Decree No. 20/1999/NĐ-CP On Trading in Goods Inspection Services

DECREE

Regarding the business of goods inspection services

______________________

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Law on Commerce dated May 10, 1997;

At the proposal of the Minister of Trade,

DECREE:

Chapter 1:

GENERAL PROVISIONS

Article 1. Scope of application

This Decree specifies the implementation of the Commercial Law concerning the business of goods inspection services in Vietnam.

Article 2. Provisions for traders engaged in goods inspection service business

1. It is a business established in accordance with the law;

2. Is an independent enterprise specializing in the business of goods inspection services;

3. Does not engage in buying and selling goods, except for purchasing machinery, equipment, and materials serving the enterprise's industry.

Article 3. Scope of goods inspection services and issuance of Inspection Certificates for goods

1. Enterprises conducting goods inspection services established under current Vietnamese laws may carry out inspections and issue Inspection Certificates for goods according to the industries specified in their Business Registration Certificate.

Business registration shall be conducted at competent state agencies in accordance with the law. The content of business registration is stipulated in Article 20 of the Commercial Law;

2. Enterprises conducting goods inspection services established under the Investment Law for foreign investment in Vietnam may carry out inspections and issue Inspection Certificates for goods according to the industries specified in their Investment License;

3. Branches of foreign inspection organizations permitted to establish in Vietnam may carry out inspections and issue Inspection Certificates for goods according to the industries specified in their Branch Establishment License in Vietnam.

Article 4. Principles of goods inspection activities

1. Goods inspection shall be carried out based on agreements between parties or upon request from one of the parties involved in a contract related to inspected goods; upon request from individuals, organizations, or state authorities;

2. Goods inspection activities shall be conducted based on principles of independence, neutrality, objectivity, science, and accuracy;

3. Inspections shall not be carried out if they are related to the rights and interests of the inspecting enterprise and its inspectors.

Article 5. State management over goods inspection activities:

The Ministry of Commerce is the agency responsible for state management of the business of goods inspection services.

Chapter 2:

RIGHTS AND OBLIGATIONS OF ENTERPRISES ENGAGED IN GOODS INSPECTION SERVICES AND OF INSPECTORS

Article 6. Rights and obligations of enterprises engaged in goods inspection services

1. Appoint inspectors meeting the criteria set forth in Article 6 of this Decree to conduct inspections;

2. Ensure that inspections are consistent with registered business content and comply with the requirements of the requesting party;

3. Ensure that inspections are conducted independently, neutrally, objectively, scientifically, promptly, and accurately;

4. Issue Inspection Certificates consistent with inspection requirements and bear responsibility before the requesting party and the law regarding the results of inspections;

5. Be authorized to have another enterprise engaged in goods inspection services conduct their inspections;

6. Receive inspection fees as agreed;

7. In case of incorrect inspection, pay a penalty as agreed between the enterprise engaged in goods inspection services and the requesting party but not exceeding ten times the inspection fee.

Article 7. Inspector standards

1. Inspectors must meet the following criteria:

a) Hold a bachelor’s or associate degree in a relevant field suitable for inspection requirements and areas;

b) Have worked in the inspection field for three years or more;

c) Not be within the period of administrative disciplinary action related to the inspection field; not be within the period of serving a criminal sentence;

2. The director of an enterprise engaged in goods inspection services shall hire inspectors based on the criteria stipulated herein and bear legal responsibility for such decisions.

Article 8. Rights and obligations of inspectors

1. Independently carry out inspections when assigned and refuse to conduct inspections if they relate to their own rights and interests;

2. Conduct goods inspections honestly, objectively, scientifically, promptly, accurately, and in accordance with the requirements of the requesting party;

3. Refuse interference from any individual or organization in the inspection activities they are conducting;

4. Truthfully reflect inspection results in the Inspection Certificate and sign the Inspection Certificate;

5. Bear responsibility before the director of the enterprise engaged in goods inspection services for the accuracy of inspection results.

Chapter 3:

INSPECTION CERTIFICATES AND LEGAL VALUE OF INSPECTION CERTIFICATES

Article 9. Inspection Certificate

An Inspection Certificate is a document certifying the actual condition of goods in terms of quantity, quality, specifications, packaging, value, damage, safety, hygiene, and other requirements issued by an independent enterprise engaged in goods inspection services upon request of the requesting party.

Article 10. Legal value of Inspection Certificates

1. An Inspection Certificate is only valid for the goods requested to be inspected;

2. An Inspection Certificate is binding on the requesting party unless the requesting party proves that the inspection results are not objective, not truthful, or technically or professionally incorrect;

3. An Inspection Certificate binds the enterprise engaged in goods inspection services to the results and conclusions stated in the Inspection Certificate.

Article 11. Re-inspection of Inspection Certificate results

1. If the initial Inspection Certificate result is not recognized, the requesting party and related parties (hereinafter referred to as the requesting party for re-inspection) have the right to request another inspection organization to re-inspect the goods previously inspected and must pay the inspection fee;

2. If the result of the re-inspection Inspection Certificate matches the result of the initial Inspection Certificate, the initial Inspection Certificate has final validity;

3. If the result of the re-inspection Inspection Certificate does not match the result of the initial Inspection Certificate:

a) If the initial inspection organization acknowledges the result of the re-inspection Inspection Certificate and it is recognized by the requesting party for re-inspection, then the result of the re-inspection Inspection Certificate has final validity and the initial inspection organization must pay a fine as stipulated in Clause 7, Article 6 of this Decree.

b) If the initial appraisal organization or the party requesting a re-appraisal does not recognize the results of the Re-appraisal Certificate, the party requesting the re-appraisal has the right to request the arbitral tribunal to designate another appraisal organization to conduct a re-appraisal. The result of the appraisal by the appraisal organization designated by the arbitral tribunal shall be final. The arbitration fee shall be borne by the party requesting the re-appraisal;

4. If the result of the Appraisal Certificate of the appraisal organization designated by the arbitral tribunal:

a) Is consistent with the result of the Initial Appraisal Certificate, then the re-appraisal organization must bear the penalty amount as prescribed in Clause 7, Article 6 of this Decree;

b) Is consistent with the result of the Re-appraisal Certificate, then the initial appraisal organization must bear the penalty amount as prescribed in Clause 7, Article 6 of this Decree;

c) Is inconsistent with both the result of the Initial Appraisal Certificate and the Re-appraisal Certificate, then both the initial appraisal organization and the re-appraisal organization must bear the penalty amount as prescribed in Clause 7, Article 6 of this Decree.

Chapter 4:

AUTHORIZATION FOR APPRAISAL AND APPRAISAL OF GOODS AT THE REQUEST OF STATE AUTHORITIES

Article 12. authorization for appraisal of goods

In cases where the party requesting an appraisal hires a foreign appraisal organization to perform appraisal services for goods in Vietnam, and that appraisal organization has not been permitted to operate in Vietnam, such foreign appraisal organization shall authorize a domestic business entity engaged in appraisal services that has been permitted to operate in Vietnam to carry out the appraisal service in accordance with Article 179 of the Commercial Law.

Article 13. Contract for Authorization of Appraisal of Goods

A contract for authorization of appraisal of goods must be established in writing and include the following main contents:

1. Name and address of the authorizing party and the authorized party for the appraisal of goods;

2. Goods subject to appraisal;

3. Content, method, and process of appraisal;

4. Time and place of appraisal;

5. Service fees and other costs.

Article 14. Rights and obligations of the authorizing party for the appraisal of goods

1. To require the authorized party for the appraisal of goods to fulfill the agreements stipulated in the authorization contract for appraisal;

2. To provide necessary information and documents to support the appraisal of goods;

3. To be responsible for the results of the appraisal towards the party requesting the appraisal;

4. To pay the service fees and other costs as agreed in the authorization contract for appraisal.

Article 15. Rights and obligations of the authorized party for the appraisal of goods

1. To request the authorizing party for the appraisal to provide necessary information and documents to support the appraisal of goods according to the authorization contract for appraisal;

2. To perform the appraisal of goods in accordance with the agreements stipulated in the authorization contract for appraisal;

3. To hire domestic and foreign experts to perform the appraisal service; to temporarily import and re-export technical equipment to perform the appraisal tasks;

4. To receive service fees and other costs as agreed in the authorization contract for appraisal.

Article 16. Appraisal of Goods at the Request of State Authorities

1. Goods are appraised at the request of state authorities when such goods are related to the performance of official duties by state authorities;

2. When requested by competent state authorities, businesses engaged in appraisal services that have been selected must fulfill the appraisal of goods in accordance with their business fields and shall be paid the appraisal fees by the directly requesting authority;

3. The Prime Minister shall instruct the Ministry of Science and Technology and Environment to specify the conditions and standards for businesses engaged in appraisal services that can be requisitioned to fulfill the appraisal requests of competent state authorities.

Chapter 5:

IMPLEMENTING PROVISIONS

Article 17. Effectiveness

1. This Decree shall take effect fifteen days from the date of signature;

2. Businesses engaged in appraisal services for goods established before the effective date of this Decree must comply with the provisions of this Decree;

3. Ministers of Ministries, Heads of ministerial-level agencies, Heads of agencies under the Government, and Chairmen of People's Committees of provinces and centrally-administered cities are responsible for implementing this Decree.