Circular No. 23/2015/TT-BKHCN on the importation of second-hand machinery, equipment, and production lines

CIRCULAR

Regulations on the import of machinery, equipment, production lines that have been usedg

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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,ngtechnology;

Decree No. 187/201Decree No. 3/2013/NĐ-CP dated November 20, 2013 of the Government detailing the implementation of the Law on Trade regarding domestic and international trading activities and agency purchasing, selling, processing, and transshipment of goods,June 2024;Clause 5, Clause 15, Appendix I; Point 2, Clause 1; Point 3, Clause 2, Appendix II; Clause 1, Appendix III; Point 1, Clause 1, Appendix IV;Coat international trade and agency purchasing, selling, processing, and transshipment of goods,shallAnimal breeds permitted for production and trade in Vietnam

Considering the proposal of the Director of the Department of Appraisal, Review, and Technical Inspection;June 2024;and the Director of the Legal Department,

AND trthe Minister of Science and Technology issues this Circular on the import of machinery, equipment, and production lines that have been used.June 2024;1. This Circular stipulates criteria, documentation, and procedures for importing machinery, equipment, and production lines that have been used, including spare parts, accessories, and replacement components that have been used and are classified under Chapters 84 and 85 in the List of Goods for Export and Import of Vietnam issued together with Circular No. 103/2015/TT-BTC dated July 1, 2015 by the Ministry of Finance, for use in domestic production and business activities and not included in the Lists of Prohibited Imports prescribed by the Government, the Prime Minister, or relevant Ministries and equivalent agencies.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

2. This Circular does not apply to the following cases of importing machinery, equipment, and production lines that have been used:

a) Transshipment; transfer;

b) Temporary import for re-export (except for temporary import for re-export to fulfill processing contracts; cases of import for production and construction of investment projects); temporary export for re-import;

c) Implementation of service repair and maintenance contracts with foreign entities;

d) Acceptance of technology transfer within enterprises in export processing zones, export-oriented enterprises (not located in export processing zones), and between enterprises in export processing zones;

e) Machinery and equipment listed in the Catalogue of Products and Commodities Capable of Causing Safety Hazards (Catalogue Group 2) issued by relevant Ministries and Agencies in accordance with the Law on Product Quality;

f) Machinery and equipment in the printing industry, HS codes 84.40 to 84.43;

g) Cases permitted for import by the Government or the Prime Minister.

1. Organizations and individuals (hereinafter referred to collectively as enterprises) importing machinery, equipment, and production lines that have been used; importing spare parts, accessories, and replacement components that have been used.

2. Organizations conducting technical inspections shall perform technical inspections of machinery, equipment, and production lines that have been used in accordance with this Circular.

Article 2. Applicability

This Circular applies to:

3. State management agencies related to the import of machinery, equipment, and production lines that have been used as stipulated in Article 1 of this Circular.

Machinery, equipment

Production lines

Article 3. Explanation of Terms

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

1. Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…June 2024;are systems of machinery, equipment, tools, and facilities arranged and installed according to a diagram and technological process to ensure synchronized operation for product manufacturing. 1. Not included in the List of second-hand technological production lines that are obsolete, low-quality, and cause environmental pollution published by the exporting country.

2. Spare parts, accessories, replacement componentsngLaw are parts or assemblies constituting machinery and equipment imported for replacement or repair to ensure or improve the efficiency and capacity of machinery, equipment, and production lines in operation.

3. LiUsed spare parts, accessories, replacement components are parts or assemblies removed from machinery, equipment, and production lines that have been used.

4. Used spare parts, accessories, replacement componentspolicies are spare parts, accessories, and replacement components that have been removed from machinery, equipment, and production lines that have been used. Equipment age (in years)

5. is the period determined from the year of manufacture to the year of import of machinery, equipment, and production lines that have been used. The year of import is the year when the goods arrive at a Vietnamese port. Machinery, equipment, production lines that have been used

6. Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…June 2024;(hereinafter referred to as used equipment ) is machinery, equipment, and production lines that have been assembled and operated after leaving the factory.is machinery, equipment, and production lines that have been assembled and put into operation after leaving the factory.

Article 4. Principles for Managing Imported Used Equipment

1. Imported used equipment must comply with the regulations of the Government, the Prime Minister, and Ministries and ministerial-level agencies regarding the importation of goods.

2. For imported used equipment that has been regulated in the documents of Ministries and ministerial-level agencies, the provisions of those Ministries and ministerial-level agencies shall apply; in other cases, this Circular's provisions shall be followed.

3. It is not permitted to import used equipment that has been announced by countries to be phased out due to obsolescence, poor quality, and environmental pollution, as published by the Ministry of Science and Technology on its electronic portal.

4. Enterprises are encouraged to conduct inspections of used equipment from exporting countries. In cases where goods arrive at Vietnamese ports before inspection, the importing enterprise may apply the regime of returning goods for storage according to the provisions of this Circular.

Chapter II

REQUIREMENTS FOR IMPORTING USED EQUIPMENT

Article 5. General Requirements

Used equipment when imported must meet the requirements for safety, energy efficiency, and environmental protection as stipulated by current laws.

Article 6. Specific Requirements

1. Used equipment can be imported if it meets the following criteria:

a) The age of the equipment does not exceed ten years;

b) It is produced in accordance with standards that comply with the National Technical Regulations (QCVN) or National Standards (TCVN) of Vietnam, or are consistent with the safety, energy efficiency, and environmental protection standards of G7 countries.

2. For used equipment belonging to investment projects, including new investment projects and expanded investment projects, in the following cases:

a) Projects subject to investment policy decisions;

b) Projects required to complete investment registration procedures but not subject to investment policy decisions.

If the project's investment dossier includes a list of used equipment and has been approved by the competent authority for investment policy decisions, the investment registration certificate will be issued according to the Investment Law without applying the provisions of Clause 1 of Article 6 of this Circular.

When necessary, the competent authority for investment policy decisions and the investment registration authority may seek technical assessment opinions from specialized science and technology agencies regarding used equipment in the project dossier before making investment policy decisions or issuing investment registration certificates.

3. For used spare parts, accessories, and replacement components: They can only be imported when the manufacturing enterprise has a need for repair or replacement of equipment currently in operation at the enterprise. The manufacturing enterprise may import directly or authorize another enterprise to carry out the importation.

4. In cases deemed necessary, depending on the specific characteristics of each industry or sector under their management, the Ministers of Ministries and Heads of ministerial-level agencies may issue regulations setting lower equipment age requirements than those specified in Point a, Clause 1, Article 6 of this Circular (lower than ten years) and notify the Ministry of Science and Technology for unified management.

Chapter III

DOCUMENTATION AND PROCEDURES FOR IMPORTING AND INSPECTING USED EQUIPMENT

Article 7. Documents for Importing Used Equipment

Documents for importing used equipment: In addition to import documents as prescribed by the Customs Law, enterprises must supplement one set of documents including:

1. For used equipment under investment projects as stipulated in Clause 2 of Article 6 of this Circular:

- One certified copy of the Investment Decision or Investment Registration Certificate accompanied by one original list of used equipment planned to be imported in the project dossier.

2. For other cases of importing used equipment (including cases where the investment project is approved according to the Investment Decision or Investment Registration Certificate as prescribed by the Investment Law without a list of used equipment planned to be imported): Technical documentation showing the year of production and production standards of the imported used equipment, including one of the following documents:

a) One original Manufacturer's Confirmation regarding the year of production and production standards of the used equipment in accordance with Clause 1 of Article 6 of this Circular;

b) One original Inspection Certificate from an inspection organization as stipulated in Clause 2 of Article 10 of this Circular regarding the year of production and production standards of the used equipment in accordance with Clause 1 of Article 6 of this Circular.

Article 8. Procedures for Importing Used Equipment

1. The customs authority shall base on the documents submitted by the enterprise to determine whether the used equipment meets the conditions for importation as prescribed in Article 6 of this Circular and implement clearance procedures as prescribed.

2. Bringing goods for storage:

a) In cases where used equipment is imported but at the time of importation, there are not yet sufficient documents as prescribed in Article 7 of this Circular, the enterprise may bring the goods for storage after submitting to the customs authority the following documents:

- One original Application for Inspection Registration with confirmation of registration from the inspection organization as stipulated in Clause 2 of Article 10 of this Circular;

- One original Request for Bringing Goods for Storage in the format number 09/BQHH/GSQL Appendix V of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Ministry of Finance on customs procedures; customs inspection and supervision; export tax, import tax, and tax management for exported and imported goods.

b) Within a period not exceeding thirty working days from the date of bringing goods for storage, the enterprise must submit to the customs authority the inspection certificate and other committed documents. The customs authority will only process clearance when the used equipment meets the requirements as prescribed in Articles 6 and 7 of this Circular.

In cases where the inspection results do not meet the requirements as prescribed in Clause 1 and Clause 4 of Article 6 of this Circular, the competent authority shall handle according to the forms prescribed in Article 14 of this Circular.

Used equipment brought for storage can only be put into use or installed after completing the clearance procedures.

c) Used equipment under investment projects as stipulated in Clause 2 of Article 6 of this Circular can only be used for the approved or registered project, and cannot be transferred to another project or another enterprise, except in cases of bankruptcy, dissolution, or cessation of operations of the enterprise.

Article 9. Documents and Procedures for Importing Used Spare Parts, Accessories, and Replacement Components

1. Import Documents: In addition to the import documents prescribed by the Customs Law, the importing enterprise must supplement one set of documents including:

a) One original copy of the Enterprise's Statement explaining the necessity to import spare parts, accessories, and replacement components to serve the repair and replacement needs for used equipment currently in operation at the enterprise, while committing to import sufficient quantities and types required and to use them for their intended purposes;

b) In cases where the enterprise imports under authorization, it must supplement one original copy of the Authorization Document issued by the manufacturing enterprise;

c) One copy of the Technical Documentation of the spare parts, accessories, and replacement components (if available).

2. The customs authority shall process clearance procedures when the documents meet the requirements stipulated in Clause 3 of Article 6 and Clause 1 of this Article.

Article 10. Inspection of Used Equipment

1. The inspection certificate referred to in Article 6 of this Circular, in addition to basic information of a certificate, the conclusion section must include the following contents:

a) Year of production and name, brand, serial number, model, manufacturer's name of the used equipment;

b) Conclusion on the compliance of the production standards of the used equipment with the provisions of National Technical Regulations (QCVN) or national standards (TCVN) of Vietnam or compliance with the Standards of G7 countries regarding safety, energy efficiency, and environmental protection.

2. Inspection Organizations:

a) Inspection organizations issuing the inspection certificates referred to in Clause 1 of this Article include:

- Domestic inspection organizations registered for operation according to the Trade Law, having the function of inspecting machinery and equipment;

- Foreign inspection organizations registered for operation according to the laws of the country where they operate, having the function of inspecting machinery and equipment.

b) Inspection organizations shall send information to the Ministry of Science and Technology for consolidation and publication on the Ministry’s electronic portal. Information includes: Name of organization, address, telephone, fax, website, copy of business registration certificate according to the Trade Law (for domestic inspection organizations), copy of the permit for inspection activities issued by the competent authority of the foreign country where the organization operates accompanied by a legalized translation in Vietnamese (for foreign inspection organizations); copies of sample inspection registration forms; copies of sample inspection certificates.

3. Validity Period of Inspection Certificates:

For inspections conducted before the goods arrive at a Vietnamese port, the inspection certificate remains valid if it was issued for the used equipment not more than six months from the date of issuance to the date the goods arrive at the Vietnamese port.

Chapter IV

IMPLEMENTATION

Article 11. Responsibilities of the Ministry of Science and Technology

1. To take the lead and coordinate with ministries, ministerial-level agencies in managing the importation of used equipment as prescribed in this Circular and related documents.

2. To periodically publish on the Ministry’s electronic portal a list of used equipment that has been phased out by other countries due to obsolescence, poor quality, and environmental pollution.

3. To coordinate with ministries, ministerial-level agencies, provincial People's Committees, and centrally-administered municipal People's Committees to organize inspections of compliance with laws on safety, energy conservation and efficiency, and environmental protection for used equipment imported by enterprises upon commencement of operations, and handle violations according to current laws.

4. To coordinate with the General Department of Customs annually to compile statistics on the situation of importing used machinery, equipment, and production lines (name of importing enterprise, contact address, field of use, country of manufacture, import value), cases of forced re-exportation and penalties, and report to the Prime Minister.

5. To consolidate and publish a list of domestic and foreign inspection organizations meeting the requirements stipulated in Clause 2 of Article 10 of this Circular (name, address, website, telephone, fax, sample inspection registration form, sample inspection certificate) on the Ministry’s electronic portal.

6. The Ministry of Science and Technology assigns the Department of Evaluation, Appraisal, and Technological Inspection to be responsible for implementing this Circular.

Article 12. Responsibilities of enterprises

1. Strictly comply with the regulations on importing used equipment as stipulated in this Circular and related legal normative documents.

2. Enterprises importing used equipment for commercial purposes (not for direct use by the importing enterprise) may only sell the goods after completing the customs clearance procedures as prescribed in Article 8 of this Circular.

3. Shall be subject to inspection by competent state management agencies regarding safety, energy efficiency, and environmental protection after the equipment has been cleared through customs, during installation and operation, and shall be subject to penalties if they violate the provisions of this Circular and related legal normative documents.

Article 13. Special Cases

In cases where the age of the used equipment exceeds ten years but the enterprise needs to import it to ensure the continuity of production and business operations, based on the dossier and the enterprise's recommendation, the Ministry of Science and Technology will coordinate with relevant ministries and sectors to consider and decide.

Article 14. Handling Violations

1. In cases where the used equipment, upon arrival at the port or border gate, is appraised as not meeting the requirements specified in Clause 1, Article 6 of this Circular, the enterprise must bear the form of penalty for violation as prescribed by current laws. During the process of handling violations, the competent authority decides whether to allow re-appraisal at the request of the enterprise.

2. In cases where the used equipment has been cleared through customs and installed for use, and during operation does not meet the requirements for safety, energy efficiency, and environmental protection, the enterprise must bear the consequences as prescribed by current laws.

Article 15. Transitional Provisions

In cases where purchase and sale contracts have been signed and used equipment imported has been loaded onto means of transport before the effective date of this Circular, such cases are not subject to the provisions of this Circular.

Article 16. Effective Date

1. This Circular takes effect from July 1, 2016.

2. From the date this Circular takes effect, the following documents shall cease to be valid: Circular No. 20/2014/TT-BKHCN dated July 15, 2014 of the Minister of Science and Technology on the importation of used machinery, equipment, and production lines; Notification No. 2527/TB-BKHCN dated September 6, 2012 of the Ministry of Science and Technology on the temporary suspension of the importation of used machinery, equipment, and production lines.

3. In cases where legal normative documents cited in this Circular are amended, supplemented, or replaced, implementation shall be carried out according to the new documents.

4. During the implementation period, if there are any difficulties, ministries, ministerial-level agencies, government agencies, organizations, and individuals should report to the Ministry of Science and Technology to amend and supplement this Circular appropriately./.