Circular No. 14/1999/TT-BTM guiding conditions for gasoline business

CIRCULAR

Guidelines for Operating Conditions of Gasoline and Diesel Oil Business

Implementing Decree No. 11/1999/NĐ-CP dated March 3, 1999 of the Government on prohibited goods and services, restricted trade goods and services, and goods and services subject to operating conditions, the Ministry of Commerce guides the operating conditions for gasoline and diesel oil business in the Vietnamese market as follows:

I. SCOPE OF APPLICATION

1. Gasoline and diesel oil referred to in this Circular are petroleum products including: automotive gasoline, solvent gasoline, paint thinner, diesel fuel, mazut, kerosene, Jet A-1, and TC-1, hereinafter collectively referred to as gasoline and diesel oil.

2. The gasoline and diesel oil business operations specified in this Circular include the following activities:

2.1. Wholesale of gasoline and diesel oil: retail of gasoline and diesel oil at fixed stores on land or using specialized water transport means as retail stores on rivers and seas.

2.2. Service of receiving, storing gasoline and diesel oil at dedicated warehouses and ports or using specialized water transport means as floating warehouses on rivers and seas.

2.3. Transportation service of gasoline and diesel oil by specialized road, river, and sea transport means.

3. Retail outlets for gasoline and diesel oil, retail stores for gasoline and diesel oil mentioned in this Circular are collectively referred to as retail stores for gasoline and diesel oil.

4. Businesses engaged in the gasoline and diesel oil business in Vietnam must comply with the provisions of this Circular.

5. For retail sales of gasoline and diesel oil in highland and island areas, the Department of Commerce shall base on the provisions of this Circular to guide appropriate operating conditions suitable for the specific characteristics of these areas.

6. Production facilities and military forces that require reserves and storage of gasoline and diesel oil, construction of warehouses and tanks, investment in transportation means... not intended for the gasoline and diesel oil business market but for direct production and combat readiness purposes are not within the scope of regulation of this Circular.

7. Export and import activities of gasoline and diesel oil are regulated separately.

8. Businesses acting as agents for buying and selling gasoline and diesel oil, in addition to complying with the provisions of this Circular, must also implement the provisions regarding agency for buying and selling goods under Section 6 Chapter II of the Trade Law dated May 10, 1997.

II. OPERATING CONDITIONS FOR GASOLINE AND DIESEL OIL BUSINESS

Businesses engaged in wholesale and retail of gasoline and diesel oil, warehouse, port, and transportation services of gasoline and diesel oil must ensure the following five conditions:

1. Subject condition for business operation.

Must be a trader who has been granted a Business Registration Certificate by the competent state management authority, which clearly states the business of gasoline and diesel oil.

Specifically, for businesses engaged in wholesale, warehouses, and ports, the business subject must be a company.

2. Condition regarding material infrastructure and equipment.

2.1. Design requirements.

a) For retail stores for gasoline and diesel oil on land: design requirements must comply with the provisions of Vietnamese Standard TCVN 4530:1998 (Appendix 1 attached to this Circular).

b) For retail stores for gasoline and diesel oil for vessels on rivers and seas:

- In the case of fixed retail stores built on land to sell gasoline and diesel oil to ships, boats, rafts... on rivers and seas: in addition to complying with the design requirements stipulated in point a above, there must be a fixed ship dock designed to ensure safety during fueling.

- In the case of using road transport means (oil tank trucks) to sell gasoline and diesel oil to ships, boats, rafts... on rivers and seas, there must be a parking area designed and constructed to meet the standard surface requirements: a fixed ship dock must be designed and constructed to ensure safety during fueling.

- In the case of using specialized water transport means as retail stores for gasoline and diesel oil on rivers and seas: they must be designed on permitted means of transport, ensuring fire prevention and control, spill prevention, and environmental protection regulations.

c) The design must be carried out by an organization with legal personality authorized to operate design activities according to state regulations.

2.2. Regarding the location of gasoline and diesel oil business operations:

a) Retail stores for gasoline and diesel oil on land: must obtain a Construction Permit from the competent authority.

b) Floating retail stores and warehouses on rivers and seas:

- Fixed floating stores and warehouses: must be moored at points according to local regulations and approved by the competent authority managing inland waterways or maritime traffic.

- Mobile floating stores and warehouses: when moored to sell goods, they must not affect navigation routes, ensuring traffic order and safety on rivers and seas.

- They must be at least 100 meters away from residential areas, concentrated vessel zones, ferry terminals, ports, and aquaculture areas.

c) Location for constructing land-based gasoline and diesel oil warehouses: must be consistent with local planning and approved by the Provincial People's Committee.

d) Location for constructing gasoline and diesel oil ports: must be consistent with local planning approved by the Provincial People's Committee and agreed upon by the Ministry of Transport and the Ministry of Science and Technology and Environment.

2.3. Regarding measuring instruments:

Must have sufficient measuring instruments as prescribed, these instruments must be inspected, sealed (sealed), and allowed for use by the State Management Authority for Standards, Measurement, and Quality or authorized units.

2.4. For specialized transport means for gasoline and diesel oil (such as oil tank trucks, river oil tankers, barges, marine oil tankers...):

Must be inspected and approved for use by the competent state management authority for transporting gasoline and diesel oil.

3. Condition regarding professional qualifications and skills of staff:

3.1. For retail stores for gasoline and diesel oil:

Staff must have knowledge about gasoline and diesel oil, environmental protection; trained in fire prevention and explosion control, poisoning prevention, and must be proficient in using firefighting equipment provided at the store, certified by the provincial or city fire department.

3.2. For gasoline and diesel oil warehouses and ports:

a) The person responsible for the fuel storage warehouse and delivery facilities must have at least a secondary level education in economic management or equivalent, possess knowledge about fuels, and be trained in fire prevention and firefighting, environmental safety, and labor safety.

b) Workers operating technological equipment in storage tanks, pipelines, and delivery systems must complete state training programs on fuel technology and fire prevention.

c) Employees working at fuel storage warehouses must have knowledge about fuels, be trained in fire prevention and firefighting, and pass a toxic substance protection test conducted by the provincial fire prevention and firefighting authority, obtaining a Certificate of Qualification.

3.3. Regarding fuel transportation vehicles:

Personnel controlling fuel transportation vehicles must have knowledge about fire and explosion prevention for fuel products; they must comply with regulations concerning delivery, pumping, and transportation of fuels as stipulated by the provincial fire prevention and firefighting authority.

4. Health conditions for staff:

Staff working at retail outlets, warehouses, ports, and fuel transportation vehicles must ensure they are physically fit to perform their assigned tasks, holding a health certificate issued by a district or county health authority or higher, which confirms their fitness for work. Annually, traders must organize health check-ups for their staff.

5. Conditions for environmental protection and fire prevention:

5.1. Environmental protection.

a) Retail fuel outlets must comply with regulations ensuring environmental hygiene, specifically:

- Outlets on land must have wastewater drainage systems as prescribed.

- Outlets on rivers or seas during business operations must not allow fuel to spill into the water; they must have containers for wastewater (Balat soaking water, water from washing cans, etc.); wastewater discharge must be done in designated areas without polluting the environment and surrounding scenery.

- There must be an environmental impact report checked and confirmed by the Department of Science and Technology - Environment.

b) Fuel warehouses and ports:

- Must have appropriate equipment to respond to oil spills. Ports with a capacity of 1,000 tons or more must be equipped with containment booms, oil spill recovery devices, oil absorbent paper, dispersants, and must have fire prevention and firefighting plans approved by the Department of Science and Technology - Environment, obtaining a Certificate of Approval.

- Must have an environmental impact assessment report:

+ For warehouses with a capacity over 3,000 cubic meters, the environmental impact assessment report must be approved by the Ministry of Science and Technology and Environment.³ + For warehouses with a capacity of 3,000 cubic meters or less, the environmental impact assessment report must be approved by the Department of Science and Technology - Environment.

5.2. Fire prevention and firefighting:³ a) Retail fuel outlets must be fully equipped with fire prevention and firefighting equipment suitable for the scale and nature of each type of outlet as specified in Appendix 1 attached to this Circular; these facilities must always be in good working condition; there must be fire prevention and firefighting plans approved by the provincial fire prevention and firefighting authority and obtain a Certificate of Approval.

b) Warehouses, ports, and fuel transportation vehicles (including fuel transfer between ships and barges):

Must be fully equipped with fire prevention and firefighting equipment suitable for the scale and nature of the facility and transportation means as specified in Appendix 2 attached to this Circular, inspected and certified by the provincial fire prevention and firefighting authority.

c) There must be fire prevention and firefighting plans and internal rules on fire safety, inspected and approved by the provincial fire prevention and firefighting authority.

III. PROCEDURES, SEQUENCES AND AUTHORITY FOR ISSUING THE CERTIFICATE OF SATISFACTORY BUSINESS CONDITIONS FOR FUELS

1. Documents for requesting issuance of the Certificate of Satisfactory Business Conditions for Fuels include:

1.1. A request form for the Certificate of Satisfactory Business Conditions for Fuels according to the model attached to this Circular.

1.2. A certified copy of the Business Registration Certificate including the registration of fuel business.

1.3. Documentation regarding the construction site of the fuel facility as follows:

- For retail fuel outlets built on land: must have a Construction Permit issued by the competent provincial authority.

- For fuel warehouses built on land: must have approval documentation from the Provincial People's Committee.

- For fuel ports: must have approval documentation from the Provincial People's Committee, the Ministry of Transport, and the Ministry of Science and Technology and Environment.

1.4. A certified copy of the Certificate of Safety in Fire Prevention and Explosion Control issued by the provincial fire prevention and firefighting authority.

1.5. A certified copy of the Certificate of Compliance with Environmental Sanitation Standards issued by the Department of Science and Technology and Environment.

2. Authority, procedures, and deadlines for issuing the Certificate of Satisfactory Business Conditions for Fuels:

2.1. The Department of Commerce is the national administrative agency authorized to issue the Certificate of Satisfactory Business Conditions for Fuels, responsible for:

a) Publicly posting at the location where applications are received the contents of the business conditions for fuels, application documents, procedures, deadlines for issuance, and fee levels (as prescribed by the Ministry of Finance) for the Certificate of Satisfactory Business Conditions for Fuels.

b) Checking the validity and accepting the application documents submitted by traders.

c) Conducting on-site inspections of business conditions as prescribed and preparing inspection records as the basis for issuing the Certificate of Satisfactory Business Conditions for Fuels. Officials assigned to conduct inspections are responsible for the contents recorded in the inspection record.

d) Issuing the Certificate of Satisfactory Business Conditions for Fuels to retail outlets, warehouses, and transportation vehicles engaged in fuel business that meet the conditions stipulated in this Circular.

đ) In case of refusal to issue, a written response must be provided stating the reasons.

e) The maximum deadline for issuing the Certificate of Satisfactory Business Conditions for Fuels is 15 days from the date of receipt of valid application documents from the trader.

2.2. Upon issuance of the Certificate of Satisfactory Business Conditions for Fuels, traders must pay a fee as prescribed by the Ministry of Finance.

e) The maximum period for issuing the Certificate of Adequate Conditions for Gasoline Business shall be fifteen days from the date of receipt of the valid application dossier of the trader.

2.2. When issued the Certificate of Adequate Conditions for Gasoline Business, the trader must pay a fee as prescribed by the Ministry of Finance.

2.3. Certificate of eligibility for gasoline and petroleum business according to the form prescribed in this Circular shall be issued to each retail gasoline and petroleum store, each warehouse, port, and each means of transportation engaged in gasoline and petroleum business.

3. The validity period of the Certificate of eligibility for gasoline and petroleum business:

The Certificate of eligibility for gasoline and petroleum business has a validity period of three years from the date of issuance.

IV. REQUIREMENTS TO BE COMPLIED WITH DURING THE GASOLINE AND PETROLEUM BUSINESS.

During the course of gasoline and petroleum business, traders must comply with the following regulations:

1. Publicly display at each place of business: Certificate of eligibility for gasoline and petroleum business; Certificate of inspection of measuring instruments; Fire prevention and firefighting regulations approved by the provincial fire prevention authority.

2. Continuously fulfill all conditions for business as stipulated in this Circular.

3. Properly maintain and use measuring instruments in accordance with technical procedures and bear responsibility for the integrity of seals.

4. Strictly prohibit the use of untested, expired, or damaged measuring instruments. When such instruments are found to be damaged, traders must immediately cease their use and report to the State management agency on Standards, Measurement, and Quality for repair and re-inspection.

5. Strictly prohibit direct transfer of gasoline and petroleum between ships and trucks.

6. For traders leasing transportation means and facilities to engage in wholesale gasoline and petroleum business:

6.1. Must be a business entity with a Business Registration Certificate clearly stating the business of gasoline and petroleum.

6.2. When leasing transportation means and facilities to serve wholesale activities, they must be those that have been issued a Certificate of eligibility for gasoline and petroleum business as prescribed in this Circular.

6.3. During the course of business, fully comply with current state regulations on gasoline and petroleum business.

V. INSPECTION AND HANDLING OF VIOLATIONS

1. The Department of Commerce shall lead and coordinate with the Department of Science and Technology and Environment, the Provincial Standards, Measurement, and Quality Control Agency, and the fire prevention authority to conduct regular inspections every six months (except for spot checks) for all business premises and means of transportation regarding environmental protection, fire prevention and firefighting, measuring instruments, quality of gasoline and petroleum, and compliance with the provisions of this Circular.

2. Traders violating the provisions of this Circular shall be subject to administrative penalties or criminal prosecution depending on the severity of the violation as provided by law.

3. State officials who abuse their positions and powers to violate the provisions of this Circular shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the severity of the violation as provided by law.

VI. IMPLEMENTATION PROVISIONS

1. This Circular takes effect from October 1, 1999, and replaces Circular No. 11/TM-KD dated June 22, 1996, of the Ministry of Commerce.

2. Implementation.

2.1. From October 1, 1999, all retail gasoline and petroleum stores (including those on rivers and seas), warehouses, ports, and transportation means of traders must hold a Certificate of eligibility for gasoline and petroleum business as prescribed in this Circular to be allowed to operate.

2.2. In cases where traders are already engaged in gasoline and petroleum business before the issuance of this Circular, the following measures shall be taken:

a) Retail gasoline and petroleum stores, warehouses, ports, and transportation means of traders that have been issued a Certificate of eligibility for gasoline and petroleum business under Circular No. 11/TM-KD dated June 22, 1996, of the Ministry of Commerce, if they meet the conditions stipulated in this Circular, only need to submit a letter requesting the Department of Commerce to exchange the Certificate of eligibility for gasoline and petroleum business according to the form prescribed in this Circular.

If they do not meet the business conditions stipulated in this Circular, traders must supplement and complete the necessary conditions and submit an application to the Department of Commerce for consideration and issuance of a new Certificate of eligibility for gasoline and petroleum business.

b) Retail gasoline and petroleum stores, warehouses, ports, and transportation means of traders without a Certificate of eligibility for gasoline and petroleum business under Circular No. 11/TM-KD dated June 22, 1996, are considered to be in violation of the law, and the Department of Commerce shall take appropriate actions against such violations as prescribed.

If they wish to continue operating in the gasoline and petroleum business, traders must prepare an application to be considered for issuance of a Certificate of eligibility for gasoline and petroleum business as prescribed in this Circular.

3. The Department of Commerce is responsible for implementing this Circular. It shall report on the implementation situation as required and promptly reflect any difficulties encountered for the Ministry of Commerce to consider supplementary or amendment./.