Joint circular No. 07/2007/TTLT-BTM-BTC of July 06, 2007

JOINT CIRCULAR

GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES ON SALES PROMOTION AND FAIRS, EXHIBITIONS PROVIDED FOR IN DECREE NO.37/2006/ND-CP DATED APRIL 04, 2006 OF THE GOVERNMENT DETAILING THE COMMERCIAL LAW ON ACTIVITIES OF TRADE PROMOTION

Pursuant to Decree No.29/2004/ND-CP dated January 16, 2004 of the Government regulating functions, tasks, powers and organizational structure of the Ministry of Commerce;
Pursuant to Decree No.77/2003/ND-CP dated July 01, 2003 of the Government regulating functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to Decree No.37/2006/ND-CP dated April 04, 2006 of the government detailing the Commercial Law on activities of trade promotion (hereinafter referred to as Decree No.37/2006/ND-CP);
Ministries Of Commerce – Finance guide the implementation of a number of Articles on activities of sales promotion and fairs, exhibitions provided for in Decree No.37/2006/ND-CP as follows:
I. STATE MANAGEMENT AGENCIES ON TRADE FOR THE ACTIVITIES OF PROMOTION AND FAIRS AND TRADE EXHIBITIONS
1. State management agencies on trade that are competent for the activities of promotion and fairs, trade exhibitions (hereinafter referred to as the state management agencies), include:
a) Ministry of Commerce shall be responsible for handling the registration for sales promotion, registration for organizing fairs and trade exhibitions under its jurisdiction according to provisions of the Commercial Law, Decree No.37/2006/ND-CP and guidance in this Circular;
b) Department of Commerce shall be responsible for handling the notification and registration for sales promotion, registration for organizing fairs and trade exhibitions under its jurisdiction according to provisions of the Commercial Law, Decree No.37/2006/ND-CP and guidance in this Circular.
2. Responsibilities of the state management agencies
a) To publicize the conditions, time, order and procedures of notification and registration for sales promotion, registration for organizing fairs and trade exhibitions;
b) To receive and settle the notification and registration for sales promotion, organizing fairs, and trade exhibitions under its jurisdiction according to provisions of the Commercial Law, Decree No.37/2006/ND-CP and guidance in this Circular;
c) To inspect and monitor the activities of sales promotion, fairs and trade exhibitions under its jurisdiction according to provisions;
d) Other responsibilities as prescribed by law.
II. SALES PROMOTIONS
1. The forms of sales promotion required to notify in writing to the Department of Commerce where the sales promotion is organized include:
a) Giving samples of goods or providing services as samples to customers for trying to use without making payment;
b) Giving goods or providing services to customers free of charge with or without the purchase and sale of goods or services provision;
c) Selling goods or providing services at prices lower than the previous sales price, service provision;
d) Selling goods or providing services together with coupons of goods purchase, service use;
đ) Selling goods or providing services together with slips participating in contest for customers to select the prize winners according to the rules and prizes already announced;
e) Organizing the programs of frequent customers;
g) Organizing for customers to participate in the programs of culture, arts, entertainment, and other events for promotional purposes.
2. Notice of sales promotion
No later than 07 (seven) working days before the sales promotion, traders conducting the forms of sale promotion referred to in clause 1 of this Section shall send written notices (according to Form KM-1 in the Appendix attached to this Circular) to the Department of Commerce where the sale promotions are made. Upon receiving the notification dossiers on the sales promotion, the Department of Commerce records the receipts of dossiers. Receipts of dossiers are made into 02 copies (according to Form KM-4 in the Appendix attached to this Circular), 01 copy is given to trader, 01 copy is archived in the Department of Commerce (not applicable to case that dossier is sent by mail);
3. The forms of sales promotion must be registered with the Department of Commerce (if they are implemented in an area of province or city under central authority), Ministry of Commerce (if they are implemented in the area of from two provinces and cities directly under the Central or more), including:
a) Selling goods or providing services together with the participation in the promotion program of chance;
b) The other forms of promotion as prescribed in Article 17 of Decree No.37/2006/ND-CP.
4. A dossier of registration for sales promotion includes:
a) A written registration for sales promotion (Form K-M2 in Appendix attached to this Circular);
b) Rule of promotion program (Form K-M3 in the Appendix attached to this Circular);
c) Form of lottery ticket for the promotion program with issuance of lottery tickets;
d) Images of promotional goods and goods used for sales promotion;
đ) Form of evidence determining the winning (if any);
e) A copy of the certificate of quality of goods and services promoted and goods and services used for sales promotion in accordance with the law provisions (if any).
In addition to the documents mentioned in points a, b, c, d, đ and e of this clause, trader does not need to present any other additional documents.
5. Receipt of registration dossiers for sales promotion
a) Upon receipt of registration dossiers for sales promotion, the state management agencies record receipt of dossiers. Receipt of dossiers is made in 02 copies (according to Form KM-4 in the Appendix attached to this Circular), 01 copy is given to trader, 01 copy is archived in the state management agency (not applicable to case that dossier is sent by mail);
b) Within 03 (three) working days after receiving the dossier, for the dossier which is incomplete or invalid, the state management agency notifies in writing (according to Form KM-5 in the Appendix attached to this Circular) to trader for complementing and completing dossier. The time limit for handling dossier is taken into account from the time that the State management agency receives full and valid dossier;
c) Traders registering sales promotion may request the State management agencies to explain the requirements of complementing and completing dossier. State management agencies are responsible for replying to the request of traders.
6. Certification, non-certification of the registration for sales promotion
a) Within 07 (seven) working days after receipt of full and valid registration dossier of sales promotion, the state management agency shall consider and certify or not certify in writing (according to Form KM-6 or KM-7 in Appendix attached to this Circular), in case of non-certification, it must state clearly the reason;
b) Where the Ministry of Commerce is the agency certifying the registration for sales promotion, no later than 07 (seven) working days before the promotion, trader shall send written notification to the Department of Commerce where the promotion is implemented together with written certification of the Ministry of Commerce.
7. Amendment and supplementation of the contents of promotion
a). Traders who wish to amend and supplement the contents of the promotional program, they must send written notice or register for amendment and supplementation of the contents of promotional program (according to the Form KM-8 in Appendix attached to this Circular) to state management agency where the notice or registration for sales promotion is implemented;
b). The order and procedures of registration for amendments and supplementation of the contents of promotional program of form required to notify comply with the instructions in clause 2, Section II of this Circular. The order and procedures of registration for amendments and supplementation of the contents of promotional program of form required to register comply with the instructions in clause 5 and 6 of Section II of this Circular;
c). The amendment and supplementation of the contents of promotional program must be ensured compliance with regulations on sales promotion in the Commercial Law and Decree No.37/2006/ND-CP.
8. For the form of promotion with chance nature, when putting evidence to determine the winning into the goods or opening prize promotions with prizes worth 100 million dong or more, the traders must inform the Department of Commerce where the above activities are carried on before 07 (seven) working days for inspection and supervision of the implementation.
9. Termination of promotional programs
In case of termination of the implementation of promotional programs specified in clause 1 of Article 19 of Decree No.37/2006/ND-CP the traders are obliged to publicize to their customers and the state management agencies.
10. Suspension of the implementation of promotional programs
State management agencies suspend the implementation of the whole or part of the promotional program of trader if it is detected committing violation of provisions in Article 20 of Decree No.37/2006/ND-CP (according to Form KM-9 in Appendix attached to this Circular).
11. Handling of the prize without winners of the promotional program with chance nature
a) Within 8 (eight) working days after expiration of award, the trader is responsible for reporting in detail to the State management agency on the prize without winners (according to the Form KM -10 in the Appendix attached to this Circular);
b) Within 7 (seven) working days from receipt of trader’s report, the State management agency inspects, certifies and makes the decision to collect 50% of the value of the award announced without the winners of the promotional program (according to the Form KM-11 in the Appendix together with this Circular);
c) Within 15 (fifteen) working days after receiving the decision to collect of the state management agency, trader shall pay the amount 50% of the value of the award announced without the winners of the promotional program into account of the state management agency that have confirmed registration for sales promotion at the State Treasury;
d) Based on decisions of collection, State Treasury accounts, regulates the revenue as assigned, including the revenue paid by the decision of the Ministry of Trade, shall be the regulated 100% into the central budget, the revenue paid by the decision of the Department of Commerce, shall be the regulated 100% into the local budget and accounted into Chapter 160, type 10, clause 10, Section 062, Sub-section 99 of the State Budget Index;
đ) Accounting and settlement inspection
Trader accounts the paid amount 50% of the value of the award announced without the winners of the promotional program into the price cost of the enterprise. Ending the budget year, the State Treasury informs the agency made decision on the proceeds into the Treasury and regulated the remittance into budget. On that basis, the state management agency of trade synthesizes and settles with the financial management agency at the same level of the amount according to the decision to collect and the proceeds to the state budget.
12. Report of the results of sales promotion implementation
a) Ending the promotional programs, traders must report the results of sales promotion at locality to the state management agencies (according to Form KM-12 in Appendix issued together with this Circular);
b) Where the Ministry of Commerce is the agency certifying the registration for sales promotion, apart from having to report the results of sales promotion implementation at locality to the Ministry of Commerce, traders are responsible for reporting to the local Department of Trade the results of sales promotion implementation in the localities where traders conduct sale promotion.
III. FAIRS AND TRADE EXHIBITIONS
1. Registration for organizing fairs and trade exhibitions
a) The organization of fairs and trade exhibitions in Vietnam or organization to participate in the fairs, trade exhibitions in foreign countries (hereinafter referred to as organizations of fairs and trade exhibitions) must be registered with the state management agencies before October 01 of the year preceding the year of the organization.
b) In case of registration after the deadline under the guidance at point a of this clause, traders, organizations operating related to trade must register before the opening date of fairs, trade exhibitions at least 30 (three twenty) days for fairs and trade exhibitions in Vietnam or the 45 (forty five) days for fairs and trade exhibitions in foreign countries.
2. Dossiers of registration for organization of fairs, trade exhibitions
Dossier of registration for organization of fair, trade exhibition shall comply with the provisions of Article 38 of Decree No.37/2006/ND-CP of which has a written registration for organization of fair, trade exhibition (according to Form HCTL-1 in Appendix attached to this Circular).
3. Receipt of registration dossiers for organization of fairs and trade exhibitions
a) Within 03 (three) working days after receipt of dossier, for the dossier which is incomplete or invalid, the state management agency notifies in writing (form HCTL-2, Appendix attached herewith) trader, organization organizing related to trade for supplementing and completing dossier;
b) Traders and organizations operating related to trade may request the State management agency to explain clearly the contents required to supplement and complete dossier. State management agency is responsible for replying to the request of traders and organizations operating related to trade.
4. Certification, non-certification of the registration for organizing fairs, trade exhibitions
a) Where the registration for organizing fairs, trade exhibitions as guided in point a, clause 1 of this Section, upon receiving complete and valid dossier of registration for organizing fairs, trade exhibitions, the State management agency is responsible for reviewing, certifying or not certifying in writing (according to the Form HCTL-3 or HCTL-4 in the Appendix attached to this Circular) before November 11 of the year preceding the year of the organization, in case of not certifying, it must state clearly the reason;
b) Where the registration for organizing fairs, trade exhibitions as guided in point b, clause 1 of this Section, within 10 (ten) working days after receiving complete and valid dossier of registration, the State management agency shall consider and verify or not verify in writing (according to the Form HCTL-3, HCTL-4 above).
5. Where there are two traders, organizations operating related to trade or more registering for the organization of fairs, trade exhibitions that are the same name, subject, time, and location:
a) Where the registration under the guidance in point a, clause 1 of this Section, the State management agency holds the negotiation to select trader, organization operating related to trade to be held such fair, trade exhibition. Where the negotiation is not reached result, the state management agency shall make certification decision for 01 (a) trader or organization operating related to trade to be held based on grounds specified in clause 4 of Article 34 and clause 4 of Article 36 of Decree No.37/2006/ND-CP;
b) Where the registration under the guidance at point b, clause 1 of this Section, the state management agency shall make certification decision for trader or organization operating related to trade that registered in advance.
6. Change or supplementation of contents of the registration for organizing fairs and trade exhibitions
a). Traders and organizations operating related to trade may change, or supplement contents of the registration for organizing fairs and trade exhibitions which have been certified. Written requests for change, supplementation of contents of the registration for organizing fairs and trade exhibitions (according to the form HCTL-5 in the Appendix attached to this Circular) must be sent to the State management agency before the opening date of the fairs, trade exhibitions at least 30 (thirty) days for fairs and trade exhibitions in Vietnam or the 45 (forty five) days for fairs and exhibitions in foreign countries;
b). The order and procedures for the change or supplementation of contents of the registration for organizing fairs and trade exhibitions comply with the guidance in clause 3, clause 4 of this Section.
c). Within 10 (ten) working days after receiving complete and valid dossier of registration, state management agency shall consider and certify or not certify in writing (according to the Form HCTL-3 or HCTL-4 in the Appendix attached to this Circular), in case of not certifying, it must state clearly the reason.
8. Report of the results of organizing fairs, trade exhibitions
Within 30 (thirty) days after the end of the fair, trade exhibition, trader, organization operating related to trade must send a written report of the organization result to the State management agency (according to the Form HCTL-6 in the Appendix attached to this Circular).
9. Showing of counterfeit goods and goods infringing intellectual property rights to compare with the genuine one
a) Before organizations and individuals display the counterfeit goods, goods infringing intellectual property rights for comparison with genuine goods at fairs and trade exhibitions, they must submit written registration (according to the Form HCTL-7 in Appendix attached to this Circular) to the Department of Commerce (in the case of participating in fairs, trade exhibitions in Vietnam) or the Ministry of Commerce (in the case of participating in fairs, trade exhibitions in the foreign countries);
b) Within 03 (three) working days after receipt of dossier, for the dossier which is incomplete or invalid, the state management agency shall notify in writing (according to the Form HCTL-8 in Appendix attached to this Circular) to organization, individual for supplementing the documents;
c) Within 07 (seven) working days after receiving complete and valid dossier, the state management agency must approve or disapprove the registration (according to the Form HCTL-9 or HCTL-10 in Appendix attached to this Circular), in case of not certifying, it must state clearly the reason;
10. Temporary import for re-export, temporary export for re-import of goods for participation in fairs and trade exhibitions
The temporary import for re-export, temporary export for re-import of goods for participation in fairs and trade exhibitions shall comply with the provisions of the Commercial Law, Decree No.12/2006/ND-CP of January 23, 2006 of the Government detailing the implementation of the Commercial Law regarding to international buying and selling activities of goods and activities ofagent, purchasing, processing and transiting goods with foreign countries and Circular No.04/2006/TT-BTM dated April 06, 2006 guiding a number of contents provided for in Decree No.12/2006/ND-CP and other provisions of concerned law.
IV. IMPLEMENTATION
1. Ministry of Commerce:
a) Department of Trade Promotion receives and processes the registration for sales promotion, registration for organizing fairs and trade exhibitions under the jurisdiction of the Ministry of Commerce and coordinate with functional agency to inspect and monitor the implementation of the provisions of the law of traders, organize the activities related to trade;
b) Department of Market Management shall coordinate with the Trade Promotion Department and related agencies to inspect and supervise the implementation of the traders, organize the activities related to trade and administrative sanctions as prescribed by law for the violations of the law of traders, organizations operating related to trade.
2. Department of Trade receives and settles the notification and registration for sales promotion, registration for organizing fairs and trade exhibitions under the jurisdiction according to provisions of law and inspects, supervises, and handles violations in activities of sales promotion and fairs, trade exhibitions. Department of Commerce shall report on activities of sales promotion and fairs, trade exhibitions in the area as required by the Department of Trade Promotion.
3. This Circular takes effect 15 days after its publication in the Official Gazette. During the implementation, if any difficulties, problems arise, concerned organizations and individuals promptly report to the Ministry of Commerce, the Ministry of Finance for study, amendment and supplement./.