No.: 18/2019/QD-TTg

Pursuant to the Law on Organization of the Government dated 19 June 2015;

Pursuant to the Law on Foreign Trade Management dated 12 June 2017;

Pursuant to Decree No. 69/2018/ND-CP dated 15 May 2018 of the Government detailing a number of articles of the Law on Foreign Trade Management;

At the proposal of the Minister of Science and Technology;

The Prime Minister promulgates the Decision regulating the import of used machinery, equipment and technological lines.

Chapter I. GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decision provides criteria, dossiers, order and procedures for importation and inspection activities applicable to used machinery, equipment and technological lines with commodity codes (HS codes) under Chapters 84 and 85 of the List of Vietnam exports and imports, imported for use in production activities in Viet Nam, and not on lists of goods banned from import as prescribed by the Government, the Prime Minister or detailed announcements of ministries and ministerial-level agencies under Decree No. 69/2018/ND-CP.

2. This Decision does not apply to used machinery, equipment and technological lines in the following cases: transit and transshipment; border-gate transfer business; temporary import for re-export business; other temporary import for re-export forms under Article 15 and temporary export for re-import under Article 17 of Decree No. 69/2018/ND-CP, except temporary import for re-export under processing contracts and import for production or construction under investment projects; performance of repair and maintenance service contracts with foreign traders; transactions among export-processing enterprises and non-tariff zone enterprises, and sale of liquidated assets by export-processing enterprises into the domestic market; receipt of transfer from foreign partners upon expiry of processing contracts or finance lease contracts, change of use purpose for domestic consumption after expiry of temporary import for construction or temporary import in the form of lease/borrowing for processing contracts with foreign traders, and transfer among enterprises performing processing contracts for foreign traders; use for scientific research and technology development not yet domestically producible, or for security and national defence tasks at the request of line ministries; machinery and equipment on the list of products and goods likely to cause unsafety (Group 2 goods) issued by line ministries under the Law on Product and Goods Quality; machinery and equipment in specialized fields already managed by legal documents of ministries or ministerial-level agencies.

Article 2. Regulated entities

This Decision applies to enterprises importing used machinery, equipment and technological lines; inspection organizations carrying out inspection under this Decision; and state management agencies related to the import of used machinery, equipment and technological lines.

Article 3. Interpretation of terms

Machinery and equipment means a complete structure including parts, component assemblies and units linked together to operate and move according to the designed use. A technological line means a system of machinery, equipment, tools and means arranged, installed and interconnected at a specific location according to a designed technological diagram and process to ensure synchronous operation for production. Used machinery, equipment and technological lines are those that, after manufacture, have been assembled and operated. Equipment age is the period, in years, from the year of manufacture to the year of import; the year of import is the year when goods arrive at a Vietnamese border gate.

Article 4. Management principles

Import of used machinery, equipment and technological lines must comply with the law on import of goods. Import is not permitted where the exporting country has announced elimination due to obsolescence, poor quality or environmental pollution, or where the goods fail to meet requirements on safety, energy efficiency and environmental protection. Used machinery, equipment and technological lines may only be imported to directly serve production activities of enterprises in Viet Nam.

Chapter II. IMPORT CRITERIA FOR USED MACHINERY, EQUIPMENT AND TECHNOLOGICAL LINES

Article 5. Criteria for used technological lines

A used technological line may be imported if it is manufactured according to standards compliant with national technical regulations (QCVN) on safety, energy efficiency and environmental protection; or, where no relevant QCVN exists, according to standards consistent with Vietnamese national standards (TCVN) or national standards of a G7 country or Korea on safety, energy efficiency and environmental protection. Its remaining capacity or efficiency must reach at least 85% of designed capacity or efficiency; consumption of raw materials, materials and energy must not exceed 15% over the design level; its technology must not be on lists of technologies banned or restricted from transfer under Decree No. 76/2018/ND-CP; and the technology must be in use at at least three production establishments in OECD countries.

Article 6. Criteria for used machinery and equipment

Used machinery and equipment may be imported if the equipment age does not exceed 10 years, except for specific fields listed in Appendix I, and if they are manufactured according to QCVN on safety, energy efficiency and environmental protection or, where no relevant QCVN exists, according to TCVN or national standards of a G7 country or Korea on safety, energy efficiency and environmental protection.

Chapter III. DOSSIERS, ORDER AND PROCEDURES FOR IMPORTATION

Article 7. Dossiers and procedures for used technological lines

In addition to the customs import dossier, the enterprise must submit a copy of the enterprise registration certificate bearing the enterprise seal, and, in entrusted import cases, the import entrustment document; and an inspection certificate issued by a designated inspection organization meeting Article 11. Customs clearance is processed only when the dossier is complete and valid and the inspection certificate concludes that the used technological line meets Article 5.

Article 8. Dossiers and procedures for used machinery and equipment

In addition to the customs import dossier, the enterprise must submit a copy of its enterprise registration certificate; the original manufacturer confirmation on year of manufacture and standards where the machinery/equipment is manufactured in a G7 country or Korea, consular legalized and translated into Vietnamese; or an inspection certificate issued by a designated inspection organization where such manufacturer confirmation is unavailable or where the machinery/equipment is manufactured outside G7 countries or Korea. Customs clearance is processed only when the dossier is complete and valid and, where required, the inspection certificate concludes that the machinery/equipment meets Article 6. Where the required manufacturer confirmation or inspection certificate is not available upon dossier submission, the enterprise may bring the goods to storage after submitting an inspection service registration confirmed by a designated inspection organization. Within 30 days from the date the goods are brought to storage, the enterprise must submit the inspection certificate to Customs. If the inspection result does not meet Article 6, the enterprise will be handled under regulations on administrative sanctions in customs.

Article 9. Import in other cases

Where an enterprise currently conducting production in Viet Nam needs to import used machinery or equipment exceeding the age limit in Article 6.1 in order to maintain production, but the remaining capacity or efficiency is at least 85% of design and consumption of raw materials, materials and energy does not exceed 15% over the design level, the enterprise submits one dossier to the Ministry of Science and Technology directly, by post or through an online public service portal for consideration. The dossier includes a written request under Appendix II explaining necessity, use plan and necessity of the machinery/equipment in the technological line; a copy of the enterprise registration certificate; and an inspection certificate issued by a designated inspection organization. If the dossier is incomplete, the Ministry requests supplementation according to the corresponding method of submission. Within two working days from receipt of a complete and valid dossier, the Ministry sends written requests with copies of the dossier to relevant ministries or experts. Within ten working days, such ministries/agencies or experts provide opinions. Within three working days from receipt of opinions, the Ministry replies to the enterprise, specifying reasons if it refuses. For import clearance, the enterprise submits the Ministry’s written approval together with the customs dossier.

Chapter IV. INSPECTION ACTIVITIES

Article 10. Inspection certificates

The inspection certificate must contain the name, year of manufacture, trademark, serial number, model, country of manufacture and manufacturer; time and place of inspection; condition at inspection; inspection methods and process; numbers and names of applicable QCVN, TCVN or national standards of a G7 country or Korea, if any; and, where no such standards exist, a clear statement to that effect. For used technological lines, the certificate must assess each criterion in Article 5 and conclude whether requirements are met, including information on OECD production establishments for the technology. For used machinery and equipment, it must assess criteria in Article 6 and conclude whether requirements are met. For Article 9 cases, it must also evaluate technical specifications, operating condition, maintenance condition, compliance with Article 6.2, safety/energy/environmental standards, remaining capacity or efficiency, consumption level, remaining service life and color photographs. The inspection certificate is acceptable for no more than 18 months for technological lines and no more than 6 months for machinery/equipment, calculated from issuance to arrival at a Vietnamese border gate. Inspection of a used technological line must be conducted in the exporting country while the line is operating.

Article 11. Designation of inspection organizations

The Ministry of Science and Technology coordinates designation and recognition of inspection organizations under bilateral or multilateral recognition agreements and publishes the list for enterprises. Domestic inspection organizations must have inspection registration certificates under Decree No. 107/2016/ND-CP covering machinery, equipment and technological lines. Foreign inspection organizations must comply with their local inspection law and be accredited by an accreditation body participating in regional or international mutual recognition arrangements for this field. Dossiers and procedures for designation follow Articles 18b and 18d of Decree No. 132/2008/ND-CP as amended by Decree No. 74/2018/ND-CP; foreign dossiers must include authorized foreign inspection operation documents with Vietnamese translations consular legalized where required.

Chapter V. IMPLEMENTATION

Article 12. Responsibilities of the Ministry of Science and Technology

1. To preside over and coordinate with ministries, ministerial-level agencies and provincial-level People’s Committees in managing the import of used machinery, equipment and technological lines under this Decision and relevant documents.

2. To publish on the Ministry’s portal the list of used machinery, equipment and technological lines that foreign countries have announced to be eliminated due to obsolescence, poor quality or environmental pollution.

3. To coordinate with ministries, ministerial-level agencies and provincial-level People’s Committees in organizing inspection of enterprises’ compliance with regulations on safety, economical and efficient energy use and environmental protection applicable to imported used machinery, equipment and technological lines when put into operation, and to handle violations under law.

4. To coordinate with the Ministry of Finance to annually compile statistics on the import of used machinery, equipment and technological lines, including importer name, contact address, field of use, country of manufacture and import value, as well as cases of violation subject to re-export or sanctions, and report to the Prime Minister.

5. To designate and recognize inspection organizations for used machinery, equipment and technological lines and publish the list of designated and recognized organizations on the Ministry’s portal.

6. To preside over and coordinate with ministries and ministerial-level agencies in inspecting and examining inspection activities of designated and recognized inspection organizations under law.

Article 13. Responsibilities of ministries and ministerial-level agencies

1. To coordinate with the Ministry of Science and Technology in implementation of this Decision.

2. Based on socio-economic development and state management requirements in their assigned sectors, to propose equipment-age criteria for other used machinery and equipment in their sectors and send them to the Ministry of Science and Technology for consolidation and submission to the Prime Minister for consideration and approval.

Article 14. Responsibilities of importers of used machinery, equipment and technological lines

1. To import used machinery, equipment and technological lines in accordance with this Decision and relevant legal documents.

2. To submit to inspection by competent state management agencies and be legally responsible for violations of this Decision and relevant legal documents.

Article 15. Responsibilities of designated and recognized inspection organizations

1. To inspect used machinery, equipment and technological lines in accordance with this Decision and relevant legal documents.

2. To ensure independence, objectivity and scientific basis in their activities; comply with inspection laws; be legally responsible for the accuracy of inspection results; and submit to inspection and examination by competent state agencies.

3. To send one copy of the inspection certificate to the Ministry of Science and Technology no later than 15 days from the date of signing in the following cases: (a) inspection of used technological lines; (b) inspection of used machinery or equipment where the certificate records that there are no relevant QCVN, TCVN or G7/Korean national standards on safety, energy efficiency or environmental protection as provided at Point d Clause 1 Article 10.

4. To prepare reports on inspection of used machinery, equipment and technological lines before 15 December each year, and ad hoc reports upon request, and send them to the Ministry of Science and Technology.

Article 16. Transitional provisions

Import dossiers already approved or received under Circular No. 23/2015/TT-BKHCN before this Decision takes effect may continue under that Circular or under this Decision as applicable. Investment projects with used machinery/equipment imports handled under Circular No. 23/2015/TT-BKHCN and already granted investment registration certificates or investment policy decisions before the effective date may continue under that Circular. Inspection organizations already announced under Circular No. 23/2015/TT-BKHCN may continue for 60 days from this Decision’s effective date.

Article 17. Effect

This Decision takes effect on 15 June 2019. Where referenced legal documents are amended, supplemented or replaced, the new documents shall apply. Difficulties arising during implementation shall be reported to the Ministry of Science and Technology for consolidation and reporting to the Prime Minister. Ministers, heads of ministerial-level agencies and Governmental agencies, Chairpersons of provincial-level People’s Committees and relevant organizations and individuals are responsible for implementation.

Appendix I
Equipment-age requirements for machinery and equipment in certain specific fields

(Issued together with Decision No. 18/2019/QD-TTg dated 19 April 2019 of the Prime Minister)

* Equipment age (X): X = year of import – year of manufacture. The age is calculated by year, not by month.

Example: equipment A manufactured in January 2008 and imported through a Vietnamese port in December 2018: X = 2018 – 2008 = 10 years.

Appendix II

Written request for permission to import used machinery and equipment

To: Ministry of Science and Technology

1. Organization: ………………………………………………………………

2. Tax code: ………………………………………………………………..

3. Address: ………………………………………………………………….

4. Telephone/fax: ……………………………………………………………..

5. Legal representative: ……………………………………………………..

6. Enterprise registration certificate No.: ……….; date of issue: ……….; issuing authority: ………………………….

7. We request to import used machinery/equipment as follows:

8. Expected import time: ………………………………………………

9. Explanation on the necessity of importing the machinery/equipment to maintain production and business operations, intended use plan, and necessity of the machinery/equipment in the technological line:

…………………………………………………………………………………………..

Enclosed documents: (a) copy of enterprise registration certificate bearing the enterprise seal; (b) inspection certificate issued by an inspection organization.

The enterprise commits that the above used machinery/equipment will directly serve production activities in Viet Nam; meet safety, energy efficiency and environmental protection requirements; and that the enterprise is legally responsible for this commitment and for the accuracy of the provided information.

Note: The enterprise should consider signing the sale and purchase contract after registering the import dossier and obtaining written approval from the Ministry of Science and Technology.