Decree No. 19/2016/ND-CP dated March 22, 2016 of the Government on gas trading

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Decree No. 19/2016/ND-CP dated March 22, 2016 of the Government on gas trading
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Official number:19/2016/ND-CPSigner:Nguyen Tan Dung
Type:DecreeExpiry date:
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Issuing date:22/03/2016Effect status:
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Fields:Commerce - Advertising , Industry , Natural Resources - Environment

SUMMARY

Change conditions on gas export and import

On March 22, 2016, the Government issued the Decree No. 19/2016/ND-CP on gas business, within that, the most important content is the regulations that every gas importer and exporter must own/ jointly own or enter an agreement on leasing wharves of Vietnam ports for at least 05 years.

Besides, every gas importer and exporter must own/jointly own/enter into an agreement for leasing storehouses with the total storage tanker capacity of least 3,000 m3for LPG for at least 01 year, 60,000 m3 for LNG for at least 5 years and 200,000 m3 for CNG for at least 5 years.

In addition to the set forth requirements, every gas importer/exporter shall own a quantity of LPG bottles (excluding mini-sized LPG bottles) that are eligible for being used on the market with the total capacity of at least 3,930,000 liters; and own LPG bottling stations granted Certificates of Eligibility or a contract for LPG bottling with other LPG wholesalers; and have their own LPG bottling stations available after 02 years from the date of issue of the Certificate of Eligibility for LPG import/export; have a distribution channel available, including: bottled LPG shops or LPG distribution stations or LPG filling stations for vehicles that are certified as eligible or industrial customers; and at least 40 LPG general agents or agents that meet requirements hereof.

Also in accordance with this Decree, gas wholesalers shall ensure the sufficiency of gas within the distribution channel; guarantee that gas quality satisfying the current regulations; contribute to stability of domestic production and consumption and against commercial frauds and notify the adjusted selling prices to competent authorities where the distribution channel is located; go through price registration and announce LPG prices as the State stabilizes gas prices under provisions of Price Law and relevant legal documents….

This Decree takes effect on May 15, 2016.
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Effect status: Known

THE GOVERNMENT
 

 

No. 19/2016/ND-CP

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

 

Hanoi, March 22, 2016

 

DECREE

On gas trading[1]

 

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 14, 2005 Commercial Law;

Pursuant to the November 21, 2007 Law on Quality of Products and Goods;

Pursuant to the June 20, 2012 Law on Prices;

Pursuant to the November 26, 2014 Law on Investment;

At the proposal of the Minister of Industry and Trade,

The Government promulgates the Decree on gas trading.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes gas trading and conditions on gas trading on the Vietnamese market.

Article 2. Subjects of application

1. This Decree applies to traders defined in the Commercial Law and other organizations and individuals related to gas trading.

2. This Decree does not apply to traders that import, produce and process special-use gas for their own needs and do not market it as registered with the Ministry of Industry and Trade.

Article 3. Interpretation of terms

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

1. Gas referred to in this Decree means liquefied petroleum gas, liquefied natural gas and compressed natural gas.

2. Liquefied petroleum gas (abbreviated to LPG) means a hydrocarbon product derived from petroleum and composed largely of propane (C3H8) or butane (C4H10) or a mixture of these substances; LPG is a gas at a normal temperature and pressure and changes into liquid when being compressed under a certain pressure or at a certain temperature.

3. Liquefied natural gas (abbreviated to LNG) means a liquid hydrocarbon product derived from natural gas and composed largely of methane (CH4); LNG is a gas at a normal temperature and pressure and changes into liquid when it is refrigerated at a certain temperature.

4. Compressed natural gas (abbreviated to CNG) means a gaseous hydrocarbon product compressed under a high pressure, derived from natural gas and composed largely of methane (CH4).

5. Industrial customer means a trader that directly purchases gas from gas traders to serve its production process.

6. Vehicle gas-filling station means a facility where special-use equipment is used for directly filling gas in vehicles running on gaseous fuel.

7. Gas supply station means a facility where special-use equipment and pipelines are used for supplying gas to customers.

8. Gas trading means the continuous performance of one, several or all of activities in the gas trading chain: gas production, processing, export, import, storage, filling, distribution, temporary import for re-export, lease of warehouses or ports, forwarding and transportation for profit-making purpose.

9. Gas production or processing means the processing or transformation of associated gas or natural gas materials into gas products.

10. Gas preparation means the mixing of gas products and semi-finished products added with additives and other preparations into gas products.

11. LPG trading establishments include gas production or processing establishments; gas import and export ports; gas storehouses, LPG bottle and bottled LPG storehouses; bottled LPG shops (including shops specializing in bottled LPG); LPG-bottling stations; CNG-filling stations, LNG-filling stations; vehicle LNG-filling stations; LPG supply stations; LNG supply stations; CNG supply stations; gas transportation and gas vehicle leasing establishments.

12. Bottled LPG means LPG contained in standard bottles of a certain volume.

13. LPG bottle means a high-pressure bottle made under certain technical regulations and used for containing LPG and can be refilled, also referred to as standard bottle.

14. Mini LPG bottle means a high-pressure bottle made under certain technical standards and used for containing LPG and of a maximum capacity of 1,000 ml (one thousand milliliters).

15. LPG bottle owner means a wholesale LPG trader. LPG bottles must have adequate documents provided by manufacturers or importers and have a trademark registered under regulations.

16. LPG bottling means the use of special-use equipment for filling standard bottles with a certain volume of LPG from a fixed storage tank.

17. LPG bottling station means a facility using special-use tools and equipment for filling LPG bottles or tank trucks with LPG for sale to customers.

18. Bottled LPG shop means a shop selling bottled LPG of all kinds to customers.

19. Specialized bottled LPG shop means a shop exclusively selling bottled LPG of all kinds and LPG auxiliary equipment, and built under current technical regulations.

20. LPG auxiliary equipment means civil-use equipment used for burning LPG, including LPG stove, LPG pipe and hose, LPG bottle valve and LPG pressure-regulating valve.

21. Payment of LPG bottle deposit means the giving of a sum of money by a customer (general LPG trading agent, LPG trading agent or LPG consumer) to a wholesale LPG trader being the LPG bottle owner to secure the return of borrowed LPG bottles as agreed to serve the LPG circulation, storage and use.

22. LPG bottle deposit means a sum of money given by a customer that needs to use LPG bottles to a wholesale LPG trader being the LPG bottle owner for the use of LPG bottles for LPG circulation, storage and use.

23. Wholesale LPG traders include LPG exporters, importers, producers, processors and distributors.

24. Wholesale LNG traders include LNG exporters, importers, producers, processors and distributors.

25. Wholesale CNG traders include CNG exporters, importers, producers, processors and distributors.

26. Wholesale gas traders include wholesale LPG traders, wholesale LNG traders and wholesale CNG traders.

Article 4. Application of treaties and relevant laws                               

1. Foreign-invested economic organizations and foreign investors trading in gas in Vietnam shall comply with this Decree. In case a treaty contains provisions different from those of this Decree, such treaty shall prevail.

2. Gas traders on the Vietnamese market shall comply with this Decree  as well as other relevant laws. 

Article 5. Planning of development of gas trading establishments

1. Gas trading establishments defined in Clause 11, Article 3 of this Decree (except those engaged in gas transportation or gas vehicle lease) shall be developed under a master plan and constructed under technical regulations. The planning of development of gas trading establishments must comply with the planning law.

2. The Ministry of Industry and Trade shall, within the ambit of its tasks and powers, assume the prime responsibility for, and coordinate with related ministries and branches and provincial-level People’s Committees in, elaborating and publicizing a national master plan on development of gas trading establishments, including gas production or processing plants and gas storehouses with a total tank capacity of at least 5,000 m3 (five thousand cubic meters); and inspecting and supervising the implementation of the approved master plan.

3. Provincial-level People’s Committees shall elaborate master plans on development of gas trading establishments as part of their local socio-economic development general plans, covering specialized bottled LPG shops, gas supply stations, vehicle gas filling stations, LPG bottling stations, gas storehouses with a total tank capacity of under 5,000 m3 (five thousand cubic meters), ensuring their conformity with the national master plan; and inspect and supervise the implementation of these master plans after they are approved.

Article 6. Safety, fire prevention and fighting and environmental protection

1. Gas trading establishments shall comply with safety, fire prevention and fighting and environmental protection regulations during their business operation.

2. Employees and workers of gas trading establishments or gas service providers, including also gas vehicle drivers, must complete training in safety, fire prevention and fighting operations, and possess certificates in accordance with law.

Chapter II

GAS TRADING

Section 1

GAS TRADING CONDITIONS

Article 7. Conditions on gas exporters or importers

1. A trader that exports or imports gas must be a lawfully established enterprise and satisfy the following conditions:

a/ Owning or co-owning a wharf within a Vietnamese seaport or having entered into a contract for rent of a wharf for at least 5 (five) years;

b/ Owning a storehouse with a total tank capacity of at least 3,000 m3 (three thousand cubic meters) for LPG; 60,000 m3 (sixty thousand cubic meters) for LNG; 200,000 Sm3 (two hundred thousand standard cubic meters) for CNG; or renting such a storehouse from a gas trader for at least one (1) year for LPG or 5 (five) years for LNG and CNG, for receiving gas from ships or other vehicles.

2. A trader that exports or imports LPG must satisfy the conditions prescribed in Clause 1 of this Article, and the following conditions:

a/ Owning LPG bottles of all kinds (excluding mini LPG bottles) qualified for market circulation of a total capacity of at least 3,930,000 liters (three million nine hundred thirty thousand liters);

b/ Owning an LPG bottling station with a certificate of eligibility for LPG bottling and having entered into a contract for LPG bottling hiring with another wholesale LPG trader.

After 2 (two) years from the date of being granted a certificate of eligibility for LPG export or import, the trader must own an LPG bottling station;

c/ Having an LPG distribution system, including bottled LPG shops or LPG supply or vehicle LPG filling stations with certificates of eligibility or industrial customers, and having at least 40 (forty) LPG general agents or trading agents satisfying the conditions prescribed in this Decree.

3. LNG exporters or importers must satisfy the conditions prescribed in Clause 1 of this Article, and have physical foundations and vehicles to serve their LNG distribution systems, including owning or co-owning or renting LNG tank trucks or pipelines for LNG transportation for at least 1 (one) year; owning LNG supply stations or vehicle LNG filling stations with certificates of eligibility.

4. CNG exporters or importers must satisfy the conditions prescribed in Clause 1 of this Article, and have physical foundations and vehicles to serve their CNG distribution systems, including owning or co-owning or renting CNG tank trucks or pipelines for CNG transportation for at least 1 (one) year; owning CNG supply stations or vehicle CNG filling stations with certificates of eligibility.

Article 8. Conditions on gas producers or processors       

1. A trader that produces or processes gas must be a lawfully established enterprise and satisfy the following conditions:

a/ Having a gas production or processing establishment under an approved master plan and in compliance with the investment law;

b/ Owning or co-owning a laboratory for testing gas quality or renting such a laboratory for at least 1 (one year) from another trader or organization qualified to inspect and test gas quality.

2. A trader that produces or processes LNG must satisfy the conditions prescribed in Clause 1 of this Article, and have an LNG pump and filling system for transportation or a system to serve the gasification for supply to customers.

3. A trader that produces or processes CNG must satisfy the conditions prescribed in Clause 1 of this Article, and the following conditions:

a/ Owning or co-owning CNG tanks with a total capacity of at least 200,000 Sm3 (two hundred thousand standard cubic meters) or renting such tanks for at least 1 (one) year from another trader and built under a master plan and current national technical regulations;

b/ Having a CNG compression station with a capacity of at least 3,000 Sm3/h (three thousand cubic meters per hour).

Article 9. Conditions on gas distributors

1. A trader that distributes gas must be a lawfully established enterprise and own or co-own tanks with a total capacity of at least 300 m3 (three hundred cubic meters) for bottled LPG trading; 100 m3 (one hundred cubic meters) for pipelined LPG trading; 3,000 m3 (three thousand cubic meters) for LNG; 10,000 Sm3 (ten thousand standard cubic meters) for CNG, or rent such tanks for at least one (1) year from gas traders.

2. A trader that distributes LPG or trades in bottled LPG must satisfy the conditions prescribed in Clause 1 of this Article, and the following conditions:

a/ Owning LPG bottles of all kinds (excluding mini LPG bottles) qualified for market circulation with a total capacity of at least 2,620,000 liters (two million six hundred twenty thousand liters);

b/ Owning LPG bottling stations with certificates of eligibility or having entered into contracts for hired LPG bottling with other wholesale LPG traders.

After 2 (two) years from the date of being granted a certificate of eligibility for acting as an LPG distributor, the trader must own an LPG bottling station;

c/ Having an LPG distribution system, including bottled LPG shops or LPG supply or vehicle LPG filling stations with certificates of eligibility or industrial customers, and having at least 20 (twenty) LPG general agents or trading agents that satisfy the conditions prescribed in this Decree.

3. An LPG distributor that trades in pipelined LPG must satisfy the conditions prescribed in Clause 1 of this Article, and own an LPG supply station with a certificate of eligibility.

4. A trader that distributes LNG must satisfy the conditions prescribed in Clause 1 of this Article, have a physical foundation to serve its LNG distribution system, including: LNG supply stations or vehicle LNG filling stations with certificates of eligibility.

5. A trader that distributes CNG must satisfy the conditions prescribed in Clause 1 of this Article, have a physical foundation to serve its CNG distribution system, including: Owning or co-owning or renting CNG tank trucks or pipelines for at least 1 (one) year; owning CNG supply stations or vehicle CNG filling stations with certificates of eligibility.

Article 10. Conditions on gas preparation

1. Only wholesale gas traders may prepare gas at their gas production or processing establishments or gas storehouses.

Traders of all economic sectors may prepare gas in gas bonded warehouses.

2. Wholesale traders that prepare gas must own or co-own or rent laboratories capable of inspecting and testing gas quality under national technical regulations and announced applicable standards from other traders or organizations for at least 1 (one) year.

3. Wholesale traders that prepare gas shall register their gas preparation establishments under the guidance of the Ministry of Science and Technology.

Article 11. Conditions on general LPG trading agents

A general LPG trading agent (below referred to as general agent) is a lawfully established enterprise and must satisfy the following conditions:

1. Owning, co-owning or renting storehouses which can store a total of at least 2,000 (two thousand) LPG bottles and bottled LPG (excluding mini LPG bottles) for at least 1 (one) year.

2. Having an LPG distribution system, including bottled LPG shops or LPG supply stations or vehicle LPG filling stations with certificates of eligibility have been granted and at least 10 (ten) agents that fully satisfy the conditions prescribed in this Decree.

3. Having an agency contract for at least 1 (one) year which remains valid with regard to wholesale LPG traders.

Article 12. Conditions on LPG trading agents

An LPG trading agent (below referred to as agent) is a lawfully established enterprise, cooperative or business household and must satisfy the following conditions:

1. Having bottled LPG shops or LPG supply stations or vehicle LPG filling stations with certificates of eligibility.

2. Having an agency contract for at least 1 (one) year which remains valid with regard to wholesale LPG traders or general LPG trading agents.

Article 13. Conditions on bottled LPG shops

A bottled LPG shop must satisfy the following conditions:

1. Being owned by an LPG agent or general agent or wholesale trader.

2. Satisfying the conditions for fire prevention and fighting.

3. Having business managers and staff who have completed training courses on fire prevention and fighting and safety under current regulations.

4. Being located according to the approved master plan, for specialized bottled LPG shops.

Article 14. Conditions on LPG bottling stations, vehicle LPG filling stations and LPG supply stations

1. An LPG bottling station, vehicle LPG filling station or LPG supply station must satisfy the following conditions:

a/ Being conformable with the master plan and having its construction permitted by a competent authority;

b/ Having measuring devices and equipment tested or calibrated in accordance with the law on measurement;

c/ Satisfying the conditions for fire prevention and fighting.

2. An LPG bottling station must satisfy the conditions prescribed in Clause 1 of this Article, and the following conditions:

a/ Being owned by a wholesale LPG trader;

b/ Having bottling stations and equipment, pipelines, tanks and auxiliary equipment compliant with safety requirements in current national technical regulations;

c/ Having their machines and equipment that are subject to strict labor safety requirements and pose risks to safety inspected under regulations;

d/ Having adequate processes of filling LPG in bottles and tank trucks, operating machines and equipment in the station, and responding to incidents, and safety regulations.

3. A vehicle LPG filling station must satisfy the conditions prescribed in Clause 1 of this Article, and be owned by an LPG agent, general agent or wholesale trader and have machines and equipment that are subject to strict requirements on vehicle LPG filling safety inspected and registered under regulations.

4. An LPG supply station must satisfy the conditions prescribed in Clause 1 of this Article, and be owned by an LPG agent, general agent or wholesale trader.

Article 15. Conditions on vehicle LNG filling stations or LNG supply stations

1. A vehicle LNG filling station or LNG supply station must satisfy the following conditions:

a/ Being owned by a wholesale LNG trader;

b/ Being conformable with the master plan and having its construction permitted by a competent authority;

c/ Having its measuring devices and equipment inspected or calibrated in accordance with the law on measurement;

d/ Satisfying the conditions for fire prevention and fighting.

2. A vehicle LNG filling station must satisfy the conditions prescribed in Clause 1 of this Article, and the following conditions:

a/ Having its filling station and equipment, pipelines, tanks and auxiliary equipment compliant with safety requirements in current national technical regulations;

b/ Having its machines and equipment that are subject to strict labor safety and sanitation requirements inspected and registered under regulations;

c/ Having adequate processes of filling vehicles and tank trucks with LNG, operating its machines and equipment, and responding to incidents, and safety regulations.

Article 16. Conditions on vehicle CNG filling stations or CNG supply stations

1. A vehicle CNG filling station or CNG supply station must satisfy the following conditions:

a/ Being owned by a wholesale CNG trader;

b/ Being conformable with the master plan and having its construction permitted by a competent authority;

c/ Having its measuring devices and equipment inspected or calibrated in accordance with the law on measurement;

d/ Satisfying the conditions for fire prevention and fighting.

2. A vehicle CNG filling station must satisfy the conditions prescribed in Clause 1 of this Article, and the following conditions:

a/ Having its filling station and equipment, pipelines, tanks and auxiliary equipment compliant with safety requirements in the current national technical regulations;

b/ Having its machines and equipment that are subject to strict labor safety and sanitation requirements inspected and registered under regulations;

c/ Having adequate processes of filling vehicles and tank trucks with CNG, operating its machines and equipment, and responding to incidents and safety regulations.

Article 17. Conditions on LPG bottles circulated on the market

1. Prior to being used, LPG bottles shall be inspected and have their trademarks registered in accordance with law; used LPG bottles shall be re-inspected under regulations.

2. The original design of LPG bottles must be inspected to be intact and the time limit for the inspection has not yet expired; the paint color of LPG bottles has been registered with a competent functional agency; LPG bottles must have adequate documents preserved under regulations at trading establishments of their owning traders.

3. Traders owning LPG trading establishments that are merged or dissolved or no longer trade in LPG or terminate their business operation shall recall all LPG bottles under their ownership for sale or transfer to other traders together with adequate documents under regulations. Traders that purchase or receive such transferred LPG bottles shall re-register their trademarks with a competent functional agency; notify such to the market management office and their distribution systems and consumers for supervision; comply with this Decree’s provisions on management of LPG bottles; and take responsibility for such LPG bottles.

4. Traders owning LPG bottles may accept payment of deposits for their LPG bottles and design the form of LPG bottle deposit slip to for use within their distribution systems and by their consumers; and check LPG bottle deposit documents at any establishments storing or using their LPG bottles.

Article 18. Conditions on bottled LPG qualified for market circulation

1. Bottled LPG qualified for market circulation are those contained in bottles that satisfy the conditions prescribed in Clauses 1 and 2, Article 17 of this Decree, being of a volume and quality conformable with trademarks and quality standards announced by traders, and being properly sealed.

2. Bottled LPG sold on the market must have a clear origin and conform with its purchase and sale contract or trading agency contract.

Section 2

RIGHTS AND OBLIGATIONS OF GAS TRADERS

Article 19. Rights and obligations of LPG exporters and importers

1. To organize the import of LPG under their business plans and guarantee the quality of imported LPG according to current national technical regulations; to export LPG and conduct temporary import of LPG for re-export under Article 48 of this Decree.

2. To set uniform sale prices of LPG and bottled LPG for application within their distribution systems in conformity with market prices.

3. To sell LPG under contracts to other LPG wholesale traders and industrial customers; to retail LPG and bottled LPG within their distribution systems; to authorize in writing their branches or subsidiary companies to sell LPG into non-tariff zones.

4. To apply derivative tools and operations in conformity with international LPG trading practices.

5. To enter into agency contracts only with traders that satisfy the conditions to act as LPG trading general agents or agents.

6. To organize the bottling of LPG into bottles qualified for market circulation and under their ownership, or the bottling under hiring contracts for other LPG wholesale traders.

7. To organize and provide services of leasing LPG storehouses, export-import and forwarding ports and LPG vehicles to other LPG wholesale traders.

8. To register their distribution systems and report on their trademarks under regulations of the Ministry of Industry and Trade.

9. To comply with the conditions prescribed in, and provisions of, this Decree and other relevant regulations on LPG trading; to inspect and supervise LPG trading general agents and agents; to supply sufficient LPG and take responsibility for the volume and quality of LPG sold in their distribution systems to meet production and people’s daily-life needs, and ensure LPG circulation reserves prescribed in Clause 1, Article 49 of this Decree.

10. To have their LPG bottles and LPG auxiliary equipment inspected and registered; to inspect, maintain and replace LPG bottles and LPG auxiliary equipment, ensuring safety for consumers.

11. To comply with the regulations on trademark registration; to manage the volume and quality of their LPG bottles; to submit to the inspection and control by competent agencies under current laws.

12. To bear joint responsibility in accordance with law for violations of general agents and agents in their distribution systems in LPG trading.

Article 20. Rights and obligations of LPG producers or processors 

1. To set sale prices of LPG they produce or process under the market mechanism.

2. To directly export, import or temporarily import for re-export LPG or authorize their branches or subsidiary companies to export or import LPG in accordance with current laws and Article 48 of this Decree.

3. To have the rights and obligations of LPG importers and exporter prescribed in Clauses 3 thru 7, Article 19 of this Decree.

4. To set up their distribution systems under Clause 2, Article 7 of this Decree when selling LPG to industrial customers and bottled LPG on the market; to set uniform sale prices of LPG and bottled LPG within their distribution systems under the market mechanism.

5. To have their produced or processed LPG products inspected and certified as satisfying quality standards before marketing such products for the first time and comply with quality control, measurement and safety management regulations throughout the course of production or processing.

6. To organize the wholesale of LPG under contracts to other wholesale LPG traders in an equal, public and transparent manner. To ensure LPG circulation reserves prescribed in Clause 1, Article 49 of this Decree.

7. To own, co-own or rent LPG storehouses with a total tank capacity of at least 3,000 m3 (three thousand cubic meters) for at least 5 (five) years from LPG service providers for receiving imported LPG from ships or other vehicles, when organizing LPG export or import. The Ministry of Industry and Trade shall guide and certify the conditions on LPG producers and processors for exercising their right to export or import LPG under Article 8 and Clause 8, Article 20 of this Decree.

Article 21. Rights and obligations of LPG distributors

1. To set uniform sale prices of LPG and bottled LPG within their distribution systems under the market mechanism.

2. To sell LPG under contracts to other LPG wholesale traders and industrial customers; to retail LPG and bottled LPG in their distribution systems.

3. To enter into agency contracts only with traders that fully satisfy the conditions to act as LPG trading general agents or agents.

4. To organize the bottling of LPG into bottles qualified for market circulation and under their ownership or the bottling for other LPG wholesale traders under hiring contracts.

5. To organize and provide services of leasing LPG storehouses, LPG forwarding and leasing LPG vehicles to other LPG wholesale traders.

6. To register their distribution systems and report on their trademarks under regulations of the Ministry of Industry and Trade.

7. To supply sufficient LPG to their distribution systems to meet production and people’s daily-life needs, and ensure LPG circulation reserves prescribed in Clause 1, Article 49 of this Decree.

8. To inspect and supervise their LPG trading general agents and agents; to bear responsibility for the volume and quality of LPG sold in their distribution systems.

9. To inspect their LPG bottles and LPG auxiliary equipment; to inspect, maintain and replace LPG bottles and LPG auxiliary equipment, ensuring safety for consumers.

10. To comply with the regulations on trademark registration; to manage the volume and quality of their LPG bottles; to submit to the inspection and control by competent agencies under current laws.

11. To bear joint responsibility in accordance with law for violations of general agents and agents in their distribution systems in LPG trading.

Article 22. Rights and obligations of LPG trading general agents

1. To choose and enter into contracts to act as a general agent for 3 (three) LPG wholesale traders that fully satisfy the conditions prescribed in this Decree.

2. To sell only LPG and bottled LPG supplied by LPG wholesale traders and post up sale prices set by LPG wholesale traders and sell LPG and bottled LPG at the posted prices.

3. To inspect and supervise their LPG trading establishments in satisfying the prescribed LPG trading conditions.

4. To sell only bottled LPG qualified for market circulation to customers; to install LPG-fueled equipment and guide customers in how to safely use such equipment; to bear responsibility for the volume, quality and sale prices of bottled LPG in their distribution systems; to open books for monitoring LPG of different categories sold to customers.

5. To deliver LPG bottles under contracts as authorized by LPG wholesale traders and fulfill their commitments stated in such contracts; to submit to the inspection and supervision by LPG wholesale traders and competent functional agencies.

6. To refrain from purchasing or selling LPG and bottled LPG of unclear origin or without contracts with LPG wholesale traders; to refrain from purchasing or selling LPG bottles of all kinds currently circulated on the market and owned by other LPG wholesale traders.

7. To comply with invoice and document preservation regulations of the Ministry of Finance.

Article 23. Rights and obligations of LPG trading agents

 1. To choose and enter into contracts to act as an agent for 1 (one) general agent or 3 (three) LPG wholesale traders that fully satisfy the conditions prescribed in this Decree.

2. To sell only LPG and bottled LPG supplied by LPG wholesale traders or general agents. To post up sale prices set by LPG wholesale traders and sell LPG and bottled LPG at the posted prices.

3. To inspect and supervise their LPG trading establishments in satisfying the required LPG trading conditions.

4. To sell only bottled LPG qualified for market circulation to customers; to install LPG-fueled equipment and guide customers in how to safely use such equipment; to bear responsibility for the volume, quality and sale prices of their bottled LPG; to open books for monitoring LPG categories sold to customers.

5. To deliver LPG bottles under contracts as authorized by LPG wholesale traders or general agents and fulfill their commitments stated in such contracts; to submit to the inspection and supervision by LPG wholesale traders or general agents and competent functional agencies.

6. To refrain from purchasing or selling LPG and bottled LPG of unclear origin or without contracts with LPG wholesale traders or general agents; to refrain from purchasing or selling LPG bottles of all kinds currently circulated on the market and owned by other LPG traders.

7. To comply with invoice and document preservation regulations of the Ministry of Finance.

Article 24. Rights and obligations of traders owning bottled LPG shops

1. To refrain from purchasing or selling bottled LPG of unclear origin or without contracts. To sell only bottled LPG qualified for market circulation; to refrain from selling bottled LPG of other traders without contracts; to refrain from selling refilled mini LPG bottles.

2. To refrain from appropriating LPG bottles of other LPG traders.

3. To put up signboards and symbols of LPG wholesale traders with whom they have entered into agency contracts. Such signboards must contain full and clear information as prescribed by law.

4. To post up sale prices set by their principals and sell bottled LPG at the posted sale prices.

5. To comply with invoice and document preservation regulations of the Ministry of Finance.

Article 25. Rights and obligations of traders owning LPG bottling stations

1. To organize the bottling of LPG into bottles under their ownership that fully satisfy the conditions for market circulation. To exclude from their bottling stations LPG bottles (including those not under their ownership) that are unqualified for market circulation.

2. To organize the hired bottling under contracts into LPG bottles of LPG wholesale traders that fully satisfy the LPG trading conditions and have LPG bottles qualified for market circulation.

3. To request traders hiring the LPG bottling to produce certificates of eligibility for acting as LPG wholesale traders and certificates of trademark registration.

4. To ensure LPG is bottled in sufficient volume and of quality conformable with trademarks and up to announced quality standards in accordance with the Law on Quality of Products and Goods and relevant documents.

5. To refrain from storing LPG bottles of other LPG wholesale traders that have no contracts to hire LPG bottling at their bottling stations.

Article 26. Rights and obligations of traders owning LPG supply stations

1. To sell LPG only to customers that have contracts to purchase LPG and comply with LPG use safety and fire prevention and fighting regulations; to sell LPG at set prices, of quality and in volume as contracted with their customers, conformable with trademarks and up to announced quality standards in accordance with the Law on Quality of Products and Goods and relevant documents.

2. To suspend the sale of LPG to, or liquidate LPG sale contracts ahead of time with, customers that fail to comply with LPG use safety and fire prevention and fighting regulations or replace or additionally install LPG auxiliary equipment without permission.

3. To send technical workers to install or replace LPG-fueled equipment for customers that need new LPG-fueled equipment.

4. To regularly inspect the safety of measuring devices and equipment in order to detect risks of fire or explosion, tightness of locking and safety valves, LPG auxiliary equipment, connection joints, pipes and hoses of LPG to customers; to detect and promptly respond to fire or explosion risks of LPG users.

5. To provide their customers with instructions on how to safely use LPG, including telephone numbers of LPG supply stations and LPG supply station managers for contact when necessary.

6. To notify their customers of changed LPG sale prices.

7. To sell LPG only to special-use vehicles eligible for receiving LPG, or sell LPG through pipelines under contracts; to refrain from bottling LPG.

Article 27. Rights and obligations of traders owning vehicle LPG filling stations

1. To put up signboards and symbols of LPG wholesale traders; such signboards must contain full and clear information as prescribed by law.

2. To submit to the inspection and supervision by LPG wholesale traders and competent functional agencies.

3. To enter into joint ventures or contribute capital to partnerships for building vehicle LPG filling stations with petrol and oil shops having certificates of eligibility for petrol and oil trading.

4. To sell only LPG of announced quality supplied by LPG wholesale traders; to refrain from purchasing LPG of unclear origin in the market or smuggled LPG for sale to customers.

5. To fill only LPG-fueled vehicles, and refrain from bottling LPG.

6. To post up sale prices set by LPG wholesale traders and sell LPG at the posted prices; to bear responsibility for the volume, quality and prices of LPG sold to customers. The quality of LPG must conform to trademarks and quality standards announced by enterprises in accordance with the Law on Quality of Products and Goods and relevant legal documents.

7. To ensure their measuring devices are precise; to regularly inspect their LPG filling equipment and safety in the course of operation.

Article 28. Rights and obligations of LNG exporters or importers

1. To organize the import of LNG under their business plans and guarantee the quality of imported LNG according to current national technical regulations; to export LNG and conduct temporary import of LNG for re-export under Article 48 of this Decree.

2. To set uniform sale prices of LNG for application within their distribution systems in conformity with market prices.

3. To sell LNG under contracts to other LNG wholesale traders and industrial customers that fully satisfy the conditions prescribed in this Decree.

4. To organize and provide services of leasing LNG storehouses, LNG export-import and forwarding ports and vehicles to other LNG traders that fully satisfy the conditions prescribed in this Decree.

5. To apply derivative tools and operations in conformity with international LNG trading practices.

6. To supply sufficient LNG to their distribution systems and ensure LNG circulation reserves prescribed in Clause 1, Article 49 of this Decree.

7. To comply with the conditions prescribed in, and provisions of, this Decree and other relevant regulations on LNG trading; to inspect and supervise LNG trading establishments and bear responsibility for the volume and quality of LNG supplied to their distribution systems.

8. To inspect under regulations their LNG tanks and auxiliary equipment in physical facilities for LNG trading, ensuring safety during circulation and use.

9. To comply with the regulations on trademark registration; to manage their physical facilities for LNG trading; to submit to the inspection and control by competent agencies under current laws.

Article 29. Rights and obligations of LNG producers or processors 

1. To set sale prices of LNG they produce or process under the market mechanism.

2. To directly import LNG and ensure the quality of imported LNG under current regulations, export LNG and conduct temporary import of LNG for re-export under Article 48 of this Decree.

3. To sell LNG under contracts to LNG traders and industrial customers that fully satisfy the conditions prescribed in this Decree.

4. To organize and provide services of leasing LNG storehouses, LNG export-import and forwarding ports and vehicles to other LNG traders that fully satisfy the conditions prescribed in this Decree.

5. To apply derivative tools and operations in conformity with international LNG trading practices.

6. To have LNG products which they produce or process inspected and certified as satisfying the prescribed conditions on quality standards before marketing such products for the first time and comply with quality control, measurement and safety management regulations throughout the course of production or processing.

7. To work out safety inspection plans for machines, equipment and technological lines in order to detect and promptly address safety risks in the course of LNG production or processing.

8. To satisfy the conditions for and comply with the regulations on LNG production or processing; to export or import LNG (in case of exporting or importing LNG) under this Decree and other relevant legal documents; to ensure LNG circulation reserves prescribed in Clause 1, Article 49 of this Decree.

9. To own, co-own or rent LNG storehouses with a total tank capacity of at least 60,000 m3 (sixty thousand cubic meters) for at least 5 (five) years from LNG service providers for receiving imported LNG from ships or other vehicles, when organizing LNG export or import. The Ministry of Industry and Trade shall guide and certify the conditions on LNG producers or processors for exercising their right to export or import LNG under Article 8, and Clause 9, Article 29, of this Decree.

Article 30. Rights and obligations of LNG distributors

1. To set uniform sale prices of LNG within their distribution systems under the market mechanism.

2. To sell LNG under contracts to industrial customers that fully satisfy the conditions prescribed in this Decree.

3. To enter into LNG purchase and sale contracts with other LNG wholesale traders that fully satisfy the conditions prescribed in this Decree.

4. To supply sufficient LNG to their distribution systems to meet production needs, and ensure LNG circulation reserves prescribed in Clause 1, Article 49 of this Decree.

5. To comply with the conditions prescribed in and provisions of this Decree and other relevant regulations on LNG trading; to inspect and supervise LNG trading establishments in their distribution systems; to bear responsibility for the LNG volume and quality supplied to their distribution systems.

6. To inspect under regulations their LNG tanks and auxiliary equipment in physical facilities for LNG trading, ensuring safety during circulation and use.

7. To comply with the regulations on trademark registration; to manage their physical facilities for LNG trading; to submit to the inspection and control by competent agencies under current laws.

Article 31. Rights and obligations of traders owning vehicle LNG filling stations

1. To put up their signboards and symbols; such signboards must contain full and clear information as prescribed by law.

2. To submit to the inspection and supervision by LNG suppliers and competent functional agencies.

3. To enter into joint ventures or contribute capital to partnerships for building vehicle LNG filling stations with petrol and oil shops having certificates of eligibility for petrol and oil trading.

4. To sell only LNG of announced quality; to refrain from purchasing LNG of unclear origin on the market.

5. To fill only LNG-fueled vehicles and tank trucks.

6. To post up sale prices and sell LNG at the posted prices; to bear responsibility for the volume, quality and prices of LNG sold to customers. The quality of LNG must conform to trademarks and quality standards announced by enterprises in accordance with the Law on Quality of Products and Goods and relevant legal documents.

7. To ensure their measuring devices are precise; to regularly inspect their LNG filling equipment and safety in the course of operation.

Article 32. Rights and obligations of traders owning LNG supply stations

1. To sell LNG only to customers that have contracts to purchase LNG and comply with LNG use safety and fire prevention and fighting regulations; to sell LNG at set prices, of quality and in volume as contracted with customers, conformable with trademarks and up to quality standards announced by enterprises in accordance with the Law on Quality of Products and Goods and relevant documents.

2. To suspend the sale of LNG to, or liquidate LNG sale contracts ahead of time with, customers that fail to comply with LNG use safety and fire prevention and fighting regulations, or replace or additionally install LNG auxiliary equipment without permission.

3. To send technical workers to install or replace LNG-fueled equipment for  customers that need new LNG-fueled equipment.

4. To regularly inspect the safety and measuring devices and equipment in order to detect risks of fire or explosion, tightness of locking and safety valves, LNG auxiliary equipment, connection joints, pipes and hoses of LNG to customers; to detect and promptly address fire or explosion risks for LNG users.

5. To provide their customers with instructions on how to safely use LNG, and telephone numbers of LNG supply stations and LNG supply station managers for contact when necessary.

6. To notify their customers of changed LNG sale prices.

7. To sell LNG only through pipelines under contracts; to refrain from bottling LNG for any customers, including other LNG traders.

Article 33. Rights and obligations of CNG exporters or importers

1. To organize the import of CNG under their business plans and guarantee the quality of imported CNG according to current national technical regulations; to export CNG and conduct temporary import of CNG for re-export under Article 48 of this Decree.

2. To set uniform sale prices of CNG for application within their distribution systems in conformity with market prices.

3. To sell CNG under contracts to other CNG wholesale traders and industrial customers that fully satisfy the conditions prescribed in this Decree.

4. To organize and provide services of leasing CNG storehouses, CNG export-import and forwarding ports and vehicles to other CNG traders that fully satisfy the conditions prescribed in this Decree.

5. To apply derivative tools and operations in conformity with international CNG trading practices.

6. To supply sufficient CNG to their distribution systems to meet production and people’s daily-life needs.

7. To comply with the conditions prescribed in, and provisions of, this Decree and other relevant regulations on CNG trading; to inspect and supervise CNG trading establishments in their distribution systems and bear responsibility for the volume and quality of CNG supplied to their distribution systems in conformity with trademarks and quality standards announced by enterprises in accordance with the Law on Quality of Products and Goods and relevant documents.

8. To inspect under regulations their CNG tanks and auxiliary equipment in physical facilities for CNG trading, ensuring safety during circulation and use.

9. To comply with the regulations on trademark registration; to manage their physical facilities for CNG trading; to submit to the inspection and control by competent agencies as prescribed by current laws.

Article 34. Rights and obligations of CNG producers or processors 

1. To set sale prices of CNG which they produce or process under the market mechanism.

2. To directly import CNG and ensure the quality of imported CNG under current regulations, export CNG and conduct temporary import of CNG for re-export under Article 48 of this Decree.

3. To sell CNG under contracts to CNG traders and industrial customers that fully satisfy the conditions prescribed in this Decree.

4. To organize and provide services of leasing CNG storehouses, CNG export-import and forwarding ports and vehicles to other CNG traders that fully satisfy the conditions prescribed in this Decree.

5. To apply derivative tools and operations in conformity with international CNG trading practices.

6. To have CNG products which they produce or process inspected and certified as satisfying the prescribed conditions on safety and quality standards before marketing such products for the first time and comply with the CNG safety and quality control regulations throughout the course of production or processing in conformity with trademarks and quality standards announced by enterprises in accordance with the Law on Quality of Products and Goods and relevant documents.

7. To work out safety inspection plans for machines, equipment and technological lines in order to detect and promptly address safety risks in the course of CNG production or processing.

8. To satisfy the conditions for and comply with the regulations on CNG production or processing; to obtain certificates of eligibility for CNG export or import (in case of exporting or importing CNG) granted by the Ministry of Industry and Trade under this Decree and other relevant legal documents.

Article 35. Rights and obligations of CNG distributors

1. To set uniform sale prices of CNG in their distribution systems under the market mechanism.

2. To sell CNG under contracts to industrial customers that fully satisfy the conditions prescribed in this Decree; to sell CNG at their CNG trading establishments in non-tariff zones where they locate their head offices or branches.

3. To enter into CNG purchase and sale contracts with other CNG wholesale traders that fully satisfy the conditions prescribed in this Decree.

4. To supply sufficient CNG to their distribution systems to meet production and people’s daily-life needs.

5. To comply with the conditions prescribed in and provisions of this Decree and other relevant regulations on CNG trading; to inspect and supervise their CNG trading establishments and bear responsibility for the CNG volume and quality supplied to their distribution systems in conformity with trademarks and quality standards announced by enterprises in accordance with the Law on Quality of Products and Goods and relevant documents.

6. To inspect under regulations their CNG tanks and auxiliary equipment in physical facilities for CNG trading, ensuring safety during circulation and use.

7. To comply with the regulations on trademark registration; to manage their physical facilities for CNG trading; to submit to the inspection and control by competent agencies as prescribed by current laws.

Article 36. Rights and obligations of traders owning vehicle CNG filling stations

1. To put up their signboards and symbols; such signboards must contain full and clear information as prescribed by law.

2. To submit to the inspection and supervision by CNG suppliers and competent functional agencies.

3. To enter into joint ventures or contribute capital to partnerships for building CNG filling stations with petrol and oil shops with certificates of eligibility for petrol and oil trading.

4. To sell only CNG of prescribed quality supplied by CNG suppliers; to refrain from purchasing CNG of unclear origin from the market.

5. To fill only CNG-fueled vehicles and tank trucks.

6. To post up sale prices and sell CNG at the posted prices; to bear responsibility for the volume, quality and prices of CNG sold to customers. The quality of CNG must conform to trademarks and quality standards announced by enterprises in accordance with the Law on Quality of Products and Goods and relevant legal documents.

7. To ensure their measuring devices are precise; to regularly inspect their CNG filling equipment and safety in the course of operation.

Article 37. Rights and obligations of traders owning CNG supply stations

1. To sell CNG only to customers that have contracts to purchase CNG and complying with CNG use safety and fire prevention and fighting regulations; to sell CNG at set prices, of quality and in volume stated in contracts with their customers; to bear responsibility for the volume, quality and prices of CNG sold to customers.

2. To suspend the sale of CNG to, or liquidate CNG sale contracts ahead of time with, customers that fail to comply with CNG use safety and fire prevention and fighting regulations or replace or additionally install CNG auxiliary equipment without permission.

3. To send technical workers to install or replace CNG-fueled equipment for customers that need new CNG-fueled equipment.

4. To regularly inspect the safety and measuring devices and equipment in order to detect danger of fire or explosion, tightness of locking and safety valves, CNG-fueled auxiliary equipment, connection joints, pipes and hoses of CNG to customers; to detect and promptly respond to fire or explosion risks for CNG users.

5. To provide their customers with instructions on how to safely use CNG, including telephone numbers of CNG supply stations and CNG supply station managers for contact when necessary.

6. To notify their customers of changed CNG sale prices.

7. To sell CNG only through pipelines under contracts; to refrain from bottling CNG for any customers, including other CNG traders.

Chapter III

PROVISION OF GAS SERVICES

Article 38. Conditions on a provider of services of leasing storehouses and ports for gas export or import

1. Being a lawfully established enterprise.

2. Owning or co-owning a wharf in a Vietnamese seaport under a joint venture or capital contribution contract and built under planning and according to current technical regulations for receiving gas ships or other vehicles.

3. Owning or co-owning gas storehouses with a total tank capacity of at least 1,000 m3 (one thousand cubic meters) for LPG storehouses; or at least 20,000 m3 (twenty thousand cubic meters) for LNG storehouses; or at least 60,000 m3 (sixty thousand cubic meters) for CNG storehouses, under a joint venture or capital contribution contract approved by a competent authority and built under planning and according to current technical regulations.

Article 39. Rights and obligations of providers of services of leasing storehouses and ports for gas export or import

1. To enter into contracts on lease of storehouses and ports for gas export, import or forwarding only with gas wholesale traders or LGP general agents.

2. To refrain from entering into contracts on lease of storehouses for smuggled gas or gas of unclear origin.

3. To fulfill their commitments in contracts with customers; to bear responsibility for the gas volume and quality and ensure safety in the course of gas preservation in their storehouses.

Article 40. Conditions on a gas transport service provider

1. Being a lawfully established enterprise.

2. Owning or co-owning gas vehicles or renting such vehicles under rent contracts of a term of at least 1 (one) year which fully satisfy the specified conditions and are accompanied by necessary papers as required by law, including permit for dangerous goods transport, certificate of inspection of measuring, checking and safety devices, and certificate of registration of quality standards and environmental protection, which remain valid.

3. Having managers and operators of vehicles who have completed training course on safety and fire prevention and fighting under current regulations.

Article 41. Rights and obligations of gas transport service providers

1. To transport gas only under contracts for transport-hiring gas traders that fully satisfy the conditions prescribed in this Decree and fulfill their commitments in such contracts.

2. To refrain from transporting, purchasing and selling smuggled gas, gas of unclear origin, gas of inferior quality and bottled LPG unqualified for market circulation; to refrain from purchasing and selling LPG bottles and bottled LPG of other LPG traders currently circulated on the market.

3. To hire gas vehicles that fully satisfy the conditions under current regulations and operate vehicles on the road in accordance with law.

4. To satisfy the conditions prescribed in this Decree and comply with other relevant regulations on goods transport safety; to bear responsibility for gas volume and quality in the course of forwarding and transport.

5. To purchase insurance for their vehicles under regulations and insurance for transported goods after obtaining the consent of goods owners.

6. To submit to the inspection and supervision by transport-hiring traders and competent functional agencies.

Chapter IV

ORDER AND COMPETENCE FOR GRANT OF CERTIFICATES OF ELIGIBILITY FOR GAS TRADING

Article 42. Types of certificates of eligibility for gas trading

1. Certificate of eligibility for LPG, LNG or CNG export or import.

2. Certificate of eligibility for acting as an LPG, LNG or CNG distributor.

3. Certificate of eligibility for LPG bottling.

4. Certificate of eligibility for vehicle LNG, CNG or LPG filling.

5. Certificate of eligibility for LPG, LNG or CNG supply.

6. Certificate of eligibility for acting as an LPG general agent.

7. Certificate of eligibility for acting as an LPG agent.

8. Certificate of eligibility for LPG trading for a bottled LPG shop.

Article 43. Order and procedures for grant of certificates of eligibility

1. A trader shall send 1 (one) set of dossier of application for a certificate of eligibility directly or by post to a competent state agency. Such a dossier must comprise:

a/ An application for a certificate of eligibility, made according to a set form;

b/ A copy of the enterprise or cooperative or business household registration certificate;

c/ Papers and documents proving the satisfaction of the conditions prescribed in Chapter II of this Decree.

2. In case the dossier is incomplete, within 7 (seven) working days after receiving the dossier, the competent state agency shall request in writing the trader to supplement it.

3. Within 30 (thirty) working days after receiving a complete and valid dossier, the competent state agency shall examine it and grant a certificate of eligibility to the trader. In case of refusal to grant a certificate of eligibility, the competent state agency shall reply in writing, clearly stating the reason.

4. A certificate of eligibility is valid for 5 (five) years from the date of grant.

5. In case a trader acting as an LPG agent has only 1 (one) shop for selling bottled LPG or 1 (one) LPG supply station or 1 (one) vehicle LPG filling station for which a certificate of eligibility has been granted, such trader is not required to apply to a certificate of eligibility for acting as an LPG agent.

6. Traders that are granted a certificate of eligibility shall pay a charge prescribed by the current law on charges and fees.

Article 44. Competence to grant certificates of eligibility

1. The Ministry of Industry and Trade is competent to grant certificates of eligibility specified in Clauses 1 and 2, Article 42 of this Decree.

2. Provincial-level Industry and Trade Departments are competent to grant certificates of eligibility specified in Clauses 3 thru 8, Article 42 of this Decree.

3. District-level People’s Committees are competent to grant certificate of eligibility for bottled LPG shops when authorized by provincial-level People’s Committees.

Article 45. Re-grant, modification, extension or revocation of certificates of eligibility

1. A certificate of eligibility may be re-granted in case it is lost, damaged or erroneous. The content and validity duration of the re-granted certificate remains unchanged. The re-granted certificate must have a provision stating the invalidation of  the lost, damaged or erroneous certificate.

The dossier for re-grant of a certificate must comprise an application for re-grant, made according to a set form, and a written certification of error or damage (not for case of certificate loss). On the basis of checking the preserved dossier of application for certificate, within 7 (seven) working days after receiving a valid dossier, the competent state agency shall re-grant the certificate.

2. A certificate of eligibility may be modified in case of a change in the business registration, relocation, change of operation scale or in operation conditions or information related to the registering trader.

The dossier for modification must comprise a request for modification of certificate, made according to a set form, and relevant papers and documents proving the change.

Within 7 (seven) working days after receiving a valid dossier, the competent state agency shall modify the certificate. The validity duration of the modified certificate remains unchanged.

3. A certificate of eligibility may be extended upon the expiration of its validity duration.

A dossier of request for extension must comprise a written request for extension, made according to a set form, and a written commitment to fully satisfying the conditions for grant of a certificate.

Within 7 (seven) working days after receiving a valid dossier, the competent state agency shall extend the certificate. A certificate of eligibility may be extended only once for 5 (five) years.

4. A certificate of eligibility shall be revoked in the following cases:

a/ The dossier of application has been forged;

b/ The holder no longer fully satisfies or fails to properly comply with the conditions prescribed in the certificate;

c/ The holder rents out, lends or modifies the content of the certificate without permission;

d/ The holder terminates its business operation;

dd/ The certificate has been granted ultra vires.

The state agency competent to grant a certificate shall revoke the granted certificate. A trader that has its certificate revoked shall send such certificate and all copies thereof to the competent state agency within 7 (seven) working days from the date the revocation decision is issued.

Chapter V

GAS TRADING MANAGEMENT     

Article 46. Responsibilities of gas traders

Gas wholesale traders have the following responsibilities:

1. To supply sufficient gas of quality up to current regulations to their distribution systems, thereby contributing to fighting trade frauds and stabilizing domestic production and consumption.

2. To notify competent agencies in localities where their distribution systems operate of any increase or decrease in sale prices of gas of all kinds; to register prices when the State applies valorization measures and declare LPG prices when the State does not apply valorization measures in accordance with the Law on Prices and relevant legal documents.

3. To label and announce quality standards of their products; to comply with the regulations on management of quality and measurement.

4. To set uniform rules on the presentation of their transaction names and logos in their distribution systems, ensuring these signboards contain all details prescribed by law.

5. To purchase product liability insurance for all kinds of gas sold to customers.

6. To inspect and supervise gas trading establishments and gas distribution systems under their management to ensure their satisfaction of the conditions prescribed in this Decree, compliance with regulations on quality and measurement and other relevant regulations on gas trading; to equip their employees working in their gas trading establishment with adequate personal protection devices; to submit to the inspection and supervision by competent functional agencies.

7. To build, apply and maintain their quality control systems.

8. To ensure that auxiliary equipment used the gas operation and use and sold at their gas trading establishments are up to quality standards and technical safety regulations and of lawful origin.

9. To develop physical foundations for their business operation and gas distribution systems under regulations and suitable to their business scale.

10. To detect, recall or destroy under regulations LPG bottles not qualified for market circulation and notify such to competent functional agencies for excluding from their lists LPG bottles not permitted to be circulated on the market; to install gas-fueled equipment and guide customers how to safely use gas.

11. To register for circulation, inspection and re-inspection LPG bottles under their ownership; to pay taxes and fees (if any) and manage LPG bottles under regulations.

12. To refund deposits for LPG bottles to customers that no longer use them.

13. Upon liquidation of contracts with LPG wholesale traders, LPG trading general agents or agents shall return LPG bottles (with their dossiers) to LPG wholesale traders that have accepted LPG bottle deposits.

Article 47. Publicity and transparency of gas trading

1. The Ministry of Industry and Trade shall publicize on its website the list of gas exporters and importers and list of gas distributors.

2. Gas exporters, importers and distributors shall comply with the regulations on management of prices and publicize on their websites or the mass media their distribution systems and retail prices applied in such systems.

3. LPG trading general agents and agents shall notify retail prices to provincial-level Finance Departments and Industry and Trade Departments of localities where their LPG trading establishments operate in accordance with the law on price.

Article 48. Temporary import for re-export, export, border-gate transfer and transit of gas

1. Only gas wholesale traders that fully satisfy the conditions prescribed in this Decree may conduct temporary import for re-export or export of gas. The temporary import for re-export or export of gas must comply with current laws.

2. Gas export and temporary import for re-export shall be paid for in freely convertible foreign currencies via bank. When conducting export or temporary import for re-export of gas, gas wholesale traders shall comply with the current Law on Import Duty and Export Duty and other relevant laws.

3. Border-gate transfer of gas must comply with current regulations on border-gate transfer of goods.

4. Transit of gas must comply with current regulations on transit of goods and agreements on transit of goods between the Government of the Socialist Republic of Vietnam and the governments of foreign countries.

Article 49. Gas circulation reserves  

1. LPG wholesale traders and LNG wholesale traders shall maintain the minimum circulation reserve at least equal to 15 (fifteen) days’ supply for their distribution systems.

2. Traders acting as LPG general agents or agents shall maintain the minimum LPG circulation reserve at least equal to 3 (three) days’ supply.

Article 50. Gas sale prices

Gas sale prices are market prices controlled by the State and decided by gas wholesale traders after paying taxes, charges and fees (if any) as prescribed by current laws. Valorization measures publicized by competent authorities shall be applied in accordance with current laws.

Article 51. Management of gas measurement and quality control

1. Gas traders may only circulate and sell LPG of quality conformable with  current national technical regulations and standards announced for application. Import, circulation and consumption of gas of inferior quality which is likely to adversely affect the environment and human health are prohibited.

2. Gas traders shall comply with current regulations on management of gas measurement and quality control in the course of gas import, production, processing, storing, forwarding, transport and market circulation, and bear responsibility for the gas volume and quality in their distribution systems.

3. For types of gas subject to no regulations, gas importers, producers or processors shall ensure gas quality according to standards announced for application (manufacture standards, national standards or international standards).

4. Provincial-level People’s Committees shall direct and inspect the measurement and quality control of gas circulated in their localities, and handle in accordance with law gas traders that fail to comply with gas measurement and quality control regulations, and other fraudulent acts which cause market instability.

Article 52. Responsibilities of ministries, sectors and provincial-level People’s Committees   

In addition to the above-mentioned specific responsibilities, ministries, sectors and provincial-level People’s Committees, within the ambit of their functions, tasks and powers, have the following responsibilities:

1. The Ministry of Industry and Trade:

a/ To promulgate regulations on LPG trading agents and the regime of reporting on distribution systems and trademarks of LPG traders; to provide specific guidance on dossiers for grant, re-grant, modification or extension of certificates of eligibility for gas traders; to prescribe the regime of registration by traders that import, produce and process special-use gas for their own needs; to coordinate with provincial-level People’s Committees in inspecting and supervising all types of gas traders in their satisfaction of the conditions prescribed in this Decree;

b/ To inspect and supervise gas trading establishments nationwide in their satisfaction of the trading conditions, formation of their distribution systems under regulations, and observance of safety, sanitation and labor regulations; to inspect the grant of certificates of eligibility for trading to gas trading establishments under this Decree and other relevant laws;

c/ To assume the prime responsibility for, and coordinate with related agencies in, promulgating technical safety regulations applicable to gas bottling stations and supply stations and LPG auxiliary equipment, including LPG stoves, LPG pipes and hoses, LPG bottle valves, LPG pressure-regulating valves; and CNG auxiliary equipment.

2. The Ministry of Science and Technology:

a/ To assume the prime responsibility for, and coordinate with related ministries and sectors in, elaborating, amending, supplementing and improving the system of gas standards and national technical regulations; to improve the system of legal documents on measurement and quality control of gas of all kinds for uniform implementation nationwide; to manage, inspect and examine the measurement and quality control of gas produced, processed, imported, prepared, forwarded, transported and marketed;

b/ To direct the inspection and calibration of measuring devices and equipment in gas trading under current regulations on measurement;

c/ To inspect and certify the quality of gas circulated on the market for the first time by gas producers or processors;

d/ To regulate the use of additives for gas preparation; to regulate the application of the quality control system and the laboratory capacity management system; to guide gas wholesale traders in registering gas preparation establishments.

3. The Ministry of Finance:

a/ To assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, inspecting, examining and supervising gas wholesale traders in their observance of the law on prices;

b/ To uniformly set the deposit money amount and depreciation periods appropriate to each type of LPG bottle;

c/ To establish and guide gas pricing methods in accordance with the law on prices.

4. The Ministry of Transport:

To assume the prime responsibility for, and coordinate with related ministries and sectors in, supplementing and completing standards and technical regulations on gas import and export ports and vehicles.

5. The Ministry of Construction:

To assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding and inspecting provinces and centrally run cities in building gas trading facilities in accordance with the Construction Law and current guiding documents.

6. The Ministry of Public Security:

a/ To perform the unified state management of security, order and fire prevention and fighting at gas production and trading establishments nationwide. To direct and guide the public security force at all levels in examining and inspecting the observance of the current regulations on security, order and fire prevention and fighting by gas production and trading establishments;

b/ To inspect and supervise gas transport service providers in their satisfaction of the conditions prescribed in Clause 2, Article 40, and Clause 3, Article 41, of this Decree;

c/ To organize fire prevention and fighting training for employees of gas production and trading establishments in accordance with law.

7. The Ministry of Labor, War Invalids and Social Affairs:

To direct and conduct the labor safety examination and inspection of gas trading establishments in accordance with current laws.

8. The Ministry of Natural Resources and Environment:

To assume the prime responsibility for, and coordinate with related ministries and sectors in, organizing the inspection and supervision of gas production and trading establishments in their observance of the environmental law.

9. Provincial-level People’s Committees:

a/ To direct and conduct the inspection of production and trading establishments of traders operating in their localities in the measurement and quality control of gas in market circulation, fire prevention and fighting, and environmental safety in accordance with law, combat of trade frauds and assurance of market stability;

b/ To base themselves on the socio-economic development and state management requirements in their localities to decentralize district-level People’s Committees the power to grant certificates of eligibility for liquefied petroleum gas trading to bottled LPG shops on the basis of ensuring their capacity to appraise and evaluate the regulations on conditions on such shops; to elaborate a roadmap for transforming bottled LPG shops into shops specialized in bottled LPG trading.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 53. Transitional provisions

1. Traders that possess indefinitely valid certificates of eligibility granted before the effective date of this Decree may continue operating for 1 (one) more year after that date and subsequently must fully satisfy the conditions prescribed in this Decree.

2. Traders that possess certificates of eligibility to be expire before the effective date of this Decree may continue operating until their certificates expire.

3. LPG bottling stations that possess certificates of eligibility may continue operating for 2 (two) more years after the effective date of this Decree. After that time limit, they must be owned by LPG wholesale traders.

4. Within 2 (two) years from the effective date of this Decree, provincial-level People’s Committees shall approve master plans on development of gas trading establishments. Pending the promulgation of the master plans, based on their local practical conditions, provincial-level People’s Committees shall direct the grant of temporary certificates of eligibility for gas trading establishments that satisfy the conditions prescribed in this Decree.

Article 54. Effect

1. This Decree takes effect on May 15, 2016.

2. This Decree replaces Decree No. 107/2009/ND-CP of November 26, 2009, on trading in liquefied petroleum gas, and Article 2 of Decree No. 118/2011/ND-CP of December 16, 2011, amending and supplementing administrative procedures in the trading of petrol, oil and liquefied petroleum gas. Previous regulations on management of gas trading which are contrary to this Decree are all annulled.

Article 55. Organization of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG

 

 

 

[1] Công Báo Nos 263-264 (31/3/2016)

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Decree 19/2016/NĐ-CP DOC (Word)

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Decree 19/2016/NĐ-CP DOC (Word)

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