Decree No. 55/2007/ND-CP on Petroleum Business

DECREE

On Petroleum Trading

___________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

BASED ON THE COMMERCIAL LAW dated June 14, 2005;

CONSIDERING the proposal of the Minister of Trade,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Decree stipulates on petroleum trading and the conditions for petroleum trading in the domestic market of Vietnam.

Article 2. Applicability

1. This Decree applies to Vietnamese traders as defined by the Commercial Law, engaging in petroleum trading in the domestic market.

2. Traders importing, producing, processing various types of petroleum products exclusively for their own specific needs without circulating them in the market shall comply with the decision of the Minister of Trade.

Article 3. Definitions

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

1. Petroleum refers to a general term for products derived from the oil refining process, used as fuel, including: motor gasoline, diesel oil, kerosene, mazut, aircraft fuel; other products used as fuel for engines, excluding liquefied gas products.

2. Petroleum trading includes business activities such as exporting, importing, temporarily importing for re-exporting petroleum; importing raw materials for producing and processing petroleum; producing and processing petroleum; distributing petroleum in the domestic market; port, warehouse leasing services, receiving imported petroleum, and petroleum transportation services.

3. Producing and processing petroleum involves the oil refining process, transforming crude oil and other raw materials into petroleum products.

4. A petroleum trading facility is a place where production, processing, receipt, storage, retail sale of petroleum takes place, including: dedicated petroleum import and export ports; petroleum production and processing plants; petroleum warehouses; petroleum transport vehicles; retail outlets and service stations.

5. Raw materials for producing and processing petroleum include: crude oil, condensate, high octane gasoline, reformate, naphtha, and other additives.

Article 4. APPLICATION OF INTERNATIONAL AGREEMENTS AND RELATED LAWS

1. Foreign traders conducting petroleum trading in the Vietnamese market according to international agreements to which the Socialist Republic of Vietnam is a party must comply with the provisions of this Decree when trading; in cases where the international agreement provides different provisions than those of this Decree, the provisions of that international agreement shall be applied.

2. Traders engaged in petroleum trading, in addition to complying with the provisions of this Decree, must also comply with the provisions of related laws.

Article 5. DEVELOPMENT OF PETROLEUM TRADING FACILITIES

1. Petroleum trading facilities must be developed according to planning. The Ministry of Trade is responsible for developing plans for the development of petroleum trading facilities; coordinating with ministries, ministerial-level agencies, and provincial People's Committees directly under the central government during the planning process and monitoring the implementation of approved plans.

2. The Ministry of Transport, when developing new construction projects or renovation and upgrading projects for national highways, is responsible for coordinating with the Ministry of Trade and provincial People's Committees directly under the central government to determine the locations of petroleum trading facilities along these routes according to specified standards and include them in the project; directing and monitoring the implementation of the approved project plan.

3. Provincial People's Committees directly under the central government are responsible for developing plans for the development of petroleum trading facilities within the overall socio-economic development plans of their respective localities and monitoring the implementation of approved plans.

4. Enterprises of all economic sectors permitted to invest in developing petroleum trading facilities must comply with legal regulations on investment and construction and construct in accordance with the approved planning by the competent authority.

Article 6. FIRE PREVENTION, FIRE FIGHTING, AND ENVIRONMENTAL PROTECTION

1. Petroleum trading facilities must continuously ensure compliance with legal regulations on fire prevention, firefighting, and environmental protection during the operation of petroleum trading.

2. Traders engaged in petroleum trading must organize regular inspections of petroleum trading facilities to strictly implement legal regulations on fire prevention, firefighting, and environmental protection.

Chapter II

PETROLEUM TRADING

Section 1

EXPORT AND IMPORT OF PETROLEUM

Article 7. Conditions for Engaging in Export and Import of Petroleum Products

Business entities meeting the conditions specified below shall be granted a License to engage in export and import of petroleum products:

1. State-owned enterprises established in accordance with the law, with petroleum products business registration recorded in their Business Registration Certificate.

2. Possessing specialized wharfs within the national international port system capable of receiving oil-carrying vessels or other petroleum product transport means with a minimum capacity of 7,000 (seven thousand) tons, owned by the enterprise or co-owned under joint venture, joint operation contracts, or built through capital contribution and leased for a long-term period of five years or more.

3. Having petroleum product reception tanks with a minimum volume of 15,000 (fifteen thousand) cubic meters to directly receive petroleum products from oil-carrying vessels and other petroleum product transport means, owned by the enterprise or co-owned under joint venture, joint operation contracts, or built through capital contribution and leased for a long-term period of five years or more.

4. Possessing specialized petroleum product transportation means owned by the enterprise or co-owned under joint venture, joint operation contracts, or built through capital contribution and leased for a long-term period of five years or more to ensure supply to its distribution system.

5. Having a distribution system for petroleum products: at least ten retail outlets and stations owned or co-owned under joint venture, joint operation contracts, or built through capital contribution, and a network of at least forty retail agents.

Article 8. Issuance of Licenses to Engage in Export and Import of Petroleum Products

1. The Ministry of Trade is responsible for issuing Licenses to engage in export and import of petroleum products to business entities meeting the conditions stipulated in Article 7 of this Decree.

2. Documents required for applying for a License to engage in export and import of petroleum products include:

a) An application form for a License to engage in export and import of petroleum products, according to Model 1 attached to this Decree;

b) Decision on establishment of the enterprise;

c) A valid copy of the Business Registration Certificate;

d) A list of technical facilities serving export and import of petroleum products as prescribed in Clause 2, Clause 3, and Clause 4 of Article 7 of this Decree, accompanied by supporting documents;

đ) A list of retail outlets and stations owned or co-owned under joint venture, joint operation contracts, or built through capital contribution, and a list of general agents and agents in the enterprise's distribution system as prescribed in Clause 5 of Article 7 of this Decree, accompanied by supporting documents.

3. Within fifteen working days from the date of receipt of complete and valid documents, the Ministry of Trade shall examine, assess, and issue a License to engage in export and import of petroleum products according to Model 2 attached to this Decree to the business entity (valid for a period of five years); if not issued, it must provide a written response stating the reasons.

4. Business entities granted a License to engage in export and import of petroleum products must pay fees as prescribed by the Ministry of Finance.

Article 9. Rights and Obligations of Business Entities Engaging in Export and Import of Petroleum Products

1. Importing petroleum products at the minimum level assigned annually as stipulated in Article 23 of this Decree; maintaining the minimum level of circulating petroleum product reserves as prescribed in Article 22 of this Decree and ensuring that imported petroleum products meet current quality standards.

2. Exporting petroleum products and engaging in temporary importation for re-exportation of petroleum products as prescribed in Article 24 of this Decree.

3. Being allowed to buy and sell petroleum products with other business entities holding a License to engage in export and import of petroleum products or with producers and processors of petroleum products.

4. Adhering to regulations and being responsible for prices, quantities, and quality of petroleum products sold on the market.

5. Only entering into contracts with enterprises meeting the conditions to act as general agents or agents as prescribed in Articles 13 and 14 of this Decree, and these enterprises must not violate the provisions of Clause 1 or Clause 2 of Article 17 of this Decree; they must register their distribution systems in accordance with the regulations of the Ministry of Trade.

6. Establishing uniform rules for naming and logos (logos) of enterprises engaged in export and import of petroleum products at retail outlets and stations within their distribution systems and organizing inspections and supervision of enterprises within their distribution systems.

7. Only transferring or transshipping petroleum products in water areas on rivers and seas designated by the Ministry of Transport or transshipping petroleum products from large vessels or other transport means when Vietnamese ports lack the capability to directly receive them, as specified by port authorities.

8. Complying with legal regulations on fire prevention, firefighting, and environmental protection during business operations.

Section 2

PRODUCTION AND PROCESSING OF PETROLEUM PRODUCTS

Article 10. Conditions for the production and processing of petroleum products

Business entities meeting the conditions specified below shall be permitted to produce and process petroleum products:

1. Enterprises established in accordance with the law, with the production and processing of petroleum products registered in their business registration certificates.

2. Possess production and processing facilities in accordance with approved planning and investment construction permits granted by competent authorities.

3. Have testing and measuring laboratories meeting national standards to check the quality of produced and processed petroleum products according to current standards.

Article 11. Rights and obligations of business entities producing and processing petroleum products

1. Must register annual production plans, import raw materials, and product consumption (including exports and domestic consumption) following the guidelines of the Ministry of Commerce to ensure overall supply-demand balance for the year.

2. Are directly allowed to import raw materials or entrust enterprises with export and import licenses for petroleum products to execute raw material imports according to registered plans after confirmation by the Ministry of Commerce, which then notifies customs authorities to handle import procedures and monitor the importation of raw materials by the enterprise.

3. Petroleum products from production and processing facilities must be inspected and confirmed to meet current Vietnamese standards before being put into circulation for the first time by the Ministry of Science and Technology in coordination with relevant ministries and agencies, and must consistently comply with prescribed standards throughout operations.

4. May consume domestically petroleum products that meet current standards produced and processed within their own distribution systems in accordance with regulations set forth in this Decree, or sell them exclusively to enterprises with export and import licenses for petroleum products for further distribution.

5. When organizing domestic petroleum product distribution systems, enterprises must comply with regulations applicable to enterprises engaged in export and import of petroleum products as stipulated in Clauses 4, 5 of Article 7; Clauses 3, 4, 5, 6, 7, 8 of Article 9 of this Decree.

Section 3

PETROLEUM PRODUCT DISTRIBUTION BUSINESS

Article 12. Distribution rights for petroleum products

Business entities holding export and import licenses for petroleum products and business entities producing and processing petroleum products may distribute petroleum products they produce in the domestic market through affiliated units, including member enterprises, branches, warehouses, retail outlets, and service stations of the enterprise, or through agency networks, including general agents and retail agents for petroleum products, in accordance with the provisions of this Section.

Article 13. Conditions for general agents in petroleum product distribution

Business entities meeting the following conditions may act as general agents for petroleum product distribution (hereinafter referred to as general agents):

1. Enterprises established in accordance with the law, with petroleum product trading registered in their business registration certificates.

2. Possess storage tanks with a minimum capacity of 5,000 (five thousand) cubic meters, owned by the enterprise, or jointly owned under joint venture, cooperation, capital contribution contracts, or leased for a long term of at least 5 (five) years to ensure stable supply of petroleum products for their distribution system.

3. Have a distribution network consisting of a minimum of 5 (five) retail outlets, service stations owned or jointly owned under joint venture, cooperation, capital contribution contracts, and a minimum of 20 (twenty) retail agent outlets. This distribution network must be part of the distribution system of an enterprise engaged in export and import of petroleum products or a producer and processor of petroleum products and be subject to control by such an enterprise.

4. Own specialized petroleum product transportation vehicles, either owned by the enterprise or jointly owned under joint venture, cooperation, capital contribution contracts, or leased for a long term of at least 5 (five) years.

5. Direct sales staff must undergo training on storage, measurement, quality, fire safety techniques, and environmental protection for a minimum of 3 (three) months.

Article 14. Conditions for retail gasoline and diesel fuel agents

A business entity meeting all of the following conditions may act as a retail gasoline and diesel fuel agent (hereinafter referred to as "agent"):

1. Enterprises established in accordance with the law, with petroleum product trading registered in their business registration certificates.

2. Possessing retail gasoline and diesel fuel stores or stations owned by the enterprise or jointly owned under joint venture or cooperation contracts, or capital contribution agreements.

3. Directly operating staff must have undergone training on storage, measurement, quality of gasoline and diesel fuel, fire safety techniques, and environmental protection; the minimum training period is 3 (three) months.

Article 15. Conditions for Issuing a Certificate of Eligibility for Gasoline and Diesel Fuel Business Operations for Retail Stores and Stations

Retail gasoline and diesel fuel stores and stations must meet all of the following conditions to be issued a Certificate of Eligibility for Gasoline and Diesel Fuel Business Operations:

1. The location of the retail store or station must comply with the approved planning scheme by the competent authority.

2. The construction and equipment of the store must conform to current standards for gasoline and diesel fuel retail outlets as prescribed by the Ministry of Science and Technology.

3. Directly operating staff must have undergone training on storage, measurement, quality of gasoline and diesel fuel, fire safety techniques, and environmental protection; the minimum training period is 3 (three) months.

Article 16. Issuance of a Certificate of Eligibility for Gasoline and Diesel Fuel Business Operations for Retail Stores and Stations

1. The Department of Trade or the Department of Trade and Tourism shall issue a Certificate of Eligibility for Gasoline and Diesel Fuel Business Operations to retail stores and stations that meet the conditions stipulated in Article 15 of this Decree.

2. The application dossier for issuing a Certificate of Eligibility for Gasoline and Diesel Fuel Business Operations includes:

a) An application form for a Certificate of Eligibility for Gasoline and Diesel Fuel Business Operations according to Model No. 3 attached to this Decree;

b) A certified true copy of the Enterprise Registration Certificate of the owner enterprise of the retail store or station;

c) A list of equipment at the retail store or station as prescribed in Clause 2 of Article 15 of this Decree and documents proving the legality of investment and construction of the retail store or station;

d) Certified true copies of certificates of having attended training courses on gasoline and diesel fuel operations for staff at the retail store or station as prescribed in Clause 3 of Article 15 of this Decree.

3. Within 7 (seven) working days from the date of receipt of a complete application dossier, the Department of Trade or the Department of Trade and Tourism shall examine and approve the issuance of a Certificate of Eligibility for Gasoline and Diesel Fuel Business Operations according to Model No. 4 attached to this Decree for the retail store or station (valid for a period of 5 years); in case of non-issuance, a written response with reasons must be provided.

4. Retail stores and stations issued a Certificate of Eligibility for Gasoline and Diesel Fuel Business Operations must pay fees as prescribed by the Ministry of Finance.

Article 17. Rights and Obligations of General Agents, Agents, and Retail Stores and Stations

1. A general agent may only enter into a general agency contract with one business entity engaged in exporting or importing gasoline and diesel fuel or one business entity producing or processing gasoline and diesel fuel.

2. An agent may only enter into a retail agency contract with one general agent or one business entity engaged in exporting or importing gasoline and diesel fuel or one business entity producing or processing gasoline and diesel fuel.

3. Retail stores and stations within the distribution system of enterprises engaged in exporting or importing gasoline and diesel fuel or enterprises producing or processing gasoline and diesel fuel must be subject to supervision by such enterprises; they must display prices for various types of gasoline and diesel fuel according to the agency contract and sell at the displayed price; signs must include all required information as prescribed by law and the name and logo (logo) of the enterprise engaged in exporting or importing gasoline and diesel fuel or the enterprise producing or processing gasoline and diesel fuel as directed by such enterprise.

4. They may only purchase and sell gasoline and diesel fuel with entities within their system (except sales to end consumers) and are responsible for the quality, quantity, and price of gasoline and diesel fuel sold.

5. Hoarding goods for profit, selling short quantities, or other fraudulent acts are strictly prohibited.

6. Implement record-keeping systems for gasoline and diesel fuel business operations as prescribed by the Ministry of Finance.

7. Adhere to laws and regulations concerning fire prevention, firefighting, and environmental protection during business operations.

8. Member enterprises, branches, warehouses, retail stores, and stations belonging to enterprises engaged in exporting or importing gasoline and diesel fuel or enterprises producing or processing gasoline and diesel fuel must comply with the provisions of Articles 15, 16, and related provisions of this Article.

Section 4

GASOLINE AND DIESEL FUEL SERVICES BUSINESS OPERATIONS

Article 18. Conditions for operating fuel service leasing port, warehouse, and importing fuel reception services

1. Enterprises established in accordance with the provisions of the law, with fuel service business registered in the Business Registration Certificate.

2. Possess specialized wharfs located within Vietnam's international port system, capable of receiving oil-carrying vessels or other fuel transport means with a minimum capacity of 7,000 (seven thousand) tons, owned by the enterprise or jointly owned under joint venture, joint operation, or capital contribution contracts, constructed according to specified standards and approved planning by competent authorities.

3. Possess storage tanks with a minimum capacity of 15,000 (fifteen thousand) cubic meters, owned by the enterprise or jointly owned under joint venture, joint operation, or capital contribution contracts, constructed according to specified standards and approved planning by competent authorities.

4. Directly involved staff must undergo training on fuel storage, measurement, quality, fire safety techniques, and environmental protection, with a minimum study period of 3 (three) months.

Article 19. Conditions for operating fuel transportation service

1. Enterprises established in accordance with the provisions of the law, with fuel transportation business registered in the Business Registration Certificate.

2. Possess specialized fuel transport means owned by the enterprise or jointly owned under joint venture, joint operation, or capital contribution contracts; in cases where leased specialized fuel transport means are used, there must be a lease contract for at least 1 (one) year. These means must meet the prescribed standards for transporting fuel, inspected and permitted for circulation by authorized agencies in accordance with the law.

3. Directly involved staff using transport means must undergo training on fuel storage, measurement, quality, fire safety techniques, and environmental protection, with a minimum study period of 3 (three) months.

Article 20. Rights and obligations of merchants engaged in fuel service business

1. Bear responsibility for quantity and quality of fuel during receipt, storage, or transportation according to contracts signed with enterprises renting receipt, storage, or transportation services.

2. If engaging in other fuel business activities (wholesale, agency), they must comply with the relevant regulations stipulated in this Decree regarding such business activities.

3. Adhere to legal regulations on fire prevention, firefighting, and environmental protection during business operations.

Section 5

FUEL CIRCULATION RESERVES

Article 21. Entities implementing fuel circulation reserves

1. Entities implementing fuel circulation reserves are merchants engaged in fuel export and import and merchants producing and processing fuel.

2. National fuel reserves are regulated separately by the Government.

Article 22. Level of fuel circulation reserves

1. Merchants engaged in fuel export and import must ensure a minimum circulation reserve level equivalent to 20 (twenty) days' supply, including structural types, based on the annual minimum import quota determined.

2. Enterprises producing and processing fuel with domestic distribution systems must ensure a minimum circulation reserve level equivalent to 20 (twenty) days' supply, including structural types, based on the annual domestic fuel consumption plan registered with the Ministry of Trade.

3. Merchants as stipulated in Clause 1 and Clause 2 of this Article are responsible for increasing their fuel circulation reserves to reach a minimum of 30 (thirty) days by 2010.

Chapter III

MANAGEMENT OF FUEL BUSINESS

Article 23. Management of fuel imports

1. Annually, based on the national economy's supply-demand balance, the Ministry of Planning and Investment, in collaboration with the Ministry of Trade and the Ministry of Industry, determines the total directional demand for fuel imports for the following year. The demand for fuel serving national defense is determined separately.

2. Based on the total directional demand for fuel imports, the Ministry of Trade assigns the minimum annual import volume according to the structural types to each merchant holding an Export and Import Business License for fuel to process import procedures. Only merchants with an Export and Import Business License assigned the minimum import volume by the Ministry of Trade are allowed to import fuel.

3. Based on market demand, merchants engaged in fuel export and import decide on the volume of various types of fuel imports for domestic consumption but not less than the assigned minimum volume and are responsible for providing sufficient sources for the distribution system, ensuring stability in the fuel market.

4. The Ministry of Trade, in collaboration with related ministries and sectors, monitors and supervises fuel imports by merchants to ensure meeting economic needs and social consumption. In necessary cases, the Ministry of Trade adjusts the assigned minimum import volumes for merchants.

Article 24. Management of fuel exports and temporary importation for re-export

1. Only merchants holding an Export and Import Business License for fuel can export and engage in temporary importation for re-export of fuel. Temporary importation for re-export of fuel does not require permission from the Ministry of Trade.

2. Exported and temporarily imported fuel for re-export must be settled in freely convertible foreign currency through banks. Merchants exporting and engaging in temporary importation for re-export of fuel must fulfill tax obligations according to current laws on export and import taxes.

3. The Ministry of Trade is tasked with formulating and guiding conditions for fuel exports and temporary importation for re-export in compliance with the provisions of this Article and current regulations on import and export management, ensuring no impact on domestic market supply-demand and preventing trade fraud.

Article 25. Fuel import tax

Based on the tax rate framework issued by the Standing Committee of the National Assembly, macroeconomic indicators, and forecasts of world fuel prices, the Ministry of Finance, in collaboration with the Ministry of Trade, sets the import tax rate for each type of fuel, ensuring stability and suitability for economic and social conditions at different times and international commitments.

Article 26. Fuel selling price

1. Apply the principle of gasoline and oil selling prices based on market mechanisms, with state management, decided by traders engaged in exporting, importing, producing, or processing gasoline and oil after paying taxes and fees as prescribed by current laws.

The implementation roadmap is as follows:

a) Immediately implement gasoline selling prices based on market mechanisms, determined by enterprises based on import prices, taxes, fees as prescribed, and reasonable profits for reinvestment in production and business development.

b) Compensate for price reductions for various types of oil (diesel, fuel oil, mazut); implement market-based selling prices for mazut in 2007, and for diesel and fuel oil in 2008.

Specific selling prices during the period before implementing market-based selling prices and the time of implementation shall be decided by the Prime Minister.

2. Strictly prohibit speculative profiteering, collusive price increases, and other actions that disrupt market stability.

Article 27. Management of Measurement and Quality of Gasoline and Oil

1. Only products of gasoline and oil meeting Vietnamese standards and current regulations may be circulated and consumed in the Vietnamese market. Strictly prohibit the importation, circulation, and consumption of products of gasoline and oil that do not meet prescribed quality standards.

2. Traders engaged in gasoline and oil must comply with current regulations on quality management during importation, production, processing, storage, transportation, and sale to consumers; they are responsible for the quality of gasoline and oil within their distribution system. They must ensure the accuracy of measuring instruments for gasoline and oil sold to users; sell the exact quantity corresponding to the amount paid by buyers.

3. The Ministry of Science and Technology is responsible for regularly inspecting the accuracy of measuring instruments and ensuring compliance with quality standards as prescribed by Vietnamese standards; coordinate with relevant ministries and agencies to review Vietnamese standards on gasoline and oil to adjust and supplement quality criteria in line with regional and international standards, ensuring environmental safety and consumer rights, and submit to the Prime Minister for decision on application; consolidate and improve the organizational structure and inspection force regarding measurement and quality of gasoline and oil in regions and localities; plan to fully equip inspection equipment and devices to ensure rapid, timely, accurate, and convenient inspections.

4. Provincial People's Committees, within their functions and tasks, direct the organization of inspections on measurement and quality of circulating and consuming gasoline and oil within their province.

Article 28. Responsibilities of Ministries

In addition to specific responsibilities stipulated in the above articles, ministries within their functions, tasks, and authorities have the responsibility:

1. The Ministry of Trade:

a) Inspect and supervise traders engaged in exporting and importing gasoline and oil to comply with conditions and provisions set out in Article 7 and Article 9 of this Decree;

b) Issue a Dealership Regulation; inspect and supervise traders to comply with conditions and provisions set out in Articles 13, 14, 15, 16, and 17 of this Decree.

2. Ministry of Finance:

Inspect and supervise traders engaged in exporting and importing gasoline and oil to comply with provisions set out in Article 26 of this Decree.

3. The Ministry of Science and Technology:

a) Inspect and supervise producers and processors of gasoline and oil to comply with conditions and provisions set out in Articles 10 and 11 of this Decree;

b) Amend, supplement, and perfect standards for retail gasoline stations and regulations to be uniformly implemented nationwide.

4. The Ministry of Transport has the responsibility to inspect and supervise businesses engaged in petroleum service activities to comply with conditions and provisions set out in Articles 18, 19, and 20 of this Decree.

Chapter IV

INSPECTION, AUDIT, AND VIOLATION HANDLING

Article 29. Inspection and Audit of Petroleum Trading Activities

1. Traders engaged in petroleum trading must be subject to inspection and audit by authorized agencies according to the law on petroleum trading activities.

2. Inspection and audit of petroleum trading activities must be carried out in accordance with functions, authority, and legal provisions on inspection and audit.

3. Ministries, ministerial-level agencies, and provincial people's committees, within their functions and tasks, have the responsibility to direct and organize inspections and audits of compliance with this Decree and related documents, prevent and promptly handle violations, ensuring stability in the petroleum market, and meeting economic and social development requirements.

Article 30. Violations by Traders Engaged in Petroleum Trading

1. Violations by traders engaged in exporting and importing petroleum:

a) Exporting or importing petroleum without a Petroleum Export and Import Business License;

b) During petroleum trading operations, failing to meet the conditions prescribed in Article 7 of this Decree;

c) Failing to ensure the quality of petroleum sold on the market as prescribed by law;

d) Importing petroleum below the minimum annual allocation level prescribed in Article 23 of this Decree or maintaining petroleum circulation reserves below the minimum level prescribed in Article 22 of this Decree;

đ) Transferring or transferring petroleum between vessels in waters not designated by the Ministry of Transport;

e) Signing agency contracts with enterprises that do not meet the conditions for being a general agent as prescribed in Article 13 of this Decree or signing agency contracts with enterprises that do not meet the conditions for being an agent as prescribed in Article 14 of this Decree;

g) Signing contracts with general agents or agents who violate the provisions of Clause 1 or Clause 2 of Article 17 of this Decree;

h) Buying or selling petroleum to entities contrary to the provisions of Clause 3 of Article 9 or selling petroleum to entities outside their distribution system as prescribed in this Decree;

i) Not specifying the requirement to mark the name and logo of the export and import petroleum trading enterprise at retail gasoline stations under their distribution system as prescribed in Clause 6 of Article 9 of this Decree.

2. Violations by traders engaged in producing and processing petroleum:

a) Producing or processing petroleum products without fully meeting the conditions stipulated in Article 10 of this Decree;

b) Importing raw materials contrary to the provisions of Clause 1 and Clause 2 of Article 11 of this Decree;

c) Putting petroleum products into circulation without a quality standard certification or failing to ensure the quality of petroleum products sold on the market as prescribed in Clause 3 of Article 11 of this Decree;

d) Exporting or selling petroleum products produced or processed by enterprises not in accordance with regulations or to unauthorized entities as prescribed in Clauses 4 and 5 of Article 11 of this Decree;

đ) Transferring or transferring petroleum between vessels in waters not designated by the Ministry of Transport;

e) Entering into agency contracts with enterprises that do not meet the conditions for being a general agent as stipulated in Article 13 of this Decree or entering into agency contracts with enterprises that do not meet the conditions for being an agent as stipulated in Article 14 of this Decree.

g) Entering into contracts with general agents or agents who violate the provisions of Clause 1 or Clause 2 of Article 17 of this Decree;

h) Failing to specify the name and logo of the enterprise at retail outlets or fuel stations within their distribution system as prescribed in Clause 6 of Article 9 of this Decree.

3. Violations committed by traders acting as general agents or retail agents of petroleum products:

a) Engaging in petroleum product business without meeting the conditions stipulated in Article 13 or Article 14 of this Decree;

b) Entering into contracts to act as a general agent or agent contrary to the provisions of Clause 1 or Clause 2 of Article 17 of this Decree;

c) Buying or selling petroleum products contrary to the provisions of Clause 4 of Article 17 of this Decree;

d) Failing to ensure the quality of petroleum products sold on the market as required by law;

đ) Engaging in speculative hoarding, selling at prices higher than the posted price, shortchanging, or other fraudulent acts as prescribed in Clause 5 of Article 17 of this Decree;

e) Transferring or transferring petroleum products to different waters contrary to the regulations set by the Ministry of Transport.

4. Violations committed by retail outlets or fuel stations:

a) Engaging in petroleum product business without a Certificate of Eligibility for Petroleum Product Business;

b) Failing to meet the conditions stipulated in Article 15 of this Decree during the operation of petroleum product business;

c) Not having a signboard or displaying a signboard incorrectly as prescribed in Clause 3 of Article 17 of this Decree;

d) Not posting prices or posting incorrect prices according to the agency contract or selling at prices higher than the posted price as prescribed in Clause 3 of Article 17 of this Decree;

đ) Buying or selling petroleum products contrary to the provisions of Clause 4 of Article 17 of this Decree;

e) Failing to ensure the quantity and quality of petroleum products sold on the market as required by law;

g) Engaging in speculative hoarding, shortchanging, or other fraudulent acts as prescribed in Clause 5 of Article 17 of this Decree.

5. Violations committed by traders engaged in petroleum service business:

a) Engaging in petroleum service business without meeting the conditions stipulated in Article 18 or Article 19 of this Decree;

b) Altering the quality of petroleum products or engaging in fraudulent acts regarding quantity or quality of petroleum products during the provision of services;

c) Engaging in other petroleum product business activities contrary to the provisions of Clause 2 of Article 20 of this Decree.

Article 31. Handling of violations

1. Enterprises engaged in petroleum product business violating the provisions of this Decree shall be subject to administrative sanctions or criminal prosecution, depending on the severity of the violation, as prescribed by law.

2. Employees of enterprises engaged in petroleum product business; officials and civil servants violating the provisions of this Decree while performing their duties shall be subject to disciplinary action, administrative sanctions, or criminal prosecution, depending on the severity of the violation, as prescribed by law.

Chapter V

IMPLEMENTING PROVISIONS

Article 32. Effectiveness

1. This Decree shall take effect fifteen days from the date of publication in the Official Gazette.

2. The Decision No. 187/2003/QĐ-TTg dated September 15, 2003 of the Prime Minister on the issuance of the Management Regulations for Petroleum Product Business is hereby abolished.

3. All previous regulations on managing petroleum product business that contradict the provisions of this Decree are hereby abolished.

Article 33. Investment projects related to the provisions at Amendment 1:2025 QCVN 07:2023/BXD issued accompanying this Circular that have been approved before this Circular takes effect shall continue to be implemented according to the regulations at the time of approval; the investment decision maker has the right to choose to apply Amendment 1:2025 QCVN 07:2023/BXD issued accompanying this Circular.

1. Enterprises and business establishments currently operating under Decision No. 187/2003/QĐ-TTg dated September 15, 2003 of the Prime Minister, which do not meet the conditions stipulated in Articles 7, 10, 13, 14, 18, and 19 of this Decree, are permitted to continue operations until the end of 2007. After this period, they must comply with the conditions stipulated in this Decree.

2. Ministries, agencies, and People's Committees of provinces and centrally-administered cities are responsible for directing inspections, supervision, and urging these enterprises and business establishments to comply with the deadlines prescribed.

Article 34. Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies, Chairpersons of provincial People's Committees under the central city shall be responsible for implementing this Decree./.