Circular No. 20/2014/TT-BKHCN on the importation of second-hand machinery, equipment, and production lines

CIRCULAR

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

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Pursuant to Decree No. 20/2013/NĐ-CP dated February 26, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

Based on Decree No. 187/2013/NĐ-CP dated November 20, 2013 of the Government detailing the implementation of the Law on Trade regarding international goods trading activities and agency buying, selling, processing, and transiting goods with foreign countries;

Based on Decree No. 132/2008/NĐ-CP dated December 31, 2008 of the Government detailing the implementation of certain provisions of the Law on Product Quality;

Considering the proposal of the Director of the Department of Technology Evaluation, Appraisal, and Inspection;

The Minister of Science and Technology issues this Circular to regulate the import of used machinery, equipment, and production lines.

Article 1. Scope of Regulation

Article 1. This Circular stipulates the conditions and procedures for importing used machinery, equipment, and production lines, including spare parts and components.

a) Transshipment; transfer;

a) Transit; transshipment; temporary import for re-export (except for processing contracts; cases of import for production and construction of investment projects); temporary export for re-import; performance of service repair and maintenance contracts;

b) For scientific research and technological development purposes where domestic production is not available;

c) Transfer from domestic export processing zones;

d) For security and defense purposes;

e) Donations from foreign non-governmental organizations.

Article 2. Applicability

This Circular applies to state management agencies, enterprises, organizations, and individuals related to the import of used machinery, equipment, and production lines as specified in Article 1 of this Circular.

Article 3. Explanation of Terms

In this Circular, the following terms are understood as follows:

1. is a complete structure consisting of parts, sub-assemblies, components linked together to operate and move according to its intended purpose as designed. A system of devices, tools, and means arranged and installed according to a process diagram ensuring synchronized operation for product manufacturing.

2. Time in use (measured in years) is the period determined from the year of manufacture to the year of import of used machinery, equipment, and production lines.

3. Remaining quality (measured in %) compared to initial quality is the degree to which the technical parameters of used machinery, equipment, and production lines meet those of new machinery, equipment, and production lines (100% new).

Article 4. Principles for Managing Imported Used Equipment

Article 2. Enterprises are encouraged to import new machinery, high-tech equipment, and advanced technology production lines.

2. Used machinery, equipment, and production lines imported must comply with requirements for quality, safety, energy efficiency, and environmental protection.

3. In addition to meeting the conditions stipulated in this Circular, used machinery, equipment, and production lines imported must also comply with current government and ministry regulations on goods importation.

Article 5. Prohibited Importation of Used Machinery, Equipment, and Production Lines

Used machinery, equipment, and production lines prohibited from importation include:

1. Items listed in the Catalogue of Prohibited Imports issued together with Decree No. 187/2013/NĐ-CP dated November 20, 2013 of the Government detailing the implementation of the Law on Trade regarding international goods trading activities and agency buying, selling, processing, and transiting goods with foreign countries.

2. Items listed in the Catalogue of Prohibited Imports of Used Goods and the Catalogue of Prohibited Imports of Used Means issued together with Circular No. 04/2014/TT-BCT dated January 27, 2014 of the Ministry of Industry and Trade detailing the implementation of certain provisions of Decree No. 187/2013/NĐ-CP dated November 20, 2013 of the Government detailing the implementation of the Law on Trade regarding international goods trading activities and agency buying, selling, processing, and transiting goods with foreign countries.

3. Items listed in the Catalogue of Prohibited Imports of Used Information Technology Products issued together with Circular No. 11/2012/TT-BTTTT dated July 17, 2012 of the Ministry of Information and Communications detailing the Catalogue of Prohibited Imports of Used Information Technology Products.

4. Other Catalogues of Prohibited Imports of Used Goods issued by other ministries and sectors in accordance with Decree No. 187/2013/NĐ-CP dated November 20, 2013 of the Government detailing the implementation of the Law on Trade regarding international goods trading activities and agency buying, selling, processing, and transiting goods with foreign countries.

Article 6. Conditions for Importing Used Machinery and Equipment

1. Used machinery and equipment not falling under Article 5 of this Circular and not under Clause 2 of this Article shall be permitted to be imported if they meet the following conditions:

a) The period of use does not exceed five years;

b) The remaining quality compared to the initial quality is 80% or more.

2. Conditions for importing used machinery and equipment in certain special cases:

a) Used machinery and equipment shall be permitted to be imported if the period of use does not exceed three years and the remaining quality compared to the initial quality is 80% or more, including:

- Machinery and equipment serving agricultural production.

- Machinery and equipment used in the beer, wine, and alcoholic and non-alcoholic beverage industries.

- Postal industry machinery and equipment: letter sorting equipment, parcel handling equipment; envelope folding machines; envelope manufacturing machines; conveyor belt equipment.

b) Used machinery and equipment shall be permitted to be imported if the period of use does not exceed seven years and the remaining quality compared to the initial quality is 80% or more, including:

- Machinery and equipment in the geological and mineral resources sector.

- Machinery and equipment serving shipbuilding and ship repair.

- Machinery and equipment serving offshore oil and gas construction projects.

- Machinery and equipment serving infrastructure transportation construction projects.

- Machinery and equipment serving production activities in the printing industry: film recording machines, zinc plate recording machines, printing mold making machines, paper cutting machines, book binding machines (stapling or sewing), book folding machines, book cover insertion machines.

c) Used machinery and equipment shall be permitted to be imported if the period of use does not exceed ten years and the remaining quality compared to the initial quality is 80% or more, including:

- Marine engine used for distant water fishing vessels.

- Combined horse-powered machinery serving production activities in the printing industry.

d) Used machinery and equipment shall be permitted to be imported if the period of use does not exceed fifteen years and the remaining quality compared to the initial quality is 80% or more, including: offset printing machines, rotogravure printing machines, flexographic printing machines serving production activities in the printing industry.

Article 7. Conditions for Importing Used Production Lines

1. Used production lines not falling under Article 5 of this Circular and not under Clause 2 of this Article shall be permitted to be imported if they meet the following conditions:

a) The period of use does not exceed five years;

b) The remaining quality compared to the initial quality is 80% or more;

c) The use of used production lines is stated in the investment project dossier submitted to the investment management agency or approved by the competent authority;

d) Comply with the specialized management requirements of the Ministries and sectors;

đ) Undergo quality inspection in the exporting country before disassembly and packaging for import.

2. Conditions for importing used machinery and equipment in certain special cases:

a) Used production lines shall be permitted to be imported if the period of use does not exceed three years, the remaining quality compared to the initial quality is 80% or more, and comply with the provisions set out in points c, d, đ of Clause 1 of this Article, including:

- Production lines used in the beer, wine, and alcoholic and non-alcoholic beverage industries.

- Automatic letter and parcel sorting lines in the postal industry.

b) Used production lines shall be permitted to be imported if the period of use does not exceed ten years, the remaining quality compared to the initial quality is 80% or more, and comply with the provisions set out in points c, d, đ of Clause 1 of this Article, including: combined production lines serving production activities in the printing industry.

Article 8. Import Procedures for Used Machinery and Equipment

1. Enterprises shall handle import procedures at the customs office where the goods are imported. In addition to the import documents as prescribed, enterprises must submit to the customs office the following documents:

a) Technical documentation showing the year of production of the machinery and equipment being imported;

b) A quality inspection certificate issued by an inspection organization meeting the conditions stipulated in Clause 1, Article 10 of this Circular. If the quality inspection certificate is issued by an overseas inspection organization meeting the conditions stipulated in Clause 5, Article 11 of this Circular, the enterprise must also submit a certified copy of the certificate recognizing the management system as conforming to the current version of the international standard ISO/IEC 17020 of the inspection organization.

2. The customs office shall base its decision on the documents submitted by the enterprise to determine whether the used machinery and equipment meet the import conditions as prescribed in Article 6 of this Circular and shall proceed with clearance procedures as prescribed.

3. In addition to the requirements above, enterprises must comply fully with all current regulations of the Government, Ministries, and sectors concerning machinery and equipment when importing.

Article 9. Import Procedures for Used Production Lines

1. Enterprises shall handle import procedures at the customs office where the goods are imported. In addition to the import documents as prescribed, enterprises must submit to the customs office the following documents:

a) Technical documentation showing the year of production of the production line being imported;

b) A quality inspection certificate issued by an inspection organization meeting the conditions stipulated in Clause 2, Article 10 of this Circular. If the quality inspection certificate is issued by an overseas inspection organization meeting the conditions stipulated in Clause 5, Article 11 of this Circular, the enterprise must also submit a certified copy of the certificate recognizing the management system as conforming to the current version of the international standard ISO/IEC 17020 of the inspection organization.

c) An investment project description submitted to the investment management agency or approved by the competent authority (a copy), which includes the used production line intended for import.

d) For used production lines under the management of Ministries and sectors, there must be an import permit document from the specialized management agency.

2. The customs office shall base its decision on the documents submitted by the enterprise to determine whether the used production line meets the import conditions as prescribed in Article 7 of this Circular and shall proceed with clearance procedures as prescribed.

Article 10. General Requirements for Inspection Certificates

1. Inspection certificates for used machinery and equipment shall be issued by designated inspection organizations. In cases where inspections are carried out in the exporting country and there is no suitable designated inspection organization available, enterprises may choose to use an overseas inspection organization meeting the conditions stipulated in Clause 5, Article 11 of this Circular to conduct the quality inspection.

2. Inspection certificates for used production lines shall be issued by designated inspection organizations or overseas inspection organizations meeting the conditions stipulated in Clause 5, Article 11 of this Circular, before disassembly and packaging for importation in the exporting country.

3. For used machinery and equipment, it is encouraged that enterprises conduct quality inspections in the exporting country to avoid delays at the border and reduce warehouse storage time.

4. During the clearance process, if there is evidence indicating that the actual quality of the machinery and equipment or production lines does not match the inspection certificate, the customs office has the right to request a re-inspection. In cases where there is disagreement about the results of the quality inspection among inspection organizations, the Ministry of Science and Technology is the final authority to make a decision.

Article 11. Requirements for appraisal organizations

1. An organization established in accordance with the provisions of the law, having the function of appraising the quality of machinery, equipment, and technology products.

2. Possessing appraisal capabilities that meet the requirements stipulated in the national standard TCVN ISO/IEC 17020 or the current version of the international standard ISO/IEC 17020.

3. Having at least two appraisers meeting the following criteria:

a) Holding a bachelor's degree or higher and possessing professional expertise suitable for the appraisal requirements and field.

b) Having at least three years of work experience in the relevant field.

c) Holding an appraisal certificate in the relevant field when required by law.

4. Having methods and procedures for appraising the quality of machinery, equipment, and technological processes approved by the leadership of the appraisal organization.

5. Specifically, foreign appraisal organizations selected by import enterprises to conduct appraisals in the exporting country must meet the following conditions:

a) Registering business operations in the field of machinery, equipment, and technology appraisal in their home country.

b) Holding a certification recognizing a management system compliant with the current version of the international standard ISO/IEC 17020, issued by a legitimate accreditation organization that is a member of the International Laboratory Accreditation Cooperation (ILAC) and/or the Asia Pacific Laboratory Accreditation Cooperation (APLAC).

6. Appraisal organizations must adhere to the principles of independence, objectivity, and scientific rigor in their activities and bear legal responsibility for the accuracy of the appraisal results.

Article 12. Designation of appraisal organizations

1. The designation of appraisal organizations is carried out by Ministries and sectors.

2. Ministries and sectors shall specify the procedures and formalities for designating appraisal organizations and implement the designation of organizations capable of conducting quality appraisals of machinery and equipment in the fields under their assigned management based on the following documents:

a) Circular No. 09/2009/TT-BKHCN dated April 8, 2009, of the Ministry of Science and Technology guiding the requirements, procedures, and formalities for designating conformity assessment organizations, and Circular No. 11/2011/TT-BKHCN dated June 30, 2011, of the Ministry of Science and Technology amending and supplementing certain provisions of Circular No. 09/2009/TT-BKHCN dated April 8, 2009, guiding the requirements, procedures, and formalities for designating conformity assessment organizations.

b) Circular No. 27/2007/TT-BKHCN dated October 31, 2007, of the Ministry of Science and Technology guiding the signing and implementation of Agreements and Mutual Recognition Arrangements for Conformity Assessment Results.

c) Circular No. 26/2013/TT-BKHCN dated November 15, 2013, of the Ministry of Science and Technology stipulating the requirements, procedures, and formalities for designating foreign conformity assessment organizations to conduct conformity assessments of products and goods according to national technical regulations issued by the Ministry of Science and Technology.

3. Ministries and sectors are responsible for publicly announcing on their electronic portals information about designated appraisal organizations so that relevant state agencies, enterprises, organizations, and individuals can be informed and make selections. Basic information includes: name of the organization, address, phone number, email, fax, website, designated appraisal fields, sample appraisal certificates, and signatures on appraisal certificates.

Article 13. Inspection and Handling of Violations

1. Organizations, enterprises, institutions, and individuals related to the importation of used machinery, equipment, and production lines shall be subject to inspection by competent state agencies on their compliance with the provisions of this Circular.

2. Any violation of the provisions set forth in this Circular, depending on the nature and extent, shall be handled according to current laws.

Article 14. Implementation Organization

1. Ministries, sectors, and localities shall cooperate with the Ministry of Science and Technology to monitor and guide the importation of used machinery, equipment, and production lines within their assigned management areas.

2. Ministries and sectors shall organize the designation of appraisal organizations within their management areas and submit lists along with information about designated appraisal organizations to the Ministry of Science and Technology for consolidation.

3. The Ministry of Planning and Investment shall be responsible for publishing and regularly updating the list of machinery, equipment, and production lines domestically produced.

4. The Ministry of Science and Technology shall be responsible for publishing the list of used machinery, equipment, and production lines prohibited from importation from countries that have announced their removal due to obsolescence, poor quality, and environmental pollution.

5. The General Department of Customs shall implement the procedures for importing used machinery, equipment, and production lines in accordance with the provisions of this Circular.

6. During the process of importing used machinery, equipment, and production lines, if there is disagreement regarding the determination of the sector and import conditions, enterprises must submit a request letter along with relevant documentation to the Ministry of Science and Technology for consideration and resolution.

7. In cases where used machinery, equipment, and production lines do not meet the usage time requirements but have been repaired and refurbished to satisfy remaining quality requirements as stipulated in Articles 6 and 7 of this Circular, and meet safety, energy efficiency, and environmental protection requirements, the Ministry of Science and Technology will take the lead and coordinate with relevant ministries and sectors to consider and resolve such cases.

8. The Ministry of Science and Technology shall assign the Department of Evaluation, Appraisal, and Technology Inspection to serve as the focal point for implementing this Circular.

Article 15. Effective Date

1. This Circular shall take effect from September 1, 2014.

2. Transitional provisions:

In cases where purchase contracts have been signed and goods have been loaded onto transportation means before the date this Circular takes effect, they shall not be subject to the regulations of this Circular.

3. During implementation, if there are any difficulties, ministries, ministerial-level agencies, and government-affiliated agencies, organizations, and individuals should report them to the Ministry of Science and Technology for appropriate amendments and supplements./.