Circular No. 42/2013/TT-BCT stipulates the management and control of industrial precursor substances in the industrial sector.

CIRCULAR

Regulations on management and control of precursor chemicals in the industrial sector

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THE MINISTER OF INDUSTRY AND TRADE

Based on the Law on Prevention and Control of Narcotics 2000 and the Law Amending and Supplementing Certain Provisions of the Law on Prevention and Control of Narcotics 2008, and related guiding documents;

The Government issues this Decree amending and supplementing the list of narcotic substances and precursors promulgated together with Decree No. 57/2022/NĐ-CP dated August 25, 2022 of the Government stipulating the lists of narcotic substances and precursors.

Based on Decree No. 80/2001/NĐ-CP dated November 5, 2001 of the Government guiding lawful activities related to narcotics within the country; Decree No. 58/2003/NĐ-CP dated May 29, 2003 of the Government stipulating the control of import, export, and transit of narcotic substances, precursors, addictive drugs, and psychotropic substances; Decree No. 82/2013/NĐ-CP dated July 19, 2013 of the Government promulgating lists of narcotic substances and precursors;

Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

At the proposal of the Director of the Chemicals Administration;

The Minister of Industry and Trade shall specify detailed regulations on the management and control of precursors in the industrial sector.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular stipulates production, business, export, import, use, storage; record-keeping, reporting, inspection regimes for precursors in the industrial sector (hereinafter referred to as industrial precursors).

2. This Circular does not regulate temporary importation and re-exportation of industrial precursors.

Industrial precursors that have been granted an Import Permit pursuant to this Circular are exempt from obtaining written approval from the Ministry of Industry and Trade regarding quality standards and technical standards when importing.

Article 2. Applicability

This Circular applies to organizations and individuals producing, trading, exporting, importing, using, and storing industrial precursors in Vietnam.

Article 3. Explanation of Terms

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

1. Precursors in the industrial sector are chemical substances used as raw materials, solvents, catalysts in production, scientific research, analysis, testing in various industries, and are indispensable chemicals in the process of manufacturing narcotics.

2. Copy is a certified copy or stamped with confirmation by the organization or individual (in cases where applications are submitted via postal service), a copy accompanied by the original for verification (in cases where applications are submitted in person), a scanned copy from the original (in cases where applications are submitted via electronic means).

Article 4. List of Industrial Precursors

1. The list of industrial precursors is specified in Appendix 1 attached to this Circular.

2. The list of industrial precursors is classified according to their level of danger for appropriate management and control, including Group 1 precursors and Group 2 precursors:

a) Group 1 industrial precursors consist of essential chemicals used in the manufacture of narcotics.

b) Group 2 industrial precursors consist of chemicals used as reactants or solvents in the manufacture of narcotics.

Article 5. Responsibilities of Organizations and Individuals

1. Organizations and individuals producing and trading in industrial precursors must comply with the conditions for producing and trading in industrial precursors as prescribed by laws on chemicals.

2. Organizations and individuals trading in industrial precursors must verify the origin, place of manufacture, and labeling of precursors; maintain complete information about customers as stipulated in this Circular. They are responsible for informing buyers about the dangers of precursors and measures to prevent their loss or diversion for the manufacture of narcotics.

3. Organizations and individuals exporting and importing industrial precursors must be responsible for the accuracy of the data proposed for export and import; manage and use imported precursors strictly for their intended purpose and in accordance with relevant laws.

4. Comply with periodic and ad hoc reporting requirements as stipulated in this Circular.

5. Observe inspections conducted by competent authorities.

6. In case of loss or diversion of industrial precursors during operations, organizations and individuals involved in production, trading, export, import, use, and storage of precursors must immediately report to the nearest police station and also inform the competent state authority within their jurisdiction.

Chapter II

PRODUCTION, BUSINESS, USE, EXPORT, IMPORT, HANDOVER, STORAGE OF INDUSTRIAL PRECURSORS

Section 1

PRODUCTION, BUSINESS, USE OF INDUSTRIAL PRECURSORS

Article 6. Production of Industrial Precursors

1. Organizations and individuals producing industrial precursors must meet the conditions for chemical production in the industrial sector as stipulated in Clause 4, Article 1 of Decree No. 26/2011/ND-CP dated April 8, 2011, of the Government amending and supplementing certain articles of Decree No. 108/2008/ND-CP dated October 7, 2008, of the Government detailing and guiding the implementation of certain provisions of the Law on Chemicals.

2. During the production process, organizations and individuals producing industrial precursors must not allow precursors to be lost for the purpose of manufacturing narcotic drugs and shall bear legal responsibility for the loss of precursors.

Article 7. Trading in Industrial Precursors

Organizations and individuals trading in industrial precursors must meet the requirements for business conditions for chemicals in the industrial sector as stipulated in Clause 4, Article 1 of Decree No. 26/2011/ND-CP. During the trading process, they must present documents and papers upon request for inspection by competent authorities and ensure business conditions for chemicals:

1. Business registration certificate or Investment License or Business Registration Certificate issued by competent state agencies, which include the chemical business activity.

2. Certificates or documents proving that direct contact persons with precursors at the trading premises, including the person in charge, salesperson, delivery person, and warehouse keeper, have been trained in chemical safety.

3. The trading location and display area must ensure the quality of industrial precursors according to the laws on product and commodity quality. Storage areas for precursors or storage zones must meet technical safety requirements and have necessary warnings at the storage locations according to the Law on Chemicals and this Circular.

4. Trading premises for industrial precursors must comply with fire prevention and environmental protection regulations as prescribed by law.

5. Industrial precursors must have complete product labels as required by law. Purchase and sale documents for precursors must clearly indicate the place of production, importation, or supply. Organizations and individuals importing precursors from abroad into Vietnam must have relevant documents related to the purchase and sale of precursors such as contracts; sales agreements; memorandums; commercial invoices.

6. Records of industrial precursors must not be combined with other goods. The record of precursors includes information: Full name of customer; main office address; telephone number; fax number; name of precursor; quantity purchased or sold; inventory quantity; purpose of use.

7. There must be a Control Form for the purchase and sale of toxic chemicals, confirmed by both buyer and seller, as required by the Law on Chemicals for industrial precursors such as Sulfuric Acid and Hydrochloric Acid. The Control Form for the purchase and sale of toxic chemicals must be retained by the seller and buyer for at least five years and must be presented when requested by competent authorities.

Article 8. Use of Industrial Precursors

1. Organizations and individuals using industrial precursors must comply with regulations on rights and obligations, storage, and preservation of chemicals as prescribed by the Law on Chemicals and implement the following regulations:

a) Use industrial precursors for their intended purposes;

b) Maintain records of the use of industrial precursors, not combined with other goods. The record of precursors includes information: Full name of customer; main office address; telephone number; fax number; name of precursor; quantity purchased; concentration or amount used; inventory quantity; purpose of use;

c) Legal documents and invoices clearly indicating the source of production, importation, or supply of industrial precursors; there must be warehouse outtake and intake forms;

d) During the use of industrial precursors for production, organizations and individuals must establish consumption quotas for precursors per unit of product.

2. Organizations and individuals must have a commitment not to lose precursors during use for the purpose of manufacturing narcotic drugs and shall bear legal responsibility for the loss of precursors.

Section 2

FILES AND PROCEDURES FOR ISSUING AND EXTENDING PERMITS FOR EXPORTING AND IMPORTING INDUSTRIAL PRECURSORS

Article 9. Exporting and Importing Industrial Precursors

1. Organizations and individuals exporting and importing industrial precursors shall comply with the provisions of Government Decree No. 58/2003/NĐ-CP dated May 29, 2003 on the control of import, export, and transit through Vietnam's territory of narcotics, precursors, addictive drugs, psychotropic substances, and the provisions of this Circular.

2. The Ministry of Industry and Trade is the competent authority to issue permits for exporting and importing industrial precursors.

3. Organizations and individuals within Export Processing Zones when importing precursors from domestic enterprises must have a permit from the Ministry of Industry and Trade. Organizations and individuals when exporting precursors from domestic areas to Export Processing Zones do not need to apply for a permit from the Ministry of Industry and Trade.

Article 10. Documents and Procedures for Issuing Export and Import Permits

1. Organizations and individuals requesting issuance of export and import permits for industrial precursors shall prepare a set of documents to be sent to the Ministry of Industry and Trade (Chemical Administration Department) via postal service, direct submission, or through the internet.

2. Documents for Requesting Export and Import Permits

a) An application form for exporting or importing industrial precursors according to the model prescribed in Appendix 2 attached to this Circular;

b) A purchase and sale contract for industrial precursors or one of the following documents: Contract; sales agreement, purchase agreement; memorandum; commercial invoice. In cases where organizations and individuals submit documents via postal service, direct submission, or electronic submission, they must submit copies in accordance with Clause 2, Article 3 of this Circular.

3. Permit Issuance Procedure

a) If the submitted documents are incomplete or invalid, within no more than 3 (three) days, the Chemical Administration Department must notify the organization or individual to complete the documents once. The notification period does not count towards the permit issuance time specified in Point b of this Clause;

b) Within 7 (seven) working days from the date of receiving complete and valid documents as stipulated in Clause 2 of this Article, the Chemical Administration Department will review the documents and submit them to the Ministry's leadership for issuance of export and import permits. If the permit is not issued, a written response with the reasons must be provided.

Article 11. Validity Period of Export and Import Permits

1. For Group 1 industrial precursors, the export and import permit is issued for each transaction based on the commercial invoice or purchase and sale contract for precursors; sales agreement, purchase agreement; memorandum. The export and import permit has a validity period of 3 (three) months from the date of issuance.

2. For Group 2 industrial precursors, the export and import permit is issued based on the purchase and sale contract for precursors; sales agreement, purchase agreement; memorandum; commercial invoice. The export and import permit has a validity period of 6 (six) months from the date of issuance.

3. In cases where organizations and individuals simultaneously export and import both Group 1 and Group 2 industrial precursors, only one permit is issued with a validity period of 6 (six) months from the date of issuance.

4. The format of the export and import permit is prescribed in Appendix 3 attached to this Circular.

Article 12. Extension of Export and Import Permits

1. In cases where the validity period stated in the export and import permit as stipulated in Article 11 of this Circular has expired but the export and import activities have not been completed or fully executed, the organization or individual must request the Ministry of Industry and Trade (Chemical Administration Department) to consider an extension.

2. Organizations and individuals requesting an extension of the export and import permit for industrial precursors shall prepare a set of documents to be sent to the Ministry of Industry and Trade (Chemical Administration Department) via postal service, direct submission, or through the internet.

3. Documents for Requesting Extension of Export and Import Permits

a) An application form for extension according to the model prescribed in Appendix 4 attached to this Circular;

b) A copy of the export and import permit;

c) Organizations and individuals exporting and importing Group 1 industrial precursors must attach a report on the situation of export, import, purchase, sale, and use of the most recent export and import permit issued in the year along with the documents.

4. Extension Procedure

a) If the submitted documents are incomplete or invalid, within no more than 3 (three) days, the Chemical Administration Department must notify the organization or individual to complete the documents once. The notification period does not count towards the permit issuance time specified in Point b of this Clause;

b) Within 5 (five) working days from the date of receiving complete and valid documents as stipulated in Clause 3 of this Article, the Chemical Administration Department will review the documents and submit them to the Ministry's leadership for extension of the export and import permit. If the extension is not granted, a written response with the reasons must be provided.

5. Duration of Extension of Export and Import Permits

The duration of the extension of the export and import permit is 3 (three) months from the date the organization or individual submits the application for extension. The extension can only be implemented within the annual plan. The format of the extended export and import permit is prescribed in Appendix 5 attached to this Circular.

Article 13. Coordination in the issuance of export and import permits

Coordination in the issuance of export and import permits shall be carried out in accordance with the provisions of Clause 1, Article 8 of Decree No. 58/2003/NĐ-CP and Decision No. 52/2011/QĐ-TTg dated September 21, 2011, issued by the Prime Minister on the regulations for coordination in supervising lawful activities related to narcotics.

Article 14. Revocation of Export and Import Permits

1. Circumstances requiring the revocation of Export and Import Permits

a) Unauthorized alteration or modification of the content of the Permit;

b) Use of false documents or provision of inaccurate information in the application dossier for the Permit;

c) The organization or individual granted the Permit ceases operations or goes bankrupt.

2. The competent authority issuing the permit shall carry out the revocation of the issued Permit. The organization or individual whose Permit has been revoked shall have the responsibility to send the existing Permit to the issuing authority within seven working days from the date of the revocation decision.

Section 3

HANDOVER, RECEIPT, AND STORAGE OF PRECURSOR CHEMICALS

Article 15. Handover and Receipt of Precursor Chemicals

1. When handing over or receiving precursor chemicals, the delivering party and the receiving party must conduct checks and cross-referencing of the name, concentration, quantity, quality, batch number, and expiration date of the precursor chemicals.

2. The recipient must present their identity card, authorization letter for receipt of goods, and bear responsibility for the quantity, quality, and type of precursor chemicals during transportation and delivery to the person directly responsible for using and managing them.

3. After completing the handover and receipt of precursor chemicals, both parties must sign and clearly write their names on the warehouse exit and entry documents.

Article 16. Storage of Precursor Chemicals

1. Stored precursor chemicals must be kept in a separate area within the warehouse or a dedicated warehouse ensuring safety in accordance with current laws and relevant technical standards and regulations.

2. The warehouse storing precursor chemicals must have a safety chemical rules board displayed prominently, with danger signs hung in visible locations, and a warning system appropriate to the level of danger, fully reflecting the hazardous characteristics of the precursor chemicals.

3. There must be monitoring equipment for safety or necessary equipment to reduce the hazardous properties of precursor chemicals such as ventilation, temperature control, sun protection, fire prevention, moisture protection, lightning protection, and static electricity prevention.

4. Stored precursor chemicals must be labeled according to current laws regarding labeling. The labels must ensure mechanical and chemical durability throughout the storage period of the precursor chemicals.

5. Separate records must be maintained for the quantities of precursor chemicals entering and leaving the warehouse, being used, and stored, without mixing with other goods or materials. During storage, necessary measures must be taken to prevent loss or theft of precursor chemicals. In case of loss or theft, immediate reports must be made to the nearest police station and the competent state authorities within the management area.

Chapter III

RECORDING, DOCUMENTATION, REPORTING, AND INSPECTION OF PRECURSOR CHEMICALS

Article 17. Recording and Documentation System

1. Organizations and individuals must maintain separate ledgers to track the production, trading, export, import, use, and storage of precursor chemicals.

2. Warehouse exit and entry forms for precursor chemicals of production, trading, export, import, use, and storage organizations and individuals must not be combined with other types of goods or materials.

3. The invoice and documentation system for buying and selling precursor chemicals must be implemented in accordance with current regulations. Any purchase or sale of precursor chemicals without invoices or documentation will be considered illegal trading and subject to legal penalties.

4. Information, customer lists, and dossiers on precursor chemicals must be retained for at least five years for Group 1 precursor chemicals and at least three years for Group 2 precursor chemicals, even if the organization or individual ceases activities related to precursor chemicals. If a precursor chemical business entity has multiple branches, the data must include all relevant information from those branches.

Article 18. Reporting System

1. Reports of organizations and individuals

a) Before December 20 each year, organizations and individuals producing precursor chemicals must submit a report on production status to the Ministry of Industry and Trade (Chemical Administration) following the model specified in Appendix 6 attached to this Circular;

b) Before June 20 and December 20 each year, organizations and individuals exporting, importing, using, and storing precursor chemicals must submit a report on export, import, use, and storage status to the Ministry of Industry and Trade (Chemical Administration) following the model specified in Appendix 7 attached to this Circular;

c) If an organization or individual engages in the same type of activity as stipulated in Points a and b of this Clause, they must submit a consolidated report on production, export, import, use, and storage status to the Ministry of Industry and Trade (Chemical Administration) following the models specified in Appendices 6 and 7, within the time frame specified in Point b of this Clause;

d) Before June 10 and December 10 each year, organizations and individuals trading in precursor chemicals must conduct an inventory and prepare a report on trading status to the Department of Industry and Trade under the management area according to the model specified in Appendix 8 attached to this Circular;

đ) Within ten working days from the completion of the export or import of Group 1 precursor chemicals, organizations and individuals must report statistics on the actual quantity and type of precursor chemicals imported and exported, along with their intended use, to the Ministry of Industry and Trade, and simultaneously send the report to the Ministry of Public Security for monitoring.

2. Reports from State Management Agencies

a) Before June 20 and December 20, the Department of Industry and Trade is responsible for reporting to the Ministry of Industry and Trade (Chemical Administration) on the trading status and inspection status of precursor chemicals of organizations and individuals under its management, as stipulated in Articles 7 and 19 of this Circular. The report model is specified in Appendix 9 attached to this Circular;

b) Annually, before June 30 and December 31, the Ministry of Industry and Trade (Chemical Administration) is responsible for reporting to the Prime Minister, the Chairman of the National Committee for HIV/AIDS and Drug Control, and the Ministry of Public Security on the management and control status of precursor chemicals as stipulated.

Article 19. Inspection of Industrial Precursors

1. Regular inspection and spot inspection of the situation of industrial precursor trading

a) The Department of Industry and Trade shall conduct regular annual inspections of organizations and individuals trading in industrial precursors within its jurisdiction as stipulated in Article 7 of this Circular;

b) In cases where violations of regulations on trading in precursors as set out in this Circular and related legal normative documents are discovered, the Department of Industry and Trade shall conduct spot inspections.

2. Inter-agency inspection of the operation of industrial precursors

a) The Ministry of Industry and Trade (Chemical Administration) shall take the lead and coordinate with relevant agencies to conduct regular annual inspections of the operations of organizations and individuals producing, trading, exporting, importing, using, and storing precursors across the country;

b) In cases where violations of regulations set out in this Circular and related legal normative documents are discovered, the Ministry of Industry and Trade (Chemical Administration) shall take the lead and coordinate with relevant agencies to conduct spot inspections.

Chapter IV

IMPLEMENTING PROVISIONS

Article 20. Responsibility for Implementation

1. The Chemical Administration shall be responsible for directing, guiding, inspecting, and urging the implementation of this Circular. It shall regularly organize training and seminars to enhance awareness among organizations and individuals involved in precursor activities across the country.

2. Departments of Industry and Trade shall be responsible for implementing regulations on the control of industrial precursors within their jurisdiction as stipulated in Decision No. 52/2011/QD-TTg and implement the provisions of Articles 7 and 19 of this Circular.

3. Market Management Forces

Inspect and control the circulation of industrial precursors in the market and handle administrative violations according to the law.

Article 21. Effective Date

1. This Circular takes effect from March 10, 2014.

2. This Circular replaces:

a) Decision No. 134/2003/QĐ-BCN dated August 25, 2003, issued by the Minister of Industry on the issuance of the list and management regulations for precursors used in the industrial sector;

b) Decision No. 04/2004/QĐ-BCN dated January 7, 2004, issued by the Minister of Industry on supplementing certain substances to the List of precursors used in the industrial sector issued pursuant to Decision No. 134/2003/QĐ-BCN;

c) Decision No. 41/2006/QĐ-BCN dated December 1, 2006, issued by the Minister of Industry amending Clause 6 and Sub-clause d of Clause 8 of the Management Regulations for precursors used in the industrial sector;

d) Decision No. 5041/QĐ-BCT dated October 12, 2009, issued by the Minister of Industry and Trade on supplementing certain substances to the List of precursors used in the industrial sector issued together with Decision No. 134/2003/QĐ-BCN;

đ) Circular No. 13/2011/TT-BCT dated March 30, 2011, issued by the Minister of Industry and Trade amending and supplementing the administrative procedures stipulated in the Management Regulations for precursors used in the industrial sector issued together with Decision No. 134/2003/QĐ-BCN dated August 25, 2003, of the Minister of Industry.

3. During the implementation process, if there are any difficulties or emerging issues, organizations and individuals shall promptly report to the Ministry of Industry and Trade for appropriate amendments and supplements./.