CIRCULAR

IMPORT OF USED MACHINERY, EQUIPMENT AND TECHNOLOGICAL LINES

Pursuant to the Government's Decree No. 20/2013/NĐ-CP dated February 26 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Science and Technology;

Pursuant to the Government's Decree No. 187/2013/NĐ-CP dated November 20, 2013 on guidelines for the Law on Commerce with regard to international trading;

At the request of Director of Technology Inspection, Review, and Evaluation Authority, Director of Legal Department;

The Minister of Science and Technology promulgates a Circular on import of used machinery, equipment and technological lines.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Circular provides for criteria, documentation, procedures for import of used machinery, equipment and technological lines, including used parts and components in HS Chapter 84 and Chapter 85 on the List of exports and imports of Vietnam promulgated by the Ministry of Finance together with Circular No. 103/2015/TT-BTC dated July 01, 2015 meant to be used for domestic manufacture and trading that are not on the lists of goods banned from import compiled by the government, the Prime Minister, Ministries, and ministerial agencies.

2. This Circular does not apply to import of used machinery, equipment and technological lines that are:

a) transited;

b) temporarily imported for re-export (except for those temporarily imported to serve execution of processing contracts; those imported for manufacturing or execution of construction projects); temporarily exported for re-import;

c) imported to execute maintenance/repair contracts with foreign parties;

d) transferred by another domestic enterprise in an export-processing zones or an export processing enterprise outside the export-processing zone; among enterprises in export-processing zones;

dd) meant to serve research and development and cannot be domestically manufactured; meant to serve national defense and security objectives at the request of relevant Ministries;

e) machinery and equipment on the List of potentially unsafe goods (List of Group 2 goods) issued by relevant Ministries according to the Law on Product and goods quality;

g) printing machinery and equipment of headings 84.40 through 84.43;

h) permitted to be imported by the Government or the Prime Minister.

Article 2. Regulated entities

This Circular applies to:

1. Organizations and individuals (hereinafter referred to as enterprises) that import used machinery, equipment and technological lines; used parts and components.

2. Inspecting bodies that inspect used machinery, equipment and technological lines as prescribed in this Circular.

3. Regulatory authorities relevant to the import of used machinery, equipment and technological lines as prescribed in this Circular.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Machinery and equipment means a complete structure comprised of parts, groups of parts, and components that are interconnected to operate to serve the intended purposes.

2. Technological line means a system of machinery, equipment, tools, devices that are installed according to a technological process or diagram to ensure synchronous operation serving manufacturing.

3. Parts and components are parts, groups of parts that constitute the machinery and equipment, imported for the purpose of replacement, repair, or improvement of performance or productivity of operating machinery, equipment and technological lines.

4. Used parts and components are parts and components removed from used machinery, equipment and technological lines.

5. Age (expressed as year) means the period from the year of production to the year of import of the used machinery, equipment or technological line. Year of import is the year in which the goods arrive at a Vietnam’s port.

6. Used machinery, equipment and technological lines (hereinafter referred to as used equipment) are machinery, equipment and technological lines that have been assembled and put into operation after they are manufactured.

Article 4. Rules for import management

1. Used equipment must be imported in accordance with regulations on importation of the Government, the Prime Minister, Ministries, and ministerial agencies.

2. With regard to imported used equipment provided for in the documents of Ministries and ministerial agencies, their regulations shall apply. This Circular shall apply to other cases.

3. It is prohibited to import any used equipment that has been discarded/banned by other countries because of its obsolescence, low quality, or causing environmental pollution as published by the Ministry of Science and Technology on its web portal.

4. Enterprises are recommended to inspect used equipment right in the exporting country. If goods are not inspected until they arrive at a Vietnam’s port, the importing enterprise may put them into storage as prescribed by this Circular.

Chapter II

REQUIREMENTS FOR IMPORTING USED EQUIPMENT

Article 5. General requirements

Imported used equipment must satisfy safety, energy saving, and environmental protection requirements prescribed by applicable law.

Article 6. Specific requirements

1. A piece of used equipment may be imported if it satisfies the following criteria:

a) Its age does not exceed 10 years;

b) It is manufactured in accordance with a National Technical Regulation (QCVN) or Vietnam’s Standard (TCVN) or Standards of G7 countries with regard to safety, energy saving, and environmental protection.

2. With regard to used equipment of investment projects, including new projects and extended projects, in the following cases:

a) The project is subject to issuance of a decision on investment policies;

b) The project is subject to issuance of investment registration certificate, regardless of a decision on investment policies.

If the documents of a investment project has a list of used equipment and a competent authority issues a decision on investment policies, and an investment registration authority issues a investment registration certificate in accordance with the Law on Investment, Clause 1 of this Article shall not apply.

Where necessary, the authority competent to decide investment policies and the investment registration authority may consult with an agency that is conversant with the technology of the used equipment before deciding the investment policies or issuing the investment registration certificate.

3. Used parts and components may only be imported when the manufacturing enterprise needs to replace or repair its operating equipment. The manufacturing enterprise may import itself or authorize another enterprise to do so.

4. Where necessary, depending on their fields, Ministers and Heads of ministerial agencies may lower the age limit of used equipment (below 10 years) and notify the Ministry of Science and Technology.

Chapter III

DOCUMENTATION AND PROCEDURES FOR IMPORTING AND INSPECTING USED EQUIPMENT

Article 7. Import documents of used equipment

Import documents: Apart from the import documents prescribed by the Law on Customs, the importer must submit a set of additional documents, including:

1. For used equipment of a investment project prescribed in Clause 2 Article 6 of this Circular:

- 01 certified true copy of the decision on investment policies or investment registration certificate enclosed with 01 original copy of the list of used equipment to be imported.

2. Other cases of importing used equipment (including any project approved under a decision on investment policies or investment registration certificate without a list of used equipment to be imported): one of the following technical documents showing the year of production and manufacturing standards applied to the used equipment:

a) 01 original copy of manufacturer’s certification that the year of production and manufacturing standards applied to the used equipment are conformable with Clause 1 Article 6 of this Circular;

b) 01 original copy of the inspection certificate issued by an inspecting body prescribed in Clause 2 Article 10 of this Circular that the year of production and manufacturing standards applied to the used equipment are conformable with Clause 1 Article 6 of this Circular.

Article 8. Procedures for importing used equipment

1. In consideration of documents submitted by the enterprise, the customs authority shall determine whether the used equipment satisfies import requirements as prescribed in Article 6 of this Circular, and complete customs clearance procedures as prescribed.

2. Putting goods into storage:

a) In case of import of used equipment without sufficient documents prescribed in Article 7 of this Circular at the time of import, the enterprise may put it into storage after the following documents are submitted to the customs authority:

- 01 original copy of the application for inspection bearing the certification by the inspecting body as prescribed in Clause 2 Article 10 of this Circular;

- 01 original copy of the written request for permission to put goods into storage (form No. 09/BQHH/GSQL in Appendix V of Circular No. 38/2015/TT-BTC.

b) Within 30 working days from the day on which goods are put into storage, the enterprise must submit the inspection certificate and required documents to the customs authority. The customs authority only initiate customs clearance procedures if the used equipment satisfies requirements in Article 6, Article 7 of this Circular.

If the inspection result is not satisfactory according to Clause 1 and Clause 4 Article 6 of this Circular, the competent authority shall handle the case in accordance with Article 14 of this Circular.

Used equipment put into storage may only be used or assembled after customs clearance procedures are completed.

c) Used equipment of a investment project defined in Clause 2 Article 6 of this Circular may only be used for the project after it is approved or registered, must not be transferred to another project or another enterprise, unless the original enterprise is bankrupt, dissolved, or shut down.

Article 9. Documentation and procedures for importing used parts and/or components

1. Import documents: Apart from the import documents prescribed by the Law on Customs, the importer must submit a set of additional documents, including:

a) 01 original copy of the enterprise’s description of the necessity of the import of such parts and/or components for repair and/or replacement with regard to used equipment being operated at the enterprise, and a commitment to import with appropriate quantity and categories that need replacing, and to use only for intended purposes.

b) In case the enterprise imports under an authorization, an original copy of the authorization letter must be added to the set of documents;

c) 01 copy of technical documents of the parts and/or components (if any).

2. The customs authority shall initiate customs clearance procedures when the documents satisfy requirements in Clause 3 Article 6 and Clause 1 of this Article.

Article 10. Inspecting used equipment

1. Apart from basic information of a certificate, the conclusion part of the inspection certificate mentioned in Article 6 of this Circular must specify:

a) Year of production, name, brand, number, model, name of manufacturer of the used equipment;

b) Conclusion about conformity of standards applied to the used equipment with National Technical Regulations or Vietnam’s Standards or standards of G7 countries about safety, energy saving, and environmental protection.

2. Inspecting bodies:

a) Inspecting bodies that issue inspection certificates mentioned in Clause 1 of this Article include:

- Vietnamese inspecting bodies that are registered under the Law on Commerce and licensed to inspect machinery and equipment

- Foreign inspecting bodies that are registered under regulations of law of their home countries and licensed to inspect machinery and equipment.

b) The inspecting body must send information to the Ministry of Science and Technology for consolidation and publishing on its web portal. Information includes: The organization’s name, address, phone number, fax number, website, a copy of the Certificate of Business registration under the Law on Commerce (with regard to Vietnamese inspecting bodies), a copy of the inspection license issued by a competent authority of the country in which the inspecting body registered enclosed with the consularly legalized Vietnamese translation (with regard to foreign inspecting bodies); a photocopy of the application for inspection; a photocopy of the certificate of inspection.

3. Effective duration of an inspection certificate:

If the inspection is carried out before the goods arrive at a Vietnam’s port, the inspection certificate is valid if it has been granted within 06 months before such arrival.

Chapter IV

IMPLEMENTATION

Article 11. Responsibility of the Ministry of Science and Technology

1. Take charge and cooperate with other Ministries, ministerial agencies in managing the import of used equipment set out in this Circular and relevant documents.

2. Periodically publish the list of used equipment discarded/banned by countries because of their obsolescence, low quality, or causing environmental pollution on the web portal of the Ministry of Science and Technology.

3. Take charge and cooperate with other Ministries, ministerial agencies, the People’s Committees of provinces in inspecting the observance of regulations of law on safety, economical and effective use of energy, environmental protection with regard to used equipment imported by enterprises when they are put into operation, and impose penalties for violations in accordance with applicable regulations of law.

4. Cooperate with the General Department of Customs in periodically producing statistics about import of used machinery, equipment and technological lines (importers’ names, addresses, fields, countries of origins, import value); cases of violations in which goods must be re-exported and penalties are imposed, and reporting to the Prime Minister.

5. Compile and publish the list of Vietnamese and foreign inspecting bodies that satisfy requirements in Clause 2 Article 10 of this Circular (their names, addresses, websites, phone numbers, fax numbers, forms of the application for inspection, and inspection certificate) on the web portal of the Ministry of Science and Technology.

6. The Ministry of Science and Technology shall assign Technology Inspection, Review, and Evaluation Authority to take charge of the implementation of this Circular.

Article 12. Responsibility of enterprises

1. Import used equipment in accordance with this Circular and relevant legislative documents.

2. Only sell it after customs clearance procedures are completed as prescribed in Article 8 of this Circular if it is imported for commercial purpose (not to be used by the importers).

3. Enable competent authorities in charge of safety, energy saving, and environmental protection to carry out inspection after customs clearance is granted, during the process of assembly and operation to serve manufacturing or business, and incur penalties if violating this Circular and relevant legislative documents.

Article 13. Exceptions

Where an enterprise has to import a piece of equipment whose age exceeds 10 years to sustain its manufacturing or business operation, the Ministry of Science and Technology shall cooperate with other ministries and agencies in considering the case based on the enterprise’s proposal and documents.

Article 14. Actions against violations

1. If the inspection shows that the used equipment does not satisfy requirements in Clause 1 Article 6 of this Circular after it arrives at the port or border checkpoint, the enterprise shall incur penalties as prescribed by applicable law. During the inspection process, the competent authority shall decide whether to allow re-inspection at the enterprise’s request.

2. With regard to used equipment that has been granted customs clearance, assembled, and put into operation, if safety, energy saving, environmental protection requirements are not complied with during the operation of the equipment, the enterprise shall incur penalties as prescribed by applicable law.

Article 15. Transitional clauses

Sale contracts concluded before the effective date of this Circular, imported used equipment that has been loaded onboard the means of transport before the effective date of this Circular are not regulated by this Circular.

Article 16. Effect

1. This Circular comes into force from July 01, 2016.

2. The following documents are annulled from the effective date of this Circular: Circular No. 20/2014/TT-BKHCN dated July 15, 2014 of the Minister of Science and Technology on import of used machinery, equipment and technological lines; Notice No. 2527/TB-BKHCN dated September 06, 2012 of the Ministry of Science and Technology on suspension of import of used machinery, equipment and technological lines.

3. Where the legislative documents referred to in this Circular are amended or replaced, the new ones shall apply.

4. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Science and Technology for consideration./.