Circular No. 11/TM-KD stipulates the conditions for trading in petroleum products.

CIRCULAR

OF THE MINISTRY OF COMMERCE

REGULATING CONDITIONS FOR PETROLEUM TRADING

Pursuant to Decree 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of ministries and ministerial-level agencies;

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

The Ministry of Commerce stipulates the conditions for trading various types of petroleum as follows:

1. These regulations guide the screening of HIV testing for blood transfusion, blood product transfusion, and the implementation of assisted reproductive techniques and organ transplantation at state-owned, private, and public health facilities (hereinafter referred to as health facilities).

2. Applicability:

1.1. Types of petroleum regulated under this Circular include:

Various types of gasoline (including gasoline used as solvents)

Diesel - Mazut

ZA1 and TC1

Kerosene

(Hereinafter referred to collectively as petroleum).

1.2- The forms of petroleum trading mentioned in this Circular include wholesale, retail, and services related to receiving, storing, and holding petroleum (hereinafter referred to collectively as petroleum trading).

Petroleum transportation business shall be carried out according to separate regulations not within the scope of regulation of this Circular.

2- All organizations and individuals, regardless of economic components, engaged in petroleum trading must comply with the conditions prescribed in this Circular.

3- Enterprises acting as agents for selling petroleum, in addition to complying with the conditions prescribed in this Circular, must also comply with the agency buying and selling goods regulations issued together with Decree 25-CP dated April 25, 1996 of the Government and guidance from the Ministry of Commerce.

4- The sale of lighting kerosene in mountainous areas, islands, and rural regions, and the sale of gasoline and diesel oil in highland and remote rural areas shall be regulated by the Department of Commerce based on the scale of business and specific characteristics of each region, taking into account fire prevention and firefighting regulations and measurement equipment regulations set forth in this Circular.

II. CONDITIONS FOR PETROLEUM TRADING

Organizations and individuals wishing to engage in petroleum trading must meet the following four conditions:

1- Conditions regarding the business entity:

Must be a legally established enterprise, accepted for investment in petroleum trading by the competent authority issuing the enterprise establishment decision.

2- Conditions regarding the place of business:

The location for constructing oil storage facilities, oil ports, waterway and railway terminals, tanker truck stations (hereinafter collectively referred to as oil storage facilities and petroleum delivery premises), and retail gasoline and diesel fuel stores must be consistent with the planning approved by the competent authority.

In cases where localities have not yet developed plans, construction must be approved by the provincial People's Committee or an authorized agency delegated by the provincial People's Committee.

3- Conditions regarding technical infrastructure:

3.1- Regarding design standards.

a) For retail stores:

Retail gasoline and diesel fuel stores established after the issuance of this Circular must be designed by an organization with legal personality to ensure environmental hygiene conditions; fire safety and prevention conditions for the store and surrounding structures.

Existing retail gasoline and diesel fuel stores that were designed and constructed before the issuance of this Circular must be re-evaluated by the fire prevention and firefighting authority regarding the fire safety and prevention conditions of the store and surrounding structures.

b) For oil storage facilities and petroleum delivery premises, they must comply with design standards TCVN 5307-91 accompanied by an environmental impact report approved by the competent authority.

3.2. Regarding fire prevention and firefighting:

a) For retail gasoline and diesel fuel stores: They must have sufficient firefighting equipment and tools (CO2 cylinders, foam extinguishers, sand buckets, shovels, fire-resistant blankets, etc.) as specified by the fire prevention and firefighting authority. These devices and equipment must always be in good working condition.

b) For oil storage facilities and petroleum delivery premises: They must be equipped with sufficient firefighting equipment and tools according to standard TCVN-5684-1992 (Appendix 1), suitable for the scale and nature of the facility and the fire prevention and firefighting plan approved by the fire prevention and firefighting management authority and must always be in good working condition.

3.3. Regarding measuring instruments:

Measuring instruments used in the purchase and sale of petroleum must use legal units of measurement and be calibrated and permitted for use by the central-level measurement management authority (for oil storage facilities and petroleum delivery premises) or provincial-level authority (for retail gasoline and diesel fuel stores) or authorized entities.

4- Conditions regarding professional qualifications:

a) For retail gasoline and diesel fuel stores.

The store manager or person primarily responsible for managing and operating the retail gasoline and diesel fuel store must possess adequate knowledge of petroleum technology, management skills, fire safety and prevention, and environmental protection, certified by state-recognized training institutions.

Workers at gasoline and diesel fuel stores must undergo training on fire prevention and firefighting, toxic substance prevention, and must be proficient in using firefighting equipment provided at the store, organized by the provincial or municipal fire prevention and firefighting authority.

b) For oil storage facilities and petroleum delivery premises:

The director and heads of oil storage facilities and petroleum delivery premises must have at least a secondary level education in petroleum or equivalent, and at least two years of work experience in oil storage facilities and petroleum delivery premises.

Operators of technological equipment must graduate from a training institution specializing in petroleum technology.

III. PROCEDURES FOR ISSUING CERTIFICATES OF SATISFACTORY BUSINESS CONDITIONS
FOR PETROLEUM TRADING

1. Organizations and individuals wishing to engage in petroleum trading must submit an application to the Commerce Department where their business premises are located to request a certificate of satisfactory business conditions.

2. The application for a certificate of satisfactory business conditions includes:

1) An application form for a certificate of satisfactory business conditions (see Appendix 2).

2) A notarized copy of the Enterprise Establishment License. If the enterprise does not yet have the function of petroleum trading, it must also submit the Enterprise Establishment License and a document from the licensing authority approving the enterprise's investment in petroleum trading.

3) Certificates ensuring fire safety and environmental hygiene, along with a description of the structure of the facility (see model recorded in Appendix 4), which are defined as follows:

a) For oil storage facilities and petroleum delivery premises:

Fire safety certificate issued by the fire prevention and firefighting authority.

Environmental hygiene certificate issued by the environmental control authority.

Description of the structure of the facility prepared by the design authority.

b) For retail gasoline and diesel fuel stores:

A fire safety certificate issued by the fire prevention and firefighting agency.

For stores constructed after this Circular takes effect, a structural description of the construction project shall be prepared by the design agency; for stores constructed before this Circular takes effect, it shall be prepared by the investor.

4) An inventory of measuring instruments used in delivery at business locations with certification from the authorized measurement management agency. (Annex 5).

5) Notarized copies of the qualifications of the person in charge and reports on the qualifications of workers directly involved in delivery, storage, and dispensing operations at business locations. (Report according to Annex 6)

The aforementioned business conditions are determined for each individual business location. Businesses with multiple business locations must prepare complete files regarding the business conditions under points 3, 4, and 5 of Section 2, Part III for each business location.

3- After receiving the file, the Department of Commerce must review it. If the file is valid and meets all conditions, within twenty days, the Department of Commerce must issue a business condition certification to the enterprise.

The business condition certification is issued to the enterprise but must clearly specify each specific business location (according to the model recorded in Annex 3).

In cases where certification is not granted, a written response must be provided, specifying the reasons.

4- Organizations and individuals applying for a business condition certification must pay a fee. The amount of the fee collected and its use shall be in accordance with the prescribed regulations.

5- Only after obtaining a business condition certification can an enterprise be issued a business registration certificate or have its business registration supplemented in accordance with the law.

IV. INSPECTION AND HANDLING OF VIOLATIONS:

1- All gasoline retail outlets of enterprises must have a notarized copy of the business condition certification.

2- Organizations and individuals who engage in gasoline sales without permission or who, although permitted, fail to consistently meet the conditions stipulated in this Circular during their operations shall be handled according to current laws.

V. IMPLEMENTATION

1. For organizations and individuals who were previously permitted to sell gasoline and have registered to sell gasoline according to previous regulations, they shall proceed as follows:

a) Individuals selling gasoline but not having established a business entity must establish a business entity.

b) Enterprises that have not met the business conditions stipulated in this Circular must supplement them fully to obtain a business condition certification.

c) Enterprises that have already obtained a business condition certification according to previous regulations, if they meet the conditions stipulated in this Circular, only need to submit an application to the Department of Commerce (according to the model recorded in Annex 1) requesting a new certification.

The requirements set out in points a, b, and c above must be completed by September 30, 1996.

2. Enterprises that have not previously engaged in gasoline sales must obtain a business condition certification before being issued a business registration certificate to be allowed to sell gasoline.

3. Enterprises that have already obtained a business condition certification, when establishing new retail outlets, must prepare a file to apply for a business condition certification for each new outlet before commencing operations.

4. Enterprises wishing to train and retrain managers and technical workers in gasoline sales should select and compile a list to send to one of the following schools: Technical Workers' School (Haixung), Central Commercial High School 1 (Hatinh), Central Commercial High School 2 (Da Nang), Central Commercial High School 4 (Bac Thai), Central Commercial High School 5 (Thanhhoa), and Foreign Economic Relations College (Ho Chi Minh City). These schools will coordinate with local Departments of Commerce where training is needed to organize admissions according to the general regulations of the State and to organize training according to the content and program specified by the Ministry of Commerce and the Ministry of Education and Training.

This Circular replaces Circular 09 TN-TT dated November 1, 1990, issued by the Ministry of Trade (now the Ministry of Commerce) and becomes effective from the date of issuance.

The Domestic Market Policy Department, under the Market Management Bureau, directs the Departments of Commerce to coordinate with relevant agencies to guide implementation and monitor compliance with the provisions of this Circular.

ANNEX 2

Socialist Republic of Vietnam

Independence - Freedom - Happiness

-------------------------

...day...month...year 19...

APPLICATION FOR BUSINESS CONDITION CERTIFICATION FOR GASOLINE SALES

Respected Director of the Department of Commerce,

After studying Circular number...TM/KD dated...June 1996, issued by the Ministry of Commerce guiding the implementation of Government Decree 02/CP concerning gasoline sales, we hereby submit this application for a business condition certification for gasoline sales in accordance with the stipulated conditions.

1. Enterprise name:

2. Address:

+ Telephone:

+ Fax:

3. Business management agency:

4. Established pursuant to Decision (or Business Registration Certificate) number...

dated...month...year...issued by...(1)

5. Date of business registration number...dated...month...year 19...issued by...(2)

6. Request permission to engage in...

.............................................................

(specify type of business: gasoline storage facility, gasoline delivery station, or gasoline retail store).

7. Names of subordinate units of the enterprise within the province/city: (if the enterprise has multiple units)

+...........

+...........

+...........

Upon obtaining the business condition certification for gasoline sales, the enterprise will complete the necessary procedures for business registration (or supplementary registration) and strictly comply with state regulations.

Enclosed documents: Enterprise owner

- (Signature, stamp)

- - -

Explanation of entries:

(1) and (2) for ongoing businesses

ANNEX 3

People's Committee of...Province/City, Socialist Republic of Vietnam

DEPARTMENT OF COMMERCE Independence - Freedom - Happiness

Number...----------------------------------

...day...month...year 19...

BUSINESS CONDITION CERTIFICATION FOR GASOLINE SALES

Director of the Department of Commerce...

Certifies: (1)...

Address:…

Meets conditions and is permitted to engage in... (2)

including the following facilities: (3)

- - -

Director of the Department of Commerce

(Signature, stamp)

Explanation of entries:

(1) Specify the full name and address of the enterprise

(2) Specify the type: Gasoline storage facility, gasoline delivery station, or gasoline retail store

(3) List each facility belonging to the enterprise that meets the conditions.

ANNEX 4

DESCRIPTION OF THE STRUCTURE OF THE CONSTRUCTION PROJECT

1. Project Name

2. Street construction site (City, Town) Township, District according to permit number...issued by...on...month...year...

3. Area of the construction project...

4. Number of tanks and storage capacity (for example, 2x10 m3 means 2 tanks each 10 m3;

4 x 1000m³ + 2 x 5000m³ that is 4 tanks each 100 m³ and 2 tanks each 5000 m³)

5. Tank placement: Underground or aboveground, semi-underground...

6. Type of fuel stored and traded (specify: gasoline, kerosene, diesel, mazut...)

7. Technical equipment (for retail stores, specify number of fuel pumps; for oil depots, specify pump stations, loading racks...)

8. Architectural materials: Specify frame, walls, roof (brick, reinforced concrete...)

9. Distance from the outer edge of the facility (retail store) to the nearest structures.

10. Firefighting equipment installed at the facility (specify type and quantity)

11. Measures for handling oil leaks and wastewater (describe how wastewater is treated...)

Legal Representative of

Person or agency preparing the report

(Design agency or project sponsor)

ANNEX 5

Facility…

Address...

LIST OF MEASURING EQUIPMENT USED AT THE PETROLEUM BUSINESS FACILITY

...day... month... year 19...

Confirmation by the management agency of the business enterprise

measurement management

(signature, stamp)

ANNEX 6

Name of facility…

Address...

REPORT ON THE QUALIFICATIONS OF WORKERS AT THE PETROLEUM BUSINESS FACILITY

...day...month...year 19...

Business enterprise owner

(Signature, stamp)