Bhutan Micro Trade Regulation 2006

Aggregated by the Bhutan Chamber of Commerce and Industry

BHUTAN MICRO TRADE REGULATION, 2006

The Micro Scale Category of the Trade Sector has been-De-licensed to offer unrestricted opportunities to engage in trading activities as a livelihood and to promote entrepreneurship. The purpose of Bhutan Micro Trade Regulation, 2006 is to institute a simple registration system. The policy is envisaged to give an impetus to the growth of trading activities in the country and ensure the creation of self employment.

1. TITLE, COVERAGE, & COMMENCEMENT

1.1 This Regulation shall be called Bhutan Micro Trade Regulation, 2006.

1.2 This Regulation shall extend to the whole Kingdom of Bhutan.

1.3 This Regulation shall come into force with effect from April1, 2006.

2. DEFINITIONS

In this Regulation made hereunder, unless the context otherwise requires:

2.1 Micro Trader:

Shall mean a person who engages in trading with annual turnover of less than Nu. 1 million and classified under the Micro scale category

2.2 Turnover:

Shall mean annual gross sales of a trader

2.3 Negative List:

Shall mean all goods and products restricted or prohibited by the Royal Government

2.4 Ministry:

Shall mean the Ministry of Trade and Industry

2.5 Minister:

Shall mean the Minister for Trade and Industry

2.6 Prescribed Form:

Shall mean forms prescribed by the Ministry

2.7 Authorized Representative:

Shall mean an official authorized by the Ministry to exercise powers conferred by various acts, rules and regulations.

2.8 Rules/Regulations:

Shall mean all such rules/regulations made under an Act or otherwise that may be relevant to be applied to trading activities.

3. ELIGIBILITY

3.1 All Bhutanese citizens having attained the age of 18 years shall be eligible to register as a Micro Trader.

3.2 All Bhutanese are permitted to undertake trading activities in any Dzongkhag of their choice. Census registration or ownership of landed property in a particular Dzongkhag shall not be a condition for eligibility to Micro Trade registration.

3.3 A trader shall be entitled to only one Registration Certificate within the Kingdom. The Certificate is non transferable both in terms of ownership and location.

3.4 The trader shall not be eligible to register as an import house in accordance with the Rules and Procedures for imports from third countries.

3.5 A licensed trader shall not be entitled to register as a Micro Trader.

4. REGISTRATION PROCEDURE

4.1 A trader intending to undertake any type of trading activity with an annual turnover of less than Nu. 1 million shall be required to register with the respective Regional Trade and Industry Office or other offices as may be designated by the Ministry.

4.2 The registration shall be done on the prescribed forms available with the Regional Trade and Industry Offices or on the Ministry's website (http://www.mti.gov.bt).

4.3 Photo copies of citizenship identity card and security clearance must be submitted along with the duly completed registration application form.

4.4 The registration can also be done by submitting the registration application form through registered post.

4.5 Upon acceptance of the registration application, the trader shall be issued a Registration Certificate.

4.6 No registration and renewal fee shall be levied.

4.7 The Registration Certificate shall be valid for three years.

4.8 The Registration Certificate shall be renewed within the last six months of the third year. Renewal is subject to clean record.

5. RIGHTS OF REGISTRATION

5.1 The Registration Certificate shall confer the trader with the right to commence or continue the trading activity.

5.2 The trader shall be allowed to trade in all activities except restricted goods and those activities listed in the negative list.

5.3 The trader shall have the right to opt/upgrade the registration to the licensed regime upon fulfilling the licensing procedures.

6. OBLIGATIONS OF REGISTRATION

6.1 The trader shall comply with all the rules of the Royal Government in the conduct of trade.

6.2 The trader shall set up business only in areas designated/permitted by respective Dzongkhag and municipal authorities.

6.3 The trader shall not lease/sub-lease his business/Registration Certificate to another party.

6.4 The trader whose turnover exceeds Nu. 1 million shall cease to be a Micro Trader and shall be governed by the licensing regime.

6.5 The trader shall not be allowed to engage in wholesale business.

6.6 The trader shall cooperate and provide any information as required by the Ministry or its authorized representatives.

6.7 The trader shall allow unfettered access to the authorized representatives of the Ministry to inspect its premises.

6.8 The Micro Trader shall commence business within three months after obtaining the Registration Certificate.

7. PENALTIES

7.1 The trader shall be liable to penalties for any violations and dealt with as per the relevant provisions contained in the "General Guideline for Industrial and Commercial Ventures in Bhutan (1997)" or any other relevant rules and regulations in vogue.

7.2 A penalty of Nu. 5,000 shall be levied for violation of any provisions of this Regulation. Repeat violation shall result in the cancellation of the registration.

7.3 Non-renewal of the Registration Certificate shall result in the cancellation of the certificate". However, a grace period of six months shall be given for genuine cases.

8. POWER TO GRANT EXEMPTION/AMEND

8.1 The Minister shall have the power to grant any exemption under this Regulation.

8.2 The Ministry shall have the powers to amend any provisions of this Regulation from time to time.

9. SUPERSESSION AND INTERPRETATION

9.1 In the event of conflict of any provisions of this Regulation with any existing Rules, the provisions of this Regulation shall prevail.

9.2 The Ministry shall be the sole authority responsible for interpretation of this Regulation and its decision shall be final and binding.

(Source: Booklet on “Bhutan Micro Trade, Retail Trade and Wholesale Trade Regulations – 2006”, MTI)