Circular No. 04/2006/TT-BCN Amending and Supplementing Certain Articles of Circular No. 02/2005/TT-BCN dated March 29, 2005 of the Ministry of Industry guiding the management, production, business supply, and use of industrial explosives.

CIRCULAR

Amending and supplementing some articles of Circular No. 02/2005/TT-BCN dated March 29, 2005 of the Ministry of Industry guiding the management, production, business supply, and use of industrial explosives.

_______________________________________

Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to Decree No. 27/CP dated April 20, 1995 of the Government on the management of production, supply, and use of industrial explosives;

Pursuant to Decree No. 47/CP dated August 12, 1996 of the Government on the management of weapons, explosives, and auxiliary tools;

Pursuant to Decree No. 11/1999/NĐ-CP dated March 3, 1999 of the Government stipulating goods prohibited from circulation, services prohibited from implementation; goods and services with restricted trade and conditional trade;

Pursuant to Decree No. 179/2004/NĐ-CP dated October 21, 2004 of the Government stipulating state management over product quality;

The Ministry of Industry amends and supplements certain contents of Circular No. 02/2005/TT-BCN dated March 29, 2005 guiding the management, production, business supply, and use of industrial explosives (hereinafter referred to as Circular 02) as follows:

1. Section II Part A of Circular 02 is amended and supplemented as follows:

“a) Amending the concept of 'Business Supply of Industrial Explosives' as follows:”Business supply of industrial explosivesis the activity of purchasing, selling, transporting, and storing industrial explosives.

b) Supplement Clause 10: Activities related to industrial explosives include conducting one, several, or all activities such as research and trial production, testing, production, business supply, blasting services, and the use of industrial explosives.

2. Amend Section I Part B of Circular 02 as follows:

“I. The functional Departments under the Ministry of Industry shall assist the Minister of Industry in performing state management functions over industrial explosives nationwide. Specifically:

1) The Department of Mechanical Engineering, Metallurgy, and Chemical Industry shall take the lead in coordinating with relevant units and be responsible for:

a) Developing plans for the development, long-term, five-year, and annual plans for industrial explosives; drafting guidelines for investment and business supply of industrial explosives.

b) Receiving and reviewing project proposals for construction projects of industrial explosives production facilities and high-nitrate ammonium production facilities submitted by domestic economic organizations according to laws on investment project management.

c) Establishing and implementing regulations on the export and import of industrial explosives during each period according to laws on export and import management.

d) Periodically summarizing the management work of industrial explosives within their assigned functions and responsibilities. Reporting on state management work and the development situation of the industrial explosives industry as prescribed.

2. The Department of Science and Technology shall take the lead in coordinating with relevant units and be responsible for:

a) Drafting technical standards for industrial explosives production and product quality standards; organizing the management of research, trial production, and testing of industrial explosives.

b) Receiving and reviewing applications for registration and public announcement of product quality of industrial explosives that meet conditions for inclusion in the list of permitted industrial explosives for production and use in Vietnam; implementing product quality management according to laws on product quality management (Government Decree No. 179/2004/NĐ-CP dated October 21, 2004 stipulating state management over product quality and the provisions of TCVN 6174-1997, TCVN 4586-1997).

c) Periodically summarizing the management work of industrial explosives within their assigned functions and responsibilities.

3. The Department of Industrial Safety Technology shall take the lead in coordinating with relevant units and be responsible for implementing management contents for economic organizations specified in Point a Clause 1 Section I Part C; Point a Clause 1 Section IV Part D and Point a Clause 2 Section III Part E of Circular 02/2005/TT-BCN. Specifically:

a) Receiving and reviewing applications for new issuance, reissuance, or revocation of business licenses for industrial explosives, certificates of production conditions for industrial explosives, and usage permits for industrial explosives.

b) Drafting, issuing, or submitting to competent authorities for issuance and guidance on technical safety regulations in production, business supply, use, and testing of industrial explosives. Organizing the implementation of inspection and handling work for entities engaged in industrial explosives activities according to laws.c) Periodically summarizing the management work of industrial explosives within their assigned functions and responsibilities. Summarizing the management and use situation of industrial explosives in localities and proposing solutions for the Minister of Industry to direct implementation.”

3. Amend Section III Part B of Circular 02 as follows:

“III. Management and issuance of permits for the use of industrial explosives by military units using industrial explosives for economic purposes shall be guided by the Ministry of Defense (Circular No. 1691/TT-QP dated July 8, 1997 guiding the implementation of Decree No. 47/CP dated August 12, 1996 of the Government on the management of weapons, explosives, and auxiliary tools).

When using industrial explosives for economic purposes at localities, military units and enterprises must comply with relevant laws and regulations and this circular.

Every six months and annually, the Ministry of Industry will base on notifications from the Ministry of Defense or agencies entrusted by the Ministry of Defense to manage industrial explosives to compile reports on the management, production, business supply, and use of industrial explosives by units under the Ministry of Defense to report to the Prime Minister.”

4. Amend Section II Part C of Circular 02 as follows:

“II. Management of Industrial Explosives Production

1. Units assigned by the Prime Minister to produce industrial explosives, when investing in new production or upgrading, expanding production lines, must prepare project proposals and submit them to the Ministry of Industry for review. The content and procedures for reviewing project proposals are implemented according to Decree No. 16/2005/NĐ-CP dated February 7, 2005 of the Government on project management.

2. After the completion acceptance of the investment project, before putting it into production, the investor must prepare a proposal and submit it to the Ministry of Industry for review and issuance of a certificate of production conditions for industrial explosives. The requirements and procedures for issuing a certificate of production conditions for industrial explosives are stipulated in Section III Part C of this circular.”

2. After the completion acceptance of the investment project, before putting it into production, the investor must prepare a dossier to request the Ministry of Industry to review and issue a certificate of eligibility for production of construction materials. The dossier and procedures for issuing a certificate of eligibility for production of construction materials are stipulated in Section III, Part C of this Circular.

5. Supplement Section III to Part C of Circular 02 as follows:

"III. Procedures for Issuing Certificates of Eligibility for Production of NC Materials

1. For units with production facilities that must establish investment projects. In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

1.1 Legal Documents

a) Application for issuance of certificate of eligibility for production of NC materials. If the unit belongs to the Ministry of National Defense, it must include a request letter from the Ministry of National Defense or a functional agency under the Ministry of National Defense assigned the task of managing NC materials.

b) Decision approving the investment project for construction of NC material production facilities in accordance with laws on management and investment in construction.

c) Certificate of eligibility for security and public order issued by the competent police authority in accordance with Decree No. 08/2001/NĐ-CP dated February 22, 2001 of the Government on conditions for security and public order for certain business sectors and Circular No. 02/2001/TT-BCA dated May 4, 2001 of the Ministry of Public Security guiding the implementation of Decree No. 08/2001/NĐ-CP.

d) Fire prevention and control certificate issued by the competent police authority in accordance with Decree No. 35/2003/NĐ-CP of the Government detailing the implementation of the Law on Fire Prevention and Control.

đ) Decision of the Ministry of Industry recognizing the registration results of products and allowing the production and use of NC materials for new products being introduced into production and use in Vietnam.

1.2 Technical Documents

Documents proving the fulfillment of conditions for NC material production by enterprises include:

a) Documents on production personnel conditions

- List of leaders, managers, workers directly involved in production, storage, transportation, and supply of NC materials.

- Files of the General Director, Deputy General Director, Heads of Departments, and technical safety officers of the enterprise and its affiliated units, including:

+ Personal history form;

+ Graduation certificate;

+ Certificate of training and examination on safety in management, production, supply, and trading of NC materials and regulations on safe storage, transportation, and use of NC materials.

b) Documents on technical conditions

- Layout design of NC material production technology lines

- Detailed design of production equipment and installation plans for power systems, auxiliary systems, and lightning protection systems for production buildings and facilities.

- Production technology process for NC materials.

- Certificate of national standards, measurement, and quality measurement standards issued by state agencies for testing facilities for NC materials (if applicable).

- Calibration certificates, marks, or seals for measuring instruments and technological control equipment in accordance with laws on measurement.

- Registration certificates, test result reports for machines, equipment, materials, substances with strict requirements for occupational safety and health; registration certificates, test result reports for machines, equipment, materials, substances with special industrial safety requirements (if applicable).

- Acceptance records of construction works in accordance with laws on investment and construction management.

- Product acceptance records of the unit applying for certification.

2. For units currently producing NC materials that require a change in enterprise name without altering production conditions, only an application for name change, a certificate of eligibility for security and public order issued by the competent police authority under the new name, and a decision by the competent authority permitting the name change are required.

3. For units producing NC materials that require a transfer of ownership of the production facility already licensed to another unit, the receiving unit must submit the documents stipulated in Clause 1 of this Section (excluding the decision approving the investment project) along with the decision by the competent authority approving the transfer. If the receiving unit is applying for a certificate of eligibility for NC material production for the first time, in addition to the above documents, it must also submit a valid copy of the Prime Minister's approval document and the establishment decision of the competent authority.

4. For units producing NC materials that undergo minor renovations and upgrades to infrastructure and production equipment without changing the layout, technology, or fire prevention and control, as well as technical safety conditions of the production line already approved, after completing the renovations and upgrades, the NC material production unit must submit an application to the Ministry of Industry to obtain a certificate of eligibility for NC material production in accordance with Clause 6 of this Section.

5. For units producing NC materials that suffer accidents causing damage to the production line, after investigation conclusions and repairs, the NC material production unit must submit an application to the Ministry of Industry for reissuance of the certificate of eligibility for NC material production, accompanied by technical documentation of the repair and restoration process.

6. Examination of Applications and Issuance of Certificates of Eligibility for NC Material Production

Within thirty working days from the date of receipt of complete and valid applications, the Department of Industrial Safety Technology will lead and coordinate with relevant agencies to examine and approve the issuance of certificates of eligibility for NC material production by the Minister of Industry for units meeting the prescribed conditions as set out in Section I of this Part, using the certificate format specified in the Appendix to this Circular (Form 1đ). In cases where issuance is not granted, a written response must be provided to the applicant, specifying the reasons. 6. Amend Section III of Part D of Circular 02 as follows:

"III. Export and Import of NC Materials

The export and import of NC materials shall be carried out in accordance with the Circular of the Ministry of Industry guiding Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Trade regarding international trade activities and foreign trade agency buying, selling, processing, and transshipment of goods."

7. Amend point a of Clause 1 of Section IV of Part D of Circular 02 as follows:

"a) Application for issuance of business license for NC materials. If the unit is a military economic entity, it must include a request from the Ministry of National Defense or a functional agency assigned by the Ministry of National Defense to manage NC materials."

8. Amend point c of Clause 2 of Section III of Part E of Circular 02 as follows:

8. Amend Point c, Clause 2, Section III, Part E of Circular 02 as follows:

"c) The acceptance of files, the conduct of assessment to issue permits for the use of explosives and the model of permits for the use of explosives for economic units under the Ministry of National Defense shall be guided by the Ministry of National Defense based on this Circular."

9. Amend Point d, Clause 2, Section III, Part E of Circular 02 as follows:

“d) After issuing a permit for the use of explosives, the issuing authority must notify the Ministry of Industry in writing for consolidation and management.”

10. Amend Part G of Circular 02 as follows:

“G. VIOLATION HANDLING

1. Strictly prohibit activities related to the production, research, testing, trading, supplying, exchanging, transferring, lending, borrowing, storing, transporting, and using explosives contrary to the provisions of Decree No. 27/CP dated April 20, 1995, Decree No. 47/CP dated August 12, 1996, and Decree No. 11/1999/NĐ-CP dated March 3, 1999 of the Government, the provisions of this Circular, and other relevant laws on explosives.

2. Organizations and individuals who violate the provisions of this Circular and related laws shall be subject to disciplinary action, administrative penalties according to the provisions of Decree No. 64/2005/NĐ-CP dated May 16, 2005 of the Government on administrative penalties for violations in the management of industrial explosives, or criminal liability may be pursued, and compensation must be provided according to the law if damage is caused.”

11. Repeal Clause 3 of Part H of Circular 02 regarding the tasks of the General Department of National Defense Industry in managing and inspecting units under the Ministry of National Defense related to explosives.

12. Amend Clause 4 of Part H of Circular 02 as follows:

“4. This Circular shall take effect 15 days from the date of publication in the Official Gazette. Abolish previous guiding documents on the management, production, trading, supplying, and use of explosives issued by the Ministry of Industry that contradict this Circular. During implementation, if there are difficulties or obstacles, please report them to the Ministry of Industry for consideration and resolution.”

13. The annex accompanying Circular 02 shall be amended and supplemented as the annex accompanying this Circular.

a) Amend Form 1b: Permit for the use of industrial explosives.

b) Amend Form 1d: Permit for trading in industrial explosives.

c) Add Form 1đ: Certificate of eligibility for the production of industrial explosives.  

This Circular shall take effect 15 days from the date of publication in the Official Gazette./.