Decision No. 16/2020/QD-TTg Issuing the Regulation on Management of National Oil Reserves

Pursuant to …;
Issuing the Regulation on Management of National Oil Reserves

On the basis of Law on Government Organization dated June 19, 2015;

On the basis of Law on Administrative Violations dated November 20, 2012;

Decree No. Decision No. 94/2013/NĐ-CP dated August 21, 2013 of the Government detailing implementation; the National Reserve Law;

Decree No. Decision No. 128/2015/NĐ-CP dated December 15, 2015 of the Government amending and supplementing the detailed list of goods for national reserves and assigning agencies to manage national reserve goods issued pursuant to the Government's Decision Decision No. 94/2013/NĐ-CP dated August 21, 2013;

At the proposal of the Minister of Finance;

The Prime Minister issues this Decision on the Regulation on Management of National Oil Reserves.

Article 1. This Decision promulgates the Regulation on Management of National Oil Reserves.

Article 2. This Decision takes effect from July 1, 2020 and replaces Decision No. 31/2010/QD-TTg dated March 19, 2010 of the Prime Minister promulgating the "Regulation on Management of State Oil Reserves".

Article 3. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the central government, and Heads of agencies and units related shall be responsible for implementing this Decision./.

REGULATION
On Management of National Oil Reserves

(Attached to Decision No. 16/2020/QD-TTg
dated May 15, 2020 of the Prime Minister)

PART I
This Decree stipulates the construction, updating, management, exploitation, and use of the National Database on Citizen Reception Work, Complaint Handling, Grievance Resolution, Suggestions, and Reflections; the responsibilities of agencies, organizations, and individuals related to the construction, updating, management, exploitation, and use of the National Database on Citizen Reception Work, Complaint Handling, Grievance Resolution, Suggestions, and Reflections.

Article 1. Scope of Regulation

This Regulation stipulates the contents of management of national oil reserves regarding detailed list; organizational structure; plan and state budget estimate; purchase, sale, import, export, rotation; storage; utilization; national technical standards, economic and technical norms; national reserve warehouses; financial mechanism, state accounting and auditing system; statistical reports.

Article 2. Applicability

Agencies, organizations, and individuals involved in the formation, management, operation, and utilization of national oil reserves.

Article 3. Principles of Management of National Oil Reserves

1. National oil reserves must be strictly managed in terms of quantity and quality, ensuring confidentiality and safety; proactively meeting timely requirements and objectives of national reserves; national oil reserves must be replenished fully and promptly after being allocated.

2. National oil reserves must be used for their intended purposes in accordance with legal provisions; they may not be used for business activities.

3. Accurately calculate and fully cover the annual storage costs of national oil reserves according to regulations.

Chapter II

ORGANIZATIONAL STRUCTURE AND DETAILED LIST
OF NATIONAL OIL RESERVES

Article 4. Organizational Structure of Management of National Oil Reserves

1. The Government and the Prime Minister centrally and uniformly direct the organization of management of national oil reserves. The Government assigns ministries and sectors to manage national oil reserves.

2. National reserve agencies for oil include: Ministries and sectors assigned the task of managing national oil reserves by the Government.

3. Ministries and sectors assigned the task of managing national oil reserves assign storage units or enter into contracts for storage services in accordance with regulations.

Article 5. Detailed List of National Fuel Reserves

1. Automotive gasoline.

2. Diesel fuel.

3. Mazut fuel.

4. Military fuel.

5. Civil aviation fuel.

6. Crude oil.

7. Other types of fuels as prescribed by the Government.

Chapter III
STATE BUDGET PLAN AND ESTIMATE

Article 6. Plan for National Fuel Reserves

1. Establishing the Plan for National Fuel Reserves

Ministries and sectors managing national fuel reserves shall implement the establishment of the five-year and annual national reserve plan on fuels, which will be consolidated into the overall five-year and annual national reserve plan.

2. Contents of the Plan for National Fuel Reserves

a) The final level of national fuel reserves at the end of the period is the total value of national fuel reserves in stock (including quantity and value of each item) determined at the end of December of the planning year or the last year of the planning period based on the consolidation of the import and export plans for national fuel reserves.

b) Plan to increase, decrease, and rotate national fuel reserves

- The plan to increase national fuel reserves includes the quantity and value of fuels imported and added to national reserves during the planning year or period, detailed by each item according to specifications, types, and production time.

- The plan to decrease national fuel reserves includes the quantity and value of fuel items exported due to: Losses within the standard limit; no longer needing to continue national reserves; changes in the quantity and detailed list of national fuel reserves during the planning year or period, detailed by each fuel item according to specifications, types, production time, and time of entry into national reserve storage.

- The plan to rotate and replace national fuel reserves includes the quantity and value of items reaching the rotation or replacement deadline during the planning year or period to ensure the quality of national fuel reserves, or due to deteriorating quality, unsuitability with technological progress, or changes in the detailed list of items. The plan to rotate and replace national fuel reserves is detailed by each item according to specifications, types, production time, and time of entry into national reserve storage..

- The investment development plan for material and technical infrastructure for national fuel reserves includes the plan to invest in building fuel storage warehouses.

- The research and application plan for scientific and technological progress in national fuel reserves includes: The plan to establish national technical standards, economic-technical norms, and state-level and sector-level scientific research topics on national fuel reserves; the plan to apply scientific and technological progress in management and preservation of national fuel reserves.

- The financial plan for the management and preservation activities of national fuel reserves includes the budget plan for management and preservation activities of national fuel reserves for the planning year or period.

3. Procedures for Establishing the Plan for National Fuel Reserves

a) Ministries and sectors managing national fuel reserves shall establish the five-year and annual national reserve plan according to the detailed list of national fuel reserves assigned and in accordance with the contents of the national reserve plan stipulated in this Decision.

b) The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment to guide ministries and sectors managing national fuel reserves in establishing the five-year national fuel reserve plan; review and consolidate it into the overall five-year national reserve plan submitted to the Ministry of Planning and Investment for submission to the Government for approval by the National Assembly.

c) Annually, based on the approved five-year national reserve plan and the plans established by ministries and sectors managing national fuel reserves, the Ministry of Finance shall take the lead and consolidate them into the socio-economic development plan for submission to the Prime Minister for approval.

d) When the rotation or replacement deadline for national fuel reserves is reached, if necessary, changes to the detailed list must be submitted to the Government for decision or changes to the type of national fuel reserves to align with technological progress or due to requirements from authorized state agencies, ministries and sectors managing national fuel reserves must submit explanatory documents to the Ministry of Finance for review and consolidation to submit to the Government and the Prime Minister.

đ) Heads of ministries and sectors managing national fuel reserves shall establish the investment plan for constructing fuel storage warehouses for national reserves according to the approved detailed network plan for national reserve warehouses.

The investment development plan for material and technical infrastructure for national fuel reserves shall be consolidated into the annual public investment plan of ministries and sectors managing national fuel reserves, submitted to the Ministry of Planning and Investment for consolidation and reporting to the Government for the National Assembly to decide on the allocation of construction investment funds for national fuel reserve warehouses.

4. Allocation of Plans, Organization of Implementation, and Inspection for National Fuel Reserves

a) Annually, based on the Prime Minister's decision on allocating plans and state budget estimates for national reserves, heads of ministries and sectors managing national fuel reserves shall be responsible for allocating and assigning plans to subordinate reserve units and organizing guidance, direction, and inspection of implementation.

b) The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment to inspect the implementation of the national fuel reserve plan by ministries and sectors managing national fuel reserves, consolidate reports to the Prime Minister; propose and recommend solutions for implementing the national fuel reserve plan.

Article 7. Establishment, allocation, and transfer of state budget estimates for national strategic petroleum reserves

1. Along with the five-year plan and annual plans for national strategic reserves, ministries and sectors managing national strategic petroleum reserves shall establish financial plans for five years and state budget estimates for national strategic petroleum reserve expenditures on petroleum products in accordance with the content of the national strategic reserve plan and the provisions of the State Budget Law, including:

a) The state budget expenditure for purchasing national strategic petroleum reserves and operational expenses for national strategic petroleum reserves shall be compiled and submitted to the Ministry of Finance for review, consolidation of the state budget estimate, and central government budget allocation plan in accordance with the State Budget Law;

The state budget expenditure for purchasing national strategic petroleum reserves and operational expenses for national strategic petroleum reserves includes: Expenditure for import, export, issuance, storage, insurance, and other expenses serving the management of national strategic petroleum reserves by the ministries and sectors managing national strategic petroleum reserves; expenditure for research and application of scientific and technological advancements in the preservation of national strategic petroleum reserves by the ministries and sectors managing national strategic petroleum reserves;

b) The state budget expenditure for investment in storage facilities for national strategic petroleum reserves shall be submitted to the Ministry of Planning and Investment for overall compilation in accordance with regulations on public investment management; the ministries and sectors managing national strategic petroleum reserves shall be responsible for managing and utilizing the investment capital for storage facilities for national strategic petroleum reserves in accordance with the law;

c) The state budget expenditure for managing national strategic petroleum reserves includes: Expenditure for the operation of the management apparatus; expenditure for training and capacity building for officials, civil servants, and employees engaged in national strategic reserve work, and other expenses as prescribed by law;

2. Based on the decision of the competent authority transferring the state budget estimate for national strategic petroleum reserve expenditures, the heads of ministries and sectors managing national strategic petroleum reserves shall implement the allocation of the budget estimate, request the Ministry of Finance to provide funds for purchasing national strategic petroleum reserves and operational expenses for national strategic reserve units, enterprises hired to store national strategic petroleum reserves, and organizations directing, guiding, and supervising implementation;

3. In cases where urgent tasks arise during the year according to the decision of the competent authority, supplementary state budget estimates shall be established in accordance with the law on state budget management;

Chapter IV

IMPORT, EXPORT, PURCHASE, AND SALE OF NATIONAL STRATEGIC PETROLEUM RESERVES

Article 8. Principles for Importing and Exporting National Strategic Petroleum Reserves

1. In accordance with assigned plans, decisions of authorized authorities; in accordance with import and export procedures as prescribed by law;

2. By type, quantity, quality, price, and location as specified;

3. With complete financial records and documents in accordance with current financial management systems and preservation regulations;

Article 9. Methods for Purchasing and Selling National Strategic Petroleum Reserves

The methods for purchasing and selling national strategic petroleum reserves shall be carried out in accordance with the National Strategic Reserve Law and other relevant legal documents;

Article 10. Importing and Exporting National Strategic Petroleum Reserves According to Plans and Rotational Replacement of National Strategic Petroleum Reserves

The heads of ministries and sectors managing national strategic petroleum reserves shall organize the implementation of plans for importing, exporting, and rotational replacement of national strategic petroleum reserves; they shall be responsible for the quantity, quality, and the state budget not compensating for additional costs incurred during the rotational replacement process of national strategic petroleum reserves; if the plan has not been completed within the year, they shall report to the Ministry of Finance for submission to the Prime Minister for consideration and decision.

Article 11. Importing and exporting national strategic fuel reserves in other cases

1. Importing and exporting national strategic fuel reserves pursuant to the Prime Minister's decision: When market prices suddenly increase or decrease; preventing, combating, and mitigating the consequences of natural disasters, catastrophes, epidemics, fires; meeting defense and security requirements.

2. Importing and exporting national strategic fuel reserves in other cases: Implemented in accordance with Article 39 of the National Reserve Law.

Article 12. Internal transfer of national strategic fuel reserves

Implemented in accordance with Article 38 of the National Reserve Law.

Chapter V

STORAGE AND USE OF NATIONAL STRATEGIC FUEL RESERVES

Article 13. Principles for storing national strategic fuel reserves

Implemented in accordance with Article 51 of the National Reserve Law.

 Article 14. Principles for using national strategic fuel reserves

Implemented in accordance with Article 55 of the National Reserve Law.

 Article 15. Responsibilities for storing national strategic fuel reserves

1. Ministries and sectors managing national strategic fuel reserves must comply with national technical standards, economic-technical norms applicable to national strategic fuel reserves, and laws on protecting state secrets; in cases where they lease storage services for national strategic fuel reserves, ministries and sectors managing such reserves must select organizations and enterprises that meet the conditions stipulated by the National Reserve Law and current legal documents.

2. The heads of ministries and sectors managing national strategic fuel reserves are responsible for directing the implementation and inspecting the storage of national strategic fuel reserves; promptly preventing and handling violations of laws related to the storage of national strategic fuel reserves.

3. The heads of units directly managing and storing national strategic fuel reserves and individuals directly managing and storing such reserves are responsible for the quantity and quality of the national strategic fuel reserves assigned to them.

4. The Ministry of Finance is responsible for inspecting and supervising the storage of national strategic fuel reserves by ministries and sectors, units managing such reserves, and organizations and enterprises storing national strategic fuel reserves.

Chapter VI

AUTHORITY TO DEVELOP AND ISSUE NATIONAL TECHNICAL STANDARDS AND NATIONAL ECONOMIC-TECHNICAL NORMS

Article 16. Authority to develop and issue national technical standards for national strategic fuel reserves

1. Each year, ministries and sectors managing national strategic fuel reserves shall prepare plans for developing national technical standards for national strategic fuel reserves, including plans for new development and plans for review, revision, and supplementation, along with project proposals for submission to the Ministry of Finance for examination and issuance.

2. Ministries and sectors managing national strategic fuel reserves shall draft national technical standards for national strategic fuel reserves within their jurisdiction and submit them to the Ministry of Finance for preliminary examination, followed by submission to the examining authority.

3. The Ministry of Science and Technology shall examine national technical standards for national strategic fuel reserves upon request from the Ministry of Finance.

After receiving the examination opinion from the Ministry of Science and Technology, the Ministry of Finance shall issue national technical standards for national strategic fuel reserves.

Article 17. Authority to develop and issue economic-technical norms for national strategic fuel reserves

1. Each year, ministries and sectors managing national strategic fuel reserves shall prepare plans for developing economic-technical norms for national strategic fuel reserves and submit them to the Ministry of Finance for examination and issuance.

2. Ministries and sectors managing national strategic fuel reserves shall draft economic-technical norms for national strategic fuel reserves and submit them to the Ministry of Finance for examination and issuance.

Chapter VII

NATIONAL STRATEGIC FUEL RESERVE STORAGE FACILITIES

Article 18. National Fuel Reserve Storage System

Based on the overall planning of the national storage system, local land use planning, and relevant natural conditions, the head of the ministry or sector managing the national fuel reserve shall organize the detailed planning of the network of national fuel reserve storage facilities according to Article 59 of the Law on National Reserves after reaching consensus with the Ministry of Finance and the Ministry of Planning and Investment.

Article 19. Requirements for National Fuel Reserve Storage Facilities

1. National fuel reserve storage facilities must be constructed in accordance with approved planning; gradually meeting modernization requirements, equipped with advanced preservation technology, and sufficient technical equipment necessary for mechanization and automation of the import, export, and preservation of national fuel reserves.

2. National fuel reserve storage facilities must be strictly protected, safely, and confidentially in accordance with the law; equipped with sufficient technical equipment necessary for observation, monitoring, prevention, and response to natural disasters, fires, damage, loss, and other factors that may cause harm to national fuel reserves.

3. Based on the approved national fuel reserve storage facility planning, the head of the ministry or sector managing the national fuel reserve shall mobilize organizations, enterprises, and individuals to invest in building national reserve facilities according to the standards specified in Article 62 of the Law on National Reserves for the national reserve unit to lease or enter into contracts for the preservation of national fuel reserves.

4. For national fuel reserve storage facilities leased from organizations and enterprises, they must comply with the planning and standards of national reserve facilities as prescribed by law.

Chapter VIII

FINANCIAL MECHANISM, STATE ACCOUNTING AND AUDITING REGIME, STATISTICAL REPORTS ON NATIONAL FUEL RESERVES

Article 20. Financial Mechanism, State Accounting and Auditing Regime

1. The financial mechanism for national fuel reserves shall be implemented in accordance with the Law on State Budget and other relevant laws.

2. The ministry or sector managing national fuel reserves shall be responsible for inspecting and approving state budget settlements provided to units preserving national reserves and shall bear responsibility for approved settlements; compiling settlement reports to send to the Ministry of Finance for review and consolidation of settlement reports to the Government.

Settlement reports on the state budget concerning national fuel reserves must be audited in accordance with the law.

Article 21. Statistical Reporting System

1. The ministry or sector managing national fuel reserves shall prepare statistical reports according to forms issued and promulgated by the Ministry of Finance regarding national reserves.

2. In cases where urgent tasks are carried out pursuant to decisions of the Prime Minister or authorized persons, upon completion of the tasks within ten days, the ministry or sector managing national fuel reserves shall report results to the Prime Minister, simultaneously sending reports to the Ministry of Finance and the Ministry of Planning and Investment.

3. In cases where urgent reporting is required by the Prime Minister or competent state agencies, the ministry or sector managing national fuel reserves must strictly adhere to the reporting regime as prescribed./.