07, 29.02, 39.02 in List of import tax rate incentive.

– Amending and supplementing Chapter 98 regulating commodity codes and specific import tax rate incentives to a number of commodities and commodity groups in Section II, Annex II of List of import tax rate incentive, enclosed with Circular 182/2015/TT-BTC.

See Circular 16/2016/TT-BTC dated January 21^st 2016 for details.

3. New regulations on herbal ingredient trading

Circular 03/2016/TT-BYT dated January 21^st, 2016 of Ministry of Health regulating herbal ingredient trading takes effect from March 6^th 2016

Thus, application for herbal ingredient import license includes:

– A list of imported goods (in case of import entrustment, the list must specify the name of the entrusted party).

– A quality standards and herbal ingredient testing method of the manufacturer or photocopies of the quality standard treatise of the pharmacopoeia.

– If herbal ingredients contain addictive, psychotropic ingredients or precursors, a stocktaking report must be enclosed with the application.

Application forms (list of imported goods, stocktaking report…) are enclosed in the annexes of this Circular.

Regulations on export and import of herbal ingredients in Circular No. 47/2010/TT-BYT dated December 29, 2010 on export, import of medicines and primary packages thereof, Circular No.38/2013/TT-BYT dated November 15, 2013 of the Minister of Health on amendments to Circular No. 47/2010/TT-BYT shall be null and void.

4. Fees on protection and development of land for rice farm

From March 7^th 2016, Circular 18/2016/TT-BTC dated January 21^st 2016 guiding several provisions in Decree 35/2015/NĐ-CP on management and uses of land for rice farm, thus:

State agencies, organizations, households, individuals are handed over or leased with land for rice farm by the Government for non-agricultural purposes must pay an amount of money to protect and develop land for rice farm.

Fee to be paid = Rate (x) total area (x) land for rice farm price.

Whereas:

– The rate (%) determines the fee collected to protect and develop land for rice farm, which is issued by the Provincial People’s Committee upon certain conditions of the local area, but not less than 50%.

– The total area is the area which is transferred from land for rice farm into land for non-agricultural purposes in the transferring decision issued by authorized agency.

– Price of each type of land for farm rice is calculated according to Land price frame applied at the transferring moment, issued by the Provincial People’s Committee.