Circular No. 33/1999/TT-BTM guiding the implementation of Government Decree No. 20/1999/NĐ-CP dated April 12, 1999 on trading in goods inspection services.

CIRCULAR

Guidelines for Implementing Decree No. 20/1999/NĐ-CP

dated April 12, 1999 of the Government on Trading in Goods Inspection Services

__________________________

Pursuant to Decree No. 20/1999/NĐ-CP dated April 12, 1999 of the Government on Trading in Goods Inspection Services, hereinafter referred to as Decree No. 20/1999/NĐ-CP, the Ministry of Trade guides certain specific points for uniform implementation as follows:

I. OBJECTS AND CONDITIONS FOR TRADING IN GOODS INSPECTION SERVICES

1. Objects of trading

Only the following objects are allowed to trade in goods inspection services:

a) Vietnamese enterprises belonging to various economic sectors that have been granted a Business Registration Certificate for trading in goods inspection services by the competent authority;

b) Enterprises with foreign investment capital that have been granted an Investment License for trading in goods inspection services by the competent authority;

c) Branches of foreign inspection companies that have been granted a License to Establish in Vietnam to trade in goods inspection services by the competent authority.

The trading objects of goods inspection services mentioned in clauses a, b, and c above are collectively referred to as traders trading in goods inspection services.

2. Conditions for trading

Traders trading in goods inspection services must meet the following conditions:

a) Must be a business entity established in accordance with the provisions of the law;

b) Must be a business entity specializing in trading in goods inspection services, not part of the organizational system of non-specialized business entities in goods inspection services.

II. SCOPE OF BUSINESS AND PRINCIPLES OF GOODS INSPECTION ACTIVITY

1. Scope of business

The scope of business of traders trading in goods inspection services is as follows:

a) Vietnamese enterprises trading in goods inspection services shall carry out inspections and issue Inspection Certificates for goods within the fields specified in their Business Registration Certificate;

b) Enterprises trading in goods inspection services with foreign investment capital shall carry out inspections and issue Inspection Certificates for goods within the fields specified in their Investment License;

c) Branches of foreign goods inspection companies shall carry out inspections and issue Inspection Certificates for goods within the fields specified in their License to Establish Branches in Vietnam.

2. Principles of inspection activity

Inspection activities shall be carried out according to the following principles:

a) Traders trading in goods inspection services shall carry out inspections and issue inspection certificates for goods in the following cases:

- At the request of the parties involved in a sales contract for goods inspection;

- At the request of one or more parties involved in a sales contract for goods inspection;

- At the request of individuals or organizations for goods inspection;

- At the request of state agencies with authority for goods inspection to perform official duties.

b) Inspections must be conducted according to appropriate technical procedures and ensure independence, neutrality, objectivity, scientific accuracy.

c) Traders trading in goods inspection services shall not inspect and issue inspection certificates for goods related to their own economic rights and interests.

Inspectors shall not inspect goods related to their own economic rights and interests.

III. INSPECTION OF GOODS LISTED IN THE NATIONAL QUALITY CONTROL CATALOGUE

1. For goods listed in the National Quality Control Catalogue, the consignor must request traders trading in goods inspection services to conduct inspections of goods in accordance with the national quality control requirements and pay inspection fees.

2. In cases where the parties involved in a sales contract agree to request inspections and the contents and results of the Inspection Certificate comply with the national regulations on goods listed in the National Quality Control Catalogue, such Inspection Certificate shall be deemed as an Inspection Certificate issued for national quality control purposes.

IV. INSPECTION OF GOODS AT THE REQUEST OF STATE AUTHORITIES WITH AUTHORITY TO PERFORM PUBLIC DUTIES

1. When there is a request for inspection of goods related to the performance of public duties, the state agency with authority shall select a trader trading in goods inspection services to carry out the inspection and pay the inspection fee.

Traders trading in goods inspection services carrying out inspections at the request of state authorities to perform public duties must be enterprises meeting the conditions and standards determined by the state agency with authority in accordance with Clause 3, Article 16 of Decree No. 20/1999/NĐ-CP.

2. In case the consignor does not recognize the results of the Inspection Certificate, the consignor has the right to request an arbitration organization to designate another enterprise trading in goods inspection services mentioned in Clause 1 of this Section to conduct the inspection again. The result of the inspection by the enterprise trading in goods inspection services designated by the arbitrator shall be final. Arbitration fees shall be borne by the party requesting the inspection.

V. DELEGATION OF GOODS INSPECTION

1. Traders trading in goods inspection services may delegate other traders trading in goods inspection services to carry out inspections of goods. The delegation of inspection shall be carried out according to the agreement between the delegating party and the delegated party.

2. Foreign inspection organizations that have not yet been permitted to operate in Vietnam but are requested to conduct inspections in Vietnam must delegate a trader trading in goods inspection services mentioned in Clause 1 of Section I of this Circular to carry out the inspection. The delegation of inspection shall be carried out according to the agreement between the delegating party and the delegated party.

VI. STANDARDS FOR INSPECTORS; SIGNATURES AND SEALS IN GOODS INSPECTION CERTIFICATES

1. Standards for inspectors

a) The standards for inspectors shall be implemented in accordance with Clause 1, Article 7 of Decree No. 20/1999/NĐ-CP.

b) For those who have been inspectors for five years or more before the effective date of Decree No. 20/1999/NĐ-CP, the Director of the trader trading in goods inspection services has the authority to recognize these persons as inspectors.

2. Signatures and seals in the Inspection Certificate for Goods

a) The Inspection Certificate for Goods must bear the signature of the authorized representative of the trader providing inspection services, the signature of the inspector, and the full name of the signatories must be clearly stated.

b) The signature of the authorized representative of the trader providing inspection services shall be placed at the bottom right of the Inspection Certificate for Goods; the signature of the inspector shall be placed at the bottom left of the Inspection Certificate for Goods.

c) The business seal affixed to the Inspection Certificate for Goods is the business seal registered with the competent police authority by the trader and shall be stamped next to the signature of the authorized representative of the trader providing inspection services, and it is only valid for the Inspection Certificate for Goods issued by that trader.

The aforementioned business seal has a rectangular shape, measuring 6 cm in length and 2 cm in width, with the phrase "On behalf of the company" at the top, and below it may have an emblem (if any) and the commercial name of the trader providing inspection services.

VII. IMPLEMENTATION PROVISIONS

This Circular takes effect 15 days from the date of signature.

2. Every six months, before July 15 and before January 15 of the following year, the trader providing inspection services shall be responsible for submitting a report on the operation status of the trader to the Department of Commerce of the province or city where the main office of the trader is located, for consolidation and reporting to the Ministry of Commerce in accordance with Article 5 of Decree No. 20/1999/NĐ-CP.