Decree No. 36/2014/ND-CP dated April 29, 2014 of the Government on raising, processing, and exporting pangasius

DECREE

On pangasius rearing and processing and
export of pangasius products[1]

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 26, 2003 Fisheries Law;

Pursuant to the June 17, 2010 Law on Product and Goods Quality;

Pursuant to the November 21, 2007 Law on Food Safety;

Pursuant to the June 14, 2005 Commercial Law;

At the proposal of the Minister of Agriculture and Rural Development;

The Government promulgates the Decree on pangasius rearing and processing and export of pangasius products.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes the pangasius rearing and processing and export.

Article 2. This Decree applies to Vietnamese organizations and individuals and foreign organizations and individuals involved in pangasius rearing, processing and export activities in the Vietnamese territory.

Chapter II

PANGASIUS REARING AND PROCESSING

Article 3. Pangasius rearing and processing plans

1. Principles of planning:

a/ Pangasius rearing and processing plans must bring into play the advantages and potentials of localities and conform with the capability of pangasius consumption in domestic and foreign markets;

b/ Detailed pangasius rearing and processing plans in each locality must conform with the master plan on pangasius rearing and processing;

c/ Pangasius rearing and processing plans must conform with the socio-economic development plans in each locality.

2. Planning contents:

a/ Analysis of natural and socio-economic conditions affecting the pangasius rearing, processing and consumption;

b/ Assessment of the current status of pangasius rearing, processing and consumption;

c/ Analysis, assessment and forecast of Vietnamese pangasius demands, prices and competitiveness in domestic and overseas markets;

d/ Determination of commercial pangasius rearing areas and outputs; capacity of pangasius processing establishments;

dd/ Determination of technical solutions, mechanisms and policies for plan implementation;

e/ Determination of environmental protection solutions to the implementation of pangasius rearing and processing plans.

3. Competence to formulate and approve plans:

a/ The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with other ministries, sectors and localities in, formulating and approving the master plan on pangasius rearing and processing;

b/ Based on the pangasius rearing and processing master plan approved by the Ministry of Agriculture and Rural Development, the People’s Committees of provinces or centrally run cities shall review, formulate and approve detailed pangasius rearing and processing plans in their localities.

4. The State shall adopt policies to encourage alignment in pangasius rearing, processing and export; investment in infrastructure in rearing areas and infrastructure serving pangasius processing in conformity with the approved pangasius rearing and processing plan.

Article 4. Conditions on commercial pangasius rearing establishments

1. Their commercial pangasius rearing locations and areas must conform with the pangasius rearing and processing plans approved by provincial-level People’s Committees.

2. Their commercial pangasius rearing area and output registration is certified by local aquaculture management agencies.

3. Commercial pangasius rearing establishments must comply with the regulations and technical standards on aquaculture; be certified and granted commercial pangasius rearing establishment identification codes by local aquaculture management agencies.

4. The use of strains, feed, veterinary drugs, biologicals, micro-organisms and chemicals must comply with law.

5. By December 31, 2015, commercial pangasius rearing establishments shall apply, and get certificates of, good aquaculture practice (VietGAP) certificates or international certificates in accordance with Vietnamese law.

Article 5. Conditions on pangasius processing establishments

1. Possessing an aquatic product processing business registration certificate granted by a competent state agency under law.

2. Pangasius processing establishments must be included in the pangasius rearing and processing plans approved by provincial-level People’s Committees.

3. Application of measures to serve the origin tracing of processed pangasius products.

4. Application of quality control systems, implementation of regulations and technical standards on food safety and hygiene in aquatic product manufacture and trading and being certified by competent agencies that aquatic product-processing establishments fully satisfy the conditions on food safety.

5. Assurance of announced quality of delivered pangasius products; self-inspection of, and self-accountability for, announced quality of pangasius products; labeling of goods under law.

6. Newly built pangasius processing establishments must be inspected and recognized as full satisfaction of food safety conditions by the Ministry of Agriculture and Rural Development before operation.

Article 6. Conditions on quality, food hygiene and safety for processed pangasius products

1. Raw-material pangasius used for processing must be reared at commercial pangasius rearing establishments and meet the conditions prescribed in Article 4 of this Decree,

2. Processed pangasius products must meet the aquatic product quality, food hygiene and safety regulations of Vietnam and importing countries.

3. For the processing of frozen pangasius fillets:

a/ The use of chemicals, additives and processing aids must comply with Vietnamese law and conform to the regulations of importing countries;

b/ The ice-glazing ratio (the ratio of ice glaze to gross weight) for export pangasius products must conform to the regulations of importing countries. For other cases, the ice-glazing ratio must not exceed 10%;

c/ The maximum water content must not exceed 83% compared to the net weight (the pangasius fillet weight after removing the ice glaze) of products.

4. Apart from observing the current regulations of Vietnam and importing countries on food labeling, the labels on frozen pangasius fillets must show the following information: The net weight of products; the ice-glazing ratio; names of chemicals, additives and processing aids used in the course of processing.

Chapter III

EXPORT OF PANGASIUS PRODUCTS

Article 7. Conditions on export of pangasius products

Organizations and individuals (below referred to as traders) exporting pangasius products must satisfy the following conditions:

1. Having pangasius processing establishments up to the conditions prescribed in Article 5 of this Decree. If traders do not have pangasius processing establishments, they shall sign pangasius product processing or purchase contracts with pangasius processing establishments which meet the conditions prescribed in Article 5 of this Decree.

2. Registering pangasius product export contracts with Vietnam Pangasius Association as prescribed in Article 8 of this Decree. Customs offices shall only permit customs clearance for goods lots under pangasius product export contracts certified by Vietnam Pangasius Association.

Article 8. Registration of pangasius product export contracts

1. Registering organization: Vietnam Pangasius Association.

2. Registrants: Traders exporting pangasius products.

3. Dossiers: One (1) set:

a/ The written registration of the pangasius product export contract;

b/ A lawful copy of the commercial pangasius rearing registration certificate, which is certified by the local aquaculture management agency (applicable to cases where traders use commercial pangasius from commercial pangasius rearing establishments under their ownership and management);

c/ A lawful copy of the raw-material pangasius purchase contract signed with an organization or individual that has commercial pangasius rearing establishments up to the conditions prescribed in  Article 4 of this Decree (applicable to cases where traders use commercial pangasius bought from commercial pangasius rearing establishments not under their ownership and management);

d/ A lawful copy of the certificate of the aquatic product processing establishment’s full satisfaction of food safety conditions (including the cases where traders buy commercial pangasius or process commercial pangasius products at other establishments);

e/ A lawful copy of the commercial pangasius purchase contract or pangasius product processing contract with a pangasius processing establishment which satisfies the conditions prescribed in Article 5 of this Decree (applicable to cases where traders do not have pangasius product processing establishments),

4. Implementation methods and time:

a/ Within one working day, if the dossier of registration of pangasius product export contract is incomplete as prescribed in Clause 3 of this Article, Vietnam Pangasius Association shall reply in writing, requesting the trader to supplement the dossier;

b/ Within 3 working days after receiving a complete dossier of registration of pangasius product export contract, if the dossier satisfies the conditions prescribed in  Clause 3 of this Article and the raw-material pangasius purchase price is higher than or equal to the floor price of raw-material pangasius, promulgated at the time of receiving the dossier (applicable to traders using commercial pangasius bought from commercial pangasius rearing establishments not under the trader’s ownership and management), Vietnam Pangasius Association shall appraise and certify the pangasius product export contract.

If the dossier fails to meet the above-said requirements, Vietnam Pangasius Association shall not certify the registration of pangasius product export contract and reply in writing clearly stating the reason.

5. Charges for appraisal of commercial trading in pangasius: To comply with the regulations and guidance of the Ministry of Finance.

Article 9. Handling of violations in the export of pangasius products

1. Pangasius product exporters that breach the provisions of this Decree, shall, apart from being handled under the law on handling of administrative violations, be handled under Clauses 2, 3 and 4 of this Article.

2. Stoppage of the export of pangasius product lots which fail to satisfy the quality and aquatic food safety requirements under the regulations of Vietnam and importing countries.

3. Suspension of the export of pangasius products by exporters that are required by competent agencies of importing countries to temporarily cease the export due to violations related to quality and food safety.

4. Where importing countries do not demand Vietnam to inspect and certify quality of export pangasius products but provide the stoppage of the import of pangasius products from Vietnam if many violating goods lots are detected, the Ministry of Agriculture and Rural Development shall organize quality and food safety inspections and handle violations committed by traders and processing establishments that possess the notified violating goods lots in accordance with the Food Safety Law and Product and Goods Quality Law.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 10. Responsibilities of ministries and sectors

1. The Ministry of Agriculture and Rural Development:

a/ To formulate and approve the pangasius rearing and processing master plan; to guide, inspect and supervise the formulation and implementation of pangasius rearing and processing plans in provinces and centrally run cities;

b/ To guide and inspect local aquaculture management agencies in the certification of registration of commercial pangasius rearing areas and outputs and the grant of commercial pangasius rearing establishment identification codes;

c/ To guide, inspect and supervise the application and certification of good-aquaculture-practice processes;

d/ To formulate and promulgate or submit to competent agencies for promulgation regulations, standards and national technical regulations applicable to pangasius rearing and processing as well as to the export of pangasius products;

dd/ To guide, direct and organize the inspection of conditions on pangasius rearing and processing establishments; to inspect and supervise the quality as well as processing and export of reared pangasius according to its competence;

e/ To coordinate in guiding, inspecting and supervising Vietnam Pangasius Association in the implementation of regulations on appraisal, certification, collection of charges for appraisal of pangasius trading;

f/ To guide, inspect, examine and handle violations of law in pangasius rearing, processing and export activities according to its competence;

g/ To supply and announce regulations on food safety conditions with regard to imported pangasius products of countries importing pangasius products from Vietnam;

h/ To stop the export of pangasius product lots that fail to meet the requirements on aquatic food quality and safety under the regulations of Vietnam and importing countries and to temporarily cease the export of pangasius products by traders that are required by competent authorities of importing countries to suspend the export due to violations related to food quality and safety under Clauses 2, 3 and 4, Article 9 of this Decree. To specify the organization of inspection and handling of violations in Article 9 of this Decree;

i/ To trace the origin of exported Vietnamese pangasius products in accordance with law.

2. The Ministry of Industry and Trade:

a/ To assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Foreign Affairs and concerned ministries and sectors in, advising on, and handling commercial disputes as well as technical barriers, related to the export of pangasius products;

b/ To inspect, examine and handle violations in pangasius product export activities according to its competence;

c/ To direct overseas-based Vietnamese trade missions to support trade promotion activities for pangasius products;

d/ To inspect and supervise the implementation of this Decree in accordance with the law on anti-dumping.

3. The Ministry of Finance:

a/ To guide methods of calculating costs of raw-material pangasius;

b/ To prescribe charges for appraisal of pangasius trading conditions; to guide the implementation of regulations on collection, payment, management and use of such charges;

c/ To direct the General Department of Customs to conduct customs inspection and supervision of the export of pangasius products as prescribed by this Decree; to make and send monthly summarization reports to the Ministry of Finance, the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development on the output, export prices and exporting markets of pangasius products.

Article 11. Provincial-level People’s Committees

1. To formulate, approve and manage the implementation of their local pangasius rearing and processing plans in conformity with the pangasius rearing and processing master plan approved by the Ministry of Agriculture and Rural Development.

2. To direct their local aquaculture management agencies to certify registration of commercial pangasius rearing areas and outputs and grant commercial pangasius rearing establishment identification codes.

3. To direct and organize pangasius rearing, processing and export activities in their localities in accordance with law.

4. To organize the inspection and examination of the implementation of, and handle violations in accordance with law in pangasius rearing, processing and export activities in localities according to their competence.

Article 12. Vietnam Pangasius Association

1. To assume the prime responsibility for carrying out the following activities:

a/ Organizing the registration, appraisal, certification, and collection of charges for appraisal of, pangasius trading as prescribed;

b/ Based on the Ministry of Finance’s guidance on methods of calculating raw-material pangasius costs, to promulgate at least twice a year the floor prices of raw-material pangasius and promptly adjust them to suit the market developments;

c/ To manage and use charges for appraisal of the trading of pangasius in accordance with law;

d/ To supply the customs offices with the list of traders with certified registration of pangasius product export;

dd/ To make statistics on the pangasius rearing, processing and export situation and monthly, quarterly and annually report them to the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade and the Ministry of Finance.

2. To coordinate with concerned trade societies and associations in carrying out the following activities:

a/ Guiding and mobilizing members to observe the law on pangasius rearing and processing and export of pangasius products;

b/ Trade promotion for pangasius products; analyzing, forecasting and providing information on pangasius product outlets;

c/ Participating in the protection of export activities, the handling of commercial disputes and technical barriers related to pangasius rearing, processing and export;

d/ Supporting and supplying information on pangasius rearing and processing and on markets for pangasius rearing and processing organizations and individuals.

Article 13. Pangasius rearing, processing and exporting organizations and individuals

1. Organizations and individuals rearing, processing and exporting pangasius shall abide by the provisions of this Decree and other relevant legal documents on pangasius rearing, processing and export.

2. Exporters of pangasius products shall:

a/ Abide by the regulations on management, inspection, certification of export aquatic food quality and safety under the regulations of importing countries and Vietnam;

b/ Register pangasius product export contracts under Article 8 of this Decree and take responsibility for the truthfulness of information on contents of the signed contracts;

c/ Pay charges for appraisal of pangasius trading as prescribed.

Chapter V

IMPLEMENTATION PROVISIONS

Article 14. Transitional provisions

1. Commercial pangasius rearing establishments which operate before the effective date of this Decree at variance with the pangasius plans but satisfy the pangasius rearing conditions defined in Clauses 2 and 3 Article 4 of this Decree, may continue their operation.

2. Before December 31, 2015, from the effective date of this Decree, traders may  buy raw-material pangasius for processing and export from commercial pangasius rearing establishments which fail to satisfy the conditions prescribed in Clause 5, Article 4 of this Decree.

3. Before the effective date of the Ministry of Agriculture and Rural Development’s Circular providing the area and output registration and grant of identification codes to commercial pangasius rearing establishments, the commercial pangasius registration paper (defined at Point b, Clause 4, Article 8) is not yet required in the dossiers of commercial pangasius export contract registration.

4. Before December 31, 2014, from the effective date of this Decree, pangasius fillets that have not yet satisfied the quality requirements prescribed at Points b and c, Clause 3, Article 6 of this Decree, can be exported if they satisfy the aquatic food quality and safety requirements of the export markets.

Article 15. Effect

This Decree takes effect on June 20, 2014.

Article 16. Guidance and implementation responsibility

1. Based on their assigned specific responsibilities defined in this Decree and other relevant legal documents, the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade and the Ministry of Finance shall guide the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, the president of Vietnam Pangasius Association and presidents of related trade societies and associations shall, within the ambit of their respective functions and tasks, implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG