THE PRIME MINISTER
No.: 18/2019/QD-TTg

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
Ha Noi, 19 April 2019

DECISION

On import of used machinery, equipment and technological lines

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 request of the Minister of Science and Technology;

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

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decision prescribes criteria, dossiers, procedures and inspection activities applicable to used machinery, equipment and technological lines with HS codes under Chapters 84 and 85 of the Viet Nam Export and Import Classification, imported for use in manufacturing activities in Viet Nam and not included in the lists of goods banned from import as prescribed by the Government, the Prime Minister or published in detail by 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:

a) Goods in transit or transshipment;

b) Merchanting trade;

c) Temporary import for re-export business;

d) Other forms of temporary import for re-export prescribed in Article 15 and temporary export for re-import prescribed in Article 17 of Decree No. 69/2018/ND-CP, except temporary import for re-export for processing contracts, and import for production or construction under investment projects;

dd) Performance of repair and maintenance service contracts with foreign traders;

e) Sale and purchase between enterprises in export processing zones or non-tariff zones; sale of liquidated assets by export processing enterprises into the domestic market;

g) Receipt of transfer from foreign partners after expiry of processing contracts or financial lease-purchase contracts; change of use purpose for domestic consumption after expiry of temporary import for construction or temporary import under lease/borrowing for processing contracts with foreign traders;

h) Use for scientific research and technology development where such machinery/equipment is not domestically manufactured; use for national security and defence tasks at the request of line-management ministries;

i) Machinery and equipment included in the list of potentially unsafe products and goods (Group 2 products and goods) issued by line-management ministries under the Law on Product and Goods Quality;

k) Machinery and equipment under specialized sectors for which ministries or ministerial-level agencies have promulgated legal instruments for management.

Article 2. Regulated entities

This Decision applies to:

1. Organizations and enterprises importing used machinery, equipment and technological lines.

2. Inspection organizations conducting inspection of used machinery, equipment and technological lines under this Decision.

3. State management agencies involved in the import of used machinery, equipment and technological lines prescribed in Article 1 of this Decision.

Article 3. Interpretation of terms

1. Machinery and equipment means a complete structure comprising details, assemblies and parts connected to operate or move according to the designed purpose of use.

2. Technological line means a system of machinery, equipment, tools and devices installed and interconnected at a defined location according to a designed technological layout and process, ensuring synchronized operation for production.

3. Used machinery, equipment and technological lines mean machinery, equipment and technological lines that, after factory release, have been assembled and put into operation.

4. Equipment age means the period calculated in years from the manufacturing year to the import year of used machinery or equipment. The import year is the year when the goods arrive at the Vietnamese border gate.

Article 4. Management principles for import of used machinery, equipment and technological lines

1. Import of used machinery, equipment and technological lines must comply with the law on import of goods.

2. Import is not permitted where the used machinery, equipment or technological line has been announced by the exporting country for elimination due to obsolescence, poor quality or environmental pollution, or fails to meet statutory requirements on safety, energy saving and environmental protection.

3. Used machinery, equipment and technological lines may only be imported to directly serve the manufacturing activities of enterprises in Viet Nam.

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

Article 5. Import criteria for used technological lines

Used technological lines may be imported when all of the following criteria are satisfied:

1. They are manufactured according to standards conforming to applicable QCVN on safety, energy saving and environmental protection; where no relevant QCVN exists, they must conform to Vietnamese TCVN or national standards of a G7 country or Korea on safety, energy saving and environmental protection.

2. Remaining capacity or efficiency reaches at least 85% of the designed capacity or efficiency.

3. Consumption of raw materials, materials and energy does not exceed 15% of the design level.

4. The technology of the technological line is not included in the list of technologies banned from transfer or technologies restricted from transfer under Decree No. 76/2018/ND-CP.

5. The technology of the technological line is being used at at least 03 manufacturing facilities in OECD countries.

Article 6. Import criteria for used machinery and equipment

Used machinery and equipment may be imported when the following criteria are satisfied:

1. Equipment age does not exceed 10 years. For machinery and equipment in certain specific sectors, equipment age is detailed in Appendix I issued together with this Decision.

2. They are manufactured according to standards conforming to applicable QCVN on safety, energy saving and environmental protection; where no relevant QCVN exists, they must conform to Vietnamese TCVN or national standards of a G7 country or Korea.

Chapter III
IMPORT DOSSIERS AND PROCEDURES

Article 7. Dossiers and procedures for import of used technological lines

1. In addition to the import dossier prescribed by the Law on Customs, an enterprise must submit a copy of its Enterprise Registration Certificate bearing the enterprise seal; where import is conducted under authorization, an import authorization document; and an inspection certificate issued by a designated inspection organization.

2. The enterprise shall submit one import dossier to the customs authority where the declaration is registered. The customs authority shall only clear the goods when the dossier is complete and valid and the inspection certificate concludes that the used technological line satisfies the requirements in Article 5 of this Decision.

Article 7a. Simplified import procedure for used technological lines of high-tech enterprises/projects

Operational reference based on Decision 28/2022/QD-TTg amending and supplementing Decision 18/2019/QD-TTg.

Eligible high-tech enterprises, high-tech application projects or projects eligible for special investment incentives may choose the standard procedure under Article 7 or the simplified import procedure under Article 7a. Under the simplified procedure, the enterprise may bring goods to storage in accordance with customs law after submitting the import dossier and required documents; the used technological line must only be installed and operated to serve inspection and must not be put into production before customs clearance conditions are fulfilled.

The inspection certificate must be submitted within a maximum of 12 months from the date the first shipment of the technological line is brought to storage. For complex technological lines requiring longer installation, operation and inspection time, one extension may be requested; the extension request must be submitted at least 30 days before the deadline and the extension must not exceed 06 months. Within 05 working days after completion of customs clearance or refusal of customs clearance, the enterprise must submit a report to the Ministry of Science and Technology and the provincial-level People’s Committee where the project is implemented.

Article 8. Dossiers and procedures for import of used machinery and equipment

1. In addition to the import dossier prescribed by the Law on Customs, an enterprise must submit a copy of its Enterprise Registration Certificate bearing its seal; an authorization document if import is conducted under authorization; the original manufacturer’s certification of manufacturing year and applicable standards where machinery/equipment is manufactured in a G7 country or Korea, which must be consularly legalized and accompanied by a Vietnamese translation; or an inspection certificate in cases where no manufacturer’s certification is available or the machinery/equipment is manufactured in a country outside the G7/Korea.

2. The enterprise shall submit one import dossier to the customs authority where the declaration is registered. The customs authority shall only clear the goods when the dossier is complete and valid; where an inspection certificate is required, such certificate must conclude that the machinery/equipment satisfies Article 6 of this Decision.

3. Where the manufacturer’s certification is unavailable and the inspection certificate cannot be provided at the time of dossier submission, the enterprise may bring the goods to storage in accordance with customs law after submitting a registration document for inspection service certified by a designated inspection organization. Within no more than 30 days from the date the machinery/equipment is brought to storage, the enterprise must submit the inspection certificate. If inspection results fail to meet requirements, the enterprise must re-export the goods.

Article 9. Import of used machinery and equipment in other cases

1. An enterprise currently conducting manufacturing in Viet Nam that needs to import used machinery/equipment exceeding the age limit in Clause 1 Article 6 to maintain production may be considered if remaining capacity or efficiency reaches at least 85% and consumption of raw materials, materials and energy does not exceed 15% of the design level.

2. The dossier includes a written request in Appendix II, a sealed copy of the Enterprise Registration Certificate and an inspection certificate issued by a designated inspection organization.

3. Where the dossier is incomplete or invalid: directly submitted dossiers shall be returned immediately for amendment; dossiers submitted via an electronic portal shall be requested for amendment within 08 working hours; dossiers submitted by post shall be requested for amendment within 02 working days. Within 02 working days after receipt of a complete and valid dossier, the Ministry of Science and Technology shall issue a written approval or refusal.

4. Upon import, in addition to the customs dossier, the enterprise must submit the written approval of the Ministry of Science and Technology.

Chapter IV
INSPECTION ACTIVITIES

Article 10. Inspection certificates for used machinery, equipment and technological lines

1. The inspection certificate must state: name, manufacturing year, brand, serial number, model, country of manufacture and manufacturer; time and place of inspection; condition at the time of inspection; inspection method and process; QCVN/TCVN or national standards of a G7 country or Korea used for assessment, or clearly state where no relevant standard exists. For technological lines, the certificate must assess each criterion in Article 5. For machinery/equipment, the certificate must assess Article 6. For Article 9 cases, the certificate must comment on technical specifications, operating condition, maintenance, safety/energy-saving/environmental standards, capacity/efficiency, consumption level, remaining service life and color images of the machinery/equipment.

2. Accepted validity of inspection certificates: not more than 18 months for used technological lines; not more than 06 months for used machinery/equipment, counted from the date of issuance to the date the goods arrive at the Vietnamese border gate. For inspection under Article 7a, validity must be reviewed according to the amended provisions of Decision 28/2022/QD-TTg.

3. Inspection of technological lines under Article 5 must be conducted in the exporting country while the technological line is in operation, except for cases subject to Article 7a.

Article 11. Dossiers and procedures for designation of inspection organizations

1. The Ministry of Science and Technology shall coordinate with ministries and ministerial-level agencies in designating and recognizing inspection organizations and publicly announcing the list of inspection organizations on the Ministry’s portal.

2. Domestic inspection organizations must have a Certificate of Registration for inspection activities under Decree No. 107/2016/ND-CP. Foreign inspection organizations must comply with the law of the country where they are established and be accredited by an accreditation body that is a signatory to a mutual recognition arrangement for conformity assessment results.

3. Registration dossiers and designation procedures shall comply with Decree No. 132/2008/ND-CP, as amended and supplemented by Decree No. 74/2018/ND-CP; foreign documents must be translated into Vietnamese and consularly legalized as required.

Chapter V
IMPLEMENTATION

Article 12. Responsibilities of the Ministry of Science and Technology

The Ministry of Science and Technology shall lead the management of import activities; publish the list of machinery, equipment and technological lines eliminated by exporting countries; coordinate in inspection of compliance with safety, economical and efficient use of energy and environmental protection regulations; coordinate in statistics on imports; designate and recognize inspection organizations; and handle issues arising during implementation according to its competence.

Article 13. Responsibilities of ministries and ministerial-level agencies

Ministries and ministerial-level agencies shall coordinate with the Ministry of Science and Technology; based on socio-economic development and specialized management requirements, they shall propose equipment-age criteria for other used machinery and equipment under their management to the Ministry of Science and Technology for consolidation and submission to the Prime Minister for consideration and approval.

Article 14. Responsibilities of importers

Importers shall conduct import in accordance with this Decision and relevant documents; submit to inspection by competent state management agencies and be legally responsible for violations.

Article 15. Responsibilities of designated/recognized inspection organizations

Inspection organizations shall conduct inspection in accordance with this Decision; ensure independence, objectivity and scientific basis; send one copy of the inspection certificate to the Ministry of Science and Technology within 15 days from the date of signing where inspection concerns a technological line or machinery/equipment with a note that no relevant QCVN/TCVN/G7/Korea standard exists; and report annually before 15 December or irregularly upon request.

Article 16. Transitional provisions

1. Import dossiers approved by the Ministry of Science and Technology under Article 13 of Circular No. 23/2015/TT-BKHCN before the effective date of this Decision may continue to be implemented under Circular No. 23/2015/TT-BKHCN.

2. Dossiers received under Article 13 of Circular No. 23/2015/TT-BKHCN before the effective date of this Decision but not yet resolved may continue under Circular No. 23/2015/TT-BKHCN or under this Decision at the enterprise’s request.

3. Investment projects importing used machinery/equipment that have implemented Clause 2 Article 6 of Circular No. 23/2015/TT-BKHCN and have been issued an Investment Registration Certificate or investment policy decision before the effective date of this Decision may continue importing under Circular No. 23/2015/TT-BKHCN.

4. Inspection organizations already published under Circular No. 23/2015/TT-BKHCN may continue inspection for 60 days from the effective date of this Decision.

Article 17. Implementation provisions

1. This Decision takes effect from 15 June 2019.

2. Where referenced legal documents are amended, supplemented or replaced, the new documents shall apply.

3. Difficulties arising during implementation shall be reported to the Ministry of Science and Technology for consolidation and reporting to the Prime Minister for consideration and decision.

4. Ministers, heads of ministerial-level agencies, heads of Government-attached agencies, chairpersons of provincial-level People’s Committees, and relevant organizations and individuals are responsible for implementation of this Decision.

FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER
Trinh Dinh Dung

APPENDIX I
Equipment age applicable to machinery and equipment in certain specific sectors

Equipment age (X) = Import year – Manufacturing year. Equipment age is calculated by year, not by month.

APPENDIX II
Written request for import of used machinery/equipment

ENTERPRISE NAME – No.: …………………… – Re: Request for import of used machinery/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.: ………… issued on: ………… place of issue: …………

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

8. Expected import time: ……………………

9. Explanation of the necessity to import machinery/equipment to maintain manufacturing and business activities, the use plan and the necessity of the proposed machinery/equipment in the technological line: ……………………

Attached documents: a) sealed copy of the Enterprise Registration Certificate; b) inspection certificate issued by an inspection organization.

The enterprise undertakes to import the above used machinery/equipment for direct service of manufacturing activities in Viet Nam; the machinery/equipment satisfies requirements on safety, energy saving and environmental protection; and the enterprise is legally responsible for this commitment and the accuracy of the information provided.

LEGAL REPRESENTATIVE OF THE ENTERPRISE
(Signature and seal)

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.