CIRCULAR

GUIDING THE QUALITY AND MEASUREMENT ASSURANCE CONDITIONS IN ENGINE PETROL AND DIESEL OIL TRADING UNDER THE GOVERNMENTS DECREE NO. 55/2007/ND-CP OF APRIL 6, 2007, ON PETROL AND OIL TRADING

Pursuant to the Governments Decree No. 54/2003/ND-CP of May 19, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of the Science and Technology and Decree No. 28/2004/ND-CP of January 16, 2004, amending and supplementing a number of articles of Decree No. 54/2003/ND-CP;
Pursuant to the Governments Decree No. 55/2007/ND-CP of April 6, 2007, on petrol and oil trading;
The Ministry of Science and Technology guides the quality and measurement assurance conditions in engine petrol and diesel oil trading as follows:

I. GENERAL PROVISIONS

1. Scope of regulation

This Circular guides the quality and measurement assurance conditions in engine petrol and diesel oil trading (referred to as petrol and oil for short).

2. Subjects of application

a/ This Circular applies to enterprises that import, produce, process, distribute or retail petrol and oil on the domestic market.

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3. Interpretation of terms

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

a/ Petrol and oil trading means activities of importing, producing, processing, distributing and retailing petrol and oil on the domestic market.

b/ Petrol and oil production and processing means the process of refining petroleum and transforming crude oil and other raw materials into petrol and oil products.

c/ Petrol and oil trading establishment means a place where the import, production, processing, distribution, delivery and receipt and retail of petrol and oil are carried out. They may be petrol and oil importers and processors, distributors (general agents and agents) and retailers (petrol and oil stores and tilling stations), which are collectively referred to as enterprises.

II. QUALITY AND MEASUREMENT ASSURANCE CONDITIONS ON PETROL AND OIL IMPORTING ENTERPRISES

1. Quality assurance conditions

a/ Enterprises must ensure the conformity of imported petrol and oil quality with national technical regulation QCVN1: 2007/BKHCN on petrol and diesel fuel (referred to as QVCN1: 2007/BKHCN).

This provision may be amended or supplemented periodically to meet state management requirements.

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c/ Only imported petrol and oil that satisfy quality requirements specified at Point a, Clause 1, of this Section may be marketed.

d/ Imported petrol and oil that fail to satisfy quality requirements must be either re-processed or re-exported.

Depending on the nature and severity of violations of quality management regulations, competent state agencies may decide to order re-processing or re-export of imported petrol and oil that fail to satisfy quality requirements. Within three working days after obtaining the inspection agencys conclusion that re-processed petrol and oil satisfy quality conditions specified at Point a, Clause 1, of this Section as prescribed by law, the competent state management agency shall issue a notice certifying the quality of the goods lot.

dd/ Enterprises importing petrol and oil which fail to satisfy quality requirements shall be sanctioned under Article 21 of the Governments Decree No. 126/2005/ND-CP of October 10, 2005, which was amended and supplemented in Article 1 of the Governments Decree No. 95/2007/ND-CP of June 4, 2007, on sanctioning administrative violations in the domain of measurement and product and goods quality.

e/ Petrol and oil-importing enterprises shall announce applicable standards in conformity with Vietnam standard TCVN 6776: 2005, for petrol, and TCVN 5689: 2005, for diesel fuel oil, and supply the announced applicable standards to distributors and retailers.

2. Measurement assurance conditions

Measurement devices used in petrol and oil delivery and receipt must be appraised in accordance with current regulations and have their appraisal results still valid.

III. QUALITY AND MEASUREMENT ASSURANCE CONDITIONS AND RESPONSIBILITIES OF PETROL AND OIL-PRODUCING OR PROCESSING ENTERPRISES

1. Petrol and oil-producing or processing enterprises must have testing and measurement laboratories that meet the following conditions:

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- In the period from now to December 31, 2010: To have all necessary and appropriate equipment and devices to inspect, test and evaluate quality indicators of petrol and oil products prescribed at Point a, Clause 1, Section II, of this Circular with corresponding testing methods specified in technical regulation QCVN 1: 2007/BKHCN.

In case of unavailability of necessary equipment and devices to test all quality indicators, they may hire other testing laboratories to test remaining indicators and must sign contracts on the provision on testing services. Priority should be given to accredited testing laboratories.

- In post-2010 period: To have adequate testing equipment and devices to test all quality indicators of petrol and oil products prescribed at Point a, Clause 1, Section II, of this Circular with corresponding testing methods specified in technical regulation QCVN 1: 2007/BKHCN.

b/ Testing and measurement devices must be appraised and calibrated as satisfying the requirements of production or processing technological processes.

c/ Applying adequate technical regulations, national standards, international standards, technical documents, inspection and testing processes for each kind of produced or processed petrol and oil.

d/ Technicians and workers engaged in petrol and oil production or processing have been provided with professional training relevant to their working positions.

Enterprises are encouraged to build petrol and oil testing laboratories up to international standards and accredited under Vietnam standard TCVN ISO 17025: 2005.

2. Responsibilities of enterprises

a/ Petrol and oil-producing or processing enterprises must elaborate and apply quality management systems according to Vietnam standard TCVN ISO 9001: 2000 or the quality management system used exclusively for the petroleum sector ISO/ TS 29001: 2003 - Petroleum, petrochemistry and natural gas industry - Special quality management system - Requirements on production and service organizations.

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c/ Enterprises shall inspect the quality of each lot of petrol and oil products and may only market lots which satisfy quality requirements specified at Point a, Clause 1, Section II, of this Circular. The testing results of each goods lot must be supplied to distributors and retailers and kept and produced to competent agencies upon request.

d/ Additives imported for petrol and oil production and processing must comply with regulations on safety, hygiene, human health, environmental protection and consumer interests.

3. For enterprises which have just commenced production or processing activities, finished petrol and oil products must be tested and certified as satisfying quality requirements before they are marketed for the first time. The Directorate for Standards and Quality shall coordinate with concerned agencies in organizing the inspection.

The inspection covers:

a/ Inspecting the quality of petrol and oil products before they are marketed as prescribed at Point a, Clause 1, Section II of this Circular;

b/ Inspecting the observance of the Measurement Ordinance regarding measurement devices used in delivery and receipt.

c/ Inspecting the capability of testing laboratories;

d/ Inspecting the elaboration and application of quality management systems.

IV. QUALITY AND MEASUREMENT ASSURANCE CONDITIONS ON PETROL AND OIL DISTRIBUTORS (GENERAL AGENTS AND AGENTS)

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a/ Technicians and workers engaged in petrol and oil receipt and preservation have been provided with professional training relevant to their working positions.

b/ Cadres and employees have been trained in and granted certificates on measurement device preservation and petrol and oil quality by Standards and Quality Sub-Departments.

Cadres and employees who have been granted certificates on measurement device preservation and petrol and oil quality before the effective date of this Circular need not be re-trained.

c/ Measurement devices used in petrol and oil delivery and receipt must be appraised in accordance with current regulations and have their appraisal results still valid.

b/ There are adequate depots or tanks for petrol and oil of each kind.

2. Responsibilities:

a/ To request importers and producers to supply names and kinds of petrol and oil and the standards applied to each goods lot. Goods dossiers must be preserved and duplicated for delivery to retailers (petrol and oil stores and filling stations);

b/ Not to change the quality of petrol and oil or supply petrol and oil of improper kind, quality or quantity;

c/ To take responsibility for petrol and oil quality in the process of receipt, preservation and transportation under contracts.

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1. Conditions on construction design, equipment and devices:

a/ To be built in strict accordance with plannings approved by competent authorities;

b/ To be designed and built in accordance with Vietnam standard TCVN 4530: 1998:

c/ To have adequate measurement devices for use in petrol and oil delivery, receipt and retail, which must be appraised in accordance with regulations and have their appraisal results still valid; to comply with current regulations on measurements in retail;

d/ To have a system of technologies using measurement devices in petrol and oil retail evaluated as satisfying requirements of measurement techniques;

e/ To have adequate tanks and depots for petrol and oil of each kind;

f/ To meet all conditions on fire prevention and fighting.

2. Conditions regarding cadres and employees:

a/ To have a contingent of technicians and workers who have been provided with professional training relevant to their working positions.

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Cadres and employees who have been granted certificates on measurement device preservation and petrol and oil quality by competent agencies before the effective date of this Circular need not be re-trained.

c/ Cadres and employees have been trained in fire prevention and fighting.

3. Responsibilities:

a/ To supply to-consumers petrol and oil of proper quality and category exactly as supplied from distributors.

b/ To post up at easy-to-spot places information on names and kinds of petrol and oil; particularly for diesel fuel oil, it is necessary to publicize the use purposes of each kind of oil.

c/ To request distributors to supply names and kinds of petrol and oil and standards applicable to each kind.

d/ To take responsibility for the lawfulness and accuracy of their measurement devices. Measurement devices must be periodically appraised, preserved and used in accordance with regulations and have unbroken appraisal seals. Only measurement devices which satisfy appraisal requirements may be used.

VI. EXAMINATION, INSPECTION AND HANDLING OF VIOLATIONS RELATED TO QUALITY AND MEASUREMENT IN PETROL AND OIL TRADING

1. The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with concerned ministries and branches in, inspecting and supervising the quality and measurement assurance at enterprises that import, distribute, produce and process petrol and oil in accordance with this Circular.

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3. Enterprises, cadres and employees engaged in petrol and oil trading that violate the provisions of this Circular shall, depending on the severity of their violations, be handled in accordance with law.

4. Cadres and civil servants who, while on public duty, violate the provisions of this Circular shall, depending on the severity of their violations, be disciplined, administratively handled or examined for penal liability in accordance with law.

VII. ORGANIZATION OF IMPLEMENTATION

1. This Circular takes effect 15 days after its publication in CONG BAO.

2. The Directorate for Standards and Quality, the agency assisting the Minister of Science and Technology in managing quality and measurement of petrol and oil trading, shall:

a/ Guide the implementation of this Circular;

b/ Periodically report to the Ministry of Science and Technology on the management of quality and measurement of petrol and oil which are imported, produced at home and marketed.

3. Any problems arising in the course of implementing this Circular should be promptly reported to the Ministry of Science and Technology for consideration and decision.

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