JOINT CIRCULAR No. 44/2013/TTLT-BCT-BKHCN ON THE MANAGEMENT OF QUALITY OF DOMESTICALLY PRODUCED STEEL AND IMPORTED STEEL

JOINT CIRCULAR

Provisions on the management of domestic steel production quality and imported steel quality

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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;

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;

Pursuant to the Law on Standards and Technical Regulations dated June 29, 2006;

Pursuant to the Law on Product Quality and Commodities dated November 21, 2007;

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

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

The Minister of Industry and Trade and the Minister of Science and Technology shall issue a Joint Circular to provide for the management of domestic steel production quality and imported steel quality as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. This Circular provides for the management of quality for domestic steel production and imported steel intended for use domestically according to the Harmonized System (HS) codes listed in Appendix I of this Circular.

Exported steel, temporarily imported re-exported steel, transiting steel, and transferred steel are not within the scope of regulation of this Circular.

2. This Circular applies to:

a) Organizations and individuals producing, importing, and using steel;

b) State management agencies responsible for steel quality;

c) Accredited conformity assessment organizations;

d) Other relevant agencies, organizations, and individuals.

Article 2. Interpretation of Terms

1. Conformity assessment is the determination that steel meets technical characteristics and management requirements specified in corresponding standards or technical regulations.

2. Conformity certification with standards (Standard conformity declaration) is the confirmation that steel meets corresponding standards.

3. Conformity certification with technical regulations (Regulatory conformity declaration) is the confirmation that steel meets corresponding technical regulations.

4. Public declaration of conformity with standards (Standard conformity public declaration) is the act of organizations or individuals declaring that steel conforms to corresponding standards.

5. Public declaration of conformity with technical regulations (Regulatory conformity public declaration) is the act of organizations or individuals declaring that steel conforms to corresponding technical regulations.

6. Recognition is the confirmation of testing laboratories, calibration laboratories, conformity assessment organizations, and inspection organizations having the capability to meet corresponding standards.

7. Recognition of conformity assessment results is the acceptance by competent state authorities, organizations, or individuals operating in Vietnam of conformity assessment results conducted by conformity assessment organizations from other countries or territories.

8. Testing organization is a technical organization that performs the determination of steel characteristics according to a defined procedure.

9. Organization conducting conformity assessment is an organization conducting testing, inspection, examination, and conformity assessment activities of steel in accordance with declared applicable standards and corresponding technical regulations.

10. Inspection is the verification of steel compliance with contracts or declared applicable standards and technical regulations through observation and evaluation of measurement and testing results.

11. Lot of goods is a set of steel determined in quantity, with the same name, grade, brand, type, technical characteristics, produced by the same production facility and belonging to the same import documentation set.

Chapter II

PROVISIONS ON STEEL QUALITY ASSURANCE

Article 3. Conditions for Ensuring Quality of Domestic Steel Production

Clause 1. Organizations and individuals producing domestic steel must declare their products in compliance with national technical regulations according to the provisions of Circular No. 28/2012/TT-BKHCN dated December 12, 2012, issued by the Minister of Science and Technology regarding standard conformity declarations, regulatory conformity declarations, and methods for assessing conformity with standards and technical regulations.

Clause 2. In cases where there are no national technical regulations (QCVN), organizations and individuals producing domestic steel have the responsibility to declare the applied standards (basic standards, national standards of Vietnam (TCVN), national standards of other countries, international standards, regional standards) for their products and goods.

Clause 3. Product labeling shall be carried out in accordance with Decree No. 89/2006/NĐ-CP dated August 30, 2006, of the Government on product labeling, Circular No. 09/2007/TT-BKHCN dated April 6, 2007, issued by the Minister of Science and Technology guiding the implementation of certain provisions of Decree No. 89/2006/NĐ-CP, and Circular No. 14/2007/TT-BKHCN dated July 25, 2007, issued by the Minister of Science and Technology supplementing Circular No. 09/2007/TT-BKHCN.

Clause 4. Based on the specific characteristics of each type of steel, the Ministry of Industry and Trade shall issue national technical regulations on the production process. Organizations and individuals producing domestic steel have the responsibility to apply these national technical regulations. Regulatory conformity declarations shall be made by designated conformity assessment organizations.

Article 4. Conditions for Ensuring the Quality of Imported Steel

1. Organizations and individuals importing steel must declare the applicable standards (basic standards, national standards of Vietnam (TCVN), national standards of other countries, international standards, regional standards) for the goods in the import contract.

2. Imported steel must be assessed for conformity by a conformity assessment body designated in accordance with Article 5 of this Circular.

Article 5. Designation of conformity assessment organizations

1. The testing, inspection, and certification of the quality of domestically produced steel and imported steel specified in Appendix I of this Circular shall be carried out by testing organizations, inspection organizations, and certification organizations designated to perform such tasks.

2. The Ministry of Industry and Trade designates testing organizations for steel quality, specifically:

a) For domestic testing organizations: The procedures and formalities for designation shall be implemented in accordance with Circular No. 09/2009/TT-BKHCN dated April 8, 2009, issued by the Minister of Science and Technology guiding requirements, procedures, and formalities for designating conformity assessment bodies, and Circular No. 11/2011/TT-BKHCN dated June 30, 2011, issued by the Minister of Science and Technology amending and supplementing certain provisions of Circular No. 09/2009/TT-BKHCN;

b) For foreign testing organizations: Conduct an actual testing capability assessment of foreign testing organizations according to the procedures and formalities stipulated in Circular No. 26/2013/TT-BKHCN dated November 15, 2013, issued by the Minister of Science and Technology (Circular No. 26/2013/TT-BKHCN) or recognize the testing results of foreign testing organizations based on Agreements or Mutual Recognition Arrangements regarding conformity assessment outcomes.

3. The Ministry of Science and Technology designates inspection organizations and certification organizations for steel quality. Requirements, procedures, and formalities for designating inspection organizations and certification organizations shall be implemented in accordance with Circular No. 09/2009/TT-BKHCN dated April 8, 2009, and Circular No. 11/2011/TT-BKHCN dated June 30, 2011, issued by the Minister of Science and Technology amending and supplementing certain provisions of Circular No. 09/2009/TT-BKHCN.

4. Requirements for designated testing organizations

a) For domestic testing organizations:

- Having registered the field of testing activities in accordance with Circular No. 08/2009/TT-BKHCN dated April 8, 2009, issued by the Minister of Science and Technology guiding requirements, procedures, and formalities for registering fields of conformity assessment activities, and Circular No. 10/2011/TT-BKHCN dated June 30, 2011, issued by the Minister of Science and Technology amending and supplementing certain provisions of Circular No. 08/2009/TT-BKHCN;

- Establish, apply, and maintain the effectiveness of a quality management system for the laboratory in accordance with National Standard TCVN ISO/IEC 17025:2007 or International Standard ISO/IEC 17025:2005;

b) For foreign testing organizations: Meeting the requirements stipulated in Article 6 of Circular No. 26/2013/TT-BKHCN.

Chapter III

QUALITY CONFORMITY TESTING AND ASSESSMENT OF STEEL

Article 6. Procedures, Formalities, and Contents of Testing and Assessing the Conformity of Steel Quality

1. The testing and assessing the conformity of the quality of domestically produced steel shall be conducted in accordance with the laws on product and commodity quality and the contents specified in Article 3 of this Circular.

2. The testing and assessing the conformity of the quality of imported steel shall be conducted through source inspections or lot-by-lot conformity assessments.

3. Methods and contents of source inspections of imported steel quality.

a) Source inspections of imported steel quality (at the exporting country) shall be led by the Ministry of Industry and Trade. The Ministry of Industry and Trade will establish an inspection team consisting of representatives from the Ministry of Industry and Trade (two persons), the Ministry of Science and Technology (one person), and a conformity assessment organization (one person). After the inspection, the inspection team is responsible for reporting the results of the imported steel quality inspection to the Department of Science and Technology (Ministry of Industry and Trade) as a basis for considering and deciding on exemption or reduction of inspections for a period of three years. During the validity period of the exemption or reduction decision, spot checks will be conducted on a lot-by-lot basis.

Costs for source inspections shall be borne by the organizations or individuals importing steel; the level of payment shall be implemented in accordance with Circular No. 102/2012/TT-BTC dated June 21, 2012, issued by the Ministry of Finance;

b) Customs authorities shall base their clearance procedures on the exemption or reduction decisions on steel quality inspections made by the Ministry of Industry and Trade. For steel specified in Appendix II of this Circular, organizations or individuals importing steel must provide additional documents as follows:

- A registration form for production capacity and objectives confirmed by the Ministry of Industry and Trade (in cases where the organizations or individuals importing steel are also users of steel). The procedures and formalities for confirming production capacity and usage objectives are stipulated in Appendix II of this Circular.

- Purchase or import agency contracts with users (in cases where the organizations or individuals importing steel are not users of steel).

4. Methods and contents of lot-by-lot conformity assessments of imported steel quality

a) The conformity assessment dossier for imported steel includes:

- Application for conformity assessment of imported steel quality: One copy (according to the model prescribed in Appendix III of this Circular);

- Import contract: One copy (stamped with a true copy seal of the organization or individual);

- Invoice: One copy (stamped with a true copy seal of the organization or individual);

- Bill of Lading: One copy (stamped with a true copy seal of the organization or individual);

- Packing list: One copy (stamped with a true copy seal of the organization or individual);

- Declaration of imported goods: One copy (stamped with a true copy seal of the organization or individual);

- Certificate of Origin (C/O - Certificate of Origin) (if available): One copy (stamped with a true copy seal of the organization or individual);

- Photos or descriptions of goods; labels of imported goods already affixed with compliance marks (if available) and supplementary labels (if the main label does not contain all required information): One copy (stamped with a true copy seal of the organization or individual);

- Test result certificates of foreign testing organizations recognized or designated (if available).

b) In cases where there are test results meeting the declared standards from foreign testing organizations recognized or designated by the Ministry of Industry and Trade, the designated inspection or certification organizations shall review the registration dossiers of the organizations or individuals importing steel and issue inspection certificates or certificates of conformity for the lots.

c) In the case where there are no test results from foreign testing organizations recognized or designated by the Ministry of Industry and Trade, the designated inspection organization or certification organization shall review the registration dossier of the importer of steel, take samples from the consignment for testing according to the applicable standards at the testing organization designated by the Ministry of Industry and Trade. For certain types of steel such as coil steel, thick plates, structural steel, etc., the importer must clearly state in the sales contract with the manufacturer that there will be sufficient excess steel to take samples for testing.

- If the test results are compliant, the inspection organization shall issue a certificate of inspection for the consignment or the certification organization shall issue a certificate of conformity for the consignment.

- If the test results are non-compliant, the inspection organization or certification organization shall issue a notification that the consignment does not meet the applicable standards according to the model specified in Appendix IV of this Circular.

The Customs authority shall base on the certificate of inspection or certificate of conformity for the consignment to process clearance procedures. For steel specified in Appendix II of this Circular, additional documents must be supplemented:

- A registration form of objectives and production capacity confirmed by the Ministry of Industry and Trade (in cases where the importer of steel is also the user of steel).

- Purchase or import agency contracts with users (in cases where the organizations or individuals importing steel are not users of steel).

Article 7. Provisions on Exemption and Reduction of Steel Quality Inspection

1. For steel products produced by the same producer with quantities in subsequent imports not exceeding the average of the three previous imports, after three consecutive quality inspections if they meet the requirements, exemption and reduction of inspection can be granted and only sampling inspection will be carried out. If the consignment does not meet the quality requirements, the inspection procedure and formalities prescribed shall be followed. The application for exemption and reduction of imported steel quality inspection shall be sent to the Department of Science and Technology (Ministry of Industry and Trade), including:

a) Application for exemption and reduction of quality inspection;

b) Business registration certificate: 01 copy (certified true copy stamped by the organization or individual);

c) Import goods contract: 01 copy (certified true copy stamped by the organization or individual);

d) Bill of lading (for the three previous imports): 03 copies (certified true copy stamped by the organization or individual);

đ) Quality certificate: 01 copy (certified true copy stamped by the organization or individual).

2. Within 10 (ten) working days from the date of receipt of complete and valid documents, the Ministry of Industry and Trade will examine and respond to the application for exemption and reduction of imported steel quality inspection.

Chapter IV

IMPLEMENTATION

Article 8. Responsibilities of the Ministry of Industry and Trade

1. Designate, inspect, and supervise the activities of quality testing organizations for steel.

2. Develop an annual plan for inspecting the quality of domestically produced steel (including reinforcing steel) and imported steel.

3. Take the lead and coordinate with relevant agencies to establish a team to inspect the quality of imported steel at the source.

4. Take the lead and coordinate with the Ministry of Science and Technology to inspect and supervise the activities of designated testing organizations.

5. Amend and supplement the List of Standards and Technical Regulations in Appendix I and the List of Types of Steel Required to Register Production Capacity, Demand, and Usage Objectives in Appendix II of this Circular.

6. Guide organizations and individuals in preparing applications for exemption and reduction of imported steel quality inspection.

Article 9. Responsibilities of the Ministry of Science and Technology

1. Designate, inspect, and supervise the activities of certification organizations and quality inspection organizations for steel.

2. Coordinate with the Ministry of Industry and Trade to inspect the quality of domestically produced steel and imported steel.

3. Take the lead and coordinate with the Ministry of Industry and Trade to inspect and supervise the activities of certification organizations and quality inspection organizations designated by the Ministry of Science and Technology.

Article 10. Responsibilities of Customs Authorities

1. Customs authorities shall only clear customs when organizations and individuals importing steel provide complete documentation as stipulated in point b, Clause 3 and point d, Clause 4, Article 6 of this Circular.

2. The General Department of Customs shall be responsible for monitoring and compiling statistics on the importation of steel listed in Appendix II of this Circular, and quarterly report to the Ministry of Industry and Trade.

Article 11. Responsibilities of Provincial Departments of Industry and Trade

1. Accept registration declarations for compliance certification of steel (excluding steel used as reinforcement in concrete).

2. Lead and coordinate with Provincial Departments of Science and Technology to manage the quality of steel within their province.

Article 12. Responsibilities of Provincial Departments of Science and Technology

1. Accept registration declarations for compliance certification of steel used as reinforcement in concrete.

2. Lead and coordinate with Provincial Departments of Industry and Trade to manage the quality of steel used as reinforcement in concrete within their province.

Article 13. Responsibilities of Organizations and Individuals Producing, Importing, and Using Steel

1. Organizations and individuals producing domestic steel and organizations and individuals importing steel shall be responsible for declaring and registering production and importation documents for steel according to the provisions set forth in this Circular.

2. Organizations and individuals using the types of steel specified in Appendix II of this Circular (which may be amended or supplemented based on management requirements) must annually register confirmation of production capacity, demand, and usage goals for steel as raw material for production with the Ministry of Industry and Trade (Heavy Industry Department) according to the form prescribed in Appendix II of this Circular.

3. Organizations and individuals using the types of imported steel specified in Appendix II of this Circular are only permitted to import or authorize importation of quantities not exceeding 150% of the confirmed usage needs for one year by the Ministry of Industry and Trade. Annually, before January 20th of the following year or at any time upon request, organizations and individuals using imported steel must report to the Ministry of Industry and Trade on the situation of imported steel usage.

Article 14. Responsibilities of Accredited Conformity Assessment Bodies

1. Perform rights and obligations as prescribed by the Law on Product Quality and Related Laws.

For designated testing organizations, during the validity period of the designation decision, they must participate in a proficiency testing program and inter-laboratory comparison once.

2. Notify the authority issuing the designation decision about any changes affecting the registered testing, inspection, and certification capabilities within fifteen (15) days from the date of change.

3. Accredited conformity assessment bodies are responsible for compiling and reporting conformity assessment results periodically every quarter, six months (before July 15), annually (before January 15 of the following year), or at any time upon request. Reports shall be sent to the Department of Science and Technology (Ministry of Industry and Trade) and the National Standardization, Metrology and Quality Control Agency (Ministry of Science and Technology).

Chapter V

IMPLEMENTING PROVISIONS

Article 15. Effective Date

This Circular takes effect from June 1, 2014.

Article 16. Responsibility for Implementation

1. Organizations and individuals producing, importing, and using steel; quality management agencies for steel; designated certification organizations, testing organizations, and inspection organizations; and related organizations and individuals are responsible for implementing this Circular.

2. In cases where standards or regulatory legal documents cited in this Circular are amended, supplemented, or replaced, implementation shall follow the new document.

3. During implementation, if there are difficulties or obstacles, it is recommended that agencies, organizations, and individuals promptly reflect these issues to the Ministry of Industry and Trade and the Ministry of Science and Technology for guidance on amendments and supplements./.