Circular No. 19/BXD-VLXD guiding the implementation of Government Decree No. 02/CP dated January 5, 1995 regarding construction materials for sale with conditions in urban areas.

CIRCULAR

OF THE MINISTRY OF CONSTRUCTION

Guidelines for implementing Decree No. 02/CP dated January 5, 1995 of the Government regarding construction materials subject to conditional trade in urban areas.

Construction materials are primary raw materials constituting construction works. During circulation on the market, construction materials are mostly large-volume goods that are cumbersome during transportation and storage, purchase, and sale; some types easily generate dust, are flammable, and affect the environment and social management order, particularly in cities.

To minimize the maximum harmful impacts on street sanitation and urban management order while ensuring the quality of construction materials for consumers.

Pursuant to Decree No. 02/CP dated January 5, 1995 of the Government stipulating prohibited and conditionally traded goods and services in the domestic market, after consultation and agreement with the Ministry of Trade and the Ministry of Science, Technology, and Environment, the Ministry of Construction hereby provides guidelines for implementing conditional trade in construction materials in urban areas as follows:

I. GENERAL PROVISIONS

1. All organizations and individuals engaging in commercial trade of construction materials subject to conditional trade, regardless of their economic component being domestic or foreign, must have a business location consistent with the conditions specified in this Circular.

2. The business location for construction materials includes stores, stations, warehouses, wharfs, which store and display construction materials for direct wholesale and retail sales within the city, town, or township, collectively referred to as urban areas.

3. Detailed list of construction materials subject to conditional trade:

Cement;

Building lime;

Sand, gravel, pebbles;

Bricks, tiles, asbestos cement sheets, metal roofing sheets, precast concrete;

Various types of steel pipes, plastic pipes;

Reinforcing steel;

Wood, bamboo, palm leaves, plastic sheets, pressed straw boards, oil paper;

Various additives.

II. CONDITIONS FOR TRADE IN CONSTRUCTION MATERIALS SUBJECT TO CONDITIONAL TRADE
CONSTRUCTION MATERIALS SUBJECT TO CONDITIONAL TRADE
According to Article 9.2a of Decree No. 02/CP dated January 5, 1995, organizations and individuals trading in construction materials must meet the conditions of having suitable business locations. Specifically:

1. General Conditions

Must possess all legal documents concerning the right to use the premises where the construction material business location is situated.

The business location for construction materials must:

Be consistent with urban planning requirements;

Ensure environmental hygiene and urban aesthetics;

Ensure traffic safety: not encroaching upon sidewalks, road shoulders, or roadways;

Have clear signage displaying the name of the store and the enterprise or the individual's name conducting the business.

2. Specific Conditions

a. For cement:

Cement is a material that easily generates dust; the business location for cement should not be located in the central streets of urban areas; if sold in small quantities under 50 kg per bag, there must be packaging equipment and containers for weighing and packaging for customers.

Rainy weather or damp conditions can affect the quality of cement. Storage of cement must be in enclosed, dry warehouses. Locations for storing and selling bulk cement should be placed in peripheral areas of the city.

The business location for cement must have price and weight labels of cement bags publicly displayed at the point of sale.

b. For building lime:

Building lime is a material in block form that easily generates dust, reacts exothermically when exposed to water, potentially causing burns, and in liquid form, it can corrode skin, dirty roads, and surrounding structures.

The business location for lime can only be set up in peripheral urban areas. Storage of lime blocks must be in enclosed or moisture-resistant packaging, placed in high and dry areas capable of preventing abnormal flooding. Lime processing and storage must be done in sealed drums, tanks, or pits covered with lids and surrounded by barriers placed in secluded areas with warning signs for lime pits.

Sellers of building lime may only sell and load onto transport vehicles or packaging that ensures no spillage, dirtiness, and must comply with the hours designated by local authorities for transporting on streets.

c. For bricks, tiles, asbestos sheets, metal roofing sheets, steel pipes, sand, gravel, pebbles:

These are bulky materials with large volumes that easily generate dust, causing traffic congestion and poor street sanitation during urban sales, transportation, and handling.

Business locations for these materials must be away from central streets and have sufficient loading docks for convenient entry and exit of transport vehicles, with neat and orderly stacking areas to prevent breakage and accidents.

Sellers of these materials may only sell and load onto transport vehicles that ensure no dust generation, spillage, and dimensions (height, length, width) of the cargo do not exceed vehicle limits and must comply with the hours designated by local authorities for transporting on streets.

d. For wood, bamboo, palm leaves, plastic sheets, pressed straw boards, oil paper:

These are bulky materials that are flammable and emit odors (bamboo, reed, soaked palm leaves). Therefore, sellers of these materials must comply with the conditions specified in point c above. Additionally, storage locations for these materials must not be near sources of fire and must have effective fire prevention and extinguishing measures and regulations.

e. For various additives:

Additives are materials used in construction and construction material industries. They are also chemical substances in liquid or powder form that can cause dirtiness and environmental pollution during market transactions. Storage and transportation of additives must be packaged properly for powders, with safe dispensing equipment for liquids, and must not be placed near water sources, wells, ponds, or lakes.

III. AUTHORITY AND PROCEDURES FOR ISSUING BUSINESS LICENSES

CERTIFICATES OF MEETING BUSINESS CONDITIONS
Organizations and individuals engaged in the trade of construction materials subject to conditional trade, meeting the conditions specified in Section II above, will be considered for issuance of a Certificate of Meeting Business Conditions (in accordance with the prescribed format attached).

Organizations and individuals engaged in the business of construction materials with conditional requirements, ensuring the conditions specified in Section II above, shall be considered for issuance of a Certificate of Eligibility for Business (in accordance with the form prescribed in the Appendix attached).

1. The Department of Construction of the province or centrally governed city where the organization or individual has the location for construction materials business shall issue the Certificate of Eligibility for Construction Materials Business.

2. The application dossier for the Certificate of Eligibility for Construction Materials Business (which may be certified copies).

a. For enterprises that have been issued a Business Registration before July 1, 1995, the dossier includes:

Business Registration issued by the competent authority;

Declaration on the business location (address, area, items);

Construction permit or certificate of ownership of the house, land use right, or lawful lease, loan, purchase-sale contract of houses and lands where the construction materials business location is situated (collectively referred to as lawful documents on the right to use houses and lands).

b. If an enterprise requests to open a Branch or Representative Office in another province or centrally governed city and needs a business location for construction materials, the dossier includes:

Permit from the People's Committee of the province or centrally governed city allowing the establishment of a Branch or Representative Office;

Declaration on the business location (address, area, items);

Lawful documents on the right to use houses and lands where the construction materials business location is situated.

c. For enterprises not yet issued a Business Registration from July 1, 1995, the dossier includes:

Decision or License to establish the enterprise;

Declaration on the business location (address, area, items);

Declaration on the business location (address, area, items);

Lawful documents on the right to use houses and lands where the business location is situated.

d. For enterprises requesting to supplement the Business Registration with construction materials items, the dossier includes:

Decision or License to supplement the business operation items of construction materials;

Declaration on the business location (address, area, items);

Lawful documents on the right to use houses and lands where the business location is situated.

e. For individuals according to Decree No. 66-HĐBT engaging in construction materials business, the dossier includes:

Business License (if already issued by the People's Committee of the district, county, town, or provincial city);

Application for the Certificate of Eligibility for Construction Materials Business, including the following contents:

Full name, gender, date of birth;

Permanent address;

Specific construction materials items to be traded;

Business location;

Lawful documents on the right to use houses and lands where the business location is situated.

Procedure for issuing the Certificate of Eligibility

a. Receiving the dossier

Organizations and individuals engaged in construction materials business meeting the conditions stipulated in Section II above shall prepare and submit the dossier to the Department of Construction of the province or centrally governed city where the business location is situated.

The Department of Construction is responsible for receiving the dossier, checking its contents, and if the dossier is incomplete, requesting the applicant to supplement and complete it. The time taken by the applicant to complete the dossier will not be counted towards the processing time of the dossier.

Upon receipt of a complete dossier, the receiving agency must record it in the tracking logbook, issue a receipt, set a date for resolution, and hand it over to the applicant.

b. Reviewing the dossier

Depending on the requirements and characteristics of each specific business location and construction materials item, the Department of Construction may send a letter seeking opinions from relevant agencies such as land administration, real estate, environmental technology, public works, and local authorities.

Within ten days from the date of receipt of the request for opinion, the agencies asked for their opinions must provide a written response. Failure to respond will be considered as agreement.

c. Examining the dossier and deciding to issue the Certificate of Eligibility

Within twenty days from the date of receipt of a complete dossier, based on the dossier, the opinions of relevant agencies, urban planning, and other current regulations, the Department of Construction will examine the dossier, conduct on-site inspections, and decide to refuse or issue the Certificate of Eligibility for Construction Materials Business.

The collection and use of fees for issuing the Certificate of Eligibility shall be carried out in accordance with current regulations.

d. To serve state management work, the Department of Construction shall send a copy of the Certificate of Eligibility to the Ministry of Construction and the Ministry of Trade once a month along with a report on the situation and results of issuing the Certificate of Eligibility in that month.

4. Handling complaints about non-issuance of the Certificate of Eligibility

The Director of the Department of Construction is responsible for handling complaints about non-issuance of the Certificate of Eligibility.

If the applicant disagrees with the Director's opinion, they may appeal to the Chairman of the People's Committee of the province or centrally governed city. The decision of the Chairman of the People's Committee of the province or centrally governed city is final.

5. The Certificate of Eligibility for Business is one of the bases for

a. Issuing or supplementing Business Registration

b. Continuing to recognize the validity of Business Registration (for organizations and individuals who have been issued Business Registration).

IV. IMPLEMENTATION

1. This Circular takes effect from July 1, 1995.

2. The Minister of Construction assigns the Director of the Department of Construction to lead and coordinate with the Commerce Department and the local planning agency to organize the planning of the network and locations for conditional construction materials businesses in cities, to be submitted to the People's Committee of the province or centrally governed city for decision and announcement.

3. Within ninety days from the date this Circular takes effect, organizations and individuals who have been issued Business Registration for construction materials items before July 1, 1995, must complete the procedures to apply for the Certificate of Eligibility for Construction Materials Business. After this period, organizations and individuals without or not meeting the conditions for issuance of the Certificate of Eligibility for Construction Materials Business will have their Business Registration suspended or revoked.

4. Any organization or individual failing to consistently meet the conditions stipulated in Section II of this Circular during the course of construction materials business operations will be deemed to be engaging in illegal business activities; those responsible for issuing the Certificate of Eligibility who abuse their positions or powers and violate the law will be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the severity of the violation under current laws.

5. Based on reports on the implementation of the issuance of the Certificate of Eligibility from local Departments of Construction, the Ministry of Construction will organize inspection and guidance sessions on the issuance of the Certificate of Eligibility and the implementation of business conditions for construction materials in cities.

The Ministry of Construction requests the People's Committees of provinces and centrally governed cities, related ministries, sectors, and mass organizations to direct subordinate agencies and enterprises to implement this Circular well.

ANNEX

MODEL OF THE CERTIFICATE OF ELIGIBILITY FOR BUSINESS IN CONDITIONAL SECTORS AND SERVICES

ISSUING AUTHORITY SOCIALIST REPUBLIC OF VIETNAM

Number:...Independence - Freedom - Happiness

..., date...month...year 199...

CERTIFICATE OF INSURANCE OR OTHER FINANCIAL SECURITY

MEETING THE REQUIREMENTS...(1)...(2)

(HEAD OF THE AUTHORITY ISSUING THE LICENSE)

Certifies...(3)...

Business location:...

Meeting the requirements and being permitted to...(1)...(2)...

(Head of the authority)

(Signature, stamp)

Explanation:

(1) Specify the business activities such as: buying, selling, agency, processing, manufacturing, repairing, practicing...

(2) Specify the goods or services permitted for business.

Example: Certificate of meeting the conditions for Retail Agency of Petroleum Products.

Certificate of meeting the conditions for buying and selling gold.

Certificate of meeting the conditions for practicing Traditional Medicine on...

Certificate of meeting the conditions for operating hotels.

(3) For business organizations, specify the full name of the Company, Enterprise. For individual businesses, specify the full name, gender, age, place of residence.