THE MINISTRY OF INDUSTRY AND TRADE
------- THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
----------------
No. 24/2014/TT-BCT Hanoi, July 30, 2014
CIRCULAR
DETAILING A NUMBER OF ARTICLES OF THE GOVERNMENT’S DECREE NO. 42/2014/ND-CP OF MAY 14, 2014, ON MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES
Pursuant to the Government’s Decree No. 95/2012/ND-CP of November 12, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;
Pursuant to the Government’s Decree No. 42/2014/ND-CP of May 14, 2014, on management of multi-level marketing activities;
At the proposal of the Director of the Vietnam Competition Authority,
The Minister of Industry and Trade promulgates the Circular detailing a number of articles of the Government’s Decree No. 42/2014/ND-CP of May 14, 2014, on management of multi-level marketing activities.
Article 1. Scope of regulation and subjects of application
1. This Circular details and guides the implementation of a number of articles related to multi-level marketing activities and management of multi- level marketing activities prescribed in the Government’s Decree No. 42/2014/ND-CP of May 14, 2014, on management of multi-level marketing activities (below referred to as Decree No. 42/2014/ND-CP).
2. This Circular applies to multi-level marketing businesses, multi-level marketing participants, agencies granting multi-level marketing registration certificates, provincial-level Industry and Trade Departments and other agencies, organizations and individuals related to multi-level marketing activities.
Article 2. Dossiers of application for multi-level marketing registration certificates
A dossier of application for a multi-level marketing registration certificate must comprise:
1. An application for a multi-level marketing registration certificate, made according to form M-01 provided in the Appendix to this Circular.
2. A certified copy of the enterprise registration certificate or the enterprise registration certificate printed out from the national enterprise registration information system or a certified copy of the investment certificate.
3. A document proving the legal charter, which may be any of the following documents: a credit institution’s written certification of the business’s account balance; an independent auditor’s report on the business’s current asset status; a deed of valuation granted by a valuation institution operating lawfully in Vietnam for assets of the business; the business’s financial statement up to the time of submission of the dossier or other equivalent documents.
4. A list of valid personal identity papers (people’s identity cards or passports, for Vietnamese nationals; passports and temporary residence registration certificates granted by competent Vietnamese agencies, for foreigners temporarily residing in Vietnam; or passports, for foreigners not residing in Vietnam) of the persons mentioned in Clause 7, Article 7 of Decree No. 42/2014/ND-CP, and certified copies of such papers.
5. Two sets of the dossier of the business’s multi-level marketing activities, each comprising:
a/ The model contract for participation in multi-level marketing activities;
b/ The bonus payment program clearly stating conditions for and methods of payment of commissions, bonuses and other economic benefits to multi-level marketing participants;
c/ Basic training program;
d/ Rules of operation.
6. Documents related to goods to be traded by the mode of multi-level marketing, including:
a/ Two copies of the list of goods indicating information on categories, origin, packaging specifications, sale prices (applicable to multi-level marketing participants and customers) and bonus points converted from goods traded by the mode of multi-level marketing;
b/ Valid documents guaranteeing the circulation of goods as prescribed by relevant laws;
c/ Documents related to uses, use methods and policies on warranty, return and re-purchase of goods.
7. A certified copy of the business eligibility certificate or business license or practice certificate as prescribed by law, in case of trading in goods subject to conditional business.
8. The original written certificate of payment of escrow money as prescribed in Article 16 of this Circular.
Article 3. Order and procedures for grant of multi-level marketing registration certificates
The Vietnam Competition Authority shall receive, appraise and grant multi-level marketing registration certificates to businesses that register for multi-level marketing activities. The order and procedures for granting a multi-level marketing registration certificate are as follows:
1. Receiving the dossier
a/ A business that registers for multi-level marketing activities shall submit 1 (one) set of the dossier prescribed in Article 2 of this Circular (enclosed with a soft copy recorded in a CD-ROM disc or an USB flash drive) to the Office of the Vietnam Competition Authority. The dossier may be submitted directly or sent by post;
b/ Within 5 working days after receiving the dossier, the Vietnam Competition Authority shall check its completeness and validity. If the dossier is incomplete or invalid, the Vietnam Competition Authority shall notify such to the business for the latter to modify or supplement the dossier within subsequent 30 days;
c/ If the business fails to modify or supplement the dossier within 30 days after the Vietnam Competition Authority issues a notice for dossier modification or supplementation, the Vietnam Competition Authority shall return the dossier.
2. Appraising the dossier
a/ Within 15 working days after receiving a complete and valid dossier, the Vietnam Competition Authority shall appraise the dossier and issue an appraisal document.
b/ Appraisal contents:
- Examining the form of documents provided by the business in order to ensure their conformity with regulations;
- Appraising contents of documents related goods to be traded by the mode of multi-level marketing and documents related to multi-level marketing activities of the business in order to ensure their conformity with Decree No. 42/2014/ND-CP.
3. Granting multi-level marketing registration certificates
If a business’s dossier meets the conditions prescribed in Decree No. 42/2014/ND-CP, the Vietnam Competition Authority shall grant a multi-level marketing registration certificate, made according to for m M-03 provided in the Appendix to this Circular, to the business and return the business 1 (one) copy bearing the certification of the Vietnam Competition Authority of each of the documents prescribed in Clause 5 and at Point a, Clause 6, Article 2 of this Circular.
If the business’s dossier fails to meet the conditions prescribed in Decree No. 42/2014/ND-CP, the Vietnam Competition Authority shall issue a notice requesting the business to modify or supplement the dossier. The time limit for dossier modification and supplementation is 30 days.
If the business cannot meet fully the conditions prescribed in Decree No. 42/2014/ND-CP or it fails to modify or supplement the dossier within the prescribed time limit, the Vietnam Competition Authority shall return the dossier to the business and issue a written reply clearly stating the reason.
4. Within 10 working days after granting a multi-level marketing registration certificate, the Vietnam Competition Authority shall announce such grant on its website and send a copy of the certificate, enclosed with copies of the documents prescribed in Clauses 2, 5 and 6, Article 2 of this Circular, to provincial-level Industry and Trade Departments nationwide by any of the following modes:
a/ Post;
b/ Fax;
c/ E-mail.
Article 4. Modification and supplementation of multi-level marketing registration certificates
1. A dossier of request for modification or supplementation of a multi- level marketing registration certificate must comprise:
a/ A written request for modification or supplementation of the multi- level marketing registration certificate, made according to form M-04 provided in the Appendix to this Circular;
b/ The original multi-level marketing registration certificate granted by the Vietnam Competition Authority;
c/ The documents prescribed in Article 2 of this Circular, which are related to to-be-modified or -supplemented contents of the certificate.
2. The order and procedures for modification and supplementation of multi-level marketing registration certificates must comply with Article 3 of this Circular.
Article 5. Re-grant of multi-level marketing registration certificates
1. In case its multi-level marketing registration certificate is lost, ragged or damaged, a business shall submit an application for re-grant of the multi- level marketing registration certificate, made according to form M-05 provided in the Appendix to this Circular, to the Vietnam Competition Authority. Such application may be submitted directly or sent by post.
2. Within 10 working days after receiving a valid application for re-grant of a multi-level marketing registration certificate, the Vietnam Competition Authority shall re-grant the certificate to the business.
Article 6. Extension of multi-level marketing registration certificates
1. A dossier of request for extension of a multi-level marketing registration certificate must comprise:
a/ A written request for extension of multi-level marketing registration certificate, made according to form M-06 provided in the Appendix to this Circular;
b/ The documents prescribed in Clauses 2, 3 and 4, Article 2 of this Circular;
c/ The documents prescribed in Clauses 5, 6 and 7, Article 2 of this Circular, if there is any change compared to the last modified or supplemented certificate;
d/ A report on business results and law compliance in 5 (five) years after being granted the multi-level marketing registration certificate.
2. The order and procedures for extension of multi-level marketing registration certificates must comply with Art