Decree No. 12/2021/ND-CP dated February 24, 2021 on amendments to the Government's Decree No. 89/2013/ND-CP on elaboration of some Articles of the Law on Prices regarding price appraisal

DECREE

AMENDMENTS TO THE GOVERNMENT'S DECREE NO. 89/2013/ND-CP DATED AUGUST 06, 2013 ON ELABORATION OF SOME ARTICLES OF THE LAW ON PRICES REGARDING VALUATION

Pursuant to the Law on Government Organization dated June 19, 2015; Law on Amendments to some Articles of the Law on Government Organization and Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Prices dated June 20, 2012;

Pursuant to the Law on Investment dated November 26, 2014;

At the request of the Minister of Finance;

The Government hereby promulgates a Decree on amendments to the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 on elaboration of some Articles of the Law on Prices regarding valuation.

Article 1. Amendments to the Government's Decree No. 89/2013/ND-CP dated August 06, 2013 on elaboration of some Articles of the Law on Prices regarding valuation

1. Article 7a is added after Article 7 of the Decree No. 89/2013/ND-CP as follows:

 “Article 7a. Obligation of practicing valuators to sign a valuation report and valuation certificate

1. A practicing valuator, except for the valuator who is the legal representative of an enterprise, must sign at least 10 valuation certificate and valuation reports in the year in which such valuator is informed that he or she will practice.

2. If, by 15 December of the practicing year, the practicing valuator who has practiced for 06 months or more in such year has signed less than 10 valuation certificate and valuation reports, he or she is not permitted to register to practice in the following year.”

2. Article 8a is added after Article 8 of the Decree No. 89/2013/ND-CP as follows:

 “Article 8a.Requirements to be satisfied by the legal representative, director or general director of a valuation enterprise

The legal representative, Director or General Director of a valuation enterprise shall satisfy the following requirements:

1. He/She is a valuator who has registered to practice at the enterprise as prescribed in Point c Clause 1 or Point c Clause 2 or Point c Clause 3 or Point c Clause 4 or Point c Clause 5 Article 39 of the Law on Prices.

2. He/She has acted as a valuator for at least 03 years (36 months) before becoming the legal representative, Director or General Director of the valuation enterprise.

3. He/She has not been the legal representative, Director or General Director of a valuation enterprise whose Certificate of eligibility to provide valuation services has been revoked for a period of 01 year (12 months) by the time of submitting the application for issuance or re-issuance of the certificate of eligibility to provide valuation services.”

3. Article 7 Article 10 of the Decree No. 89/2013/ND-CP is amended as follows:

“7. The valuation enterprise is currently subject to suspension or temporary suspension of its valuation activities. During the period of time over which the enterprise fails to satisfy one of the conditions applicable to the types of enterprise specified in Clauses 1 through 5 Article 39 of the Law on Prices but is not subject to suspension of its valuation activities, the enterprise is not permitted to sign any valuation service contract.”

4. Article 1 Article 11 of the Decree No. 89/2013/ND-CP is amended as follows:

“1. The prices for valuation services shall be set under the agreement between the valuation enterprise and its customer according to Clauses 2 and 3 of this Article on the principle of ensuring that the actual reasonable production and business costs are offset and profit is earned in line with the market prices, and shall be specified in the valuation contract; in the case where the bidding for valuation services is governed by the Law on Bidding, regulations of law on biding shall be complied with.”

5. Article 12a is added after Article 12 of the Decree No. 89/2013/ND-CP as follows:

 “Article 12a. Resolution of disputes over valuation results between valuation enterprises and their customers

If a dispute over the valuation results between a valuation enterprise and its customer arises, the dispute shall be resolved adopting the following methods:

1. Negotiation and conciliation on the basis of the commitments specified in the valuation contract.

2. Commercial arbitration.

3. Institution of a lawsuit at a Court as prescribed by law.”

6. Article 12b is added after Article 12 of the Decree No. 89/2013/ND-CP as follows:

 “Article 12b. Connection to the national price database

1. The Ministry of Finance shall build, manage and operate a national price database and enable valuation enterprises to connect the database built by them to the national price database.

2. Valuation enterprises shall connect the database built by them to the national price database.”

7. Points a, dd and e Clause 1, Points a and c Clause 2 Article 14 of the Decree No. 89/2013/ND-CP are amended as follows:

“1.

a) An application form for issuance or re-issuance of the certificate of eligibility to provide valuation services, which is made using the Form promulgated by the Ministry of Finance;

dd) A list of capital contributions from members which is certified by the enterprise in the case where the Enterprise Registration Certificate does not include a list of capital contributing members or a list of shareholders;

e) A receipt for payment of the fee for assessment of the application for issuance of the certificate of eligibility to provide valuation services;”

“2.

a) An application form for issuance or re-issuance of the certificate of eligibility to provide valuation services, which is made using the Form promulgated by the Ministry of Finance;

c) A receipt for payment of the fee for assessment of the application for issuance of the certificate of eligibility to provide valuation services;”

8. Article 15 of the Decree No. 89/2013/ND-CP is amended as follows:

“Article 15. Deadline for issuance or re-issuance of the certificate of eligibility to provide valuation services

1. Within 15 (fifteens) working days from the receipt of 01 (one) complete set of the application prepared by the enterprise according to Clause 1 or 2 Article 14 of this Decree, the Ministry of Finance shall issue or re-issue the certificate of eligibility to provide valuation services to the valuation enterprise.

2. In case of refusal to issue or re-issue the certificate of eligibility to provide valuation services, the Ministry of Finance shall give a written response specifying reasons therefor to the enterprise registering to provide valuation services within 05 (five) working days from the receipt of the application.”

9. Point dd Clause 1 of Article 17 is amended and Point g is added to Clause 1 Article 17 of the Decree No. 89/2013/ND-CP as follows:

“dd) The enterprise is dissolved, goes bankrupt or suspended from business in accordance with regulations of law on enterprises and law on bankruptcy; terminates its valuation services of its own free will; changes its shareholders or capital contributing members that are practicing valuators at the enterprise;

g) There is a practicing valuator at the enterprise who has been banned from practicing valuation under an effective judgment or decision of a Court; who has faced a criminal prosecution; who has been convicted of an economic crime or a title-related crimes arising from financial, price or valuation activities to the extent of serving administrative sanctions in the form of education at the commune, ward or township; who has been convicted of a serious or more serious economic crime; who has committed a violation against financial laws to the extent of having to serve administrative sanctions.”

10. Clause 3 is added to Article 27 of the Decree No. 89/2013/ND-CP as follows:

“3. The authority competent to valuate assets or authority presiding over establishment of a valuation council shall send a copy of the valuation report or valuation conclusion via official dispatches, by fax or via the electronic reporting system to the Ministry of Finance in order for the latter to build database serving provision of information and state management of valuation, except for the case where the assets are on the list of State secret assets.”

Article 2. Grandfather clauses

1. Any valuation enterprise submitting a complete application for issuance of the certificate of eligibility to provide valuation services before the effective date of this Decree may be considered to be issued with the certificate of eligibility to provide valuation services under the Government’s Decree No. 89/2013/ND-CP.

2. By December 31, 2021, any valuation enterprise issued with the certificate of eligibility to provide valuation services under the Government’s Decree No. 89/2013/ND-CP shall satisfy the conditions applicable to the legal representative, Director or General Director set out in Article 1 of this Decree.

Article 3. Implementation clause

1. This Decree comes into force from May 01, 2021.

2. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairmen/Chairwomen of People’s Committees of provinces and central-affiliated cities are responsible for the implementation of this Decree.