Joint Circular No. 565/KCM-TM guiding the management of motor oil quality in business operations.

JOINT CIRCULAR OF THE MINISTRY OF SCIENCE AND TECHNOLOGY AND THE ENVIRONMENT - MINISTRY OF COMMERCE

GUIDELINES ON THE MANAGEMENT OF MOTOR OIL QUALITY IN BUSINESS

Pursuant to Decree No. 22/CP dated May 22, 1993 of the Government on the tasks, powers, and organizational structure of the Ministry of Science and Technology and the Environment;

To strengthen state management over the quality of motor oil in current business operations, the Ministry of Science and Technology and the Environment and the Ministry of Commerce provide guidelines for managing the quality of motor oil as follows:

The provisions of this Joint Circular apply to organizations and individuals, including foreign organizations and individuals legally operating in Vietnam (hereinafter referred to as enterprises) engaged in the business of motor oil (including importation, blending, packaging, wholesale, retail).

Pursuant to Decree No. 95/CP dated December 4, 1993 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Trade;

This regulation does not apply to aircraft lubricating oil.

1. General provisions:

2. Provisions on product labeling for motor oil:

2.1. Motor oil used for piston engines operating on land (excluding marine types) includes the following types:

- Four-stroke using gasoline, diesel (DO), natural gas fuel.

- Two-stroke using diesel (DO) fuel must be labeled according to the following regulations:

2.1.1. For motor oil blended for consumption in Vietnam, labeling shall be done according to the contents specified in Table 1.

2.1.2. For imported motor oil repackaged (boxes, bottles, cans, drums...) for consumption in Vietnam, labeling shall be done according to the contents specified in Table 1 with the addition of the country name and manufacturer's name.

2.1.3. For motor oil produced in other countries that have been permitted for importation and consumption in Vietnam, it is allowed to retain the original product label from abroad but must also include a supplementary label in Vietnamese containing the contents specified in points 1, 2, 3, 4 of Table 1 and the country of production. The supplementary label must be affixed or attached (or may be printed directly on the imported packaging) on each package of goods.

2.1.4. For motor oil blended solely for export if it is converted for domestic consumption, it must have a supplementary label in Vietnamese containing the contents specified in Table 1.

Labeling content must be in Vietnamese. Additional foreign languages are permitted, but the font size of the foreign language must not exceed that of the Vietnamese language. Product trademarks and enterprise names may use foreign languages provided the enterprise has all necessary legal documentation to use such names and trademarks.

2.2. Other types of motor oil consumed in Vietnam must also have product labels. Labeling shall be carried out according to the provisions of points 2.1.1; 2.1.2; 2.1.3; 2.1.4. Specifically, point 3 of Table 1 allows classification based on the characteristics of the product of the manufacturer.

Content to be labeled

For packaging under 20 liters

Unit of measurement: Percentage (%).

Note:

3. Provisions on the minimum threshold for mandatory criteria of motor oil:

3.1. For motor oil mentioned in point 2.1, enterprises must use the viscosity grading system of SAE - Society of Automotive Engineers (as per Appendix 1) and the quality grading system of API - American Petroleum Institute (as per Appendix 2) in their business activities for product labeling, state inspection of import-export goods, and motor oil quality registration.

Mandatory criteria and the minimum quality levels of motor oil mentioned in point 2.1 permitted for consumption in Vietnam are specified in Table 2 (corresponding to quality grades SC/CB). When registering higher quality grades of the aforementioned motor oils, enterprises must register specific limits corresponding to the quality grade.

Method

Testing

Unit of measurement: %

4. Provisions on the management of motor oil imports:

4.1. Enterprises with import/export licenses and relevant import items are permitted to import motor oil and handle import procedures at Customs authorities according to current regulations. Import contracts must clearly specify the manufacturer, type, quantity, quality grade, and main quality criteria of motor oil, where the mandatory criteria of motor oil mentioned in point 2.1 must meet the minimum thresholds specified in Table 2, point 3 of this Circular (corresponding to quality grades SC/CB) or equivalent levels for imported motor oil, and other types of motor oil must meet the registered quality levels with the competent authority.

4.2. Enterprises importing motor oil must conduct state inspections of import-export goods' quality according to current regulations.

5. Provisions on the management of motor oil blending and the importation of raw materials (base oil and additives) for motor oil blending:

4.2. An enterprise importing engine lubricating oil must carry out state inspection of the quality of imported goods in accordance with current regulations.

5. Provisions on the management of blending engine lubricating oil and the management of importing raw materials (base oils and additives) for blending engine lubricating oil:

5.1. An enterprise wishing to blend engine lubricating oil from base oils and additives must have a facility with the technical and technological conditions for blending. The Ministry of Science, Technology, and Environment shall take the lead in coordinating with the Ministry of Trade to assess and examine the technical and technological conditions of the blending facility and confirm such conditions for facilities that meet the requirements, including blending capacity, product types, quality level achieved by the products, technological status, and the ability to ensure product quality stability of the technological equipment. Enterprises may only blend products at the corresponding quality level confirmed by this confirmation.

Only enterprises with blending facilities confirmed by the Ministry of Science, Technology, and Environment as having the technical and technological conditions for blending shall be permitted to import base oils and additives to blend engine lubricating oil as stipulated below:

a. Enterprises holding a business license for import and export with a relevant import commodity category may directly import. The Regional Import-Export Management Department (Ministry of Trade) shall notify the quantity of base oils and the quantity and type of additives that the enterprise is allowed to import so that the enterprise can handle the import procedures at the Customs Authority.

b. Enterprises without a business license for import and export may select and request the Ministry of Trade to entrust one or two enterprises holding a business license for import and export with a relevant import commodity category, having experience in importing, and a team of staff with expertise in lubricants to import base oils and additives on behalf of their own unit. Based on the written opinion of the Ministry of Trade, the Regional Import-Export Management Department shall notify the quantity of base oils and the quantity and type of additives that the entrusted importing enterprise is allowed to import so that the entrusted enterprise can handle the import procedures at the Customs Authority.

c. The quantity of base oils and the quantity and type of additives notified by the Regional Import-Export Management Department to the importing enterprise (or the entrusted importing enterprise) to serve blending shall be based on: the enterprise's application, the confirmed blending capacity by the Ministry of Science, Technology, and Environment, production progress, and must ensure that the imported base oils and additives do not exceed the blending capacity, the ratio between base oils and additives according to the specified technical ratio, and the market demand for that product type.

5.2. Strictly prohibit the purchase and sale of base oils on the domestic market. 5.3. Enterprises importing base oils and additives (directly or through entrusted imports) must implement state inspection of the quality of imported goods in accordance with current regulations. Enterprises blending and packaging engine lubricating oil must register the quality of goods in accordance with current regulations.

6. Implementation Provisions:

6.1. This Circular replaces Circular Jointly Issued by the Ministry of Science, Technology, and Environment and the Ministry of Trade No. 48/TT-LB dated January 19, 1995.

6.2. The two Ministries shall coordinate with relevant agencies to be responsible for implementing this Circular, organizing inspections, and handling violations related to product quality on the market according to the guidance provided in Circular Jointly Issued by the Ministry of Trade and the Ministry of Science, Technology, and Environment No. 12-TT/LB dated July 12, 1996. During implementation, if there are any difficulties, the agencies concerned should report to the two Ministries for timely review and amendment.

6.3. This Circular takes effect from July 1, 1997.

ANNEX 1

VISCOSITY GRADES OF ENGINE LUBRICATING OILS
CLASSIFIED BY SAE

ANNEX 2

QUALITY GRADES OF ENGINE LUBRICATING OILS
CLASSIFIED BY API

* Engine lubricating oil for gasoline engines: SA, SB, SC, SD, SE, SF, SG...

* Engine lubricating oil for diesel engines: CA, CB, CC, CD, CE...

* Multi-grade engine lubricating oil for both gasoline and diesel engines includes both symbols above, for example: SC/CB; SG/CD.