Joint Circular No. 01/1998/TTLT/CN-NV guiding the management of industrial explosive material business operations.

JOINT CIRCULAR

Guidelines on the Management of Industrial Explosive Material Supply Business

Pursuant to Decree 02/CP dated January 5, 1995 of the Government stipulating goods and services prohibited from commercial trade and goods and services subject to conditional commercial trade in the domestic market;

Pursuant to Decree 47/CP dated August 12, 1996 of the Government on the management of weapons, explosives, and auxiliary tools;

Pursuant to Decree 17/CP dated December 23, 1992 of the Government on the management of special trades;

Pursuant to Decree 27/CP dated April 20, 1995 of the Government on the management of production, supply, and use of industrial explosive materials;

The Ministry of Industry and the Ministry of Interior issue guidelines on the management and business of supplying industrial explosive materials as follows:

I. GENERAL PROVISIONS

1. Industrial explosive materials used in industry and other civilian purposes (referred to as IEM) include: Explosives and accessories which must be finished products.

Explosives are special chemicals or mixtures of special chemicals that when subjected to physical, chemical, or thermal energy sufficient in quantity will cause a chemical reaction transforming such special chemicals or mixture of special chemicals into explosive energy and destroying the surrounding environment.

Accessories include slow-burning fuse, detonating cord, igniters, primers, and other accessories.

2. Self-manufactured explosives or taken from unprocessed and untested bombs, bullets, mines, not permitted for use by competent state authorities, shall not be considered as IEM.

Chemicals and semi-finished products intended to be processed into explosives, which themselves do not spontaneously ignite or explode during production, transportation, and storage separately, shall not be considered as IEM.

3. The supply business of IEM includes activities of buying and selling, exporting, importing, receiving and delivering, transporting, storing, and preserving IEM.

4. Inspection, testing, and destruction of IEM that have lost quality shall be carried out according to safety regulations on storage, transportation, and use of explosive materials, current relevant regulations and standards.

5. Scope of application: All enterprises and organizations, including economic enterprises of armed forces, foreign enterprises operating within Vietnam engaged in buying and selling, exporting, importing, receiving and delivering, transporting, storing, preserving, producing, and trading IEM on the territory of Vietnam (including areas under Vietnam's sovereignty) must comply with regulations on managing IEM and this Circular.

6. Enterprises specializing in producing and using IEM must comply with Decree 27/CP dated April 20, 1995 of the Government, Circular No. 11/TT-CNCL dated March 13, 1996 of the Ministry of Industry, the aforementioned Decree, and this Joint Circular.

II. CONDITIONS FOR THE BUSINESS OF SUPPLYING INDUSTRIAL EXPLOSIVE MATERIALS

A. Conditions regarding the business subject.

The subjects engaging in the business of supplying IEM are state-owned enterprises meeting the conditions prescribed in Decree 02/CP dated January 5, 1995 proposed by the Ministry of Industry and the Ministry of National Defense and assigned tasks by the Prime Minister to supply IEM, must fully meet the conditions for special trades as stipulated in Decree 17/CP dated December 23, 1992 of the Government and this Guideline.

B. Conditions regarding technical infrastructure.

1. Enterprises producing and supplying IEM must have adequate technical infrastructure corresponding to their mission, scale of business, and requirements of safety regulations on storage, transportation, and use of explosive materials, current relevant regulations and standards such as warehouses, transportation means, specialized equipment, protective facilities, fire prevention and explosion protection devices, lightning and stray current protection devices conforming to standards.

2. In selecting locations for IEM warehouses, they must comply with relevant laws, decrees, regulations, and standards concerning IEM issued by the state and approved by competent authorities.

Construction of IEM production facilities (project type A) and related facilities must comply with Decree 42/CP dated July 16, 1996 of the Government on the issuance of investment and construction management regulations, Decree 92/CP dated August 23, 1997 of the Government on supplementing certain provisions of investment and construction management regulations; current relevant regulations, regulations, and standards.

3. Fixed loading and unloading points for IEM, in addition to meeting safety and fire prevention requirements, must be approved by the People's Committee of the province or centrally administered city. If the loading and unloading point is a port not under local management, it must also be approved by the competent authority for transport management; if the loading and unloading site is located within a construction site, mining operation... it shall be considered an area for blasting operations and must be agreed upon by the local public security and state inspection authorities regarding safety (according to Circular No. 11/CNCL dated March 13, 1996 of the Ministry of Industry).

4. Transport vehicles and specialized loading and unloading equipment specified in Article 31 of Chapter IV of the regulation attached to Decree 47/CP dated August 12, 1996 of the Government include various types of trucks for transportation, trucks for transporting and mixing explosives (mobile production trucks), tractor units and barges, ships, cranes, hoists... these devices must be equipped with specialized fire prevention and explosion protection equipment.

These transport vehicles must be granted permits for circulation by competent authorities and permits for transporting IEM by fire prevention authorities.

It is forbidden to transport IEM by self-dumping trucks, trailers pulled by trucks, passenger-carrying trucks; electric, gas, and coal-powered trucks.

5. Households permitted to use IEM, enterprises permitted to engage in the business of supplying IEM may transport IEM themselves or hire transport vehicles from other enterprises by road, waterway, railway, and air. These transport vehicles must fully meet the technical and safety requirements of safety regulations on storage, transportation, and use of explosive materials and other relevant regulations.

- The transport means participating in the transportation of explosive materials from the time the fire prevention and fighting police authority inspects, records in the protocol, and confirms to be in compliance with the conditions for transporting explosive materials, the owner of the transport means must be responsible for maintaining all safety conditions throughout the transportation process and within the period recorded in the protocol (if any). Any changes to the transport means that affect the safety of transporting explosive materials, both the owner of the transport means and the consignor must promptly report to the fire prevention and fighting police authority issuing the permit for transporting explosive materials. The consignor and the owner of the transport means shall bear full responsibility for ensuring the safety conditions of the transport means carrying explosive materials.

C. Conditions for Businesses Engaging in the Supply of Explosive Materials

1. Leaders and heads of departments, officers, workers of enterprises directly involved in receiving, storing, transporting, testing, trading, and supplying explosive materials must be Vietnamese citizens aged 18 years or older, in good health, possessing the necessary professional qualifications, and meeting the criteria for special business operations under Decree 17/CP dated December 23, 1992 of the Government and Circular No. 03/TT-BNV dated March 27, 1993 of the Ministry of Home Affairs guiding this Decree.

2. They must study and pass examinations on management and business supply of explosive materials, technical safety regulations for storage, transportation, and use of explosives, and obtain a certificate of qualification for business supply of explosive materials issued by the Ministry of Industry.

a) For enterprise leaders:

The General Director must have at least a bachelor's degree in one of the following fields: Mining, chemicals, weapons and ammunition, pyrotechnic technology, explosives, economic engineering, and meet the state's criteria for civil servants.

The Deputy General Director for Technology must have a bachelor's degree in one of the following fields: Mining, chemicals, weapons and ammunition, pyrotechnic technology, explosives.

b) For department heads and deputy department heads of enterprises: Must have a bachelor's degree and meet the state's criteria for civil servants.

Specifically, the Head of Technical Department, Safety Inspector, must be an engineer in one of the following fields: Mining, chemicals, weapons and ammunition, pyrotechnic technology, explosives.

c) For enterprise leaders of factories, branches, agencies, representative offices directly subordinate to enterprises: Must have a bachelor's or college degree and at least five years of work experience in the field of explosive material supply.

Specifically, the Deputy General Director for Technology, Head of Technical Department, Safety Inspector, must be an engineer in one of the following fields: Mining, chemicals, weapons and ammunition, pyrotechnic technology, explosives.

3. For workers of enterprises, factories, branches, agencies, representative offices directly related to explosive materials, including:

Warehouse managers and warehouse management staff.

Security guards and warehouse preservation staff.

Ship captains and staff controlling transport means (automobiles, locomotives, ships, barges, cranes...).

Workers handling loading, unloading, and transporting, escort staff.

Testing staff.

Supply staff.

In addition to having professional certificates in their respective fields, these staff members, when working with explosive materials, must also possess the following documents:

A certificate of training and examination on technical safety regulations for storage, transportation, and use of explosive materials issued by the competent authority according to current regulations.

A certificate of fire prevention and explosion protection training and examination issued by the fire prevention and fighting authority under the provincial or municipal public security agency or the Fire Prevention and Fighting Police Bureau.

4. For leaders, managers, and workers operating in businesses engaged in the supply of explosive materials under the Ministry of Defense, the Ministry of Defense will examine and issue certificates according to points a, b, and c of Clause 2 above, and send copies of the certificates and brief resumes to the Ministry of Home Affairs and the Ministry of Industry for coordinated management.

III. MANAGEMENT OF BUSINESS OPERATIONS

1. Enterprises engaged in the supply of explosive materials are permitted to establish factories, branches, agencies, representative offices nationwide to directly supply explosive materials to using enterprises and organizations. The enterprise must be responsible for all activities of these branches and agencies and must submit the decision document establishing them to the Ministry of Industry and the Ministry of Home Affairs for monitoring and management.

2. Enterprises and organizations may only sell explosive materials to enterprises and organizations that have been granted permits for the use of explosive materials by authorized authorities according to Circular No. 11/TT-CNCL dated March 13, 1996 of the Ministry of Industry, guiding the implementation of Decree 27/CP dated April 20, 1995 of the Government.

Enterprises and organizations using explosive materials must have a permit for the use of explosive materials issued by the Ministry of Industry and a certificate of meeting security and public order conditions issued by the Ministry of Home Affairs before participating in bidding.

3. Units permitted to use explosive materials may only purchase from units permitted to engage in the supply of explosive materials. If unused or not used, they may only resell to the unit that sold to them and may not resell to any other entity. Purchases and sales must be concluded through economic contracts in accordance with the provisions of the law. Subsequently, the supply and distribution enterprise must submit copies of the contracts and settlement agreements to the Ministry of Industry and the Ministry of Home Affairs for inspection and supervision.

Special cases must be reviewed and approved by the Ministry of Industry and the Ministry of Home Affairs.

4. Enterprises producing and engaging in the supply of explosive materials must submit plans for production, supply, export, import, national reserve (for assigned units) of explosive materials to the Ministry of Industry, the Ministry of Planning and Investment, and the Ministry of Home Affairs for consolidation and balance of supply plans for the national economy, to be decided by the Prime Minister. These plans must be submitted before August 20 each year. After this date, if there are changes or adjustments to the plan, the enterprise must submit supplementary adjustment documents to the Ministry of Industry and relevant ministries. Quarterly, every six months, nine months, and annually, enterprises producing and supplying explosive materials must submit statistical reports on production, supply, export, import, and inventory of explosive materials to the Ministry of Industry, the Ministry of Planning and Investment, the General Statistics Office, and the Ministry of Home Affairs for monitoring and management.

5. Enterprises producing, trading, and supplying industrial explosives must ensure production and supply in full quantity, stably, correctly according to the type, quality as stipulated in economic contracts already signed. Enterprises that have contracted to purchase industrial explosives must ensure to buy the entire ordered quantity; in case of changes from the contract, there must be mutual agreement among the parties signing the contract. Within fifteen days after signing or adjusting the contract, enterprises trading and supplying industrial explosives must send copies of the contract (including export and import) to the Ministry of Industry and the Ministry of Home Affairs for monitoring and supervision.

6. Enterprises producing, trading, and supplying industrial explosives must register with the Government Price Board regarding the selling price of finished industrial explosives at the point of dispatch during each period.

7. Enterprises permitted to produce, trade, and supply industrial explosives must implement registration, declaration, and payment of taxes and other state budget contributions according to current tax laws and regulations. Transactions of industrial explosives between enterprises must be conducted with separate invoices for industrial explosives according to models issued by the General Department of Taxation.

8. Enterprises producing, trading, and supplying industrial explosives must maintain complete systems of accounting books, record keeping, storage of original documents, warehouse cards, inbound receipts, outbound receipts, business invoices, and statistics on all purchasing, selling, exporting, importing, inventory, destruction activities of industrial explosives, and these must be preserved and stored according to prescribed regulations. Enterprises must fully implement reporting, auditing, and settlement systems according to the Ordinance on Accounting and Statistics and guidance documents issued by the Ministry of Finance, the Ministry of Industry, and various ledgers and report forms on security management in special business establishments as directed by the Ministry of Home Affairs.

IV - EXPORT AND IMPORT OF INDUSTRIAL EXPLOSIVES

1. Based on ensuring sufficient supply of industrial explosives for the national economy, annually, the Ministry of Industry will coordinate with the Ministry of Planning and Investment, the Ministry of Home Affairs, and relevant ministries to consider proposals from enterprises trading and supplying industrial explosives, compile and balance to submit to the Prime Minister for decision on the quota for exporting and importing industrial explosives. The Ministry of Trade issues documents allowing enterprises with permits for trading in exports and imports of industrial explosives to import and export industrial explosives based on the quotas allowed by the State.

Within fifteen days from issuing the permit for exporting and importing industrial explosives, the Ministry of Trade must send copies of such documents to the Ministry of Industry and the Ministry of Home Affairs for monitoring and supervision.

Enterprises permitted to trade and supply industrial explosives wishing to export or import must submit applications for permission to export or import industrial explosives along with explanations clearly stating customer requirements and economic contracts with manufacturing plants and using units. These applications and contracts must be sent to the Ministry of Industry, the Ministry of Planning and Investment before August 20th each year together with the next year's plan. Enterprises failing to submit all required documents are considered to have no need for export or import.

Exporting and importing of industrial explosives must comply with current state regulations related to export and import.

2. Some principles for importing industrial explosives and raw materials for producing industrial explosives:

a) Industrial explosives produced domestically or processed in Vietnam that are stable in quality, quantity, type, safety, and cost not higher than the list of industrial explosives permitted for production and use in industry annually, and accepted for purchase through economic contracts by users shall not be allowed to be imported.

b) Raw materials or explosives for producing finished industrial explosives that are permitted to be imported include:

Raw materials or single-component explosives for processing various types of industrial explosives within the country (TNT, high-purity nitramon crystals and powder specifically for producing explosives, chemicals for producing explosive accessories...).

Industrial explosives or chemicals that cannot be produced or processed in Vietnam but are very necessary for construction production needs (high-energy explosives, powerful blasting explosives, seismic explosives used for oil and gas exploration and exploitation...).

Industrial explosives that although can be produced and processed in Vietnam, do not meet the requirements of quantity, type, quality, and cost with domestic users.

3. Enterprises permitted to export and import industrial explosives are those that meet the conditions to obtain a business license for export and import according to Decree No. 33/CP dated April 19, 1994 of the Government on state management of export and import activities and regulations of the Ministry of Trade, and have been certified by the Ministry of Industry as meeting the conditions for trading industrial explosives and by the Ministry of Home Affairs as meeting the conditions for special business operations.

Special cases are permitted by the Government in writing and must comply with legal regulations on managing industrial explosives.

4. Enterprises permitted to export and import industrial explosives must report periodically every quarter, six months, nine months, and annually on the quantity and type of industrial explosives exported and imported according to specified formats and send them to the Ministry of Industry, the Ministry of Trade, and the Ministry of Home Affairs for monitoring and supervision.

V - PROCEDURES FOR APPLYING FOR CERTIFICATES OF ELIGIBILITY
TO TRADE AND SUPPLY INDUSTRIAL EXPLOSIVES AND CONDITIONS FOR SPECIAL BUSINESS OPERATIONS

1. Before preparing the application for a certificate of eligibility to trade and supply industrial explosives, enterprises must follow procedures to apply for a certificate of eligibility for special business operations according to Decree No. 17/CP dated December 23, 1992 of the Government and Circular No. 03/TT dated March 27, 1993 of the Ministry of Home Affairs on managing special businesses. 2. Enterprises must prepare and submit an application dossier to the Ministry of Industry for review and issuance of the certificate of eligibility to trade.

a) Documents include:

On behalf of the enterprise

Application for a certificate of eligibility to trade signed by the director and stamped.

Copies (certified) of the decision establishing the enterprise by the Prime Minister, accompanied by a list of affiliated factories, branches, agents, representative offices.

The articles of operation of the enterprise are approved by the competent authority.

A certified copy of the decision on capital transfer from the management level, and the certificate of capital of the enterprise.

List of specialized transportation equipment.

Curriculum vitae of the testing facility for explosives (if any), and the certificate issued by the State Standards-Quality-Measurement Agency allowing its operation.

List of all staff members, managers, workers directly involved in the transportation, storage, and trading of industrial explosives.

A certified copy of the certificate of compliance with security and public order conditions for engaging in special business operations issued by the Ministry of Public Security.

Director, deputy director; heads and deputies of departments, inspection units for technical safety of the enterprise and subordinate units:

Personal curriculum vitae of the enterprise owner.

A certified copy of the graduation certificate.

A certified copy of the individual's certificate for trading industrial explosives issued by the Ministry of Industry; if the enterprise falls under the General Department of National Defense Industry and Economy, it is issued by the Ministry of National Defense.

b) Within twenty days from the date of receiving complete files, the Ministry of Industry shall be responsible for organizing inspections; if the enterprise meets the conditions, it shall issue a certificate of compliance for trading industrial explosives to the enterprise. After obtaining the certificate of compliance for trading industrial explosives, the enterprise must apply for registration of business or renewal of business registration.

In cases where the conditions are not met, the Ministry of Industry must respond in writing.

2. The Ministry of Industry shall coordinate with the Ministry of National Defense and the Ministry of Public Security to inspect the files and business conditions of enterprises trading industrial explosives under the General Department of National Defense Industry and Economy; if the conditions are met, the Ministry of Industry shall issue a certificate of compliance for trading industrial explosives.

3. Enterprises applying for a certificate of compliance for trading industrial explosives must pay a fee according to the current regulations of the State.

VI. INSPECTION AND HANDLING OF VIOLATIONS

1. Based on their functions and responsibilities, the Police, Industry, and Commerce agencies shall regularly and randomly inspect the compliance with the provisions of this Circular by production facilities and enterprises trading industrial explosives. The Planning and Investment Department of the Ministry of Industry, and the General Department of State Security (C13) of the Ministry of Public Security are the lead agencies assisting the two ministries in monitoring and inspecting the implementation of laws governing the management of industrial explosives.

2. Content of Inspection:

Material and technical conditions.

Professional qualifications of traders.

Business plans, economic contracts, export and import contracts, customs procedures for imports and exports.

Purchase and sale prices, accounting books, invoices, and supporting documents.

Specifications, designs, packaging of industrial explosives, and product weight.

Implementation of reporting systems for state management agencies.

Conditions related to security and public order.

3. Handling of violations:

Any organization, enterprise, or individual violating the regulations on the management of industrial explosives will be subject to administrative penalties or criminal prosecution depending on the nature and severity of the violation.

4. Organizations and individuals authorized to issue certificates of compliance for trading industrial explosives, certificates of compliance for security and public order, business registration certificates, and to inspect activities of permitted organizations; if they abuse their positions or powers, they may be subject to disciplinary action or criminal prosecution depending on the nature and severity of the violation; if they cause material damage, they must compensate according to the law.

VII. IMPLEMENTATION ORGANIZATION

1. Within sixty days from the effective date of this Circular, enterprises producing and trading industrial explosives must adjust all activities in accordance with the provisions of this Joint Circular to be allowed to produce and trade industrial explosives. Enterprises that do not meet the operational conditions stipulated in this Joint Circular must suspend their operations temporarily.

2. Heads of Ministries, agencies at the ministerial level, government agencies, Chairmen of Provincial People's Committees, and municipalities directly under the Central Government within the scope of their functions and authorities shall cooperate with the Ministry of Industry and the Ministry of Public Security to implement this Joint Circular.

3. This Circular takes effect fifteen days from the date of signature and replaces Circular No. 03/TTLB/NV-MT dated June 11, 1981, jointly issued by the Ministry of Public Security and the Coal Mines. During the implementation period, if there are difficulties or obstacles, sectors, localities, and units should report them to the Joint Ministry of Industry and Public Security for research, resolution, supplementation, and amendment to ensure suitability./.