Thứ Sáu, 29 tháng 10, 2021

How Foreign Entity Could Set up a Branch Office in Vietnam

 How Foreign Entity Could Set-up a Branch Office in Vietnam


A foreign business entity or a foreign trader is allowed to set up a branch in Vietnam to conduct business activities.


Having the right to conduct business activities and make profit are how a branch differs from a representative office in Vietnam. A branch depends on the foreign business entity that set-up the branch while a foreign owned company set-up in Vietnam exists by itself. The Vietnam Department of Industry and Trade will be approving the establishment of a branch in Vietnam while Vietnam Ministry of Planning and Investment will be the State agency that coordinate the setting up a company in Vietnam.

In particular, the branch of a foreign business entity in Vietnam (referred to as the “Branch”) means a subsidiary unit of the foreign business entity, established in accordance with the law of Vietnam in order to enter into contracts in Vietnam and conduct activities being the purchase and sale of goods and other commercial activities consistent with its licence for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

The Branch will need to apply and obtain the establishment license; and have a seal bearing the name of the Branch.

1. Rights of the Branch

To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.

To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.

To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.

To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.

To remit profits abroad in accordance with the law of Vietnam.

To have a seal bearing the name of the branch in accordance with the law of Vietnam.

To conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

2. Requested conditions for establishment the Branch in Vietnam

A foreign company which has effectiveness business activities will be allowed to open the Branch in Vietnam if this company has real demand to open the market in Vietnam and meet some conditions as below:

Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;

Having been operating for at least five years after its lawful establishment or business registration.

3. Issuance the Certificate of Branch:

The issuance of the Certificate of Branch will be implemented by the Department of Industry and Trade Department after the foreign company meets all of conditions as Vietnam legal requirements.

The issuing period will be within 20 working-days after the date of submitting the full valid documents as requested.

Thứ Năm, 28 tháng 10, 2021

Announcement of Changes of Management

 The Law on Enterprise is one of the most important acts passed last year by Vietnam National Assembly which will take effect in 2015. In the newly released Law on Enterprises, several significant changes include: the company is required to inform changes in manager identity to the licensing authority if there are any changes in name, address, nationality, Identity Card number, Passport of the manager.




The manager of the company comprises:

1. Member of Management Board if the company is joint-stock company

2. Member of Control Board or controller

3. Director or General Director

The company shall report to the licensing authority (i.e Department of Planning and Investment) within 05 days from the date of change. Limited company, joint-stock company may have more than one representatives. Article 13 of the law states that limited company or joint-stock company may have one or more than representatives. The number of representatives, titles, rights and obligations of each representative are set out by the Company’s Charter. The company must ensure that at least one representative lives in Vietnam and that representative, if leaving Vietnam, must authorize another person in writing to perform on behalf of him. If the only representative of the company has been absent in Vietnam for more than 30 days, Mebers’ Council or Management Board must appoint another person to be the representative.

ANT Lawyers is a Vietnam law firm with international standards, recognized by IFLR1000 on Financial and Corporate practice. The firm provides a wide range of legal services, including M&A, corporate establishment, business advisory, tax advisory, dispute resolution for multinational and domestic clients. This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

For further details, please contact us via email ant@antlawyers.vn or call us directly at +84 28 730 86 529

Thứ Tư, 27 tháng 10, 2021

Intellectual Property and Trademark Registration in Vietnam

 Trademark is a sign for consumers to identify the goods or services of each company from those of others.


In Vietnam, many businesses today have not paid sufficient attention to trademark protection. Only when their trademarks would be infringed by other companies or competitors, they really concern to protect their trademarks and business through trademark registration, trademark opposition or take further actions. Such situation will negatively impact the business financially.

 Trademark Registration Services in Vietnam

Trademark rights will be protected within the national territory, therefore when a trademark has been registered in Vietnam, it will be protected in Vietnam. If one company wishes their trademarks to be protected in other countries, it could:

-Directly register in each country or

-Register via the Madrid International registration by filing a single application which indicates the registrations at respective countries.

If registered under the Madrid International, firstly, trademarks must have been submitted trademark applications or have registered in Vietnam, depending on whether the country for protection is under the Madrid Protocol or the Madrid Agreement.

Law on Intellectual Property and its related documents could also be referred to for further information.

ANT Lawyers’ services in the field of trademark registration advice covers:

-Look-up, assess and consult possibilities to register trademark in Vietnam and abroad;

-Represent clients in applying for certificates of trademark registration, record modification, extend degree of trademark protection in Vietnam and abroad;

-Evaluate the effectiveness of the certificate of trademark registration in Vietnam and the possibility of trademark rights violation;

-Implement of the protected trademark rights: investigate, monitor, negotiate, seek arbitration or initiate a lawsuit or request other competent agencies for handling of infringement in Vietnam and abroad;

-Negotiate, draft, evaluate and register the of changing trademark ownership in Vietnam and abroad;

-Advise on building strategies, brand development;

Authorized Representative of the Company Under New Law on Enterprises

 In order to raise the standard of business environment in Vietnam, Law on Enterprises 2015 reduced many administrative procedures of establishing and running a business, including the representative authorization of the member or shareholder of the company.




One of the distinguished amendments: authorized representative of the member or shareholder which is legal entity is not required to inform the licensing authority (i.e. Department of Planning and Investment).

Law on Enterprises 2015 provides that the appointment of an authorized representative must be made in written, notified to the Company and take valid from the receipt date of the Company while under Law on Enterprises 2005, the same must be registered at the licensing office.

In addition, any restrictions by the authorizing member on his/her authorized representative in the performance as member in the Members’ Council or shareholder in the Shareholders’ Meeting shall not enforce against the third party.

ANT Lawyers is a Vietnam law firm with international standards, recognized by IFLR1000 on Financial and Corporate practice. The firm provides a wide range of legal services, including M&A, corporate establishment, business advisory, tax advisory, dispute resolution for multinational and domestic clients.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

Thứ Ba, 26 tháng 10, 2021

Cosmetics Advertising in Vietnam

 The cosmetic advertising is implemented on the public device i.e. television, radio, internet, book, newspaper, magazine, pamphlet, pano, poster, air body, water body, or the other advertising means which are implemented or supported or authorized by the cosmetic enterprise organization as well as the seminar, the information, the product introduction activities.




Organizations are allowed to advertise or organize the seminar and the cosmetic product introduction event when having the permission according to the regulations.The cosmetic advertising content must be appropriate which affirm the safety and the efficiency of the cosmetic and be obedient to the ASEAN’s instruction of declaring quality of the cosmetic product.

The registration dossiers of cosmetic advertising, seminar organization, and cosmetic introduction event are inclusive of the following documents:

The registration applying of cosmetic advertising, seminar organization, and cosmetic introduction event;

The copy of the issued cosmetic product proclamation report (sealed by organization or individual who registers to advertise);

The copy of the business registration certificate of organization or individual who registers to advertise (sealed by organization or individual who registers to advertise);

The authorization letter of organization or individual who proclaims cosmetic for organization or individual who registers for advertisement, cosmetic introduction event, seminar operation (in case, organization or the individual who registers for advertisement, cosmetic introduction event, seminar operation is not organization or individual who proclaims cosmetic);

The subtitles materials of the product’s properties and utilities in case the advertised content and the presented content at the seminar or the cosmetic introduction event show the cosmetic’s properties and utilities which are outside the presented content in the cosmetic product proclamation report;

02 advertisement scenarios (scenario must clearly describe the picture, callouts and music which are going to be put into the advertisement) or 02 advertising models which are going to be published (applied to the cosmetic advertisement registration file) or documents intend to show, publish in the seminar, cosmetic introduction event (applied to the cosmetic introduction event, seminar operation registration file). The file must get the joint pages stamp of organization or the individual who registers for advertisement, cosmetic introduction event, and seminar operation.

The authority of receiving and handling registration file of cosmetic advertising is the Health Department of place where the main office of organizations, individual proclaiming cosmetic products is located; except advertising forms which are under the licensing competence of provincial/municipal Culture and Information Services.

After receiving the file receipt of cosmetic advertising registering, if the organization wish to advertise on other advertising devices under local authorities of places different from the place where advertisement registration file is sent, must send an announcement in writing with the notarized copy of the regular cosmetic registration file receipt and all registered equivalent advertising content to the local Health department where the advertising is going to be put into process

Vietnam and ASEAN Cosmetic Regulations

 Vietnam cosmetic regulations are compatible with the ASEAN cosmetic regulations.




On September 2nd 2003, on behalf of the Government of Vietnam, the Vietnam Minister of Trade and Commerce signed an agreement on the ASEAN harmonized Cosmetic Regulatory Scheme, in which, the terms specified in the agreement is fully implemented since January 1st, 2008.

The agreement aims to unify cosmetic management in the ASEAN countries, and is toward a common market of ASEAN, strengthen cooperation between member States in ensuring safety, quality and beneficial feature of all cosmetic products on the ASEAN market and remove the restrictions on the cosmetic business between member States through the harmonization of technical regulations.

The agreement on the ASEAN Harmonized cosmetic regulatory scheme is considered a cosmetic treaty representing the unity of regulations on management of cosmetic member countries of the agreement. Being a member of the agreement, Vietnam cosmetic regulations are compatible with the ASEAN cosmetic regulations.

This publication is designed to provide updated information of legal matters, and does not constitute professional advice.

Thứ Hai, 25 tháng 10, 2021

Notable Changes of Vietnam Law on Enterprises

 On November 26th, 2014, the new version of Law on Enterprises has been adopted by Vietnam’s National Assembly. The act will come into effect on July 1st, 2015 and replace Law on Enterprises 2005. It comprises 10 chapters and 213 articles, which seek to improve Vietnamese business environment. Key points of the amendment include.




Company seals will be made optional

Pursuant to the prior Law on Enterprise, the Government shall stipulate the content of seals, conditions for making seals and regulations on seals usage. Now this regulation has changed under the new law. According to Article 44 of the new law, the company shall be entitled to decide the design, number and content of seals. The seals must supply the following information:

– Name of the company

– Tax number of the company Before using, the company must supply the seal sample to business registration office to post on National Portal of Business registration. The usage of seals must be in conformity with the company’s bylaw. Seals shall be used in case stipulated by law or agreed between transactional party.

Limited company, joint-stock company may have more than one representatives

Article 13 of the law states that limited company or joint-stock company may have one or many representatives. The number of representatives, titles, rights and obligations of each representative are set out by the company’s bylaw. The company must ensure that at least one representative lives in Vietnam and that representative, if leaving Vietnam, must authorize another person in writing to perform on behalf of him.

The director or general director of joint-stock company will not be prohibited being concurrently the director or general director of another enterprise

Under the Law on Enterprises 2005, the director or general director of the company cannot be concurrently the director or general director of another enterprise. This regulation has been removed by the new amendment. The only exception is the one who is appointed by the state as owner representatives of state capital portions in state-invested enterprises.

Thứ Năm, 21 tháng 10, 2021

Vietnam attends APEC Ministers Responsible for Trade Conference

 


The 27th APEC Ministers Responsible for Trade (MRT) took place online on June 5, 2021 with the participation of 21 APEC member economies and observers including the Association of Southeast Asian Nations (ASEAN), the Asia-Pacific Economic Cooperation Council (PECC) and the Pacific Islands Forum (PIF). Measures to open market will be discussed to facilitate trade and investment, including the smooth policy from Vietnam to support the setting up company.



In 2020, due to the impact of the Covid-19 pandemic, the global economy shrank 3.3%. However, because of strong efforts in the introduction of vaccine production and vaccination, financial support programs in some countries, as well as more effective disease containment measures in many countries, this year’s global economy is forecasted to achieve marked improvements compared to 2020. According to a report by the International Monetary Fund (IMF) published in April 2021, the global economy is forecast to reach 6% in 2021 and 4.4% in 2022.

At this meeting, APEC Ministers focused on discussing trade policies to respond to the COVID-19 pandemic. Measures taken include ensuring open markets, promoting the smooth flow of trade in essential goods and services, and facilitating safe and effective vaccine supply chains.

Another important content of the 27th MRT Conference is to support the multilateral trading system, including the progress of implementing reforms of the World Trade Organization (WTO) and updating the progress of negotiations in many fields, such as fisheries subsidies, special and differential treatment, industrial subsidies, market access, agriculture, etc. The APEC Ministers expressed their hope that reform and progress in WTO negotiations will bring positive results, contributing to strengthening the role of the multilateral trading system as well as global and regional economic integration.

At the Conference, the Vietnamese representative also affirmed that Vietnam would actively participate in negotiations and discussions to resolve current issues in the WTO to contribute to the success of the 12th WTO Ministerial Conference. In addition, Vietnam also supports initiatives to promote the movement of goods and services in the region, both to help prevent the epidemic and to develop the economy.

Through the meeting, the participants hoped that in the coming time, in parallel with fighting the epidemic, the parties would also take measures to promote trade and investment to achieve the goal of economic development in the world. Vietnam commits to support the global trade and policy to smooth investment into Vietnam through setting up company.

Thứ Tư, 20 tháng 10, 2021

The processing and manufacturing industry leads in attracting foreign investment in Vietnam

 



In the first 05 months of 2021, the processing and manufacturing industry continues to be the leading industry in attracting foreign investment, with a total investment capital of 6.14 billion USD.



According to the General Statistics Office, in the first 05 months of 2021, the foreign investors have invested in 18 industries and fields, of which the processing and manufacturing industry leads the way with a total investment of 6.14 billion USD, accounting for 43.9% of total registered investment capital.

The field of electricity production and distribution ranked second with a total investment of 5.43 billion USD, accounting for 38.8% of the total registered investment capital. Followed by real estate, wholesale and retail business with a total registered capital of 1.05 billion USD and nearly 522 million USD.

According to statistics, until the end of May 2021, the total newly registered capital, adjusted and contributed capital, bought shares, purchased capital contribution of foreign investors reached nearly 14 billion USD, up by 0. 8% over the same period in 2020, realized capital of foreign direct investment projects were estimated at 7.15 billion USD, up 6.7% over the same period in 2020.

In the first 5 months of 2021, there were 613 new projects granted investment registration certificates, the total registered capital reached nearly 8.83 billion USD (up 18.6% over the same period), 342 projects registered to adjust investment capital, the total registered capital increased to 3.86 billion USD, and 1,422 times of capital contribution to buy shares from foreign investors, total value of capital contribution reached 1.31 billion USD.

According to investment partners, there are 70 countries and territories have invested in Vietnam, of which Singapore leads with a total investment capital of 5.26 billion USD, Japan ranks second with a total investment capital of 2.59 billion USD, Korea ranked third with a total registered investment capital of 1.83 billion USD, followed by China, Hong Kong, Taiwan…

In 2021, although still affected by the Covid-19 epidemic, with many policies to restore the economy and support foreign investors, Vietnam has made many outstanding achievements in attracting FDI. With this achievement, Vietnam hopes that many international investors choose Vietnam as an investment destination for setting up company not only in the field of processing and manufacturing but also in many other investment fields so that they can contribute to promoting the country’s economy and investors in the future.

Thứ Ba, 19 tháng 10, 2021

Food and Food supplements registration in Vietnam

 Proclamation of quality specifications of imported food and food supplements

To ensure Airport food and food supplements are safe to eat, as well as to protect consumer through the control of imported food and food supplements quality, the Vietnam Food Registration Agency requests the imported food and food supplements to be complied with the proclamation standard procedures.


ANT Lawyers is capable to carry out proclamation of quality  specifications procedures in Vietnam for clients being manufacturers, importers and distributors.

ANT Lawyers services include:

Provide consulting advice relating to proclamation of quality specifications of products.
Act as authorized representatives to draft documents, filing of statement with the competent State agencies.
Provide consulting advice to overcome the problems arising in the course of registration;
Act as authorized representatives to draft documents, filing of application at the competent State agencies.
Authorized representatives to draft documents, filing for certificate extension at the competent State agencies.

A number of documents to be provided:

Products specifications;
Product label;
Samples;
Copy of the business registration certificate;
Certificates of Good Manufacturing Practice (GMP), Hazard Analysis and System Critical Control Point (HACCP);
Certificate of Free Sale or Health Certificate;
Power of attorney;

Thứ Hai, 18 tháng 10, 2021

What Are Real Estate Transaction Conditions for Buyer and Seller in Vietnam?

 The real estate market is always an attractive market with a large source of potential speculative profits for investors. Because real estate transaction is always high in value, and buying a property for most people is always a lifetime important decision, and many times with the financial support from the bank, therefore in developed country, real estate lawyers are always involved in all steps of the transaction to ensure the legitimate transfer of the property. In Vietnam, in reality, many real estate transitions are conducted by the buyer and sellers themselves without real estate lawyers and there are many disputes arisen from the transactions in regard to property deposit agreement, property sales and purchase agreement between real estate developer and buyer for a new property, or between buyer and the previous property owner for resale property.




Residential property is one of the common types of real estate traded, so when joining in transactions related to property, it is necessary to ensure the conditions for property transfer. The related parties need to comply and meet the requirements of the above conditions for a successful transfer transaction.

Conditions for property transfer transaction include the following basic points: the transferred property is not in a dispute, complaint, or claim about ownership; the transferred property shall be within the property ownership period, in the case of property owners with a definite term; the transferred property is not distrained for judgment enforcement or distrained to comply legally effective administrative decisions of competent state agencies; the transferred property is not subject to a decision on land recovery or a notice of house clearance or demolition issued by a competent agency.

For the conditions on the parties to the property transaction, the property transferor needs to meet the following conditions:

The transferor is the owner of the property or the person permitted or authorized by the owner to carry out the transaction on property according to the provisions of law;

In case of transfer of a commercial house purchase and sale contract, the transferor shall be the person who bought the house from the investor or the person who has received the transfer of the house purchase and sale contract;

If the transferor is an individual, this person shall have full civil act capacity to carry out transactions on housing under the provisions of civil law;

If the transferor is an organization, it shall have legal status, unless the organization donates a house of gratitude or charity.

At the same time, the transferee shall also meet the conditions, specifically including the following conditions:

If the transferee is a domestic individual, this person shall have full civil act capacity to conduct property transactions under civil law and it is not required to them to have permanent residence registration in the place where the housing transferred is located;

If the transferee is a foreign individual or overseas Vietnamese, this person shall have full civil act capacity to carry out transactions on housing under Vietnamese law. In addition, this person must be eligible to own houses in Vietnam according to the provisions of law and it is not required to them to have temporary residence registration or permanent residence registration at the place where the housing transferred is located;

If the transferee is an organization, it shall have legal status and not depend on the place of business registration and establishment; if it is a foreign organization, it must be eligible to own a house in Vietnam according to the provisions of law; if the organization is authorized to manage to house, it must have the function of providing real estate services and be operating in Vietnam under the law on real estate business.

Having said that, it would be more efficient for buyer and seller to engage real estate law firm specializing in real estate transaction for buying and selling property in Vietnam to avoid potential disputes and protect their best interest for seller and safeguard investment for buyer.

Thứ Tư, 13 tháng 10, 2021

Birth Registration with Foreign Element

 From January 1st 2016, the Law on Civil Status of 2014 went into effect, replacing other documents on the registration and management of civil status. Accordingly, the law has clearly defined the authority for registration and management of civil status of the Commune People’s Committee and the District People’s Committee. Commune People’s Committee in charge of the registration and management of civic status that do not have foreign element. The remaining case that have foreign element will be under the jurisdiction of registration and management of the District People’s Committee.



For the case of children born in the territory of Vietnam, whose father is foreigner and mother is Vietnamese, but the parent does not have legal marriage (in other words: illegitimate children), the competent for birth registration belongs to the District People’s Committee where the father or mother reside.

In terms of the birth registration procedure, the Law on Civil Status provides only the procedure in case that the parents of the birth registration children have legal marriage.

The remaining case that parents of the birth registration children do not have legal then according to the provisions of the Law on Civil Status, if the father wants his name to be included in the birth certificate of the children, he have to register through adoption procedure. Accordingly, the father requesting for children adoption have to submit the declaration, documents to prove paternity, copy of passport or valid documents that can replace passport to prove his identity to the District People’s Committee where the father of the children reside.

Within 15 days of receiving valid dossier, the civil status authority will carry out the verification, listed the recognition of father and children at the headquarters of the District People’s Committee within 07 consecutive days. At the same time, the Commune People’s Committee where the child resides will list within 07 consecutive days at the headquarters of the Commune People’s Committee.

After the listing has been expired, the Justice Department proposed Chairman of the District People’s Committee to decide on the recognition of the father and son. Once registering for the recognition of the father and children, Chairman of the District People’s Committee provide excerpts for the parties.

The registration procedure for recognition of father and children must be done simultaneously or be conducted prior to birth registration of the children.

Condition of foreign vehicles entering Vietnam for tourism

 Vietnam is an attractive destination for foreign tourists. Year to year, more and more tourists from many countries enter Vietnam for tourism. Vietnam laws are improving to open the regulations relating tourism in order to develop this area.




Decree 152/2013/ND-CP on management of foreign vehicles of foreigners entering Vietnam for traveling takes effect on December 25th 2013, regulates that vehicles of foreigners may enter into Vietnam if having obtained the acceptance paper of Transportation Ministry. The procedure for granting this acceptance paper will be conducted through Vietnamese international tourism company. It is noted that the procedure apply only for motors, coaches under 9 seats which obtained valid vehicle registrations, verification certificates of technical safety, environment protection. The owners must be foreign citizens which having passports or other equivalent documents valid 6 months at least.

High-tech Crime in Vietnam

 The Vietnam Public Security have arrested a number of foreigners using fake ATM cards to withdraw money in Vietnam in both Hanoi and Ho Chi Minh City.




Through the Vietnam Foreign Affairs Department, the Public Security will inform the respective foreign Consulate in Vietnam and the family of the foreigners commited crime to invite lawyers in Vietnam to cooperate during the investigation, prosecution and trial process in Vietnam.

It has been reported recently that some criminal organizations abroad have selected Vietnam as a place to perform illegal acts. The act of using internet network and high- tech system to steal money in credit cards, in ATM machines to spend in Vietnam or convert them into foreign currency to bring abroad are getting more common. Unauthorized intrusion into the database of key economic sectors such as postal , telecommunications, banking, and websites to steal information, domain name, credit card to make online purchase or usage of fake ATM cards to withdraw cash from ATM machines in Vietnam are violations of Vietnam Criminal Code.

Currently, under the provisions of the Vietnam Criminal Code, Article 224, 225 and 226 are governing the violations in the field of high-tech crime. Article 224 governs the acts to create and spread virus information; Article 225 governs the breach of operation, and usage of electronic computers; and Article 226 governs the unauthorized usage of information online and in computers. As the high-tech crime has no borders and gets more sophisticated, the Vietnam law experts are calling for stricter sanctions to deter and prevent it from spreading.

However the Vietnam law experts have also admitted that the current Vietnam Penal Code also has limitations due to the high-tech’s complexity in nature resulting in difficulties for Vietnam Procedure Conducting Agencies at Public Security’s Investigation Agency, Public Prosecutor, and High Court of Vietnam.

Investment Incentives for IT area in Vietnam

 Vietnam is attracting investors from around the world to make investment through setting up IT service company in Vietnam




Since 2010, Vietnam has initiated and invested more resources in the information technology which has been realized as an area that could create a competitive edge for Vietnam. Recently, the Vietnam government has put a legal frameworks to attract more investment in this area, with the issuance of Decree No.154/2013/ND-CP, taking effect from Jan 1st, 2014 guiding particularly on management of the focused information technology areas.

Accordingly, the enterprises at focused information technology areas will enjoy tax benefits i.e. income tax rate of 10% within 15 years, in some specific cases, extended to 30 years; exempt 50% within 5 continuous years. They are exempted the import tax when importing goods to build fixed properties, manufacture such as machines, equipment, parts, assemblies.

Besides, these enterprises may enjoy convenient conditions in customs procedure, incentives in export tax, investment credit, import credit and favorable policies for enterprises business in high technology areas.

The focused information technology area must have at least 2,000 employees specialized in information technology; in case of emphasizing in software manufacture, digital content, information technology service, 1,000 specialized employees will be employed at least.

Thứ Ba, 12 tháng 10, 2021

Adding Foreign Subjects to Own Resident Houses in Vietnam

 The Draft Law on House (amended) has currently taken lots of attentions of not only investors but residents. One of the significant amendments is provision on house ownership of foreign organizations, individuals.



According to Articles 161, 162, 163 of Draft Law, there are 3 cases that the foreigners may own resident houses in Vietnam as following:

Foreign organizations, individuals invest the construct resident houses according to projects for sale, lease, hire-purchase sale.

Foreign owned enterprises, branches, representative offices of the enterprises without business in real estate, foreign investment funds and branches of foreign banks permitted to operate in Vietnam are entitled to buy, donate, inherit the commercial houses in projects of resident housesdevelopment, new urban areas, tourism real estate.

Foreign individuals who are allowed to enter Vietnam, not belong to incentive rights, diplomatic or consular immunity.

However, subjects at section 2 and 3 are eligible to own houses in maximum term of 70 years, from the issuance date and can extend according to laws at that moment. They are not allowed to buy and own social houses, just buy and own commercial houses. They are also eligible to own unlimited number of commercial houses in commercial resident house development projects, new urban area or tourism real estate. These new provisions will become important points for real estate market in Vietnam. Especially, the foreign individuals are allowed to enter Vietnam, entitled to buy and own resident houses in Vietnam. It’s expected to make a big change in real estate in Vietnam when the new Law on House (amended) is adopted. ANT Lawyers, your lawyers in Vietnam.

Types of Criminal Record

 As regulated in Clause 4, Article 2 of the Law on Criminal Record, criminal record is a document issued by the Department of Justice or the National Centre for Criminal Record, which have the value to demonstrate that a person is with or without a criminal conviction; is prohibited or not prohibited from holding position, managing or establishing business or not.




As stipulated in Article 41 of the Law on Criminal Record, there are 2 types of criminal record card:

– Criminal record form 01 is issued upon request by Vietnam citizen or foreigners residing in Vietnam and State agencies, political organizations, political – social organizations to serve human resources management activities, business registration activities, establishment and management of enterprises or cooperatives.

– Criminal record form 02 is issued for the agency conducting the proceedings and at the request of individuals who want to know the contents of their criminal record.

Lawyers at ANT Lawyers, a law firms in Vietnam will be available to assist client to navigate through procedures to apply and obtain criminal record in Vietnam.

Thứ Hai, 11 tháng 10, 2021

Foreign Investors May Be Allowed to Hold 60% Shares

 A new decision has been proposed to the Prime Minister with a number of changes that encourage foreign investors to make investment in Vietnam and in the meantime improve the financial market to catch up with international standard.




ANT Lawyers’ foreign investment practice always follow the change in legal environment to assist our client with the best service. First, foreign investors could own up to 60% of total voting right shares of a listed company. The previous provisions only allow this ratio for strategic partners. Secondly, the foreign investors may hold maximum 49% total voting right shares. The previous provision is 49% of charter capital. Thirdly, for non-voting right shares, the foreign investors are not restricted to hold. Fourthly, for fund certificate, the foreign investors may hold 100% for both close and open funds while the previous provision only allows 49% and restricts the foreign –owned in open funds. Fifthly, foreign organizations business in securities may hold securities companies in Vietnam up to 100% Charter capital while in recent provision, maximum of 49% and 100% for the specific cases.

When the new Decision will have been officially issued, the securities market of Vietnam will be more open and attractive to foreign investors. As expected, impact will be increasing liquidation, opening the conditions to establish investment funds, changing the enterprise’s structure, developing the fund management companies, and as such developing the financial market with more options to invest and control the investment in Vietnam.

Chủ Nhật, 10 tháng 10, 2021

Circular 06/2011/TT-BYT Regulating Cosmetic Management in Vietnam

 



On Jan 25th, 2011, the Vietnam Ministry of Health has promulgated Circular No: 06/2011/TT-BYT regulating cosmetics management in Vietnam to implement the ASEAN hamonized cosmetic regulations scheme that Vietnam has rectified. The circular details the regulations in cosmetics labeling, cosmetics proclamation or notification, cosmetic advertising in Vietnam.



Below is the circular:

CIRCULAR

PROVIDING COSMETIC MANAGEMENT

THE MINISTRY OF HEALTH

Pursuant to the Government’s Decree No 188/2007/ND-CP of December 27, 2007 regulation about functions, duties, powers and obligation, and organizational structure of the Health Ministry;

Pursuant to the Government’s Decree No 188/2007/ND-CP of December 27, 2008 detailing implementation some articles of the Goods and Products Quality Law;

Pursuant to the Government’s Decree No 24/2003/ND-CP on March 13, 2003 detailing implementation the Advertising Ordinance;

Pursuant to the Government’s Decree No 89/2006/ND-CP of August 30, 2006 regulation on labeling of goods;

Pursuant to the Government’s Decree No 12/2006/ND-CP of January 23, 2006 detailing implementation the Commercial Law in the international trade activities as well as activities which are agency for sale and purchase, processing and transit of with foreign country;

Pursuant to the Government Prime Minister’s Decision No 10/2010/QD-TTg of February 10, 2010 regulation about the certification of free sale for the export or import goods and products;

To carry out the Combination Convention in the cosmetic management which has been signed by countries are member of the Association of Southeast Asian Nations on September 2, 2003 (commonly called ASEAN Cosmetic Convention),

The Minister of Health promulgates on cosmetic management as the following:

Chapter I

GENERAL REGULATION

Article 1: The scope of regulation and objects of application

1. This circular regulates the management of cosmetic products which is domestic produced, import cosmetic to sale in the scope of Vietnam territory, involving: cosmetic product announcement; product information dossier; request of product safety; product labeling; cosmetic advertising; cosmetic exporting or importing; collecting cosmetic pattern for quality inspection, verifying, investigation, and settling violations; duties of organizations, individuals in cosmetic production, trade, import and consumers’ right.

2. This circular is applied for the cosmetic state management agencies, organizations, individuals conduct operations related to the cosmetic product declaration, the information, the advertising, the export, the import, the production, the trade of cosmetic products in Vietnam.

Article 2: Term Interpretation

In this Circular, the following terms shall be construed as follows

1. Cosmetic product is a substance or a preparation which is used for touch with outside parts of human body (skin, hair system, finger nails, toenails, lip, and outside reproduction organ) or teeth and mouth mucous membrane with main purpose in order to cleanse, aromatize, change the outward characteristics, form, adjust body’s smell, safeguard body, or maintain the human body in good condition.

2. Cosmetic name is the title which is given to a cosmetic product; it can be a new one named by itself together with brand or name of the producer. Letters which composes the product name must be Latin letters.

3. Organizations, individuals who are responsible for putting products on market are organizations, individuals have name written in the cosmetic product announcement dossier and be responsible for cosmetics product in the market.

4. The receipt number of Cosmetic product proclamation is a number issued by the competent state management agency, when receiving the cosmetic product announcement dossier. The announcement receipt number is useful in order to prove cosmetic product have been declared by organizations, individuals who are responsible for circulation products in market, just about cosmetic shall be circulated in market, are not value to certify that such product have been guaranteed of the safety, the effectiveness, and meeting all requirements of the ASEAN Cosmetic Association and the Annexes attached.

5. Cosmetic Product Owner is an organization or individual which owns formulas, process of production, standards of the product quality.

6. Product stability is the stable capacity of product when preserved in the appropriate condition still remains its initial quality; especially, still guarantees requirements of products safe.

7. Quantitative of goods is the amount of cosmetic shown with the absolute weight or the true volume in meter or in meter and British measurement system.

8. Cosmetic label is writing, print, drawing, photocopy of words, drawings, pictures which are pasted, printed, enclosed, casted, engraved, carved directly on goods, trade packing of goods, or other materials affixed with goods, trade packing of goods.

9. Label writing is showing basic, necessary content of cosmetic in label for customer to acknowledge, to rely on to choice, and use exactly, for producers to advertise goods and to base for functional agencies in inspection and supervisory.

10. Original label is the label which shown at the first time of affixing on trade packing of cosmetic.

11. Auxiliary-label is the label shows compulsory contents which is translated the cosmetic’s original label from in the foreign language to in Vietnamese and supplement compulsory contents provided in this Circular which the original cosmetic label still lacks.

12. Trade packing of cosmetic is the packing contains cosmetic inside and traffic together with the cosmetic. The trade packing of cosmetic has two kinds: the direct packing and the outside packing.

a. Direct packing is the packing contains goods, directly contacts with goods, makes into cube or tightly covers in cube of goods.

b. Outside package is the packing used for packing one or a set of goods organizations which had direct packing before.

13. Cosmetic circulation is the display operation, transportation, and saving of goods in the goods selling or buying process, except case of transportation import goods of organizations, individuals from border gate to storehouse.

14. The number of lot of produced cosmetic is a signal in number or letter, or combination of number and letter in order to realize the lot of products and allow inquiring whole of source of a lot of product including of all steps of the manufacture process, quality inspection, and delivery lot of that product.

15. Cosmetic manufacturing date is the time mark of completed manufacture, processing, packing or other ways to perfect the last step of the product lot.

16. Expiry date of cosmetic is the time mark appointed for a lot of cosmetic which after this time-limit, the cosmetic shall not permitted for delivering or using

17. Best using period date is the time mark which the producers advise the customers for using when the quality of product is gaining at the most effective level.

18. Cosmetic goods origin is the country or territory area where products all of cosmetic or where implements the end basic processing step regarding to cosmetic in case of many countries or territory areas involved in the cosmetic manufacturing processing.

19. Certificate of free sale (CFS) is a certify issued by an authority agency in the export country for the export domestics trader stated in CFS to confirms that the cosmetic is freely produced and sold in the export country.

20. Usage Introduction is necessary information to guide the cosmetic user be safe and suitable. The usage introduction may be printed on the direct packing or in an attached document with the trade packing of cosmetic in which have instructions for usage and other information as regulated.

21. Cosmetic advertising is cosmetic introductory and broadcast activities to promote the process of cosmetic manufacture, sale, and usage.

22. Seminar, cosmetic introduction event is a meeting to introduce or special subject discuss with consumers about deep professional knowledge involving cosmetic.

23. Advertiser is organizations, individuals who have demand to advertise cosmetics produced or delivered by themselves.

24. Advertisement publisher is organizations, individuals transmit the cosmetic advertising product to consumers, includes the newspaper; telecommunication; television agencies; publishers; internet network management organizations; exhibition, fair, culture or sport program organizer; and organizations, individuals applying other advertising ways.

25. ASEAN Cosmetic Association is the representative agency of ASEAN member countries for following, decision and dealing conflicts related to the implementation of ASEAN Cosmetic Convention.

Chapter II

COSMETIC PRODUCT PROCLAMATION

Article 3: The cosmetic product proclamation regulation

1. Organizations or individuals which are responsible of putting the cosmetic product on the market just permitted selling cosmetic when be issued the number of cosmetic product proclamation receiving by the authority agencies as well as responsible for safety, effectiveness, and quality of product. The authority agencies shall carry out after-sales inspection when the product has been being sold in the market.

2. Cosmetic product proclamation fee is implemented in accordance with the regulations in force.

3. Organizations or individuals who are responsible for putting the products on the market must have the function of cosmetic business in Vietnam.

4. Cosmetic product feature proclamation (the cosmetic usage purpose) must satisfy the ASEAN’s instruction of the cosmetic product feature proclamation (Appendix No 3-MP).

Article 4: The cosmetic proclamation dossier

The cosmetic proclamation dossier includes the following documents:

1. Cosmetic product proclamation report (02 versions) with the proclamation data (soft version of proclamation report);

2. Copy of business registration certificate of organizations, individuals who are responsible for circulation products into the market (with the enterprise’s signature and seal). In case the cosmetic domestic produced, but organizations, individuals who be responsible for putting products on the market are not the manufacturer must have a copy of business registration certificate of the producer (have legal notarized);

3. Original or notarized copy of letter of attorney from the producers or the owners of products authorized for organizations, individuals are responsible of putting products on the market in Vietnam (applied to the import or domestic cosmetic of which organizations or individuals are responsible of putting products on the market, be not the manufacturer). For the import product, the letter of attorney must be a copy notarized sign and consul legalized as provisions of law, except for being exempted of the consul legalization in regard to international treaties in which Vietnam is a member. The letter of attorney must satisfy requirements regulated at the Article 6 of this Circular.

4. Certificate of free sale (CFS) is only applied for import cosmetic product proclamation which satisfies the following requirements:

a. CFS which is issued by the current territory must have been original or legally notarized and still in the day of validity. In case CFS is not provided of the expiry day, it must be a certificate which has just been issued within 24 months.

b. CFS must be consul legalized according to provisions of the law, except consul legalization immunity case according to the international treaties in which Vietnam is a member.

Article 5: The manner to establish the cosmetic product proclamation report and the proclamation data

1. The proclamation report:

a. The cosmetic product report is set up in accordance with the form in appendix No 01-MP. The proclamation report must be signed by the representative under laws and with the seal of the organizations or individuals who are responsible for sale products in the market at the positions of report’s paper margins. The manner to write contents in the cosmetic product report shall followed the instruction in the appendix No 02-MP

b. Every cosmetic product proclaimed in a proclamation report.

Cosmetic product which perfect produced in every different enterprises shall be proclaimed separately. In case there are more than one company, taking part in the manufacturing process in order to product a complete product, may joint make a proclamation report and clear state each companies’ name and full address.

Products have the same owners in one of the following situations is permitted to proclaim in one proclamation report:

– Products are packed with a joint name and sold out in form of a product set.

– Products have same name, same product line with similar formulas but different in color or smell. For products of hair dye, perfume, must be separate proclaimed with each color, each smell.

– Other kinds will be decided by the department of Medicine management – the Health Ministry based on the ASEAN Cosmetic Association’s decision.

c. The manner to write component of formula which are composed in the cosmetic product:

– Components in the product formula must be efficiently listed in descending order of content. Components of perfume, aroma causing substances and their materials can be written in word “flavoring” (perfume, fragrance, flavor, and aroma). Components with less than 1% content can be listed in whatever order after components with more than 1%. Color causing substances can be listed in whatever order after other components in accordance with the color index (CI) or by names mentioned in the Appendix 4 (Annex IV) of the ASEAN Cosmetic Treaty. The cosmetic products for making up under different colors, the producer can list all color causing substances in “containable” section or “+/-”.

– Having full percentages of components provided of limit of concentration and content according to the Appendix (Annexes) of the ASEAN Cosmetic Treaty. Between the unit position and decimal position shall be marked with a comma (”,”).

– Ingredient’s name must be written in the International law name Nomenclature of Cosmetic Ingredients – INCI is regulated in the latest publications: The International Cosmetic Ingredient Dictionary, the British Pharmacopoeia, the United States Pharmacopoeia, the Chemical Abstract Services, the Japanese Standard Cosmetic Ingredient, and the Japanese Cosmetic Ingredients Codex. Plant title and the fluid is extracted from plant must be written in the scientific title which involves the limb and species (the limb title can be shortened). Ingredients from the animal need accurately writing in the scientific name of that animal.

The following substances are not subject to be considered as the cosmetic Ingredient:

– Impurities in materials used.

– Auxiliary materials used for the technology purpose but absent from the end-product.

– Exerted materials used with a necessary mount such as solvent or the bearer of scent-causing ingredients.

d. The language in the proclamation report may be in Vietnamese or English. Contents which are mentioned in section 3 (the usage purpose), section 7 (the information of organization, individual who are responsible for putting products on the market), section 8 (information of enterprise’s representative under the law), section 9 (information of import company) in the proclamation report must be written in Vietnamese or in Vietnamese and English.

2. The proclamation data (the soft version of the proclamation report): Organizations, individuals can submit the proclamation data according to clause 1, article 4 of this Circular by one of two following ways:

a. Direct declaration: Organizations or individuals, who signed on the cosmetic product proclamation, must send the text to the Medicine Management department under the Ministry of Health to be issued an entry account to access the cosmetic management database, and fill in forms in the database directly. The proclamation report which is submitted to the competent state management agency must be printed out from that database.

b. Access the Medicine Management department’s electronic information page (website), download the database of the cosmetic product report (Appendix 01-MP), fill all the information into the database according to the law regulation, save to the electronic device (USB, CD-ROM, etc.). The proclamation report which is to be submitted to the Government’s Management Office must be printed from that database.

The organization or the individual, whose name is on the cosmetic proclamation, must completely be responsible for the propriety of content of the cosmetics product proclamation report (signed and sealed version) compare with the proclamation data (soft version) declared or submitted to the Management Office.

Article 6: Provisions of the authorization certificate

1. The presenting language must be Vietnamese or English or bilingual Vietnamese and English.

2. The authorization certificate must have sufficient the following contents:

a. The producer’s name and address; in case the delegating party is the owner of product, must clearly state name and address of the owner of product, and name and address of the producer as well;

b. The name and address of authorized organizations, individuals;

c. The scope of authorization (undersigned on the proclamation and circulation product in Vietnam);

d. The label or name of authorized product;

e. The time-limit of authorization;

f. The commitment of the producer or the owner of product to provide sufficient product information file (PIF) for organizations or individuals who are responsible for putting product on market;

g. Name, position, and the signature of the delegating party’s representative.

Article 7: Procedure of receiving and solving proclamation dossier

1. The collecting and solving cosmetic product proclamation dossier is packed up into one set, submitted directly or posted to the following competent state management agency:

a. Regarding to the export cosmetic: organizations or individuals who are responsible for bringing product into market apply the cosmetic product proclamation dossier at the Medicine Management Bureau – the Ministry of Health.

b. Regarding to the cosmetic produced by domestic organizations, individuals: organizations or individuals who are responsible for putting product on market apply the cosmetic product proclamation dossier at the Department of Health in which have production factory. The cosmetic products which are produced, packed from the import semi finished products shall be considered domestic produced products.

c. Regarding to the cosmetic trading in the scope of industrial trading area of Moc Bai border gate economic area in Tay Ninh province implement of the proclamation at the Moc Bai border gate Economical Area Management Board; the cosmetic trading in the scope of Lao Bao special economic -trade area in Quang Tri province implement of the proclamation at the Economic Area Management Board of Quang Tri province.

The transporting cosmetic from the industrial trade area of Moc Bai border gate economic area in Tay Ninh province into other function areas in Moc Bai border gate economic area of Tay Ninh province or into the domestic market for trading; transporting cosmetic from the Lao Bao special economic -trade area in Quang Tri province into the domestic market for trading must implement of the proclamation at the Medicine Management Department– the Health Ministry in accordance with regulations of this Circular (organizations or individuals, who undersign on the cosmetic proclamation, must have function to trade on cosmetic in Vietnam, and not located in two these areas).

2. Handling the cosmetic product proclamation dossier:

a. Within 03 working days since receiving the regular proclamation dossier and proclamation fee as provided competent state management agencies are obligated to issue the number of receiving the cosmetic product proclamation report.

b. In case the proclamation dossier which still does not satisfy provisions of this Circular, within 05 working days since receiving dossier, the dossier receiving agency must announce in writing for organizations or individuals of contents, which having not satisfied yet, to fix, amend dossier (figuring out unsatisfied contents in details).

The amending dossier includes:

– A document explains amending and supplementing of the organization or the individual whose name is on the cosmetic proclamation;

– The cosmetic product proclamation report with the proclamation data (soft copy of the proclamation report) or other amended and supplemented documents;

Within 05 working days since receiving the supplementing dossier satisfying the regulations in this circular, competent state management agencies are obligated to issue the receipt number of the product proclamation report.

In case the amending and supplementing dossier does not satisfy this circular’s regulation, within 05 working days since receiving the supplementing dossier, the dossier receiving agency must announce organizations or individuals in a text document of not issuing the receipt number of the product proclamation report.

c. Within 03 months since the announcement document is issued as provided at point b of this clause; if competent state management agency still does not receive any supplementing dossier from organizations or individuals whose name are on the cosmetic proclamation, the proclamation dossier shall be invalid. In this case, if organizations or individuals want to continue the proclamation, they must submit a new dossier and pay a new fee according to the regulations.

Article 8: The regulation on writing the receipt number of cosmetic product proclamation report

The receipt number of cosmetic product proclamation report is regulated as follows: issued order number + forward slash + issued year (two end numbers) + forward slash + CBMP + hyphen + abbreviated name notation of province, city, the Economical Area Management Board or the Medicine Management Department (QLD) in accordance with Appendix 04-MP.

For example, 135/11/CBMP-HN means that the receipt number of cosmetic product proclamation report is 135 and issued in 2011 by Hanoi Medicine Department.

Article 9: The change of proclaimed contents

Regarding to cosmetic products have already been declared and issued the receipt number of cosmetic product proclamation report, when have any change of content provided at Appendix 05-MP, organizations or individuals who are responsible for putting product on the market must establish a document to suggest supplementing (regarding to content which don’t need make a new proclamation), attached with data related to the supplementing content and must be permitted in writing by competent state agency or implement a new proclamation in regard to the regulation (regarding to contents need make a new proclamation).

Article 10: The effect time of the receipt number of cosmetic product proclamation report

The receipt number of cosmetic product proclamation report shall be valid for 05 years since issuing day. After 05-year-expiry, if organizations or individuals want to continue selling product in the market, they must make a proclamation again before the expiry of the receipt number of cosmetic product proclamation report and pay a regulated cost fee.

Chapter III

COSMETIC PRODUCT INFORMATION DOSSIER

Article 11: The general regulation of cosmetic product information dossier

Every cosmetic product must get a Product Information File (PIF) when delivered to the market in accordance with ASEAN’s instruction which is saved at the address of organizations or individuals who are responsible for putting the product on the market.

Article 12: The Content of the Product Information File

1. The Product Information File involves of the following 04 parts:

a. Part 1: Administrative documents and a summary of product;

b. Part 2: Material quality;

c. Part 3: Product quality;

d. Part 4: Safety and efficiency.

The details of the product information file are regulated in Appendix 07-MP.

2. Part 1 of the Product Information File must immediately be presented to the agency of Consideration, Investigation when required; others, if inefficiently, must be presented within 15-60 days since the consideration day in regard to the Functional agency’s request.

Chapter IV

COSMETIC PRODUCT SAFETY REQUIREMENTS

Article 13: The cosmetic safety requirements

The organization or the individual which delivers the product to the market must guarantee that its product shall be harmless for people’s health when exerted in normal or appropriate conditions instructed, propriety for the composed form, information on the label, instruction, special carefulness, and else which are supplied by the producer or the owner.

The producer or the owner must evaluate the safety property of every cosmetic product in accordance with the ASEAN safety property norm. The heavy metal limit and the microorganisms in the cosmetic must satisfy the ASEAN’s requirements regulated in Appendix No 06-MP. The cosmetic Ingredients must satisfy the Appendix requirements (Annexes) – new version of the ASEAN Cosmetic Treaty (website: www.dav.gov.vn or www.aseansec.org).

Article 14: The prohibited Ingredients, the regulated Ingredients of concentration, content and use condition limit in the cosmetic product formula

Organizations or individuals are not banned to deliver the cosmetic product which is composed with:

1. Prohibited substances in the cosmetic with conditions followed from Appendix II (Annex II).

2. Listed Ingredients in part I from Appendix III (Annex III), with the concentration, the content exceeds the permissible limit or condition.

3. Other color substances listed in Appendix IV (Annex IV), part 1, except the cosmetic which is used for dying hair.

4. Color substances listed in Appendix IV (Annex IV), part 1, is exerted outside mentioned conditions.

5. Maintenance substances outside the section of Appendix VI (Annex VI), part 1.

6. Maintenance substances listed in Appendix VI (Annex VI), part 1, with the concentration, the content exceeds the permissible limit or condition, except these which are used in special purposes unrelated to the maintenance substances effect.

7. Substances for filtering the ultraviolet ray which is not involved in the section from Appendix VII (Annex VII), part 1.

8. Substances for filtering the ultraviolet ray in Appendix VII (Annex II), the content exceeds the permissible limit or condition.

The present substances referred in Appendix II (Annex II) with the mark content is still acceptable if it is unavoidable technical errors in “perfecting that cosmetic product” and still satisfies the product safety requirements in the article 13 of this circular

Article 15: Cosmetic products contain the following Ingredients are still allowed to be putting on the market

1. Ingredients or materials listed in Appendix III (Annex III), part 2, in mentioned limits and conditions until the marked schedule in (g) column of this Appendix.

2. Color substances listed in Appendix IV, part 2, in mentioned limits and conditions until the marked schedule in this Appendix.

3. Maintenance substances listed in Appendix 2, part 2, in the permissible limit and condition, until the day which is mention in (f) column from this Appendix. However, some Ingredients in this amount can be applied to other contents in specific purposes and presented fully in the product display form.

4. Substances for filtering the ultraviolet ray is regulated in part 2 of Appendix VII (Annex VII), in the permissible limit and condition, until the mentioned day in column (f) of this Appendix.

Regulation about using substances which are involved in Appendix (Annexes) above can be adjusted in accordance with the ASEAN Cosmetic Associate’s decision. This regulation shall automatically update and come valid in Vietnam.

Chapter V

WRITINGS ON THE COSMETIC LABEL

Article 16: The label location

1. The cosmetic label must be glue on the commodity, package of commercial article on a location which is easy be seen of full regulated contents without disconnecting details or parts of the commodity.

2. In case, the outward package is not permitted or impossible to open, there must be the label with the required information on the package.

Article 17: The size, the appearance, and the content of label

1. The organization or the individual who are responsible for putting products on the market may identify the size of cosmetic product label but must assure that the information writing on the label must be readable by the ordinary eyes. The content of the label or the auxiliary label (if any) must be honest, clear, accurate, and reflect of exact product’s quality.

2. The color of letter, numeral, drawing, sign, symbol which are displayed on the label must be clear. The color of letter and numeral must have contrast to the colored background of the label.

Article 18: The content required to write on the label

1. The cosmetic product’s label must be suitable for requirements for the cosmetic label writing set by The ASEAN. The following contents must be presented on the label:

a. The product’s name and function, unless the presented form of product has been displayed clearly the product’s function;

b. The usage instruction, unless the presented form clearly been displayed the product’s using manner;

c. The full formula ingredients: must write clearly ingredients according to the international nomenclature regulated for latest printed forms mentioned at point c, clause 1, Article 5 of this Circular (unnecessary to write the percent rate of ingredients);

d. The country where the product was made;

e. The name and the address of organizations or individuals who are responsible for putting products on market (written fully in Vietnamese according to the business registration certificate or the investment permission certificate);

e. Quantification is presented with weight or volume, in regard to the meter system or the meter system and the British system;

f. The manufacture lot number;

g. The manufacture day or the expiry must be clearly presented (i.e.: day/month/year). The date writing way must clearly be presented and involved of month/year or day/month/year in right order. The “expiry” or “the best using before date” can be exerted, if necessary, can add the instructed condition needs obey to make sure of the product’s stability.

Referring to products with the stability below 30 months, the writing of expiry day is compulsory;

h. Warning about safety for usage; especially, warnings in the “usage condition and required alarms are compelled to be printed the product’s label” column is referred in Appendices of ASEAN Cosmetic Treaty; these alarms are compelled to be printed on the label.

2. In case, the size, the form, or the package material can not be fully printed information which is regulated in charter 1 of this Circular on the original label, these required contents have to be printed on the auxiliary label attached with the cosmetic product and on the original label must figure out the position in which these contents are printed.

The following information is compelled to be printed on the original label of product‘s the direct packing:

a. The product’s name;

b. The product lot number.

Article 19: The presented language on the cosmetic label

Contents regulated in the article 18 from this Circular must be written in English or Vietnamese; specifically, information in part b, e, and h in clause 1 of the Article 18 must be written in Vietnamese.

Article 20: The other information is presented on the cosmetic label

The organization or the individual is allowed to write other contents on the label. The added information is not opposite to the law regulation and must guarantee the honesty, the accuracy, the true reflection of the product’s quality without causing the imperative content on the cosmetic label hidden and deviated.

Chapter VI

COSMETIC ADVERTISING

Article 21: The regulation on advertising cosmetic

1. The cosmetic advertising is implemented on the public device for such is the television, the radio, the electronic information pages (id: internet, website), book, newspaper, magazine, pamphlet, pano, poster, air body, water body, or the other advertising means which are implemented or supported or authorized by the cosmetic enterprise organization as well as the seminar, the information, the product introduction activities.

2. Organizations are allowed to advertise or organize the seminar and the cosmetic product introduction event when have the receipt of permission file of advertising, operation seminar, cosmetic introduction event according to the law regulations.

3. The cosmetic advertising content must be appropriate to evident materials which affirm the safety and the efficiency of the cosmetic and be obedient to the ASEAN’s instruction of declaring quality of the cosmetic product.

Article 22: The content of cosmetic advertising, seminar, and cosmetic introduction event

The content of cosmetic advertising, seminar, and cosmetic introduction event must be enough the following information:

1. The cosmetic’ name;

2. The quality, the efficiency (list the cosmetic’ functions, essential effects if not presented on the product’s name);

3. The name and the address of the organization or the individual who is responsible for putting product on the market;

4. The warning of use (if any).

Article 23: The cosmetic advertising on the television, the radio device

If the cosmetic advertising is implemented on the television or the radio, clauses 1, 3, 4 in the Article 22 must be read loudly clearly. In case, presenting words on the screen, contents above must be shown with appropriately transmitted and the advertising letters’ size must be big enough in order to sure clear, readable content.

Article 24: The advertising on newspaper or pamphlet

If the advertising is on newspaper or pamphlet, the ending part of the first page of advertisement document must print: (a) the advertising registration file receipt No of the Health Service; (b) day…month…year… of receiving the regular file printed on the file receipt.

Article 25: The registration dossier of cosmetic advertising, seminar organization, cosmetic introduction event

1. The registration dossiers of cosmetic advertising, seminar organization, and cosmetic introduction event are inclusive of the following documents:

a. The registration applying of cosmetic advertising, seminar organization, and cosmetic introduction event (Appendix 10-MP);

b. The copy of the issued cosmetic product proclamation report (sealed by organization or individual who registers to advertise);

c. The copy of the business registration certificate of organization or individual who registers to advertise (sealed by organization or individual who registers to advertise);

d. The authorization letter of organization or individual who proclaims cosmetic for organization or individual who registers for advertisement, cosmetic introduction event, seminar operation (in case, organization or the individual who registers for advertisement, cosmetic introduction event, seminar operation is not organization or individual who proclaims cosmetic);

e. The subtitles materials of the product’s properties and utilities in case the advertised content and the presented content at the seminar or the cosmetic introduction event show the cosmetic’s properties and utilities which are outside the presented content in the cosmetic product proclamation report;

f. 02 advertisement scenarios (scenario must clearly describe the picture, callouts and music which are going to be put into the advertisement) or 02 advertising models which are going to be published (applied to the cosmetic advertisement registration file) or documents intend to show, publish in the seminar, cosmetic introduction event (applied to the cosmetic introduction event, seminar operation registration file). The file must get the joint pages stamp of organization or the individual who registers for advertisement, cosmetic introduction event, and seminar operation.

2. The manner to set up registration file for cosmetic advertising, cosmetic introduction event, seminar operation:

a. The cosmetic advertising registration file can be established for one or many products, which are advertised in many different public information means.

The cosmetic advertisement or the advertising sceneries can be set up for one or many different products.

b. The cosmetic introduction event, seminar operation registration file can be set up for one or many products, operated at one or many locations in cities or provinces.

Article 26: The authority of receiving and handling registration file of cosmetic advertising, cosmetic introduction event, and seminar organization

1. Before advertising of cosmetic, organizations, individuals have to send 01 set of cosmetic advertisement registration file according to the current provisions to the Health Department of place where the main office of organizations, individual proclaiming cosmetic products is located. The file envelop must clearly be written on with “the cosmetic advertising registration file”.

2. Before operating seminar, cosmetic introduction event, organizations, individuals have to send 01 set of applying file according to the current provisions to the Health Department of location where operate seminar, cosmetic introduction event. The file envelop must clearly be written on with “the seminar, cosmetic introduction event operation registration file”.

3. The Health Departments of centrally-affiliated cities and provinces (except advertising forms which are implemented according to the February 28, 2007 Joint Circular No 06/2007/TTLT/BVHTT-BYT-BXD of the Ministry of Culture and Information, the Ministry of Health, the Ministry of Agricultural and Rural Development, the Ministry of Construction on guiding the one-stop shop procedures for the grant of advertisement permits) receive and solve the registration dossier of cosmetic advertising, cosmetic seminar organization, and cosmetic introduction event.

Article 27: The order and procedure of issuing the registration dossier receipt of cosmetic advertising, seminar organization, and cosmetic introduction event

1. After receiving the registration file of cosmetic advertising seminar organization and cosmetic introduction event which are regular in accordance with provisions of this Circular and the fee as current provisions, the Health Department sends to file applying organizations the receipt of cosmetic advertising seminar organization and cosmetic introduction event registration file (Appendix 11-MP) with the advertising pattern or the sceneries meet requirements (applied to the cosmetic advertising registration file). The date printed on the file receipt is the date when the Health department has received the full regular file. After 10 working days, since the day of received file, if the Health department does not require any amending or supplementing in writing, those organizations shall be permitted to make advertisement, operate seminar, cosmetic introduction event in regard to the registered content.

2. In case the file is irregular to this Circular’s provisions, the Health department shall notify the organization with an announcement in writing to supplement, complete the dossier.

a. In the announcement, must be stated clearly, in detailing of amending and supplementing documents and contents.

b. The organization has to amend and supplement according to the mentioned contents in the required amending and supplementing document and send back to the Health department. When the organization has yet supplemented the file fully, the Health department shall send a file receipt, the date printed on the file receipt is the date when Health department has received the full supplemented file. After 10 working days, since the day of receiving the supplemented advertisement content, if the Health department does not send out a amending and supplementing requirement in writing, the organization shall be permitted to advertise, operate seminar, cosmetic introduce event in regard to the amended content.

c. In case, the supplemented file cannot rightly satisfy the referred contents in the amending and supplementing document, the Health department shall notify to the organization not to advertise, operate seminar, cosmetic introduce event as registered contents. Therefore, if the organization wants to continue to advertise, operate seminar, cosmetic introduce event, have to apply the file again, order of the file registration and consideration shall be implemented from the beginning and pay the fee as provided.

d. In 02 months, since the Health department sends a document on contents need be supplemented to the file applying organization, if the Health department does not receive any document attached with the supplementing file, the registration file of advertisement, seminar, cosmetic introduce event operation shall be invalid.

Article 28: The advertising information content evaluating fee

1. The cosmetic advertising content evaluating fee of an applying file collect/pay according to the current provisions which is calculated upon the products in 01 cosmetic product proclamation report issued the receipt number (independent from public telecommunication devices used for advertisement).

2. The cosmetic introduction event, seminar operation file evaluating fee (the advertising information content evaluating fee) collect/pay according to the current provisions which is calculated upon the products in 01 cosmetic product proclamation report issued the receipt number (independent from the number of cosmetic introduction event, seminar operation times).

Article 29: The cosmetic advertising in other local areas

After receiving the file receipt of cosmetic advertising registering, if the organization wants to advertise on other advertising devices under local authorities of places different from the place where send advertisement registration file, must send an announcement in writing with the notarized copy of the regular cosmetic registration file receipt and all registered equivalent advertising content (the advertising sceneries or the advertising pattern) to the Local Health department where the advertising is going to be put into process before advertisement implementation at least 03 working days.

Article 30: Changing and supplementing the content of advertising, seminar organization, and cosmetic introduction event

1. The organization who registers advertising, seminar, cosmetic introducing event operation must submit a supplementation registration file to the Health department where issues the file receipt when change one of the following contents:

a. Name, address of organization or individual who are responsible for putting product on the market without changing the business registration certificate number or the investment certificate number;

b. Name, address of organization who registers advertising, seminar, cosmetic introduction event operation without changing the business registration certificate number or the investment certificate number;

c. Location and formal time of seminar, cosmetic introduction event operation compared to the registered estimation.

2. The supplementing file involves: the suggesting document for changing and supplementing, as well as documents in related to changing and supplementing content.

3. Other changes or supplementations out of contents referred at charter 1 of this Article, the organization who registers advertising, seminar, cosmetic introduction event operation must implement new registration as prescribed.

4. The Health department is obligated to deal supplementing files in 10 working days, since receiving enough regular file.

Article 31: The invalid cases of cosmetic advertising content, seminar organization content, and cosmetic introduction event

1. The content of cosmetic advertising, seminar organization, and cosmetic introduction event is invalid in the following cases:

a. The Cosmetic which has circulation registration number, cosmetic quality standard proclamation receipt number, cosmetic product proclamation receipt number is invalid.

b. The cosmetic which is recommended not to be consumed or is withdrew by the state authority management agency.

c. There are changes about the information affecting the safety and quality of cosmetic.

2. The organization that has advertising content, seminar organization content, and cosmetic introduction event be invalid, is compelled to communicate with related agencies, the advertisement publisher in order to stop publishing the cosmetic advertising information.

Chapter VII

EXPORT OR IMPORT OF COSMETIC

Article 32: Export of cosmetic

Export of cosmetic must be implemented at the Customs agency in accordance with the current law regulation and the import country’s requirements.

Article 33: The file, procedure of issuing the Certificate of Free Sale (CFS) in regard to the cosmetic which has been domestic produced for export

1. The CFS issuing request file includes:

a. The CFS issuing request applying (Appendix IV of the February 10, 2010 Decision No 10/2010/QD-TTg of the Prime Minister, on providing the certificate of free sale for the export or import commodities, products) must be fully regularly enumerated;

b. The copy of the cosmetic product proclamation report has been issued the receipt No (the copy sealed by trader who suggest for the CFS granting).

2. The issuing of the Certificate of Free Sale (CFS) for cosmetics which are domestic produced for export must be implemented according to regulations in Chapter II of the February 10, 2010 Decision No 10/2010/QD-TTg of the Prime Minister, providing the certificate of free sale for export or import commodities, products; moreover:

a. The domestic cosmetic for export purpose is issued the CFS when it is issued the cosmetic product proclamation receipt number by competent state management agency.

b. The export trader must register the trader file at the Health department where have cosmetic manufacturing plant and make CFS issuing procedure for export cosmetic goods.

c. Every CFS is issued for 01 or many products (CFS pattern in regard to Appendix 12-MP) and become effective in next 02 years since issued day.

3. The cost or the fee for the CFS issuing is implemented according to the current regulation (The cost or the fee for the CFS issuing is calculated on product in 01 cosmetic product proclamation report with issued receipt number).

4. The Health department in central-affiliated cities and provinces are competent agencies in issuing and managing CFS of export cosmetics which are manufactured in that area (where the manufacturing plant is placed).

Article 34: The file, the procedure of issuing the certificate of organization satisfying principles and norms of the “cosmetic good manufacture practice” of the ASEAN Association (CGMP- ASEAN), which serves for the export demand

1. The manufacturing organization which has demand to be issued the certificate of organization satisfying principles and norms of the “cosmetic good manufacture practice” of the ASEAN Association (CGMP- ASEAN), which serves for the export demand, sends the consideration registration file to the Medicine Management department – the Health Ministry. The file is inclusive of:

a. The consideration registration applying of “cosmetic good manufacture practice” (Appendix No 13-MP);

b. The copy of Business Registration Certificate of the Investment license;

c. The organization chart and human of organization (the organization chart must clearly presents the name, job title, technical, professional level of officers who are in charge of parts), the working process and experiences in the assigned fields of the officers who are in charge of parts (manufacture, quality check, quality guarantee, storehouse);

d. The training program, assessment results of training the “cosmetic good manufacture practice” at organization;

e. The location chart and design of factory (includes: the general background chart, the worker’s way chart, way chart of material, package, semi-finished product, finished product, waste-treating system chart);

f. The list of factory’s current equipments (involves manufacturing equipments and cosmetic quality-checking equipments) has to clearly states name, manufacture year, manufacture country and situation of equipment);

g. The list of goods which are being manufactured or estimated produced (state clearly the product form);

h. The self-investigation minutes of “the cosmetic good manufacturing practice” (the self-investigation minutes must clearly states investigation time, element of self-investigation delegation, self-investigation purpose, self-investigation results and time proposals and contemporary problem-solving means).

2. The authority of receiving and handling file:

The Medicine Management department – the Ministry of Health is obligated to consider files, plan and make decision to establish investigation delegation, inform to organization at least 10 days before implementing investigation.

3. The certificate of organization satisfying principles and norms of the “cosmetic good manufacture practice” is valid in 03 years since the issuing day.

4. The manufacture organization (the GMP registration organization for short) must pay the fee for evaluating of cosmetic manufacture standards and conditions, in accordance with the current regulations.

Article 35: Import of cosmetic

1. Cosmetic products which have been issued the valid cosmetic product proclamation receipt number by the Medicine Management department – the Health Ministry, permitted to import in Vietnam. The import procedure is implemented at the Customs agency according to the current regulations. When implementing the import procedure, enterprise presents to the Customs agency the cosmetic product proclamation report which has been issued the receipt number by the Medicine Management department – the Health Ministry.

2. Import of cosmetic in some special situations (not obligated to implement the cosmetic product proclamation according to this Circular’s regulation);

a. Organization or individual who imports cosmetic in order to study and experiment must send the cosmetic import bill used for studying and experiment to the Medicine Management department – the Ministry of Health (Appendix No 14-MP). The maximum amount for each product is 10 patterns.

The cosmetic import bill which is used for studying and experiment is made into 03 versions. After approved, 02 versions are saved at the Medicine Management department, 01 version is sent back to the organization. The version which is sent back to the organization shall be sealed with “the version for sending to enterprise” in order to present to the customs agency when make customs clearance procedure.

The cosmetic products which are imported for studying, experiment have to be used in the right purpose and not to permit to put on the market.

b. The organizations, individuals who receive cosmetic as gifts must implement the import procedure at the customs agency as the regulations. The overall value of each gift receiving time is not to exceed the cargo quantum which is exempted of the imposed tax in the current regulations.

The import cosmetic patterns such as gifts shall be not permitted to put on the market.

c. The organizations, individuals who imports cosmetic for displaying at fair, gallery and other temporary import for re-export situations must implement procedure of applying for temporary import for re-export license of the Ministry of Industry and Trade in accordance with the current regulations.

Chapter VIII

COSMETIC SAMPLING FOR THE QUALITY CHECK

Article 36. The principle of sampling

1. Cosmetic sampling for quality checking or supervision must follow the principle of sampling random pattern and take pattern at different positions of the product lot.

2. The amount of pattern which is necessary to collect for analysis and archives basing on the checking requirement, quality standard, test method, but at least enough for the three-time-analysis or enough for implementation experiment which guarantee result accurate and trustworthy.

3. The pattern for analysis and archives must be put into the cover, tightly soldered, and labeled. The label of thing cover pattern must clearly state the product’s name, the name of the organization or the individual responsible for putting product on market, the lot number, the expiry of using, place of sampling, and date of sampling.

4. Make the minutes of cosmetic sampling in accordance with Appendix 09-MP : The cosmetic sampling minutes must clearly state the product’s name, the manufacture lot number, date of sampling, place of sampling, records of abnormal in sampling process, the signature and name of sampling person, the sampled organization’s representative, the seer (if necessary). The minutes is made into 03 versions : One version saved at organization of collecting pattern, one version saved at the consideration agency, one version saved at the cosmetic quality checking management agency.

Article 37. The rights and obligations of sampling officer

1. Presenting the card of investigator or the quality controller or the introduction letter or decision on establishing the check delegation signed by the head of the cosmetic quality inspection agency when implementing his duty.

2. Asking organization having the pattern to present dossiers or the materials related to source, quantity, quality of the sampling cosmetic lot; giving out the method of sampling, quantity of patterns for analysis and archives samples from the cosmetic lot in the sampling process.

3. Checking and sampling any pattern packaged from the cosmetic lot when have any suspicion of product’s quality and safety.

4. Being responsible for the technical manipulation, the legal procedure in the process of sampling, transportation and transfer samples to the analyze agency.

Article 38. The transportation and transfer samples

1. After finishing the sampling, the sampling officer must send samples with the cosmetic sampling minutes attached and hand over to the analyze agency. In special cases, the sample can be posted to the analyze agency.

2. The cosmetic samples must be packed up inside the appropriate cover and transported by the suitable means to make sure that the samples are maintained in accordance with the regulation, avoid spoiling, damage during transportation process.

Article 39: The conclusion of the cosmetic samples quality checking

1. The cosmetic samples which are collected by the quality checking authority state agency guarantee the representative property for the whole cosmetic lot and are implemented to analyze in the recognized laboratories; for which the conclusion of the quality checking result shall be legal valid regard to the whole product lot.

2. All cosmetic samples which are sent to the quality checking state agency by organizations or individuals in order to analyze the quality; for which the checking result shall be just legal valid regard to the sent samples.

Article 40: The sampling and analyzing fee for the cosmetic quality check

1. The cosmetic sampling fee and the cosmetic sample analyzing cost for the cosmetic quality check in manufacturing, composing, and putting on the market will be paid by the quality checking agency who decides on sampling and analyzing sample in accordance with the regulation of the March 3, 2010 Joint-Circular No 28/2010/TTLT-BTC-BKHCN by the Joint-Ministries of Finance, Science, and Technology, on guiding budget management and spending in relation to state checking operation of the commodity product quality.

2. In case, the analyzed sample is unsatisfied the quality standard which concluded by the cosmetic quality checking agency, organizations, individual who are responsible for putting the product on the market must pay for the whole fee of collecting pattern, analyzing cosmetic pattern to the quality checking agency in accordance with Article 10, Article 12, Article 14, Article 16, and Article 41 of the Product Quality Law in 2007, the March 3, 2010 Joint-Circular No 28/2010/TTLT-BTC-BKHCN of the Joint-Ministries of Finance, Science, and Technology on guiding budget management and spending in relation to state checking operation of the commodity product quality, and related law documents.

3. In case, the cosmetic is complained and accused of the quality; however, the quality checking agency conclusive that the complaint, accusation of product quality are not right, the person, who complaint, accuse, must pay for the whole fee of sampling, analyzing cosmetic sample to the quality checking agency regulated in charter 1 of this Article.

4. The cosmetic sampling payment for quality checking, the cosmetic sample analyzing payment are organized in the operation budget estimate of the cosmetic quality checking state agency, according to the regulations in the March 3, 2010 Joint-Circular No 28/2010/TTLT-BTC-BKHCN of the Joint-Ministries of Finance, Science, and Technology on guiding budget management and spending in relation to state checking operation of the commodity product quality, and related law documents.

Chapter IX

CHECKING, INVESTIGATING, AND HANDLING OF VIOLATIONS

Article 41: The state checking on the cosmetic quality

1. The cosmetic quality checking agency:

a) The Cosmetic Quality Checking Central agency is the Medicine Management department – the Ministry of Health. The Medicine Management department directs the checking-system in the whole country. In the cosmetic quality checking state activities, the Medicine Management department coordinates with the inspector of the Health Ministry, the Medicine Analyzing Central Institute, the Medicine Analyzing Institute of Ho Chi Minh City, Medicine departments of centrally-affiliated cities and provinces in order to carry out and supervise the post-sale promotion activities regard to the cosmetic products.

On the cosmetic analyzing result of the analyzing state agencies, the Medicine Management department – the Ministry of Health is the agency who conclusive cosmetic quality in limit of whole country.

b. The local cosmetic quality-checking agency is the Health department of centrally-affiliated cities and provinces. The Health departments of centrally-affiliated cities and provinces organize to carry out the post-sale promotion activities on the domestic cosmetic, the import cosmetic which is delivered in their area, and handle problems in relation to the cosmetic quality according to the law regulations; follow and statistic of the cosmetic quality management situation in their localities; conclude the cosmetic quality on the cosmetic-analyzing result of the cosmetic quality analyzing state agency in their localities.

2. The cosmetic analyzing state system involves:

a. In the Central: The Central Medicine-Analyzing Institute, the Medicine-Analyzing Institute of Ho Chi Minh City.

b. In the Locality: The Medicine and Cosmetic Analyzing Centers in centrally-affiliated cities and provinces.

3. The Heads of cosmetic quality analyzing state agencies are responsible for the conclusion of cosmetic quality-checking result before the law.

Article 42: The checking and inspecting form

1. The scheduled check and inspection: The scheduled check and inspection shall be warned for the checked organization in order to prepare being inspected before implementing of checking, inspecting activities.

2. The sudden check and inspection: The sudden check and inspection shall be made when discovering the products which are unqualified product, don’t obey provisions of putting on the market, or because of the customer’s complaints. In urgent cases, the authority agencies have the right of check and inspection without warning.

Article 43: The content of checking and inspecting

1. Checking and inspecting the obedience of laws on the cosmetic production and the trading:

a. The obedience of principles and standards of “cosmetic good manufacturing practice” of the Asian Southeast Association Nations (CGMP-ASEAN) or equivalence which are admitted by the ASEAN Cosmetic Association;

b. The label writing;

c. The Product Information File (PIF) regulated by the ASEAN;

d. The cosmetic advertising.

2. The check and the inspection of solving the dispute, the complaint, the denouncement on the quality and other contents related to the cosmetic (if any).

3. The check and the inspection of implementing announcement of confiscation the cosmetic in regard to the regulation (if any).

Article 44: The priority order in checking and supervising the post sale-promotion

The check and the inspection of the cosmetic post sale-promotion need to get together at the import, delivery, manufacturing organizations. The priority in checking and supervising the cosmetic post-promotion is dependent on the product’s kind, origin source, label, company’s brand name, formula Ingredients according to the ASEAN’s instruction on checking and supervising the post sale-promotion (Appendix No 08-MP).

Article 45: Suspending the cosmetic circulation and confiscation

1. The cosmetic which is suspended circulation and confiscated when one in two following situations happens:

a. The cosmetic which is put into the market has not yet been issued with a cosmetic proclamation receipt No by the Government’s Authority Office;

b. The cosmetic which is unqualified or unsafe for the consumer;

c. The delivered cosmetic gets the formula which is written not exact as the proclaimed one in the file.

d. The cosmetic which contains the prohibited substance, or the concentration, the content exceeds the permissible level;

dd. The circulation of cosmetic which gets a inappropriate usage label compared to the proclamation file or is unsatisfying the regulation in writing on the label of this Circular; dependent on the level of violation, the product can be suspended of circulation and confiscated;

e. The circulation of cosmetic is produced at a factory which is unsatisfying the regulation, “cosmetic good manufacturing practice” standard of the Asian Southeast Association Nations (CGMP-ASEAN) or the ASEAN Cosmetic Association equivalent admits; dependent on the level of violation, the product can be suspended of deliver and confiscated.

f. The expired or over-expired cosmetic in accordance with the producer’s warning;

g. The false, illicitness-imported, unclear-sourced, origin, and imperfection-packaged product;

h. The cosmetic is voluntarily confiscated in written by organization or individual who is responsible for putting it on the market.

2. The authority of making decisions to confiscate the cosmetic:

a. The Medicine Management Department – the Ministry of Health gives out a decision to confiscate the cosmetic from the whole country.

b. The Provincial or Central Cities Health Service, the Management Board of the Moc Bai Entry Economical Area (Tay Ninh Province) or the Management Board of the Economical Area, in Quang Tri Province implement the Medicine Management department – the Ministry of Health’s announcement of confiscating the law-breaking cosmetic in accordance with the law regulation in the region and report to the Medicine Management department.

Article 46: Confiscating the cosmetic product proclamation receipt number

1. The cosmetic product proclamation receipt number is confiscated in one of the following situations:

a. The circulated cosmetic gets two unqualified lots which are concluded by the Government’s Cosmetic Quality Management Office;

b. The circulated cosmetic gets the formula which is not exact as the proclaimed one in the file;

c. The circulated cosmetic gets the label in which the origin and the source are written erroneously;

d. The circulated cosmetic gets the label in which the cosmetic existing properties are written erroneously;

e. The cosmetic unsafe for the consumer;

f. The cosmetic which contains the prohibited substance, or the concentration, the content exceeds the permissible level;

g. The cosmetic which is concluded of breaking the intellectual ownership right or falsifying another delivery-permissible product’s label.

h. The product which is prohibited in the current country;

i. The organizations or the individuals who put the cosmetic to the market gives out a request document of confiscating the cosmetic product proclamation receipt No;

j. No Product Information File (PIF) for presenting to the Authority Office in accordance with the Article 12 of this Circular;

k. Forging the document, using fake seal or forging the signature, the seal of the Authority Office of Vietnam or foreign country, of the manufacturer or the product owner;

l. Dishonest declaring about contents referred in the cosmetic proclamation receipt.

2. The authority of giving out a decision to confiscate the cosmetic product receipt number:

a. The Medicine Management department – the Ministry of Health make decision to confiscate the domestics-manufactured product proclamation receipt Number issued by the Medicine Management department before April 25, 2009, for the imported products in the whole country.

b. The Provincial and Central Cities Service of Health make decision to confiscate the local manufactured product proclamation receipt number issued by their organization.

c. The Management Department of the Moc Bai Entry Economical Area (Tay Ninh Province), the Management Department of the Quang Tri Province Economical Area decides to confiscate the local manufactured product proclamation receipt No issued by their organization.

Article 47: Suspension situations of receiving the cosmetic product proclamation file, the cosmetic advertising registration file, the seminar organization file, the cosmetic introduction event

1. The Government’s Management Office shall suspend considering and receiving the cosmetic product proclamation file in 06 months in regarding to the organizations or the individuals which has one of the following behaviors:

a. Trading on the illicitly imported cosmetic, the false cosmetic, the unclear-sourced origin cosmetic;

b. Trading on the cosmetic which is not yet issued the cosmetic product proclamation receipt No by state management authorities;

c. Disobeying the implementation of confiscating the law-breaking cosmetic in accordance with the state authority office’s announcement;

d. Producing or business cosmetic at a factory which is unsatisfying the regulation, “cosmetic good manufacturing practice” standard of the Asian Southeast Association Nations (CGMP-ASEAN) or the ASEAN Cosmetic Association equivalent admits;

e. Producing or business cosmetic which contains the prohibited substance, or the concentration and the content exceeds the permissible level;

f. Using the cosmetic manufacturing materials which have been declared not to putting on the market by the manufacturing country;

g. Importing and trading on the cosmetic or the cosmetic product materials which have been declared not to deliver in the market by the manufacturing country;

h. Manufacturing and trading cosmetic whose formula is not exact as the content in the cosmetic product proclamation file;

i. Forging the document, using fake seal or forging the signature, the seal of the Authority Office of Vietnam or foreign country, of the manufacturer or the product owner;

k. Dishonestly confessing about contents referred in the cosmetic proclamation receipt;

l. Owning no Product Information File (PIF) for saving at the enterprise in according to the regulation.

2. The Government’s Management Office shall suspend considering and receiving the registration file of cosmetic advertisement, seminar, and cosmetic introduction event, in 06 months in regarding to the organizations or the individuals who has one of the following behaviors:

a. Advertising the cosmetic, holding the cosmetic seminar, and the cosmetic introducing when have not issued the cosmetic advertising registration file receipt, the cosmetic seminar-holding registration file receipt, the cosmetic introducing event registration file receipt by the state competent office according to the law regulations;

b. Advertising, holding the seminar, and introducing the event of the cosmetic which is not issued with the cosmetic product proclamation receipt Number;

c. Advertising the cosmetic which is possible to make the consumer misunderstand that the cosmetic is a tablet; advertising the cosmetic which is used of the title, the symbol, the image, the letter of the Healthcare organization or the Pharmacy organization of Health officers; advertising the cosmetic on property and efficiency which are not enough for the scientific base.

3. The state competent office shall consider suspending receiving the cosmetic advertising registration file, the cosmetic seminar-holding registration file, the cosmetic introducing event registration file from the organizations or the individuals who do not submit the annual trading manufacturing activity results report in regard to provisions.

When the suspension time period for considering and collecting the file comes to an end, after the organization has already overcome all law-breakings and submitted report, the state competent office shall continue to consider and collecting the cosmetic advertising registration file, the cosmetic seminar-holding registration file, the cosmetic introducing event registration file of the organization.

Chapter X

THE OBLIGATION OF THE ORGANIZATION, THE INDIVIDUAL WHO MANUFACTURE, TRADE, AND IMPORT THE COSMETIC AND THE CONSUMER’S RIGHT

Article 48: The obligation of the organization, the individual who manufacture, trade, and import the cosmetic in order to put on the Vietnam market

1. The organization, the individual, who are responsible for putting cosmetic on the market, must be responsible for all contents declared in the cosmetic product proclamation report, for the safety, the efficiency, and the quality of the product; as well as guarantee that the circulated products satisfy all requirements of the ASEAN Cosmetic Treaty and the attached Appendix .

2. The organizations, the individuals who put the cosmetic on the market must be responsible to follow, to discover, and to confiscate immediately the unqualified cosmetic, as well as implement the confiscation announcement from the state authority office and inform to the state authority office about the confiscation; punctually deal with the consumer’s complaints of the cosmetic’s quality and compensate for consumer’s loss in accordance with the regulation; refund to the buyer the produced cost in the maintenance, transportation, and circulation process.

3. In case finding side-effects which are serious and able to damage the consumer’s life because of the cosmetic product’s quality, the organizations, the individuals who put the cosmetic on the market must report to the Medicine Management department – the Health Ministry within 07 days since the day or receiving the first feedback from this side-effect in accordance with the version at Appendix No 18-MP. The announcement in detail on this serious side-effect must be sent back to the Medicine Management department – the Health Ministry within next 08 days.

4. The organizations, the individuals who put the cosmetic on the market must save the Product Information File (PIF) in at least 03 years since the latest manufacture lot is put on the market and presented to the checking and inspecting Functional Office when is requested.

5. The organizations which manufacture the cosmetic must deploy to apply and satisfy principles, the “cosmetic good manufacturing practice” standard of the Asian Southeast Association Nations (CGMP-ASEAN)

6. The organizations, the individuals who business on the cosmetic must conduct requirements of state competent offices about checking and inspecting the cosmetic quality, confiscating the violation cosmetics, and be entitle to complain about the conclusion and the law-breaking judgment form in accordance with the law regulation on the complaint and the denouncement.

7. The organizations, the individuals who put the cosmetic on the market must obey the Vietnamese Regulation and Law on the intellectual ownership. When having the conclusion of the state competent offices on the intellectual-ownership law-breaking label and industrial-style, The organizations, the individuals must stop manufacturing, trading, and importing in order to conduct of changing the label and the industrial style as provided, and be responsible for refunding and resolving all damages (if any).

Article 49: The cosmetic consumer’s right

The consumer has right to be informed about the cosmetic, to complain, to sue, and to ask the cosmetic-trading organization to refund damage in regard to the law regulation incase of consuming the circulated cosmetic which is unqualified and unsafe.

Chapter XI

THE IMPLEMENTING ORGANIZATION

Article 50: The information and the report

1. The Medicine Management department – the Ministry of Health is responsible to update and deploy regulations related to the ASEAN Cosmetic Treaty in the electronic information page of the Medicine Management department (website address: www.dav.gov.vn). Frequently popularize the changes on the technical criterion which have been decided by the ASEAN Cosmetic Association for relative organizations and cosmetic-trading organizations, as well as collaborate to carry out those changes and decisions in Vietnam. All decisions of managing the cosmetic which are accepted by the ASEAN Cosmetic Association are applied in Vietnam.

2. The Medicine Management department, the Provincial and Center Cities department of Health, the Management Board of Moc Bai Entry Economical Area (Tay Ninh Province), and the Management Board of Quang Tri Province Economical Area, in accordance with the authority, are obligated to up cosmetic violation handling results in the electronic information page of the office in order to serve checking, inspecting, and supervising of after-sale.

3. Periodically annually on June 30 and December 31, the Provincial and Central Cities department of Health, the Management Board of Moc Bai Entry Economical Area (Tay Ninh Province), and the Management Board of Quang Tri Province Economical Area send the report of quality management situation and the cosmetic after-checking work in the local region, report of issuance of the cosmetic product receipt (Appendix 15-MP) and report of issuance of the registration file receipt of cosmetic advertising, cosmetic seminar-holding, and cosmetic introducing event (Appendix No 16-MP) to the Medicine Management department – the Ministry of Health.

4. Periodically annually on January 30, the organization, the individuals who are responsible for putting the cosmetic on the market must send their previous year business activity result report to the Medicine Management department – the Ministry of Health and the department of Health (Appendix 17-MP).

Article 51: The forms and the appendixes attached with the Circular

1. The cosmetic product proclamation receipt form: Appendix No 01-MP.

2. The document guides on proclaiming the cosmetic product: Appendix No 02-MP.

3. The ASEAN’s instruction on proclaiming the cosmetic product’s property: Appendix No 03-MP.

4. The abbreviation treaty of the central province name, city name and some Management Board of Economical Areas: Appendix 04-MP.

5. The changes after proclaiming the cosmetic product: Appendix No 05-MP.

6. ASEAN’s regulation on the heavy metal limit and the micro-organism in the cosmetic product: Appendix No 06-MP.

7. The product information file: Appendix No 07-MP.

8. The document guide of ASEAN on checking the cosmetic post-promotion: Appendix No 08-MP.

9. The cosmetic sampling minute form: Appendix No 09-MP.

10. The registration dossier receipt form of cosmetic advertising, seminar organization, cosmetic event: Appendix 10-MP.

11. The registration dossier receipt form of cosmetic advertising, seminar organization, cosmetic event: Appendix 11-MP.

12. The Certificate of Free Sale (CFS) form: Appendix No 12-MP.

13. The “cosmetic good manufacturing practice” examination registration receipt form: Appendix No 13-MP.

14. The import order form for studying and testing: Appendix No 14-MP.

15. The report form of the list of cosmetics which have been issued the cosmetic product proclamation receipt Number: Appendix No 15-MP.

16. The report form of the list of cosmetics which have been issued the registration dossier receipt of cosmetic advertising, seminar organization, cosmetic event: Appendix No 16-MP.

17. The cosmetic business manufacturing activity result report form: Appendix No 17-MP.

18. The cosmetic disadvantageous side-effects announcement form: Appendix No 18-MP.

Article 52: The transfer regulation:

1. Since the effective day of this Circular, all organizations, individuals who put the cosmetic product on the Vietnam market must implement the cosmetic product proclamation in regard to the regulation of this Circular.

2. Regarding to the products which have been declared since March 10, 2008 (in accordance with the provisions in the Cosmetic Management Regulation promulgated together with the December 31, 2007 Decision No 48/2007/QD-BYT of the Minister of the Ministry of Health) and issued with a valid cosmetic product proclamation receipt number which satisfies the provisions of this Circular shall be permitted to continue to manufacture (regarding to the domestic cosmetic), import (regarding to the foreign product) until the end of limit time of the cosmetic product proclamation receipt.

3. Cosmetic products which put on the market without satisfying the cosmetic product safety requirement in accordance with the regulation in Chapter IV of this Circular; organizations, individuals who are responsible for putting the cosmetic on the market must confiscate all products and implement fully provisions in this Circular.

4. For the cosmetic products, which were putted on the market in the valid period of the permission, if they satisfy the product safety requirement in regard to the regulations in Chapter IV of this Circular shall be still putted on the market until the expiry date of products.

Article 53: The implementation effect

1. This Circular takes effect from April 1, 2011.

2. Canceling the December 31, 2007 Decision No 48/2007/QD-BYT of the Minister of Health on adoption the Cosmetic Management Regulation, the December 26, 2008 Decision No 40/2008/QD-BYT of the Minister of Health on devolving the state management on the Vietnam domestic cosmetic, the July 2, 2008 Decision No 22/2008/QD-BYT from the Health Ministry on authorizing the Management Board of Moc Bai Entry Economical Area, Tay Ninh Province to implement the cosmetic management function; the September 21, 2010 Decision No 3450/QD-BYT of the Health Ministry on authorizing the Management Board of Quang Tri Province Economical Area to implement the cosmetic management function.

3. The Heads of units under the Ministry of Health; the units directly under the Ministry of Health ; director of Provincial and Central Cities department of Health, and related organizations or individuals are obligated to fulfill implement this Circular.

4. During the implementation deploying process; if there are any difficulties or problems, the organizations, individuals may send report to the Ministry of Health (Medicine Management Department, 138A Giang Vo, Ba Dinh, Ha Noi) for consideration and solution./.

FOR THE MINISTER

DEPUTY MINISTER

Cao Minh Quang