CIRCULAR

GUIDING THE ACTIVITIES REGARDING THE CONDITIONAL BUSINESS LINES IN THE DOMAINS OF POST, TELECOMMUNICATIONS AND INTERNET

In furtherance of the provisions of Decree No. 03/2000/ND-CP of February 3, 2000 guiding the implementation of a number of articles of the Enterprises Law and Decree No. 30/2000/ND-CP of August 11, 2000 on the cancellation of a number of permits and licenses and the conversion of a number of licenses into business conditions and, at the same time, in order to create favorable conditions for activities of enterprises; after consulting with several concerned ministries and branches, the General Department of Post and Telecommunications hereby guides a number of contents of business activities in the domains of post, telecommunications and internet as follows:

I. GENERAL PROVISIONS

1.1 This Circular provides guidance for enterprises engaged in business activities in the domain of post and telecommunications and Internet, as prescribed by law, which fall under the conditional business lines.

1.2 Post and/or telecommunications enterprises are enterprises engaged in business activities in one or several domains prescribed in the Government’s Decree No. 109/1997/ND-CP of November 12, 1997 on post and telecommunications. The conditional post and telecommunication business lines include:

a/ Provision of postal and telecommunication services;

b/ Manufacture of postal and telecommunication supplies and equipment;

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d/ Printing of postage stamps; production, import, export, purchase and sale of postage stamps, stamp publications and commodity postage stamps.

1.3 Internet services-providing enterprises are enterprises dealing in Internet services specified in the Government’s Decree No. 21/CP of March 5, 1997 issuing the Provisional Regulation on the management, establishment and use of the Internet in Vietnam". The conditional Internet business lines include:

a/ Provision of Internet access services (IAP);

b/ Provision of Internet services (ISP).

1.4 The postal, telecommunication and Internet domains fall under the conditional business lines, where some business domains require permits of the General Department of Post and Telecommunications while some others do not but must satisfy the conditions set in this Circular.

1.5 Various kinds of permits and certificates used for technical and professional management prescribed in Decree No. 109/1997/ND-CP in order to ensure the network and service quality, ensure safety for operation of public and exclusive postal and telecommunication networks and ensure the interests of users shall not be regulated by this Circular.

II. CONDITIONS FOR BUSINESS LINES WHICH REQUIRE PERMITS

2.1 The post, telecommunication and Internet business lines that require permits include:

a/ Establishment of national telecommunication backbone networks, public telecommunication networks and provision (direct or for resale) of telecommunication services (basic, value-added);

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c/ Establishment of postal networks and provision of postal services;

d/ Printing of postage stamps;

e/ Manufacture of radio transmitters and receivers-transmitters.

2.2. Enterprises conducting business activities in the domains specified at Points a, b, c and d, Section 2.1 shall be State enterprises or joint-stock companies where the State holds the predominant or special shares. For the domain specified at Point e, Section 2.1, the business subjects shall be enterprises of any economic sector. Enterprises may do business in these domains under conditions and according to the operating duration specified in their permits and start their business activities only when they obtain their licenses.

2.3. Enterprises must make business registration according to law provisions before carrying out procedures applying for permits to do business in the domains specified at Point 2.1 above.

2.4. The conditions, order and procedures for granting of permits to do business in the domains specified at Point 2.1 above shall be as follows:

a/ For permits stated at Point a , the provisions in Circular No. 04/1998/TT-TCBD of September 29, 1998 of the General Department of Post and Telecommunications guiding the Governments Decree No. 109/1997/ND-CP of November 12, 1997 on telecommunication networks and services, shall be complied with.

b/ For permits specified at Point b, the provisions of Joint Circular No. 08/TTLT of May 24, 197 of the General Department of Post and Telecommunications, the Ministry of the Interior (now the Ministry of Public Security) and the Ministry of Culture and Information guiding the licensing of the connection, provision and use of Internet in Vietnam, shall be complied with;

c/ For permits specified at Point c, the provisions of Circular No. 02/1998/TT-TCBD of June 20, 1998 of the General Department of Post and Telecommunications guiding the implementation of the Government’s Decree No. 109/1997/ND-CP on postal networks and services, shall be complied with;

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e/ The order and procedures for licensing the manufacture of radio transmitters and/or receivers-transmitters:

- A dossier of application for permit shall consist of:

+ An application;

+ The enterprise’s organization and operation charter;

+ The production scheme with the following principal contents: category of equipment, technical properties (frequency, frequency band, transmitting capacity of equipment…), technology and capacity of the production lines…

- Time limit for handling dossiers: The General Department of Post and Telecommunications shall evaluate and grant permits within 45 days after the receipt of valid dossiers. If there arise any matters which need to be re-examined, the above time-limit may be extended but shall not exceed 60 days after receipt of valid dossiers. In case of refusal, the General Department of Post and Telecommunications shall send written reply to the enterprise within the above time-limit.

III. CONDITIONS FOR BUSINESS LINES WHICH REQUIRE NO PERMIT

3.1 The conditional postal and telecommunication business lines which require no permit:

a/ Manufacture of post and telecommunication supplies and equipment (excluding radio transmitters and receivers-transmitters);

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c/ Purchase and sale of postal and telecommunication supplies and equipment;

d/ Postal and telecommunication service provision agency;

e/ Agency for foreign express mail service companies;

f/ Import, export, purchase and sale of postage stamps, stamp publications and commodity postage stamps.

3.2. Enterprises of all economic sectors that legally operate in Vietnam may register and do business in the domains specified at Point 3.1 and shall be entitled to do business in such domains from the time they satisfy all business conditions set in this Circular and commit themselves to maintain these conditions throughout the process of business operation.

3.3. During the process of business operation, enterprises must comply with law provisions on the goods and services quality, regulations on information and advertisement, regulations on settlement of compensation claims as well as other relevant law provisions.

3.4. Business conditions for the manufacture of postal and telecommunication supplies and equipment:

a/ For supplies and equipment on the "List of postal and telecommunication supplies and equipment subject to standard conformity certification" issued by the General Department of Post and Telecommunications, enterprises shall have to carry out the standard conformity certification procedures for such supplies and equipment before circulating them on the market.

The order, procedures and conditions for standard conformity certification of postal and telecommunication supplies and equipment are prescribed in the Regulation on the standard conformity certification of postal and telecommunication supplies and equipment, issued together with Decision No. 285/2000/QD-TCBD of March 29, 2000 of the General Director of Post and Telecommunications.

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3.5. Business conditions for the import and export of postal and telecommunication supplies and equipment:

a/ For supplies and equipment on the "List of postal and telecommunication supplies and equipment subject to standard conformity certification", issued by the General Department of Post and Telecommunications, enterprises shall have to carry out the standard conformity certification procedures for such supplies and equipment before importing them.

The order, procedures and conditions for standard conformity certification of postal and telecommunication supplies and equipment are prescribed in the Regulation on the standard conformity certification of postal and telecommunication supplies and equipment, issued together with Decision No. 285/2000/QD-TCBD of March 29, 2000 of the General Director of Post and Telecommunications.

b/ For foreign-made subscribed terminal devices which are imported for sale on the Vietnamese market, enterprises shall have to effect the goods labeling thereof according to Circular No. 03/2000/TT-TCBD of July 26, 2000 of the General Department of Post and Telecommunications.

c/ For radio transmitters and receivers-transmitters, enterprises may import only those with a frequency or frequency band in line with the planning on the allocation of the frequency spectrum to operations in Vietnam, issued together with the Prime Minister’s Decision No. 85/1998/QD-TTg of April 16, 1998 approving Vietnam’s planning on the allocation of the frequency spectrum to operations and other relevant regulations of the General Department of Post and Telecommunications;

d/ For fixed satellite transmitters, receiver-transmitters used in telecommunication operations and broadcasting operations, enterprises shall have to request their customers wishing to use such equipment to apply for permits to use transmitters and radio frequencies, issued by the General Department of Post and Telecommunications before carrying out import procedures;

e/ Enterprises shall have to notify customers of those kinds of radio transmitters, receiver-transmitters which require the Post and Telecommunications General Department’s permits for use of radio transmitters and frequencies;

f/ The import and export of postal and telecommunication supplies and equipment for security and defense purposes shall comply with the regulations of the Ministry of Public Security and the Ministry of Defense.

3.6. Business conditions for the purchase and sale of postal and telecommunication supplies and equipment:

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b/ For subscribed terminal devices, enterprises shall have to effect the goods labeling thereof according to Circular No. 03/2000/TT-TCBD of July 26, 2000 of the General Department of Post and Telecommunications;

c/ For the purchase and sale of radio transmitters, receiver-transmitters, enterprises shall have to notify customers of those kinds of radio transmitters, receiver-transmitters which require the Post and Telecommunications General Department’s licenses for use of radio transmitters and frequencies;

3.7. Conditions for acting as postal and telecommunication service provision agents:

a/ Enterprises wishing to act as postal and telecommunication service provision agents must sign agency contracts with postal and telecommunication service-providing enterprises or telecommunication service-reselling enterprises (hereinafter called the principals for short). The agency contracts must clearly state kinds of postal and telecommunication services the agents are permitted to provide, the quality and charge of each kind of service and the commission rate enjoyed by the agents.

b/ Pledge is made to provide the right services with proper quality as stated in the agency contracts and to collect charges at the rates applied by the principals to users.

c/ Places of postal and telecommunication service provision agents must be put up with the commercial names and logos of the principals;

d/ Postal and telecommunication service provision agents must comply with the rules on postal and telecommunication services issued by the General Department of Post and Telecommunications and submit to the inspection and supervision by the General Department of Post and Telecommunications as well as competent State management bodies in the provision of postal and telecommunication services.

3.8. Conditions for acting as agents for foreign express mail service companies:

a/ Only enterprises licensed by the General Department of Post and Telecommunications to provide international postal services may act as service agents (hereinafter called as agents for short) for foreign express mail service companies;

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c/ Foreign express mail service companies that sign agency contracts must be those licensed to lawfully operate in one of the countries with which Vietnam has established international post relations;

d/ Agency activities for foreign express mail service companies must ensure the national sovereignty and security as well as the interests of service users and comply with the provisions of Vietnamese laws on post, tax, customs, information security and mail safety;

e/ Enterprises acting as agents for foreign express mail service companies, on the basis of Vietnamese laws and agreements with foreign express mail service companies, shall have to formulate framework agency contracts for uniform application within the whole enterprises and register such model contracts with the General Department of Post and Telecommunications; print matters used in transactions with service users must be expressed in Vietnamese and a foreign language.

f/ Enterprises acting as agents for foreign express mail companies shall have to announce and post up at the transaction places the service charges, service quality norms and users rights and obligations;

g/ Enterprises acting as agents for foreign express mail service companies shall apply the annual regular or irregular regime of reporting on the results of agency activities at the request of the General Department of Post and Telecommunications.

3.9. Conditions for conducting business in the import, export, purchase and sale of postage stamps, stamp publications and commodity postage stamps:

a/ Only enterprises licensed to do business in mail service may conduct import and export of postage stamps, stamp publications and commodity postage stamps;

b/ Enterprises that deal in the purchase and sale of postage stamps, stamp publications and commodity postage stamps must sign agency contracts with mail service-providing enterprises;

c/ It is forbidden to purchase, sell, import or export any kind of postage stamps, stamp publications and commodity postage stamps, which the General Department of Post and Telecommunications have suspended from issuance, banned from circulation or which have unhealthy contents, incite or sow hatred among nations, infringe upon the national sovereignty and run counter to the Vietnamese traditional practices and laws.

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4.1. This Circular takes effect 15 days after its signing. All the previous provisions which are contrary to this Circular are now annulled.

4.2. Units of the General Department of Post and Telecommunications shall, within the scope of their relevant powers and tasks, have to explain, guide, inspect and supervise the implementation of this Circular.

4.3. Enterprises shall have to strictly abide by the provisions of this Circular. Any problems arising in the course of implementation should be promptly reported by enterprises to the General Department of Post and Telecommunications for guidance or explanation.

GENERAL DIRECTOR OF POST AND TELECOMMUNICATIONS




Mai Liem Truc