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Regulations for used machinery, equipment and technological line imports

INISTRY OF SCIENCE AND TECHNOLOGY
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No.: 20/2014/TT-BKHCN
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
 
Hanoi, 15 July 2014

 
CIRCULAR
Regulations for used machinery, equipment and technological line imports
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Pursuant to Decree No. 20/2013/NĐ-CP dated 26 February 2013 of the Government, defining functions, tasks, powers and organizational structure of Ministry of Science and Technology.
Pursuant to Decree No. 187/2013/NĐ-CP dated 20 November 2013 of the Government, detailing the implementation of Commercial Law regarding international goods trade, goods processing, transit and agency activities with foreign countries.
Pursuant to Decree No. 132/2008/NĐ-CP dated 31 December 2008 of the Government, detailing the implementation of a number of articles of Law on Product and Goods Quality.
Pursuant to the Request of Department Chief of Department of Technology Appraisal, Examination and Assessment.
Minister of Science and Technology issues a Circular regulating on used machinery, equipment and technological line imports.
Article 1.Governing Scope
1.     This Circular regulates conditions and procedures for used machinery, equipment and technological line imports, including spare parts, accessories and replacements.
2.     This Circular does not apply for used machinery, equipment and technology imports as follows:
a.     Transit; transshipment; temporary import and re-export (except for processing contracts; import for production, implementation of investment projects); temporary export and re-import; implementing repairs and maintenance contracts.
b.     Support scientific research, which cannot be produced in the country.
c.     Transfer from export processing zones in the country.
d.     Serve for the security and national defense purposes.
e.     Aid goods of non-governmental organizations of foreign countries.
Article 2. Applicable entities
This Circular applies for state management agencies, companies, organizations and individuals involved in the import of used machinery, equipment and technological line as specified in Article 1 of this Circular.
Article 3. Interpretation of Terms
In this Circular, the terms below are construed as follows:
1. Technological line is a system of equipment, tools, facilities arranged, installed according to diagram, technological process to ensure synchronous operation for production.
2. Used time (years) is the time from manufacturing year to import year of used machinery, equipment and technological line.
3. Remaining quality (%) is formed on technical parameters of used machinery, equipment and technological line compared with technical parameters of new one (100% newly produced).
Article 4.Import Management Principles
1.     Encourage the import of modern and high-technology machinery, equipment and technological line.
2.     Used machinery, equipment and technological line imported must meet requirements of quality, safety, energy savings and environmental protection.
3.     Used machinery, equipment and technological line imported must meet not only the requirements of this Circular, but also the current regulations of the government and concerned ministries and agencies on goods imports.
Article 5. Used machinery, equipment and technological line banned from import
Used machinery, equipment and technological line banned from import include:
1.        List of goods banned from export and import issued together with Decree 187/2013/NĐ-CP dated 20 November 2013 of the Government, detailing the implementation of Commercial Law regarding international goods trading, goods processing, transit and agency activities with foreign countries.
2.     List of used goods banned from export and import, List of used means of transport banned from export and import issued together with Circular No. 04/2014/TT-BCT dated 27 January 2014 of Ministry of Industry and Trade, detailing the implementation of a number of articles of Decree 187/2013/NĐ-CP dated 20 November 2013 of the Government, detailing the implementation of Commercial Law regarding international goods trading, goods processing, transit and agency activities with foreign countries.
3.     List of used information technology products banned from import issued together with Circular No. 11/2012/TT-BTTTT dated 17 July 2012 of Ministry of Information and Communications, regulating List of used information technology products banned from import.
4.     Lists of used goods banned from import issued by other ministries and agencies under Decree 187/2013/NĐ-CP dated 20 November 2013 of the Government, detailing the implementation of Commercial Law regarding international goods trading, goods processing, transit and agency activities with foreign countries.
Article 6. Conditions of used machinery, equipment import
1.     Used machinery, equipment which are not of Article 5 of this Circular and Item 2 of this Article shall be allowed import if meeting the following requirements.
a.     Used time is not more than 5 years;
b.     Remaining quality is 80% or more
2.     Import conditions in some special cases
a.     Used machinery, equipment with used time not more than 3 years and remaining quality at least 80%, include:
-        Machinery, equipment used for agricultural production.
-        Machinery, equipment used for beer, alcohol and beverage manufacturing.
-        Machinery, equipment used for post services: device used for sorting letters, parcels; envelope folding machine; envelope manufacturing machine; conveyor equipment.
b.     Used machinery, equipment with used time not more than 7 years and remaining quality at least 80%, include:
-        Machinery, equipment used for geology industry, mineral exploitation.
-        Machinery, equipment used for building and repairing ships.
-        Machinery, equipment used for the construction of oil, gas and marine works.
-        Machinery, equipment used for transport infrastructure works.
-        Machinery, equipment used for printing industry: CTF, CTP, molding machine, paper cutters, binding machines (steel pin or sewing), folding machines, book covering machine.
c.     Used machinery, equipment with used time not more than 10 years and remaining quality at least 80%, include:
-        Marine propulsion engine used for offshore fishing vessels.
-        Saddle Stitcher used for printing industry.
d.     Used machinery, equipment with used time not more than 15 years and remaining quality at least 80%, include: Offset printing machine, copper roller printing machine, flexo printing machine used for printing industry.
Article 7. Conditions of used technological line import
1.     Used technological line which is not of Article 5 of this Circular and Item 2 of this Article shall be allowed import if meeting the following requirements.
a.     Used time is not more than 5 years;
b.     Remaining quality is 80% or more;
c.     Using used technological line is mentioned in investment project dossiers filed at investment managing agency or approved by competent authorities.
d.     In accordance with professional management requirements of ministries, agencies.
e.     Inspected for quality in exporting country prior to disassembling, packing and shipping.
2.     Import conditions in some special cases
a.     Used technological line is allowed importing if used time is not more than 3 years and remaining quality at least 80%, and it meets requirements specified in Point c, d, e in Item 1 of this Article, includes:
-        Technological line used for beer, alcohol and beverage manufacturing.
-        Automatic letter, parcel sorting line used for post services.
b.     Used technological line is allowed importing if used time is not more than 10 years and remaining quality at least 80%, and it meets requirements specified in Point c, d, e in Item 1 of this Article, includes: combined lines used for printing industry.
Article 8. Import Procedures for used machinery, equipment
1.     Companies carry out import procedures at Customs authorities where they import goods. In addition to necessary documents as specified, companies must also submit following documents to the customs for clearance:
a.     Technical documentation showing manufacturing year of machinery, equipment imported.
b.     Quality-control certificate issued by eligible Inspection organization specified in Item 1 of Article 10 of this Circulation. If quality-control certificate is issued by eligible foreign Inspection organization specified in Item 5 of Article 11 of this Circulation, companies must attach a copy of valid Compliance Certification Management System in accordance with international standard ISO/IEC 17020 current version of inspection organization.
2.     Based on documents submitted by companies, the customs shall determine if used machinery, equipment meet the requirements specified in Article 6 of this Circular, then implement customs clearance according to regulations.
3.     Besides the above mentioned regulations, companies must also meet other applicable regulations of the Government, other ministries, agencies for machinery, equipment when importing.
Article 9. Import Procedures for used technological line
1.     Companies carry out import procedures at Customs authorities where they import goods. In addition to necessary documents as specified, companies must also submit following documents to the customs for clearance:
a.     Technical documentation showing manufacturing year of technological line imported.
b.     Quality-control certificate issued by eligible Inspection organization specified in Item 2 of Article 10 of this Circulation. If quality-control certificate is issued by eligible foreign Inspection organization specified in Item 5 of Article 11 of this Circulation, companies must attach a copy of valid Compliance Certification Management System in accordance with international standard ISO/IEC 17020 current version of inspection organization.
c.     Explanation of investment project (copy) submitted to investment management agency or approved by competent agency, in which it show used technological line estimated to be imported.
d.     For used technological line is of the management power of ministries or agencies, it must be allowed importing in writing by those ministries or agencies.
2. Based on documentation submitted by companies, the customs shall determine if used technological line meet the requirements specified in Article 7 of this Circular, then implement customs clearance according to regulations.
Article 10. General Conditions of Quality Control Certificate
1.     Quality-control certificate for used machinery, equipment is issued by appointed inspection organization. In case, the inspection is carried out in export country and there is no inspection organization eligibly appointed, companies shall be allowed to choose eligible foreign inspection organization specified in Item 5 of Article 11 of this Circulation for quality inspection.
2.     Quality-control certificate for used technological line is issued by appointed inspection organization or eligible foreign inspection organization in export country specified in Item 5 of Article 11 of this Circulation before disassembling, packing and shipping.
3.     For used machinery, equipment, it encourage importers to carry out quality inspection in export country to avoid clearance congestion at the borders and reduce storage time.
4.     In the process of implementing customs clearance, if there is basis to determine the actual quality of used machinery, equipment and technological line are not in accordance with quality control certificate, the customs is entitled to require reinspection. In case there is a difference in inspection results between inspection organizations, the decision of Ministry of Science and Technology is final.
Article 11. Requirements for Inspection Organizations
1.     Being an organization established under the regulations of the law having quality inspection function for machinery, equipment and technological line.
2.     Have inspection capacity meeting the requirements of national standards TCVN ISO/IEC 17020 or international standards ISO/IEC 17020, current version.
3.     Have at least two inspectors who can meet the following requirements:
a.     Have university degree or higher and professional capability in accordance with the requirements and categories of inspection.
b.     Have at least 3 year experience in the category of inspection.
c.     Have inspection certificate in the category of inspection in case the law requires.
4.     Have quality inspection methods and process for machinery, equipment and technological line, approved by the leaders of inspection organization.
5.     Particularly for foreign inspection organization in export country chosen by importers for quality inspection, it must meet the following requirements:
a.     Have business registration certificate for practicing quality inspection for machinery, equipment and technological line in its country;
b.     Have Compliance Certification Management System in accordance with international standard ISO/IEC 17020 current version issued by legal compliance organization as a member of International Laboratory Accreditation Cooperation and/or Asia Pacific Laboratory Accreditation Cooperation.
6.     Inspection organization must comply with the principles of independence, objectivity, and science in inspection activities as specified in the law and responsible for the accuracy of assessment results.
Article 12. Appointment of Inspection Organization
1.     The appointment of inspection organization shall be carried out by Ministries, agencies.
2.     Ministries and agencies regulate requirements and procedures appointing inspection organization and implement the appointment of eligible inspection organization conducting quality assessment for machinery and equipment within assigned fields of management based the following legal documentation:
a.     Circular No. 09/2009/TT-BKHCN dated 8 April 2009 of Ministry of Science and Technology providing guidance on the requirements and procedure for appointment of conformity assessment organization and Circular No. 11/2011/TT-BKHCN dated 30 June 2011 of Ministry of Science and Technology on amendments and supplements of a number of provisions of Circular No. 09/2009/TT-BKHCN dated 8 April 2009 of Ministry of Science and Technology providing guidance on the requirements and procedure for appointment of conformity assessment organization.
b.     Circular No. 27/2007/TT-BKHCN dated 31 October 2007 of Ministry of Science and Technology providing guidance on signing and implementation of the Agreement on mutual recognition of conformity assessment results.
c.     Circular No. 26/2013/TT-BKHCN dated 15 November 2013 of Ministry of Science and Technology providing guidance on the requirements and procedure for appointment of foreign conformity assessment organization, implementation of conformity assessment of products, goods in accordance with national technology standards issued by Ministry of Science and Technology.
3.     Ministries and agencies are responsible for publication on their websites, of the information of appointed inspection organizations so that state agencies, enterprises, organizations and individuals, who are concerned, can choose. Basic information includes: name of organization, address, telephone number, fax number, email, website, appointed category of inspection, the form of quality inspection certificate and the sample of signature shown on the certificate.
Article 13. Inspection and Handling of Violations
1.     State agencies, enterprises, organizations and individuals, who are related to import activities of used machinery, equipment and technological line, are subject to inspection by state agencies, which have competence to carry out this Circular.
2.     Any violation of the provisions of this Circular, depending on the nature and extent, will be handled according to the provisions of current law.
Article 14.Detailing and Guiding the Implementation
1.     Ministries, agencies and local governments coordinate with Ministry of Science and Technology to monitor and guide the import of used machinery, equipment and technological line within assigned fields of management.
2.     Ministries and agencies carry out the appointment of inspection organization within their fields of management, and send the list of appointed inspection organizations together with their information to Ministry of Science and Technology for information aggregation purposes.
3.     Ministry of Planning and Investment is responsible to disclose and regularly update the list of machinery, equipment and technological line which domestic manufacturers can produce in the country.
4.     Ministry of Science and Technology is responsible to disclose the list of used machinery, equipment and technological line banned from import from countries where those products have been eliminated due to backward technology, poor quality, causing environmental pollution.
5.     General Customs carry out customs clearance for used machinery, equipment and technological line as specified in this Circular.
6.     In the process of used machinery, equipment and technological line imports, if there is a difference in defining category and conditions of import, importers need to send a written request together with necessary documents to Ministry of Science and Technology for consideration and settlement.
7.     In case used machinery, equipment and technological line do not meet the requirements of used time, but they are repaired and renewed, and can meet the requirements of remaining quality as specified in Article 6 and Article 7 of this Circular; meet the requirements of  safety, energy savings and environmental protection.
8.     Ministry of Science and Technology assign Department of Technology Appraisal, Examination and Assessment to implement this Circular.
Article 15. Implementation Effect
1.     This Circular takes effect as from 1 September 2014.
2.     Transitional provisions:
In case trading contracts have been signed and goods have been loaded on means of transport before the effective date of this Circular, these cases shall not be governed by this Circular.
3.     In the process of implementation, if any problem, ministries, ministerial-level agencies and agencies under the government, organizations, individuals need to send feedback to Ministry of Science and Technology for appropriate amendment and supplement.
 

Recipients:
- Prime Minister and Vice PMs;                                                       
- Ministries, ministerial level agencies, agencies under the government;
- President’s Office; National Assembly Office;
- Provincial People's Committee, People's Committee of cities under the central government;
- Provincial Department of Science and Technology and  Department of Science and Technology of cities under the central government;
- Supreme People's Court;
- Supreme People's Procuracy;
- Gazettes;
- Department of Examination of Legal Normative Documents (Ministry of Justice);
- For filing: Admin., Department of Technology Appraisal, Examination and Assessment.

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