Decision No. 91-TTg Issuing Regulations on Management of Importation of Machinery and Equipment with State Budget Funds

Pursuant to …;

||| ISSUING REGULATIONS ON THE MANAGEMENT OF IMPORTATION OF MACHINERY AND EQUIPMENT WITH STATE BUDGET FUNDS

||| TO ENSURE THE EFFECTIVENESS OF THE IMPORTATION OF MACHINERY AND EQUIPMENT WITH STATE BUDGET FUNDS;

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;
||| The Decision hereby promulgates the Regulations on the management of importation of machinery and equipment (including individual components and complete sets) with state budget funds.
At the proposal of the Minister of Trade,

Pursuant to …;

Article 1. ||| The Ministers of Trade, Finance, Chairman of the State Planning Commission, Minister of Science, Technology and Environment, Governor of the State Bank shall be responsible for guiding and supervising the implementation of the regulations attached to this Decision.

Article 2.- ||| The Ministers of various Ministries, Heads of agencies at ministerial level, agencies under the Government, and Chairmen of provincial People's Committees directly under the central government shall be responsible for implementing this Decision.

Article 3.- ||| This Decision takes effect from the date of issuance; all previous regulations contrary to the regulations attached to this Decision are abolished.

||| ON THE MANAGEMENT OF IMPORTATION OF MACHINERY AND EQUIPMENT WITH STATE BUDGET FUNDS

REGULATIONS

||| (Issued together with Decision No. 91-TTg dated November 13, 1992 of the Prime Minister).
||| These regulations apply to the importation of various types of machinery and equipment (including complete sets and individual components) funded by the following sources:

Chapter I. GENERAL PROVISIONS

Article 1.||| - State budget allocations.

||| - Additional capital of state-owned enterprises.

||| - Capital of companies (established under the Law on Enterprises) where the total contributed capital of state-owned enterprises constitutes more than 50% of the company's capital.

||| - Loans from governments of other countries, international organizations, banks, and foreign companies to the state budget or guaranteed by state banks.

||| - Financial aid in cash from governments of other countries, non-governmental organizations, and international organizations for projects and works (including humanitarian financial aid) managed by the state budget.

Article 2. - The importation of machinery and equipment funded by other sources shall be the responsibility of the investors and enterprises according to the law and current regulations; they are not within the scope of adjustment of these regulations; special cases will be regulated separately by the Prime Minister.

||| Machinery and equipment are classified into two categories:

Article 3.1. Complete sets are a collection of machinery and equipment, materials specifically used for a project equipped with specific technology described and stipulated in the project design.

20 ||| The contents of complete set equipment include:

The contents of the goods and equipment include entirely:

- Technical surveys.

||| - Economic and technical justification or feasibility study of the design work.

||| - Equipment, machinery, materials... for constructing the project.

||| - Construction, assembly, calibration, operation guidance works.

||| - Other related services to the project (technology transfer, training...).

||| Importation through a single contract (turnkey form) with all the above goods content, or implemented in parts, depending on requirements.

2. Individual components are separate pieces of equipment or production lines that have been shaped in manufacturing and marketed.

Individual components include spare parts and repair items to ensure normal operation for individual components imported during and after the warranty period, technology transfer, training, and experts.

II- SPECIFIC PROVISIONS

Article 4.||| The importation of complete sets of equipment according to projects can only be carried out after obtaining approved economic and technical justification or economic and technical reports according to Decree No. 385-HĐBT dated November 7, 1990 of the Council of Ministers; special cases will be regulated separately by the Prime Minister.

Article 5.||| The Ministry of Trade, based on recommendations from ministries, sectors, localities managing projects and investors, will consider and decide on the specific address of enterprises to carry out the importation of complete sets of equipment for approved projects and works.

Article 6.||| Only machinery and equipment that domestic production cannot meet the economic and technical requirements of approved projects and works can be imported. The importation of used or unused but old model machinery and equipment serving projects will be handled specifically by the Ministry of Trade along with relevant management sectors and investors.

Article 7.||| Depending on the scale of importation and the nature of machinery and equipment, importation must be conducted according to one of the following methods:

||| - Open tendering or restricted tendering.

||| - Direct purchase through competitive bidding.

||| The Ministry of Trade will specify the procedures and contents of the aforementioned methods.

Article 8.||| Import contracts for machinery and equipment only take effect after being reviewed by competent authorities regarding the quality and unit price of machinery and equipment, key conditions of the contract, and approval according to Clause 9 below; importing enterprises signing the contract and are responsible for implementing the approved import contract content.

Article 9.||| Approval of import contracts for machinery and equipment is regulated as follows:

1. For individual components:

||| If the value of a single unit machine is less than 100,000 USD or the total contract value is less than 500,000 USD, the designated importing enterprise decides on the contract conditions itself.

||| If the value of a single unit machine is 100,000 USD or more or the total contract value is 500,000 USD or more, the Ministry of Trade will approve after receiving opinions from the competent authority (ministry or provincial-level locality).

The approval time is 15 days from the date of receipt of the contract approval request from the importing enterprise. If exceeding the specified time, the approving authority will bear the consequences (if any) due to delay.

2. For complete sets:

||| If the investment value of the project is less than 5 million USD, it will be approved by the Ministry of Trade after receiving opinions from the competent authority (ministry or provincial-level locality) and the Ministry of Finance.

||| If the investment value of the project is between 5 million and 10 million USD, it will be approved by the National Appraisal Council.

The State Appraisal Council consists of the Minister of Commerce as Chairman, and representatives of the State Planning Commission, the Ministry of Science and Technology and Environment, the Ministry of Finance, and the State Bank as permanent members. In addition, for each project, there will be representatives from the economic and technical management ministry, the relevant supervisory agency, and the enterprise designated to implement the importation.

- If the investment capital exceeds 10 million USD, the Prime Minister shall approve based on the recommendation of the State Appraisal Council.

- The approval time is 30 days from the date of receipt of the approval request from the enterprise applying for machinery and equipment importation or the report of the State Appraisal Council (for cases where the Prime Minister approves). If exceeding the specified time period, the competent authorities with approval authority must bear responsibility for any consequences resulting from the delay.

Article 10.- After receiving the approval from the competent authorities with approval authority for the machinery and equipment import contract, the Ministry of Commerce is responsible for issuing the import permit for the machinery and equipment import contract according to each shipment, in accordance with the conditions of the approved contract; without delaying the progress of the project.

Article 11.- This provision takes effect from the date of issuance; all previous regulations contrary to this provision are no longer effective.