Decision No. 422/2003/QĐ-BTM On the issuance of the Investment Construction Regulation for Oil Storage Facilities throughout the country

Pursuant to …;

OF THE MINISTER OF TRADE

Regarding the issuance of the Investment and Construction Regulation for Gasoline and Oil Storage Facilities throughout the Country

___________________________

THE MINISTER OF TRADE

Pursuant to Decree 95/CP dated December 4, 1993 of the Government stipulating the functions, tasks, authorities, and organizational structure of the Ministry of Trade;

Pursuant to the Management Regulation on Investment and Construction issued pursuant to Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Prime Minister; Decree No. 12/2000/NĐ-CP dated May 5, 2000 and Decree No. 07/2003/NĐ-CP dated January 30, 2003 of the Government amending and supplementing certain provisions of the Management Regulation on Investment and Construction issued pursuant to Decree No. 52/1999/NĐ-CP;

Pursuant to Decision No. 93/2002/QĐ-TTg dated July 16, 2002 of the Prime Minister approving the Master Plan for the Development of Gasoline and Oil Storage Facilities throughout the Country until 2010;

At the proposal of the Director of the Planning and Statistics Department - Head of the Project Management Board, Ministry of Trade,

DECISION:

Article 1. The Investment and Construction Regulation for Gasoline and Oil Storage Facilities throughout the Country is hereby promulgated along with this Decision.

Article 2. The Ministry of Trade and other relevant Ministries, Sectors, and enterprises engaged in gasoline and oil business throughout the country shall be responsible for implementing this Decision.

Article 3. This Decision shall take effect 15 days from the date of signature; all previous regulations contrary to this Regulation shall be abolished.

REGULATIONS

INVESTMENT AND CONSTRUCTION OF GASOLINE AND OIL STORAGE FACILITIES THROUGHOUT THE COUNTRY

(Issued together with Decision No. 422/2003/QĐ-BTM dated April 11, 2003 of the Minister of Trade)
ngày 11 tháng 4 năm 2003 của Bộ trưởng Bộ Thương mại)

PART I
GENERAL PROVISIONS

Article 1. Content and Purpose of Management

This Regulation establishes principles, criteria, and requirements for state management that investors must comply with when preparing to invest in and construct gasoline and oil storage facilities within the territory of Vietnam. The purpose of this Regulation is to establish order and discipline in the construction of gasoline and oil storage facilities, ensuring effective land use requirements across the country, economic and social efficiency, and investment effectiveness consistent with overall development plans at national, sectoral, and local levels in accordance with the spirit of Decision No. 93/2002/QĐ-TTg dated July 16, 2002 of the Prime Minister regarding the "Approval of the Master Plan for the Development of Gasoline and Oil Storage Facilities throughout the Country until 2010" (hereinafter referred to as the General Plan) and the Development Plan for Gasoline and Oil Storage Facilities in various regions throughout the country (hereinafter referred to as the Regional Plan), and to ensure efficiency in managing investment and construction activities of gasoline and oil storage facilities, consistent with developments in the process of completing the system of gasoline and oil storage facilities throughout the country.

Article 2. Definitions

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

1. Gasoline and oil tank: is a construction project aimed at storing gasoline and oil while complying with state regulations on technical standards, fire safety, environmental hygiene...

2. Gasoline and oil storage facility: is an area containing multiple gasoline and oil tanks; in cases where the storage facility has only one gasoline and oil tank, the tank itself is considered a gasoline and oil storage facility.

3. Main storage facility: is a storage facility capable of directly receiving gasoline and oil from oil tankers or from oil refineries.

4. Secondary storage facility: is a storage facility that receives gasoline and oil from main storage facilities or from other storage facilities.

5. Expansion investment: involves implementing a construction project to increase the capacity of an existing gasoline and oil storage facility.

6. New investment: involves implementing a construction project to build a new gasoline and oil storage facility at a location where there is currently no such facility or to replace an old storage facility.

7. Gasoline and oil trading enterprise: refers to enterprises that meet the conditions and have been granted a business license for gasoline and oil trading by competent state authorities.

8. Investor: refers to enterprises establishing investment projects for constructing gasoline and oil storage facilities, established under the Law on State-Owned Enterprises and the Enterprise Law, holding a business license for gasoline and oil trading.

9. Department of Commerce: is a general term for Departments of Commerce, Departments of Commerce and Tourism, and Departments of Tourism and Commerce; it is the state management body for commerce in the locality where the enterprise constructs gasoline and oil storage facilities.

10. Local Investment and Construction Project Appraisal Council (abbreviated as the Appraisal Council): is a Council established by a Decision of the Provincial People's Committee upon submission by the Department of Commerce, consisting of representatives with authority from the Department of Commerce, the Department of Planning and Investment, the Department of Science, Technology, and Environment, the Department of Land Administration, the Department of Construction, the Department of Urban Planning and Architecture (if applicable), the Fire Prevention and Control Police Authority, and other relevant state management bodies in the locality (if necessary). The Chairman of the Council is the Director of the Department of Commerce.

11. Appraisal document: is a document evaluating the degree of compliance of the investment project with requirements concerning scale, location, and construction needs within the regional and local gasoline and oil storage facility systems where the investor will construct the storage facility.

12. Approval document for permission to invest: is a document permitting the investor to proceed with subsequent procedures to implement the construction of the gasoline and oil storage facility (such as applying for land allocation; confirmation of fire prevention and explosion safety; confirmation of environmental protection; approval of design...).

Article 3. Scope of application

Projects for investing in and constructing main storage facilities, projects for investing in and constructing secondary storage facilities (including transfer and distribution storage facilities); expansion investment projects, new investment projects.

This Regulation does not regulate projects for investing in and constructing: bonded warehouses, gasoline and oil storage facilities serving specific tasks of armed forces; storage facilities constructed solely for the consumption needs of individual households; storage facilities and tanks of gasoline and oil for retail shops and fuel stations; storage facilities for lubricating oils, liquefied petroleum gas, liquid asphalt, and other petrochemical products other than primary gasoline and oil.

Article 4. Scope of Application

Enterprises engaged in gasoline and oil trading within the nationwide commercial system; relevant management agencies during the implementation of procedures for expanding and newly constructing gasoline and oil storage facilities for trade and national reserves; enterprises investing in gasoline and oil storage facilities for lease.

Article 5. General Principles of Planning Management

1. Investors are only permitted to proceed with investment procedures for projects subject to regulation by this Regulation after receiving an approval document for permission to invest from the Ministry of Trade or the Department of Commerce.

2. In the case where two or more enterprises apply for permission to invest in constructing fuel storage facilities in the same area at the same time, the priority order for examination and approval of investment permission shall be as follows:

a. Form of investment ⁽¹⁾ expanding business, ⁽²⁾ new investment.

b. Investor: ⁽¹⁾ key enterprise, ⁽²⁾ other enterprises: ^(2a) enterprise with headquarters in the locality, ^(2b) enterprise with headquarters elsewhere.

3. Based on the scale of the enterprise, financial capacity, level of reputation (product and service quality), mission and ability to perform market stabilization role of the enterprise applying for investment permission, the competent authority shall determine the reasonable demand, scale, and level of investment for each project based on balancing according to the approved planning in the region during each phase and actual needs arising.

4. Projects for investing in fuel storage facilities, in addition to complying with the contents stipulated in this Regulation, must also be implemented in accordance with the provisions of the Investment Management and Construction Regulation issued together with Decree No. 52/1999/ND-CP dated July 8, 1999 of the Government, Articles of Decree No. 12/2000/ND-CP dated May 5, 2000, Decree No. 07/2003/ND-CP dated January 30, 2003 of the Government, and other current legal regulations related thereto.

PART II
CONDITIONS AND DOCUMENTS FOR EXAMINATION AND APPROVAL OF INVESTMENT PERMISSION

Article 6. Conditions for investment in constructing key fuel storage facilities

1. Consistent with the development needs, capacity supplementation of the fuel storage system in each region and nationwide during each phase; consistent with the socio-economic development planning of each region and locality, consistent with the overall urban development planning until 2010, aiming towards 2020.

2. Meeting the following standards:

a. Capacity of 10,000 m³ /second or more;

b. Having a dedicated wharf for ships with a deadweight of 10,000 DWT or more to dock and pump fuel into the storage facility;

c. Having the responsibility to ensure fuel supply for a territorial area or transfer to other areas nationwide;

d. Meeting current construction standards for fuel storage facilities, national safety and environmental standards.

3. Being an enterprise that meets the conditions and has been granted permission by the Prime Minister to directly import fuel.

The priority order for examination and approval of investment permission for various forms of investment and applicants for constructing key fuel storage facilities as stipulated in Clause 2 and Clause 3 of Article 5 of this Regulation.

Article 7. Conditions for investment in constructing downstream fuel storage facilities

1. Consistent with the development needs, capacity supplementation of the fuel storage system in each region and nationwide during each phase; consistent with the socio-economic development planning of each region and locality, consistent with the overall urban development planning until 2010, aiming towards 2020.

2. Meeting the following standards:

a. Having the capability to receive fuel from key storage facilities, from other storage facilities or from domestic oil refineries and having the capability to import and export fuel via waterways and/or pipelines, roads, railways to supply for consumption needs in a specific geographic area;

b. Meeting current construction standards for fuel storage facilities, national safety and environmental standards.

The priority order for examination and approval of investment permission for various forms of investment and applicants for constructing downstream fuel storage facilities as stipulated in Clause 2 and Clause 3 of Article 5 of this Regulation.

Article 8. Documents for requesting examination and approval of investment permission

1. For cases where land for construction already exists:

a. Document requesting permission to invest in key fuel storage facilities and/or downstream fuel storage facilities.

b. Business registration certificate.

c. Document from the competent authority allowing the enterprise to act as a key importer of fuel.

d. Agreement from the supervising agency (if the investor is a state-owned enterprise).

e. Feasibility study report or investment report (depending on the level of investment).

g. Certificate of land use rights.

h. Agreement on location, fire prevention and firefighting, environment.

2. For cases where land for construction does not yet exist:

a. Document requesting permission to invest in key fuel storage facilities and/or downstream fuel storage facilities.

b. Business registration certificate.

c. Document from the competent authority allowing the enterprise to act as a key importer of fuel.

d. Agreement from the supervising agency (if the investor is a state-owned enterprise).

e. Economic and technical justification of the investment project.

3. The investor shall submit nine sets of documents to the Department of Commerce. Each set of documents includes the types of documents specified in Clause 1 or Clause 2 of this Article.

Article 9. In the case of expanding a storage facility with additional capacity of 2,000 m³ or more, the procedures as stipulated in Article 8 of this regulation must also be followed.

CHAPTER III
RESPONSIBILITIES AND LIMITATIONS OF THE MINISTRY OF TRADE AND DEPARTMENT OF TRADE

Article 10. Responsibilities and authorities of the Ministry of Trade

1. Informing the Departments of Trade about the general planning, regional planning, and related adjustment documents (if any) to disseminate to enterprises and carry out research and unified examination work.

2. Taking the lead and coordinating with relevant central administrative agencies to continue examining and approving investment permission documents for constructing fuel storage facilities submitted by investors and reports on the results of the examination of the investment project examination council of the locality.

3. Within thirty days from receiving the documents from the Department of Trade as stipulated in Point b, Clause 2, Article 11, issuing a document permitting or not permitting the investor to proceed with the investment construction procedures, except in the case stipulated in Point a, Clause 2, Article 11 of this Regulation. If not approved, the Ministry of Trade must clearly state the reasons and guide the enterprise on how to comply with the law.

Article 11. Responsibilities and authorities of the Department of Trade

1. Establishing an investment project examination council as stipulated in Clause 11, Article 2 to examine the documents and determine compliance with current construction standards (technical, fire safety, environmental, and location standards for fuel storage facilities...).

2. Procedures after examination:

a. For investment projects for constructing fuel storage facilities with a capacity of less than 2,000 m³ and consistent with the general planning, regional planning (both in terms of scale and location), within thirty days from receiving the documents from the investor, acting on behalf of the Ministry of Trade to issue a document permitting or not permitting the investor to proceed with the investment construction procedures after obtaining the unified opinion of the investment project examination council. If not permitted, the Department of Trade must clearly state the reasons and guide the investor on how to comply with the law.

b. In the case of investment projects for constructing oil storage facilities other than those specified in point a, Clause 2, Article of this Regulation, within thirty days from the date of receipt of the documents from the investor as stipulated in Clause 1, Article 9 of this Regulation, transfer to the Ministry of Commerce the documents from the investor and the review documents of the Project Review Board, and at the same time issue a notification to the investor regarding the review results.

c. Report in writing to the Ministry of Commerce in cases specified in point a, Clause 2, Article of this Regulation.

Article 12. Revoke the review and approval documents for investment permission and the extension documents.

The approval document for investment permission shall be valid for twelve months from the date of issuance. If the investor has not commenced the project by the end of this period, the permission document shall automatically become invalid and be revoked by the issuing authority.

If it is determined that the project cannot be implemented within twelve months, one (1) month before the investment permission approval document expires, the investor must submit a document requesting the issuing authority to extend the investment period, clearly stating the reasons for the failure to commence the project and the measures to be taken in the future. The investment extension document can only be issued once with a duration not exceeding twelve months. If the investor still fails to commence the project by the end of this period, the extension permission document shall automatically become invalid and be revoked by the issuing authority.

After the extension period, if there is still a need for investment, the investor must prepare new documentation to undergo review and obtain investment permission as prescribed in Article 8 of this Regulation.

Article 13. Reporting System

Annually and upon completion and acceptance of the construction works, the investor is responsible for reporting to the Department of Commerce and the Ministry of Commerce on the progress of implementing the project (location, scale, progress, and completion deadline).

Within the first ten days of each quarter, the Department of Commerce sends a report to the Ministry of Commerce on the implementation status of the previous quarter regarding the review work and issuance of documents for permission to construct oil storage facilities in its jurisdiction.

PART IV
INSPECTION AND VIOLATION HANDLING

Article 14. Inspection

The Ministry of Commerce coordinates with relevant management agencies (Ministry of Science and Technology, Ministry of Natural Resources and Environment, Ministry of Public Security, Ministry of Construction, etc.) to inspect the enforcement of the provisions of this Regulation throughout the country; promptly take specific measures (if necessary, report to the Prime Minister) to address violations of this Regulation.

The Department of Commerce coordinates with local management agencies to inspect the enforcement of the provisions of this Regulation within its jurisdiction; promptly take specific measures or report to the Ministry of Commerce if necessary.

Article 15. Handling Violations

1. The investor is responsible for legal and material consequences before the supervising authority and the law for violations of the provisions of this Regulation. If the investor commences investment without the review and approval document from the Ministry of Commerce or the Department of Commerce, construction will be suspended along with other legal measures.

2. Agencies, enterprises, and individuals within the scope regulated by this Regulation who fail to fulfill their responsibilities as prescribed in this Regulation will be subject to administrative penalties or criminal prosecution and compensation for material damage according to the law if they cause material loss.

CHAPTER V
IMPLEMENTING PROVISIONS

Article 16. The Ministry of Commerce, the Department of Commerce, oil trading enterprises in the national commercial system, and related management agencies during the process of implementing procedures for constructing oil storage facilities for business operations and national reserves have the responsibility to organize the implementation of this Regulation.

The Ministry of Commerce is responsible for disseminating, guiding, and monitoring the implementation of the provisions of this Regulation throughout the country.

Article 17. This Regulation shall take effect fifteen days from the date of signature. Any amendments or supplements to the contents of this Regulation shall be decided by the Minister of Commerce.

All investment projects for constructing various types of oil storage facilities as specified in Article 3 that commence after the effective date of this Regulation must reapply or redo the procedures as prescribed in Article 8 of this Regulation.