Foreign-invested enterprises and related economic organizations that are engaged in the trading of goods must submit a report on the trading of goods to the Department of Industry and Trade as prescribed. The following are detailed instructions.
Information
Which units must make reports?
The subjects of reporting are economic organizations with foreign investment capital and economic organizations with foreign investment capital accounting for more than 51% of charter capital (details according to regulations in Article 23 of the Investment Law) in the following cases:
- Foreign-invested enterprises are subject to issuance of Business Licenses and Licenses to establish retail establishments as prescribed in Clause 1 and Clause 2, Article 5 of Decree 09/2018/ND-CP;
- Organizations operating under the transitional provisions in Clause 1, Article 50 of Decree No. 09/2018/ND-CP (“1. Foreign-invested economic organizations that have obtained a Certificate of Enterprise Registration, a Certificate of Investment Registration or other documents of equivalent legal value, a Business License, or a License to establish a retail establishment to conduct the purchase and sale of goods and activities directly related to the purchase and sale of goods before the effective date of this Decree may continue to conduct these activities under the validity of the issued documents without having to carry out procedures for granting a Business License or a License to establish a retail establishment.").
Penalize
Penalties for violations of reporting regime on trading activities
Common errors
No reporting
- The Department of Industry and Trade regularly inspects the compliance with the law in the trading of goods and activities related to the trading of goods by foreign-invested enterprises in Vietnam in the provinces and cities. Failure to comply with the reporting regime in accordance with the law will affect the operation of the enterprise and result in administrative penalties, license revocation, and refusal to process applications.
The report does not contain full content as required.
- During the process of inspecting the legal compliance of foreign-invested enterprises in the purchase and sale of goods and activities related to the purchase and sale of goods, the competent authority will request the provision of complete documents and explanations of issues related to the enterprise's operations. When the reports are not complete, the enterprise will be required to complete the report contents to ensure compliance with regulations and continue to comply with the provisions of law in the purchase and sale of goods and activities related to the purchase and sale of goods.
Sanctioning of administrative violations
1. Administrative sanctions for failure to comply with reporting regime
In case a foreign-invested enterprise fails to comply with the reporting regime as prescribed, it may be subject to major sanctions as prescribed in Point c, Clause 1, Article 70 of Decree No. 98/2020/ND-CP, specifically as follows:
Fine from 10.000.000 VND to 20.000.000 VND for one of the violations of not reporting, providing documents or explaining issues related to the business's operations to the competent state management agency as prescribed.
2. Business License, Retail Establishment License revoked
In addition to administrative sanctions, foreign-invested enterprises that do not comply with the periodic reporting regime as prescribed may also have their Business License and Retail Establishment License revoked as prescribed in Article 43 of Decree No. 09/2018/ND-CP, specifically as follows:
Business license revoked in cases of failure to comply with the periodic reporting regime as prescribed for 24 consecutive months;
Retail establishment license revoked in schools that do not comply with the regular reporting regime as prescribed for 24 consecutive months;
3. Refused to process application for adjustment of Business License, License to establish retail establishment
According to the recent reality, when foreign-invested enterprises submit applications for adjustment of their Business License or Retail Establishment License to the Department of Industry and Trade, they will be required to submit additional reports on the situation of goods trading activities and activities directly related to goods trading in the last 02 years. If they do not submit additional reports as required, their application for adjustment may be refused, subject to administrative sanctions or even have their License revoked.
This move shows that competent state agencies are tightening the implementation of reporting obligations of foreign-invested enterprises with Business Licenses and Licenses to establish retail establishments.
Perform
Procedures and methods for submitting reports on goods trading activities
Report form: Form No. 13 – Report on trading activities and activities directly related to MBHH
Execution time: annually, before January 31.
Receiving agency:
– Ministry of Industry and Trade: when carrying out activities
- Exercise import rights and wholesale distribution rights for goods such as oil and lubricants;
- Implement retail distribution rights for goods such as rice; sugar; recorded items; books, newspapers and magazines;
- Providing logistics services; except for logistics service sub-sectors for which Vietnam has committed to opening the market in international treaties of which Vietnam is a member;
- Leasing of goods, excluding financial leasing; except leasing of construction equipment with operators;
- Providing trade promotion services, excluding advertising services;
- Providing commercial intermediary services;
- Providing e-commerce services;
- Providing services for organizing bidding for goods and services.
– Industry management department: trading in goods such as rice; sugar; recorded items; books, newspapers and magazines:
– Department of Industry and Trade where Business License and Retail Establishment License are issued.
Implementation form:
- Submit directly;
- Submit by postal service;
- Submit online (depending on the actual guidance situation in each province and city).
Refer to the latest guidance of the Department of Industry and Trade of Ho Chi Minh City on submitting Reports under Notice No. 6985/TB-SCT November 28, 11
