Decision No. 1762/QD-PCTN promulgates technical requirements for importing used equipment.

Pursuant to …;

OF THE MINISTER OF SCIENCE, TECHNOLOGY AND ENVIRONMENT

Issuing regulations on general technical requirements and the importation of used equipment

On the basis of Decree No. 22/CP dated May 22, 1993 of the Government regarding the tasks, powers, and organizational structure of the Ministry of Science, Technology, and Environment;

THE MINISTER

MINISTRY OF SCIENCE, TECHNOLOGY AND ENVIRONMENT

Pursuant to Decision No. 752/TTg of the Prime Minister (Clause 5a) "entrusting the Ministry of Science, Technology, and Environment to consult with relevant ministries managing production to establish common technical standards as a basis for guiding the importation of old technology and machinery and equipment for the production of means of production and consumer goods...";

After consulting the opinions of relevant ministries and state commissions;

Considering the proposal of the Director of the Department of Technological Development;

We hereby issue along with this Decision the regulations on general technical requirements for the importation of used equipment.

DECISION:

Article 1. These regulations apply to the importation, technological renovation, and the importation of old machinery and equipment for the production of means of production and consumer goods. These regulations do not apply to equipment imported as gifts or non-repayable aid. For certain specialized equipment, relevant ministries and sectors shall specify detailed regulations for each type of specialized equipment based on this Decision.

Article 2. This Decision takes effect from November 1, 1995.

Article 3. Any previous regulations that conflict with those set forth in this document are null and void.

GENERAL TECHNICAL REQUIREMENTS FOR THE IMPORTATION OF USED EQUIPMENT

REGULATIONS

(COMPLETE AND PARTIAL EQUIPMENT)

(Issued together with Decision No. 1762/QD-PTCN dated October 17, 1995

of the Ministry of Science, Technology, and Environment)

For Vietnamese enterprises, the importation of used production equipment, whether partially or entirely, is part of the investment process and must be carried out according to the Investment and Construction Management Charter (issued together with Decree No. 177/CP dated October 20, 1994 of the Government), Decision No. 91/TTg dated November 13, 1992 of the Prime Minister, and other related legal documents and the provisions of this document.

1. Scope of application:

For enterprises with foreign invested capital and joint venture contracts with foreign entities, the importation of used production equipment, whether partially or entirely, is part of the investment process and must be carried out according to the Law on Foreign Investment in Vietnam, related legal documents, and the provisions of this document.

2.1. Ministries and sectors managing production and investors shall decide and bear legal responsibility for the effectiveness of use, labor safety, and environmental protection concerning the importation of used production equipment for the production of means of production, consumer goods, cargo transportation vehicles, construction machinery, roads, bridges...

2- GENERAL PRINCIPLES:

2.2. In the economic and technical justification (ETJ), investors must compare various options for importing technology and equipment (including the option of importing used technology and equipment) with the world, regional, and domestic levels of technology and equipment.

For used equipment, it is necessary to clearly indicate the code, main technical parameters, power, voltage, capacity, level of equipment (automatic, semi-automatic, mechanical...), year of manufacture, year of equipment operation, name of country and manufacturer, main technical features of the equipment, remaining quality status (compared to original condition and current condition), degree of wear, current status of the equipment (unused, currently in use, refurbished, dismantled...), price of used equipment, and price of new equipment of the same type.

For equipment that is still new but belongs to an outdated generation of technology compared to the world, in the ETJ requesting approval, it is necessary to analyze and compare different technology and equipment options, clearly explaining the reasons for importing this generation of equipment.

2.3. For the importation of used production equipment chains (and equipment belonging to outdated technology), there must be an economic and technical justification approved by the ministry managing the economic sector or the agency issuing the investment permit, specifying the list of used equipment. If the approval document does not clearly state that the equipment is used, the equipment chain requested for importation must be new equipment. The investor is responsible for inspecting the quality of used equipment according to the equipment import contract and established quality standards.

2.4. State inspection of compliance with these standards will be conducted according to state regulations. Investors have the responsibility to facilitate state management agencies in conducting inspections and appraisals of used equipment.

3. Used equipment may not be imported for the following types of equipment (including used spare parts and components):

Equipment in the oil and gas processing industry, power industry, cement production lines, ore dressing, metal smelting. Equipment in the basic chemical, fertilizer, and pesticide production industries.

Equipment at stages critical to product quality in food processing, pharmaceutical production.

Equipment in industries requiring high precision such as measuring, testing, and inspection equipment; equipment used in postal and telecommunications networks.

Equipment requiring high safety such as boilers, elevators, nuclear reaction control equipment, equipment for checking and controlling safety systems.

Equipment that can affect a wide area of the environment such as waste treatment equipment, water gates, equipment in production lines at stages prone to causing severe environmental pollution.

Depending on specific circumstances, the list of used equipment permitted for importation may be revised annually when the import and export plan is announced.

4. Specific regulations for the importation of used equipment:

4.1. Year of manufacture of used equipment:

4. Year of manufacture of the used equipment:

As of the date of application for importation, the equipment manufactured by developed countries (G7) shall not exceed ten years, while for newly industrialized countries and others, it shall not exceed eight years. For equipment operating under harsh conditions such as construction machinery, transport vehicles, and equipment working in high-temperature and corrosive environments, the aforementioned period shall not exceed five years. The year of manufacture of the above equipment may be specifically stipulated by each Ministry for each type of equipment within their respective production sectors, but the time from when the equipment was manufactured to the year of application for importation shall not exceed ten years, except in specific cases where the Government decides otherwise.

4.2. Used equipment must simultaneously meet the following requirements:

Technical performance shall not be lower than eighty percent compared to its original condition (power, productivity, flow rate, etc...).

The quality of products produced by the used equipment must meet export standards or comply with mandatory Vietnamese standards.

Costs related to raw material consumption, energy, lubricating oil shall not exceed one hundred ten percent compared to new equipment of the same type.

Wear (or corrosion) of major working parts shall not exceed twenty percent of the total allowable wear (or corrosion).

The equipment must ensure Vietnamese standards for labor safety and environmental protection.

The equipment must be refurbished to ensure quality and industrial aesthetics.

Based on the above requirements, Ministries and sectors managing production will establish specific standards for used equipment permitted for importation within their respective jurisdictions.

4.3. For foreign-invested enterprises, joint business contracts with foreign parties (except for investments in export processing zones) shall not import dismantled used equipment from developing countries, newly industrialized countries, and countries transitioning to market economies. Importing used equipment from developed countries must comply with the provisions set forth in this document.

4.4. For certain foreign investment projects: equipment requiring substantial capital investment such as aircraft, equipment with long lifespans like marine transport vessels, and projects providing significant employment opportunities, importing used equipment will be considered on a case-by-case basis according to state regulations and the provisions of this document.

5 - Import contracts for used equipment.

Import contracts for used equipment must comply strictly with the regulations of the Ministry of Commerce regarding the signing and management of foreign trade sales contracts. Such contracts must be based on the conclusions and evaluations of the project investor and the relevant economic technical management ministry. Additionally, the contract must clearly specify the technical description: name of the equipment, purpose, code, technical features, country of manufacture, year of manufacture, technical parameters, fuel consumption, energy, efficiency, productivity, degree of wear of the equipment, specific quality indicators of the equipment (including safety criteria, waste discharge and industrial hygiene criteria, functional performance criteria, etc.), accompanied by a detailed equipment history indicating the number of major repairs and post-repair quality.

Name of the equipment, purpose, code, technical features, country of manufacture, year of manufacture, technical parameters, fuel consumption, energy, efficiency, productivity, degree of wear of the equipment, specific quality indicators of the equipment (including safety criteria, waste discharge and industrial hygiene criteria, functional performance criteria, etc.), accompanied by a detailed equipment history indicating the number of major repairs and post-repair quality.