Circular No. 12/2010/TT-BKHCN dated July 30, 2010 of the Ministry of Science and Technology guiding quality and measurement management of liquefied petroleum gas trading

CIRCULAR

GUIDING QUALITY AND MEASUREMENT MANAGEMENT OF LIQUEFIED PETROLEUM GAS TRADING

THE MINISTER OF SCIENCE AND TECHNOLOGY

Pursuant to the Government s Decree No. 28/ 2008/ND-CP of March 14, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Science and Technology;

Pursuant to the Government s Decree No. W7/2009/ND-CP of November 26, 2009, on liquefied petroleum gas trading;

The Minister of Science and Technology guides the quality and measurement management of liquefied petroleum gas trading as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the quality and measurement management of liquefied petroleum gas trading; order and procedures for granting certificates of eligibility for liquefied petroleum gas manufacture and processing and quality certificates of liquefied petroleum gas on debut; and organization of implementation.

Article 2. Subjects of application

1. This Circular applies to liquefied petroleum gas traders engaged in one, some or all of the following activities: export, import, manufacture processing, storage, filling, supply, distribution and transportation of liquefied petroleum gas in the Vietnamese market.

2. This Circular does not apply to the following cases:

a/ Temporary import for re-export or in-transit transportation of liquefied petroleum gas.

b/ Import, manufacture and processing of liquefied petroleum gas for traders" own use, not for sale and circulation in the market.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Trader is as defined in Clause 1, Article 6 of the Commercial Law.

2. Measurement terms are as defined under the current law on measurement.

3. Liquefied petroleum gas is below abbreviated to LPG

4. Other LPG-related terms are construed under Article 3 of the Government s Decree No.107/2009/ND-CP of November 26. 2009, on liquefied petroleum gas trading (below referred to as Decree No. 107/2009/ND-CP).

Chapter II

QUALITY MANAGEMENT OF LIQUEFIED PETROLEUM GAS TRADING

Article 4. Quality of exported LPG

Traders must meet the following quality requirements for exported LPG:

1. The quality of exported LPG meets requirements of importing countries.

2. When LPG is returned by importing countries, LPG quality shall be managed under Article 5 of this Circular.

3. Personnel directly engaged in LPG export have been trained in professional operations of LPG quality management in trading and obtain a training certificate.

Article 5. Quality of imported LPG

Traders must meet the following quality requirements for imported LPG:

1. Standards applicable to imported LPG products are announced, which must not contravene current national standards and technical regulations. The quality of imported LPG conforms with announced standards prior to market sale.

2. Imported LPG is subject to state inspection of quality before customs clearance under the Science and Technology Minister s Circular No. 17/20O9/TT-BKHCN of June 18, 2009, guiding state inspection of the quality of imports under the Ministry of Science and Technology s management.

3. Bottled LPG is labeled under current regulations.

4. Personnel directly engaged in LPG import have been trained in professional operations of LPG quality management in trading and obtain a training certificate.

Article 6. LPG quality in manufacture and processing

Traders must meet the following requirements:

1. Laboratories have testing devices and staff and material foundations meeting requirements for testing LPG quality indicators under current national standards and technical regulations.

Traders shall develop and apply quality management systems for LPG laboratories by national standard TCVN ISO/IEC 17025:2007 or international standard ISO/IEC 17025:2005.

For laboratories which are not qualified for testing all quality indicators by current national standards and technical regulations, traders may use outside laboratories to test indicators beyond their laboratories capacity under testing service contracts, which have developed and applied quality management systems by national standard TCVN ISO/IEC 17025:2007 or international standard ISO/IEC 17025:2005.

2. They have developed and applied quality management systems by national standard TCVN ISO 9001:2008 or the oil and gas industry s specialized quality management system by standard ISO/TS 29001:2007- Petroleum oil, petrochemistry and natural gas industries - specialized quality management system - requirements for product suppliers and service providers.

3. They have developed and applied environmental management systems in conformity with national standard TCVN ISO 14001:2005 or international standard ISO 14001:2004.

4. Personnel directly engaged in quality control in LPG manufacture and processing have been trained in professional operations of LPG quality management in trading and obtain a training certificate.

5. They announce standards applicable to LPG products, which must not contravene current national standards and technical regulations; guarantee that LPG quality conforms with announced standards prior to market sale; and announce standards under current law.

When national technical regulations are available, they shall take quality management measures under these regulations.

6. They obtain a certificate of eligibility for LPG manufacture and processing under Article 11. Chapter IV of this Circular.

7. Traders manufacturing and processing LPG products which are put on first market sale shall have these products inspected and obtain a quality certificate under Article 12, Chapter IV of this Circular prior to market sale.

Article 7. LPG quality in LPG supplying and filling stations

LPG supplying stations and stations filling LPG for cylinders, automobiles or tank trucks must meet the following requirements:

1. Having product quality dossiers (comprising names, categories, announced standards, origin, quality certificates) for each category of LPG supplied to stations by distributors.

2. Not changing LPG quality in any way in the course of supplying and filling LPG

3. Labeling bottled LPG under current regulations prior to market sale.

4. Developing and applying quality management systems by national standard TCVN ISO 9001:2008 or international standard ISO/TS 29001.

5. Personnel directly engaged in LPG supply and filling have been trained in professional operations of LPG quality management in trading and obtain a training certificate.

Article 8. LPG quality in LPG storing, distributing and transporting establishments and LPG shops

1. Personnel directly engaged in quality management must be trained in professional operations of LPG quality management in trading and obtain a training certificate. 2. For LPG shops:

a/ To request LPG distributors to provide product quality dossiers (comprising names, categories, announced standards, origin, quality inspection certificates) for each LPG lot supplied to shops.

b/ Bottled LPG must be labeled and its quality must conform with announced standards.

Chapter III

MEASUREMENT MANAGEMENT OF LPG TRADING

Article 9. For LPG export, import, manufacture, processing and distribution

LPG exporters, importers, manufacturers and processors and owners of LPG supplying stations. LPG cylinder filling stations and stations filling LPG for automobiles and tank trucks shall comply with the following provisions on measurement management:

1. Measuring devices used to determine the volume of LPG to be traded and paid among organizations and individuals must meet the following requirements:

a/ They have been inspected with valid inspection certificates (inspection marks, stamps or certificates);

b/ Their parts and details match the approved model measuring devices;

c/Their measurement units are relevant to the volume of LPG subject to measurement;

d/ Manufacturers use requirements are met.

2. When one or more measuring devices provided in Clause 1 of this Article are installed together with other structures and parts to form a measuring system for determining the volume of LPG to be traded and paid among organizations and individuals, this system must meet technical measurement requirements under the law on measurement.

3. To regularly examine measuring functions of special-use devices under manufacturers7 instructions to guarantee that LPG is sold to customers in sufficient volume.

4. LPG measurement errors in trading and payment with organizations and individuals must:

a/ Not exceed 1.5 times the tolerable errors allowed for measuring devices specified in Clause 1 or measuring systems defined in Clause 2 of this Article when using such devices or systems to determine the volume of LPG

b/ Meet measurement requirements for prepackaged goods under the current law on measurement, for bottled LPG

5. Personnel directly engaged in measurement must be trained in professional operations of LPG measurement management in trading and obtain a training certificate.

Article 10. For LPG shops

LPG shops must comply with the following provisions on measurement management:

1. To have scales with precise grades and measurement units relevant to weighing levels to be readied for comparative measurement upon request, which must meet the following requirements:

a/ They have been inspected with valid inspection certificates (inspection marks, stamps or certificates);

b/ They are placed in positions convenient for LPG buyers to examine measuring results.

2. Personnel directly engaged in measurement must be trained in professional operations of measurement management in LPG trading and obtain a training certificate.

Chapter IV

ORDER AND PROCEDURES FOR GRANTING CERTIFICATES OF TECHNICAL ELIGIBILITY FOR LPG MANUFACTURE AND PROCESSING AND QUALITY CERTIFICATES OF LPG ON DEBUT

Article 11. Order and procedures for granting certificates of technical eligibility for LPG manufacture and processing

1. Application for certificates of technical eligibility for LPG manufacture and processing

LPG manufacturers or processors shall make one dossier of application for a certificate of technical eligibility for LPG manufacture and processing and submit it to the Directorate for Standards. Metrology and Quality. A dossier comprises:

a/ An application for a certificate of eligibility for LPG manufacture and processing (made according to the form provided in Appendix I to this Circular, not printed herein).

b/ Copies of the following papers:

- Business registration or investment certificate or enterprise establishment decision;

- Inspection certificates of measuring devices used in LPG trading and payment:

- Valid certificate of registration for use of machinery tools subject to strict safety requirements issued by an agency of Ministry of Labor. War Invalids and Social Affairs;

- Certificate of the quality management systems conformity with national standard TCVN ISO 9001:2008 or international standard ISO/TS 29001:2007;

A trader that does not possess this certificate shall send copies of documents on its own quality management system:

- Certificate of the environmental management system s conformity with national standard TCVN ISO 14001:2005 or international standard ISO 14001:2004 (if any);

A trader that does not possess this certificate shall send copies of documents on its own quality management system:

- Staff s certificates of training in professional operations of LPG quality and measurement management in trading.

c/ Written explanation about the manufacture and processing capacity, covering the following details:

- Name of LPG product; written announcement of applicable standards and certificate of quality conformity with announced standards issued by a conformity assessment institution which has registered operations under the Science and Technology Minister s Circular No. 08/2009/TT-BKHCN of April 8. 2009, guiding the order and procedures for registration of conformity assessment operations.

- Annual output, relevant tank systems and manufacture or processing technologies;

- Written declaration of categories, quality and origin of materials and additives used in LPG manufacture and processing:

- Plan of the manufacture system and technical specifications of equipment and technologies;

- Capacity of laboratories. When using an outside laboratory, to fully declare the testing institution s name and indicators to be tested by such institution;

- Sample of the label of each type of bottled LPG product.

d/ Plan on LPG quality control in manufacture and prior to market sale.

2. Dossier appraisal and certificate grant

Within 30 working days after receiving a complete and valid dossier, the Directorate for Standards. Metrology and Quality shall appraise it and conduct on-site examination and evaluation.

Based on examination and evaluation results, the Directorate for Standards, Metrology and Quality shall:

a/ Grant a certificate (according to the form provided in Appendix II to this Circular, not printed herein), if the applicant meets requirements: or,

b/ Notify in writing the applicant of the reason for refusing to grant a certificate.

Article 12. Order and procedures for renewal of certificates of technical eligibility for LPG manufacture and processing

1. At least one month before a certificate of technical eligibility for LPG manufacture and processing expires, a trader wishing to continue its business shall make a dossier of application for certificate renewal and submit it to the Directorate for Standards, Metrology and Quality. A dossier comprises:

a/ An application for renewal of a certificate of technical eligibility for LPG manufacture and processing, made according to the form provided in Appendix III to this Circular (not printed herein):

b/ A report on LPG manufacture and processing and quality control activities during the validity term of the granted certificate:

c/ Written explanation about orientations for development and production planning for the next 3 years.

2. Within 15 working days after receiving a complete and valid dossier, the Directorate for Standards. Metrology and Quality shall appraise it and conduct on-site examination (when necessary) and renew a certificate of technical eligibility for LPG manufacture and processing according to the form provided in Appendix II to this Circular. In case of refusal, it shall notify in writing the applicant of the reason.

Article 13. Order and procedures for granting quality certificates of LPG products on debut

1. Application for quality certificates of LPG products on debut:

A trader shall make one dossier of application for a quality certificate of LPG product on debut and submit it to the Directorate for Standards, Metrology and Quality. A dossier comprises:

a/ An application for a certificate (made according to the form provided in Appendix IV to this Circular, not printed herein).

b/ Technical information on LPG manufacture, including:

- Written explanation about production and processing technological chains; annual output; tank system;

- Material supply sources and quality of materials;

- Laboratory capacity, manufacture quality-management system;

- Announced standards applicable to the product;

- Notice of LPG testing results by announced standards issued by a capable laboratory, which has registered testing operations under the Science and Technology Minister s Circular No. 08/2009/TT-BKHCN of April 8, 2009, guiding the order and procedures for registration of conformity assessment operations.

c/ Copies of staff s certificates of training in professional operations of LPG quality and measurement management in trading.

2. Dossier appraisal and certificate grant

Within 15 working days after receiving a complete and valid dossier, the Directorate for Standards, Metrology and Quality shall appraise it and evaluate LPG product quality.

Based on examination and evaluation results, the Directorate for Standards, Metrology and Quality shall:

a/ Grant a certificate (according to the form provided in Appendix V to this Circular, not printed herein), if the applicant meets requirements; or,

b/ Notify in writing the applicant of the reason for refusing to grant a certificate.

A quality certificate of LPG product on debut serves as a basis for a trader to continue its LPG manufacture and processing and take quality management measures under current national standards and technical regulations.

Chapter V

IMPLEMENTATION PROVISIONS

Article 14. Responsibilities of state management agencies

1. The Directorate for Standards. Metrology and Quality shall:

a/ Perform LPG quality and measurement management under this Circular;

b/ Assume the prime responsibility for, and coordinate with specialized agencies of concerned ministries and branches in, inspecting and examining LPG traders in assuring quality and measurement under this Circular;

c/ Develop and approve training contents and programs on professional operations of LPG quality and measurement management in trading; and guide provincial-level Sub-Directorates for Standards, Metrology and Quality in training:

d/ Guide in detail technical measurement requirements for measuring devices and systems and inspection of measurement and measuring results;

e/ Biannually, report on LPG quality and measurement management in trading to the Ministry of Science and Technology.

2. Provincial-level Science and Technology Departments shall:

a/ Assume the prime responsibility for. and coordinate with concerned units in, regularly or irregularly examining LPG quality and quality and measurement assurance conditions in LPG filling and supplying stations and LPG shops and other distributors based in their localities under this Circular;

b/ Biannually, report on LPG quality and measurement management in trading to the Directorate for Standards, Metrology and Quality.

c/ Provincial-level Sub-Directorates for Standards, Metrology and Quality shall:

- Train in professional operations of LPG quality and measurement management in trading for LPG traders stall directly engaged in quality and measurement management under training programs approved by the Directorate for Standards. Metrology and Quality and grant training certificates (according to the form provided in Appendix VI to this Circular, nut printed herein) ,

- Biannually. report on training results to the Directorate for Standards. Metrology and Quality.

Article 15. Responsibilities of LPG traders

1. To comply with provisions on traders rights and obligations in Decree No. 107/2009/ ND-CP.

2. To guarantee the application of measures to manage LPG quality and measurement under this Circular, To ensure that the quality of LPG put on market sale conform with current national standards and technical regulations.

3. To comply with regulations on fire prevention and fighting and security and order and meet environmental protection requirements under current law.

4. To submit to measurement and quality inspection and examination under this Circular and other relevant laws.

5. Traders violations of this Circular and documents related to LPG quality and measurement management in trading shall, depending on the severity and nature of their violations, be handled under current law.

Article 16. Transitional provision

Establishments manufacturing and processing LPG before the effective dale of this Circular shall complete the application for certificates of eligibility for LPG manufacture and processing before March 31.2011.

Article 17. Effect and organization of implementation

1. This Circular takes effect 45 days from the date of its signing.

2. When legal documents and standards referred to in this Circular are amended, supplemented or replaced, new documents prevail.

3. Any problems arising in the course of implementation should be promptly reported in writing to the Ministry of Science and Technology for consideration and decision.-