Decision No. 18/2019/QD-TTg on the importation of second-hand machinery, equipment, and production lines

 

Pursuant to …;

Regulations on the importation of used machinery, equipment, and production lines

equipment, production lines, and used technology

_____________________

       Pursuant to the Atomic Energy Law dated June 3, 2008;

Pursuant to the Law on Foreign Trade Management dated June 12, 2017;

Pursuant to Decree No. 69/2018/NĐ-CP dated May 15, 2018 of the Government detailing certain provisions of the Law on Foreign Trade Management;

       The Government issues this Decree detailing the preparation, review, approval, publication, implementation, evaluation, and adjustment of plans for atomic energy development and application.

The Prime Minister issues this Decision regulating the importation of used machinery, equipment, and production lines.

Chapter I. 

GENERAL PROVISIONS 

Article 1. Scope of Regulation

1. This Decision stipulates criteria, documentation, procedures, and inspection activities for the importation of used machinery, equipment, and production lines with commodity codes (HS numbers) under Chapters 84 and 85 of the List of Goods for Export and Import of Vietnam, intended for use in production activities within Vietnam and not included in the lists of prohibited imports established by the Government and the Prime Minister, detailed by relevant ministries and agencies in accordance with Decree No. 69/2018/NĐ-CP dated May 15, 2018 of the Government detailing certain provisions of the Law on Foreign Trade Management.

2. This Decision does not apply to used machinery, equipment, and production lines in the following cases:

a) Transit; transfer of goods;

b) Trading in transshipment;

c) Temporary import for re-export;

d) Other temporary import for re-export forms prescribed in Article 15 and temporary export for re-import prescribed in Article 17 of Decree No. 69/2018/NĐ-CP dated May 15, 2018 of the Government detailing certain provisions of the Law on Foreign Trade Management (except for temporary import for re-export to fulfill processing contracts; import for production and construction of investment projects);

e) Fulfilling service repair and maintenance contracts with foreign traders;

f) Transactions between enterprises in export processing zones, enterprises in duty-free zones; sales of assets for liquidation by enterprises in export processing zones to the domestic market;

g) Transfer from foreign partners after the expiration of processing contracts or financial lease contracts; change of purpose to domestic consumption after the expiration of temporary import for construction projects or temporary import for foreign traders' processing contracts; transfer among enterprises fulfilling foreign traders' processing contracts;

h) For scientific research and technological development that cannot be produced domestically; for security and defense tasks as required by sectoral management ministries and agencies;

i) Machinery and equipment listed in the Catalogue of Products and Goods with Potential Safety Risks (Catalogue Group 2) issued by sectoral management ministries and agencies pursuant to the Law on Product Quality and Safety;

k) Machinery and equipment in specialized fields where relevant ministries and agencies have issued regulatory documents for management.

Article 2. Applicability

This Decision applies to:

1. Organizations and enterprises (hereinafter referred to as enterprises) importing used machinery, equipment, and production lines.

2. Inspection organizations conducting inspections of used machinery, equipment, and production lines in accordance with this Decision.

3. State management agencies related to the importation of used machinery, equipment, and production lines as specified in Article 1 of this Decision.

Article 3. Definitions

In this Decision, the following terms shall be understood as follows:

1. Machinery and equipment refers to a complete structure consisting of parts, assemblies, components designed to operate and move according to their intended use.

2. Production lines refer to a system of machinery, equipment, tools, and means arranged, installed, and connected in a continuous manner at a specific location according to a design process diagram to ensure synchronized operation for production.

3. Used machinery, equipment, and production lines refer to machinery, equipment, and production lines that have been assembled and operated after leaving the factory.

4. Equipment age is the time (in years) calculated from the year of manufacture to the year of import of used machinery and equipment. The year of import is the year when the goods arrive at a Vietnamese customs port.

Article 4. Principles Governing the Importation of Used Machinery, Equipment, and Production Lines

1. The importation of used machinery, equipment, and production lines must comply with laws governing the importation of goods.

2. Importation of used machinery, equipment, and production lines is not permitted in the following cases:

a) Countries of export have announced their removal due to obsolescence, poor quality, and environmental pollution;

b) They do not meet requirements regarding safety, energy efficiency, and environmental protection as prescribed by law.

 

Chapter II. 

3. Importation of used machinery, equipment, and production lines is only allowed for direct use in enterprise production activities in Vietnam.

 

CRITERIA FOR IMPORTING USED MACHINERY, EQUIPMENT, AND PRODUCTION LINES

Article 5. Criteria for Importing Used Production Lines

Used production lines may be imported if they meet the following criteria:

b) In the absence of national technical regulations (QCVN) related to imported production lines, such production lines must be manufactured according to standards that comply with the technical requirements of Vietnam's national standards (TCVN) or the national standards of one of the G7 countries or South Korea regarding safety, energy efficiency, and environmental protection.

2. The capacity (measured by the quantity of products produced by the production line within a unit of time) or remaining efficiency must reach at least 85% compared to the designed capacity or efficiency.

3. The consumption level of raw materials, materials, and energy must not exceed 15% compared to the design.

4. The technology of the production line must not belong to the List of Prohibited Technology Transfer or the List of Restricted Technology Transfer as stipulated in Decree No. 76/2018/NĐ-CP dated May 15, 2018, of the Government detailing and guiding the implementation of certain provisions of the Law on Technology Transfer.

5. The technology of the production line must be currently in use in at least three production facilities in countries belonging to the Organization for Economic Cooperation and Development (OECD).

Article 6. Import criteria for used machinery and equipment

Used machinery and equipment are permitted for import if they meet the following criteria:

1. The age of the equipment does not exceed ten years. For machinery and equipment in specific fields, the age of the equipment is detailed in Appendix I attached to this Decision.

2. Produced according to standards:

5. Level of raw material, material, and energy consumption does not exceed 15% compared to the design.

b) In the absence of QCVN related to imported machinery and equipment, such imported machinery and equipment must be produced in compliance with the technical requirements of Vietnam's national standards (TCVN) or the national standards of one of the G7 countries or South Korea regarding safety, energy efficiency, and environmental protection.

Chapter III. 

DOCUMENTS AND PROCEDURES FOR IMPORTING USED MACHINERY, EQUIPMENT, AND PRODUCTION LINES

 

Article 7. Documents and procedures for importing used production lines

1. Import documents:

In addition to the import documents prescribed by the Customs Law, enterprises must supplement the following documents:

a) A copy of the Enterprise Registration Certificate stamped by the enterprise. In cases of import under agency, there must be a power of attorney for import.

b) An inspection certificate issued by an inspection organization designated to meet the conditions specified in Article 11 of this Decision. The content of the inspection certificate shall be carried out in accordance with points a, b, c, d, đ of Clause 1, Article 10 of this Decision.

2. Procedures and formalities for import:

a) The enterprise submits one set of import documents and the documents specified in Clause 1 of this Article to the customs authority where the customs declaration is registered.

b) The customs authority will only process clearance formalities as prescribed when the import documents and the documents specified in Clause 1 of this Article are complete and valid, and the inspection certificate concludes that the used production line meets the requirements stipulated in Article 5 of this Decision.

Article 8. Documents and procedures for importing used machinery and equipment

1. Import documents:

In addition to the import documents prescribed by the Customs Law, enterprises must supplement the following documents:

a) A copy of the Enterprise Registration Certificate stamped by the enterprise. In cases of import under agency, there must be a power of attorney for import.

b) The original confirmation letter from the manufacturer of machinery and equipment regarding the year of manufacture and the standards of machinery and equipment meeting the criteria stipulated in Article 6 of this Decision, in cases where the machinery and equipment are manufactured in countries belonging to the G7 or South Korea. The confirmation letter must be legalized and accompanied by a Vietnamese translation.

c) An inspection certificate issued by an inspection organization designated to meet the requirements stipulated in Article 11 of this Decision, in cases where the machinery and equipment are manufactured in countries belonging to the G7 or South Korea but without a confirmation letter from the manufacturer or in cases where the machinery and equipment are manufactured in countries not belonging to the G7 or South Korea. The content of the inspection certificate shall be carried out in accordance with points a, b, c, d, e of Clause 1, Article 10 of this Decision.

2. Procedures and formalities for import:

a) The enterprise submits one set of import documents and the documents specified in Clause 1 of this Article to the customs authority where the customs declaration is registered.

b) The customs authority will only process clearance formalities as prescribed when the import documents and the documents specified in Clause 1 of this Article are complete and valid. In cases where an inspection certificate is required as stipulated in point c of Clause 1 of this Article, the inspection certificate must include a conclusion that the used machinery and equipment meet the requirements stipulated in Article 6 of this Decision.

3. Storage of goods

a) In cases where enterprises import used machinery and equipment and at the time of submitting the import documents as stipulated in Clause 1 of this Article, the enterprise does not have a confirmation letter from the manufacturer as stipulated in point b of Clause 1 of this Article and has not provided an inspection certificate as stipulated in point c of Clause 1 of this Article, the enterprise may store the goods according to the customs law after submitting to the customs authority a registration document for inspection services of machinery and equipment with the confirmation of an inspection organization designated as stipulated in this Decision.

b) Within thirty days from the date of storing the machinery and equipment, the enterprise must submit the inspection certificate to the customs authority. The customs authority will only process clearance formalities as prescribed when the import documents and the documents specified in Clause 1 of this Article are complete and valid, and the inspection certificate includes a conclusion that the used machinery and equipment meet the requirements stipulated in Article 6 of this Decision.

In the case where the results of the inspection and appraisal of machinery and equipment do not meet the requirements stipulated in Article 6 of this Decision, the enterprise shall be subject to administrative penalties for violations in the customs sector according to the prescribed regulations.

Article 9. Importation of Used Machinery and Equipment in Other Cases

1. In cases where an enterprise is currently engaged in production in Vietnam and needs to import used machinery and equipment with an age exceeding that specified in Clause 1 of Article 6 of this Decision but whose capacity (measured by the quantity of products produced by the machinery and equipment within a unit of time) or remaining efficiency still reaches 85% or more compared to the design capacity or efficiency and whose consumption of raw materials and energy does not exceed 15% compared to the design, the enterprise shall submit one set of application documents directly or through postal service or via the online public service portal to the Ministry of Science and Technology for consideration and resolution.

2. The application documents shall include:

a) A written request for permission to import used machinery and equipment as provided for in Appendix II attached to this Decision, explaining the necessity to import machinery and equipment to ensure the continuity of production activities, usage plans, and the necessity of the machinery and equipment proposed for importation in the production line.

b) A copy of the Enterprise Registration Certificate stamped by the enterprise.

c) An appraisal certificate issued by an appraisal organization designated under Article 11 of this Decision. The content of the appraisal certificate shall comply with the provisions at points a, b, c, d, and g of Clause 1 of Article 10 of this Decision.

3. Procedure for considering the application:

a) In cases where the application documents are incomplete or non-compliant with the regulations, the following actions shall be taken:

- Return the application documents immediately to the enterprise for amendment and supplementation if the enterprise submits them directly to the single-window department of the Ministry of Science and Technology.

- In cases where the application documents are received through the electronic information portal of the Ministry of Science and Technology, the Ministry shall provide comments requesting the enterprise to amend and supplement the application documents within eight working hours from the time of receipt.

- In cases where the application documents are received through postal service, the Ministry of Science and Technology shall issue a written notice requesting the enterprise to amend and supplement the application documents within two working days from the date of receipt.

b) Within two working days from the date of receiving complete and compliant application documents, the Ministry of Science and Technology shall send a letter along with a copy of the application documents to relevant ministries and agencies for their comments. If necessary, the Ministry of Science and Technology may seek opinions from experts on the used machinery and equipment proposed for importation.

c) Within ten working days from the date of receiving the request letter from the Ministry of Science and Technology, relevant ministries and agencies, and experts shall provide comments on the importation of machinery and equipment within their respective fields of management and give opinions on the enterprise's proposal to import machinery and equipment.

d) Within three working days from the date of receiving comments from relevant ministries and agencies and experts, the Ministry of Science and Technology shall issue a reply letter to the enterprise, clearly stating the reasons if the importation proposal is not approved.

4. Documents, Procedures for Importation:

a) Importation Documents

In addition to the importation documents required by the Customs Law, the enterprise must submit a written approval from the Ministry of Science and Technology regarding the importation of used machinery and equipment as stipulated in Clause 3 of this Article.

b) Importation Procedures

The enterprise shall submit the importation documents and materials specified in point a of this clause to the customs authority responsible for the declaration of customs clearance procedures to facilitate the clearance process according to the regulations.

 

Chapter IV. 

INSPECTION AND APPRAISAL OF USED MACHINERY, EQUIPMENT, AND TECHNOLOGY LINES

 

Article 10. Appraisal Certificate for Used Machinery, Equipment, and Technology Lines

1. The appraisal certificate for used machinery, equipment, and technology lines stipulated in this Decision must contain the following contents:

a) Name, year of manufacture, brand, serial number, model, country of manufacture, and name of the manufacturer of the used machinery and equipment.

b) Time and location of the appraisal.

c) Condition of the machinery, equipment, and technology line at the time of appraisal (operational or non-operational).

d) Appraisal method, appraisal procedure; national technical regulation number (QCVN), national standard number (TCVN) or national standard of one of the G7 countries or South Korea concerning safety, energy conservation, and environmental protection (if applicable) used to assess the compliance of the technology line as stipulated in Clause 1 of Article 5 or to assess the compliance of machinery and equipment as stipulated in Clause 2 of Article 6 of this Decision.

In cases where there are no national technical regulations (QCVN), national standards (TCVN), or national standards of one of the G7 countries or South Korea related to safety, energy conservation, and environmental protection concerning used machinery and equipment, technology lines, such information must be clearly stated in the appraisal certificate.

d) For used production technology chains: comment and evaluate the inspection results against each criterion specified in Clauses 1, 2, 3, 4, and 5 of Article 5 of this Decision, and conclude whether the used production technology chain meets or does not meet the provisions of Article 5 of this Decision. As for the criterion specified in Clause 5 of Article 5, list the name of the country, the name of the manufacturing facility using the technology, contact address, website (if available), and capacity;

e) For used machinery and equipment: comment and evaluate the inspection results against each criterion specified in Clauses 1 and 2 of Article 6 of this Decision, and conclude whether the used machinery and equipment meet or do not meet the provisions of Article 6 of this Decision;

g) For machinery and equipment in cases stipulated in Article 9 of this Decision, comment and evaluate on:

- Technical specifications of the machinery and equipment;

- Operational status of the machinery and equipment;

- Maintenance and repair status of the machinery and equipment;

- Compliance with the criteria specified in Clause 2 of Article 6 of this Decision;

- Degree of compliance with safety standards, energy efficiency, and environmental protection;

- Capacity (calculated based on the quantity of products produced by the machinery and equipment within a unit of time) or remaining performance of the machinery and equipment compared to the design;

- Consumption rate of raw materials and energy of the machinery and equipment compared to the design;

- Remaining useful life of the machinery and equipment;

- Color images of the machinery and equipment including: overall external images, images of major structural components of the machinery and equipment, images of information labels attached to the machinery and equipment showing technical specifications;

2. The validity of the inspection certificate is accepted for consideration when implementing the provisions of this Decision:

a) For the inspection of used production technology chains, not exceeding 18 months from the date of issuance of the certificate to the date the production technology chain arrives at a Vietnamese customs port; b) For the inspection of used machinery and equipment, not exceeding six months from the date of issuance of the certificate to the date the machinery and equipment arrive at a Vietnamese customs port.

3. The inspection of used production technology chains according to the criteria specified in Article 5 of this Decision must be conducted in the exporting country while the production technology chain is operational.

      Article 11. Documents and procedures for appointing organizations to inspect machinery, equipment, and used production technology chains

1. The Ministry of Science and Technology shall coordinate with relevant ministries and agencies to implement the appointment and recognition of organizations to inspect machinery, equipment, and used production technology chains under bilateral or multilateral mutual recognition agreements, and publicly announce the list of recognized inspection organizations on the Ministry's electronic portal for businesses to know and choose to use.

2. Requirements for inspection organizations

a) For domestic inspection organizations:

Having been issued a Certificate of Registration for Inspection Services in accordance with Decree No. 107/2016/ND-CP dated July 1, 2016 of the Government detailing certain provisions of the Law on Product Quality Management, which includes the field of machinery, equipment, and production technology chain inspection services.

b) For foreign inspection organizations:

Complying with the laws of their home countries regarding inspection activities and being recognized by accreditation bodies that are signatories to mutual recognition agreements for conformity assessment results in the field of machinery, equipment, and production technology chain inspection.

3. Application forms and procedures for appointment

a) Application forms and procedures for appointing domestic inspection organizations shall be carried out in accordance with Articles 18b and 18d of Decree No. 132/2008/ND-CP dated December 31, 2008 of the Government detailing certain provisions of the Law on Product Quality Management, amended and supplemented by Clause 8 of Article 1 of Decree No. 74/2018/ND-CP dated May 15, 2018 of the Government amending and supplementing certain articles of Decree No. 132/2008/ND-CP.

b) Application forms for appointing foreign inspection organizations include the forms specified in Points a, c, d, and e of Clause 1 of Article 18b for initial appointments; Points a, c, d, and e of Clause 2 of Article 18b for changes or additions to the scope of designated fields, as stipulated in Decree No. 132/2008/ND-CP dated December 31, 2008 of the Government detailing certain provisions of the Law on Product Quality Management, amended and supplemented by Clause 8 of Article 1 of Decree No. 74/2018/ND-CP dated May 15, 2018 of the Government amending and supplementing certain articles of Decree No. 132/2008/ND-CP, and a certified copy of the permit for inspection activities issued by the competent authority of the foreign country where the inspection organization operates, accompanied by a legalized Vietnamese translation. All documents in the application form must be translated into Vietnamese.

Procedures for appointing foreign inspection organizations shall be carried out in accordance with Article 18d of Decree No. 132/2008/ND-CP dated December 31, 2008 of the Government detailing certain provisions of the Law on Product Quality Management, amended and supplemented by Clause 8 of Article 1 of Decree No. 74/2018/ND-CP dated May 15, 2018 of the Government amending and supplementing certain articles of Decree No. 132/2008/ND-CP.

 Chapter V. 

IMPLEMENTATION

 

Article 12. Responsibilities of the Ministry of Science and Technology

1. Chair and coordinate with ministries, ministerial-level agencies, People's Committees of provinces and centrally governed cities in managing the importation of second-hand machinery, equipment, and production lines as stipulated in this Decision and related documents.

2. Publish on the Ministry of Science and Technology’s electronic portal a list of second-hand machinery, equipment, and production lines that have been phased out by other countries due to obsolescence, poor quality, and environmental pollution.

3. Coordinate with ministries, ministerial-level agencies, People's Committees of provinces and centrally governed cities to organize inspections of enterprises' compliance with laws regarding safety, energy conservation and efficiency, and environmental protection for imported second-hand machinery, equipment, and production lines upon their operation, and handle violations according to the law.

4. Coordinate with the Ministry of Finance annually to compile statistics on the importation of second-hand machinery, equipment, and production lines (name of importing enterprise, contact address, field of use, country of manufacture, import value), cases of forced re-export and penalties, and report to the Prime Minister.

5. Designate and recognize organizations for inspecting second-hand machinery, equipment, and production lines, and publish a list of recognized inspection organizations on the Ministry of Science and Technology’s electronic portal.

6. Chair and coordinate with ministries, ministerial-level agencies to conduct inspections and audits of the activities of organizations designated and recognized to inspect second-hand machinery, equipment, and production lines according to the law.

Article 13. Responsibilities of Ministries and Ministerial-Level Agencies

1. Coordinate with the Ministry of Science and Technology in implementing this Decision.

2. Propose criteria for the age of equipment for second-hand machinery and equipment based on the economic and social development situation and management requirements of their specialized fields, and submit these proposals to the Ministry of Science and Technology for consolidation and submission to the Prime Minister for approval.

Article 14. Responsibilities of Enterprises Importing Second-Hand Machinery, Equipment, and Production Lines 

1. Implement the importation of second-hand machinery, equipment, and production lines according to this Decision and related legal regulations.

2. Be subject to inspection by competent state management authorities and be responsible under the law for any violations of this Decision and related legal regulations.

Article 15. Responsibilities of Recognized Inspection Organizations

1. Conduct inspections of second-hand machinery, equipment, and production lines according to this Decision and related legal regulations.

2. Ensure independence, objectivity, and scientific principles in their activities; comply with legal regulations on inspections and be accountable under the law for the accuracy of inspection results; and be subject to audits and inspections by state management authorities regarding inspection activities.

3. Submit one copy of the inspection certificate to the Ministry of Science and Technology within fifteen days from the date of signing the certificate in the following cases:

a) Inspecting second-hand production lines;

b) Inspecting second-hand machinery and equipment when the inspection certificate records the absence of national technical standards (QCVN), national standards (TCVN), or national standards of one of the G7 countries or South Korea concerning safety, energy conservation, and environmental protection as specified in Point d Clause 1 Article 10 of this Decision.

4. Regularly before December 15 each year and at any time upon request, prepare reports on the inspection of second-hand machinery, equipment, and production lines and submit them to the Ministry of Science and Technology.

Article 16. Transitional Provisions 

1. For importation files of second-hand machinery and equipment that have been approved by the Ministry of Science and Technology for importation according to Article 13 of Circular No. 23/2015/TT-BKHCN before the effective date of this Decision, enterprises may continue to implement imports according to Circular No. 23/2015/TT-BKHCN dated November 13, 2015 issued by the Minister of Science and Technology on the importation of second-hand machinery, equipment, and production lines.

2. For importation files of second-hand machinery and equipment that have been accepted by the Ministry of Science and Technology according to Article 13 of Circular No. 23/2015/TT-BKHCN before the effective date of this Decision but have not yet received a resolution at the time of its effectiveness, enterprises may continue to implement according to Circular No. 23/2015/TT-BKHCN or follow the provisions of this Decision based on the enterprise's proposal.

3. For investment projects involving the importation of second-hand machinery and equipment that have been implemented according to Clause 2 Article 6 of Circular No. 23/2015/TT-BKHCN and have obtained Investment Registration Certificates or Investment Approval Decisions before the effective date of this Decision, enterprises may continue to import machinery and equipment according to Circular No. 23/2015/TT-BKHCN.

4. From the date of issuance of this Decision, encourage inspection organizations to prepare registration documents and capacity and register according to this Decision.

Inspection organizations that have been published on the Ministry of Science and Technology’s electronic portal according to Circular No. 23/2015/TT-BKHCN may continue to conduct inspections of second-hand machinery, equipment, and production lines according to this Decision within sixty days from the effective date of this Decision.

       Article 17. Implementation Provisions

1. This Decision takes effect from June 15, 2019.

 2. In cases where the legal normative documents cited in this Decision are amended, supplemented, or replaced, they shall be implemented according to the new documents.

3. During the implementation process, if any issues arise or difficulties occur, relevant agencies, organizations, enterprises shall report to the Ministry of Science and Technology for consolidation and reporting to the Prime Minister for consideration and decision.

4. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the central government, related organizations, and individuals are responsible for implementing this Decision./.