Directive No. 10/2003/CT-BTM on the implementation of Decision No. 187/2003/QĐ-TTg of the Prime Minister regarding the management of gasoline business

DIRECTIVE

Regarding the implementation of Decision No. 187/2003/QĐ-TTg of the Prime Minister on the management of gasoline business

Following the meeting between the Ministry of Trade and gasoline distribution enterprises, provincial trade departments, and market management agencies, to continue implementing Decision No. 187/2003/QĐ-TTg of the Prime Minister dated September 15, 2003, promulgating the Regulations on the Management of Gasoline Business, the Ministry of Trade requests gasoline distribution enterprises, provincial trade departments, and market management agencies to promptly and strictly implement the following tasks:

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1. Gasoline distribution enterprises must accelerate the establishment of their agency systems so that by January 1, 2004, they have basically completed their agency systems and report the first phase to the Ministry of Trade on December 31, 2003 (by telegraph or fax). The establishment of the agency system and the determination of commissions for agents are not related to the directed price. Therefore, this is not a reason to delay signing agency contracts.

Any gasoline distribution enterprise that fails to establish an agency system or establishes an agency system that does not correspond to its import capacity will have its import business license revoked by the Ministry of Trade.

2. Provincial trade departments need to continue organizing the dissemination and thorough understanding among all traders engaged in the gasoline business regarding the spirit, content, and requirements to be implemented under Decision No. 187/2003/QĐ-TTg of the Prime Minister and the Agency Regulations for Gasoline Business issued together with Decision No. 1505/2003/QĐ-BTM dated November 17, 2003 of the Minister of Trade; coordinate with gasoline distribution enterprises to urge and guide traders engaged in the gasoline business to promptly select and sign agency contracts with gasoline distribution enterprises according to the specified time frame. Clearly inform traders from now until January 1, 2004, that traders with retail gasoline outlets not within the agency system of gasoline distribution enterprises will not be permitted to engage in gasoline sales.

3. Provincial trade departments instruct market management agencies to shift the focus of work from now until the end of the first quarter of 2004 to inspecting and supervising the implementation of Decision No. 187/2003/QĐ-TTg of the Prime Minister and the Agency Regulations for Gasoline Business of the Ministry of Trade, according to the following main requirements and contents:

3.1. From now until December 31, 2003, organize the first inspection round.

The inspection content includes: Inspecting the inventory of gasoline traders at warehouses, stores, and retail outlets to prevent speculation, hoarding for profit; inspecting the signing of agency contracts by gasoline traders and urging and guiding traders, stores, and retail outlets to sign agency contracts with gasoline distribution enterprises (list of gasoline distribution enterprises attached to this Directive).

Report quickly the results of this inspection round to the Ministry of Trade on December 31, 2003 (by telegraph or fax) including the following contents:

- Total number of gasoline retail stores and outlets in the area.

- Number that have signed agency contracts with distribution enterprises.

- Distribution enterprises that have signed agency contracts and the number of agencies signed by each enterprise.

3.2. Organize the second inspection round from January 1, 2004, to January 15, 2004, including: Inspecting and handling traders, stores, and outlets that do not meet business conditions, have not signed agency contracts, and increased retail prices for gasoline contrary to government regulations (handling according to separate directives from the Ministry).

3.3. Organize the third inspection round after January 15, 2004, including: Inspecting and handling all violations in the gasoline business, ensuring that gasoline business activities in the area comply with all legal provisions, focusing on inspecting business conditions for gasoline, compliance with Decision No. 187/2003/QĐ-TTg and the Agency Regulations for Gasoline Business.

4. Establish four Special Task Forces directly managed by the Ministry of Trade to inspect gasoline distribution enterprises, provincial departments, and market management agencies in implementing Decision No. 187/2003/QĐ-TTg, the Agency Regulations for Gasoline Business, and this Directive. Specifically:

4.1. Deployment of inspection areas for the teams as follows:

- Team I: Northern region (from Quảng Bình northward), headquarters at the Market Management Bureau - Hà Nội.

- Team II: Southeastern region, headquarters at Office 2 of the Market Management Bureau in Hồ Chí Minh City.

- Team III: Southwest region, headquarters at the Department of Trade in Cần Thơ City.

- Team IV: Central region (from Quảng Trị to Bình Thuận and Tây Nguyên), headquarters at the Department of Trade in Đà Nẵng City.

4.2. Organization of the teams: Units assign staff to participate in the teams as follows:

- Gasoline distribution enterprises: Vietnam Oil and Gas Corporation assigns one staff member to Team III, Petec Company and Saigon Petro Company each assign one staff member to Team II, DK Mekong Joint Venture Company and Dong Thap Trading and Marketing Company each assign one staff member to Team III, PDC Company assigns one staff member to Team II, Military Oil Company assigns one staff member to Team IV, PetroVietnam Trading Corporation assigns one staff member to Team I:

- Market Management Bureau: assigns four staff members to lead the four teams.

- Export-Import Department assigns one staff member to Team II, Planning Department assigns one staff member to Team IV, Rural Development Policy Department assigns one staff member to Team I.

- Market Management Agency of Hà Nội City assigns one staff member to Team I, Market Management Agency of Hồ Chí Minh City assigns one staff member to Team II, Market Management Agency of Đà Nẵng assigns one staff member to Team IV.

Assign the Market Management Bureau to assist the Ministry in organizing and managing the operations of the teams. The Vietnam Oil and Gas Corporation will support accommodation, meals, and transportation for the teams.

Relevant units send lists of staff participating in the teams to the Ministry of Trade (Market Management Bureau) before December 22, 2003. The concentration date is December 25, 2003, at the headquarters of the teams as specified in Clause 4.1 above.

4.3. Content and operational mechanism of the special task forces:

4.3. Contents and operational mechanisms of special task forces:

- The teams shall carry out inspections according to the plan of the Ministry (prepared by the Market Management Agency) or conduct surprise inspections on petroleum distribution enterprises, Departments of Commerce, Market Management Sub-Departments regarding the implementation of Decision No. 187/2003/QĐ-TTg, the agency regulations, and this Directive. For petroleum distribution enterprises, apart from inspecting the establishment of distribution systems, they shall also inspect the inventory of these enterprises up to December 31, 2003.

Support the Market Management Sub-Departments in inspecting and handling violations by petroleum trading enterprises in key areas where urgent issues need to be resolved.

Coordinate with relevant agencies when necessary to inspect and handle violations at key locations, sensitive times, and enterprises with serious violations.

- Handling violations related to petroleum business shall be carried out in accordance with the provisions of the law.

The Market Management Agency shall prepare plans for organizing and detailing the specific inspection contents of the teams in accordance with the above provisions.

The Ministry of Trade requires petroleum distribution enterprises, Departments of Commerce, and Market Management Sub-Departments of provinces and cities to strictly implement this Directive, focus on effectively implementing Decision No. 187/2003/QĐ-TTg of the Prime Minister, and promptly report difficulties and obstacles to the Ministry for research and resolution.

LIST OF PETROLEUM DISTRIBUTION ENTERPRISES

1. Vietnam Oil and Gas Corporation (Petrolimex)

Head office: No. 1 Kim Thien Street - Hanoi

2. Technical and Investment Trading Corporation (Petec)

Head office: 194 Nam Ky Khoi Nghia Street - District 3 - Ho Chi Minh City

3. Ho Chi Minh City Oil Corporation (Saigon Petro)

Head office: 27 Nguyen Thong Street - District 3 - Ho Chi Minh City

4. Oil and Gas Trading Corporation (Petechim)

Head office: 70A Ba Huynh Thanh Quan Street - Ho Chi Minh City

5. Petroleum Products Processing and Trading Corporation (PDC)

Head office: 201 Dien Bien Phu Street - Ward 15 - District 1 - Ho Chi Minh City

6. Mekong Oil Corporation (Petro Mekong)

Head office: Mekong Oil Corporation (Petro Mekong)

7. Military Petroleum Corporation

Head office: 125 Nguyen Phong Sac Street - Hanoi

8. Dong Thap Oil and Gas Trading Corporation

Head office: B177 - National Highway 30 - My Tra Commune - Caolanh Town - Dong Thap Province