THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness ---------
No. 84/2009/ND-CP	Hanoi, October 15, 2009

DECREE

ON PETROL AND OIL TRADING

THE GOVERNMENT

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

Pursuant to the June 14, 2005 Commercial Law;

At the proposal of the Minister of Industry and Trade,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.

Scope of regulation

This Decree prescribes petrol and oil trading and conditions for petrol and oil trading in the domestic market.

Article 2.

Subjects of application

1. This Decree applies to Vietnamese traders under the Commercial Law.

2. This Decree does not apply to traders that import, produce and process petrol and oil for their own special use without selling them on the market under the Ministry of Industry and Trade’s regulations.

Article 3.

Interpretation of terms

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

1. Petrol and oil is a general term used to refer to products of the crude oil refining process which are used as fuel, including engine petrol, diesel oil, kerosene, fuel oil and jet fuel: and other products used as engine fuel excluding liquefied gases of all kinds.

2. Petrol and oil trading covers the export (of domestically produced petrol and oil and raw materials and petrol and oil and raw materials originated from imports), import, temporary import for re-export, border-gate transfer and export processing of petrol and oil and raw materials; production and processing of petrol and oil; distribution of petrol and oil on the domestic market; and provision of services such as warehouse and port leasing and forwarding, preservation and transportation of petrol and oil.

3. Petrol and oil production means the process to refine and transform crude oil, petrol and oil products, semi-finished petrol and oil products, additives and other preparations into petrol and oil products.

4. Petrol and oil processing means the process to mix petrol and oil products, semi-finished petrol and oil products, additives and other preparations to turn them into petrol and oil products.

5. Petrol and oil trading establishments include special-use ports and petrol and oil production and processing plants, depots, means of transport and petrol and oil retail shops.

6. Raw materials for petrol and oil production and processing include crude oil, petrol and oil products, semi-finished petrol and oil products, additives and other preparations.

7. World petrol and oil price means the trading price on the international market jointly determined and announced by the Ministry of Finance and the Ministry of Industry and Trade.

8. Petrol and oil retail price means the price posted up at petrol and oil retail shops.

9. Base price means the price used to set the petrol and oil retail price, which has the following constituents and is determined to equal (=) {CIF price plus (+) import duty plus (+) excise tax} multiplied by (x) foreign exchange rate plus (+) business expense norm plus (+) price valorization fund plus (+) pre-tax profit norm plus (+) value-added tax plus (+) petrol and oil charges plus (+) other payable taxes, charges and payments under current law; and is calculated on the average number of days of reserve under Article 22 of this Decree; in which:

CIF price is the world petrol and oil cost price plus (+) insurance plus (+) freight for transportation to Vietnamese port;

Foreign exchange rate is the average selling rate of commercial banks with which key traders make transactions;

Import duty, excise tax, value-added tax, petrol and oil charges and other payable taxes, charges and payments (if any) comply with law;

Business expense norm, profit norm and price valorization fund comply with the Ministry of Finance’s regulations.

10. Petrol and oil traders include petrol and oil exporters and importers; petrol and oil producers; petrol and oil general agents and retail agents; and petrol and oil service providers.

11. Key traders include petrol and oil exporters, importers and producers.

Article 4.

Application of treaties and relevant laws

1. Foreigners trading in petrol and oil in Vietnam under treaties to which the Socialist Republic of Vietnam is a contracting party shall comply with this Decree. When those treaties provide otherwise, they prevail.

2. Apart from complying with this Decree, petrol and oil traders shall comply with other relevant laws.

Article 5.

Planning on petrol and oil trading system development

1. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with concerned ministries and branches in, elaborating and publicizing a master plan on petrol and oil trading system development in line with development orientations for Vietnam’s oil and gas industry and socio-economic development up to 2020; and planning the development of systems of key petrol and oil depot and ports and depots for strategic reserve and circulation reserve; and petrol and oil pipelines nationwide.

2. When elaborating a project to build or upgrade transport systems, the Ministry of Transport shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade, concerned ministries and branches and provincial-level People’s Committees in, determining connection points suitable to the planned petrol and oil trading establishment system.

3. Provincial-level People’s Committees shall elaborate and publicize master plans on networks of petrol and oil retail shops and depots to meet local petrol and oil demands. Petrol and oil retail shops must comply with national standards announced by the Ministry of Science and Technology. Petrol and oil retail shops in border areas must comply with regulations on safety assurance for management and protection of border lines and boundary markers and regulations against cross-border petrol and oil smuggling.

4. Traders of all economic sectors are encouraged to invest in developing petrol and oil trading establishments in conformity with the approved planning.

Article 6.

Fire prevention and fighting and environmental protection

1. In their trading activities, petrol and oil trading establishments shall constantly meet requirements under the laws on fire prevention and fighting and environmental protection.

2. Petrol and oil traders shall regularly examine petrol and oil trading establishments in strictly complying with the laws on fire prevention and fighting and environmental protection.

Chapter II

PETROL AND OIL TRADING

Section I. PETROL AND OIL EXPORT AND IMPORT

Article 7.

Conditions for obtaining petrol and oil export-import licenses

A trader which fully meets the conditions below may obtain a petrol and oil export-import license:

1. Being established lawfully, having registered for petrol and oil trading as specified in its business registration certificate;

2. Having special-use wharves within Vietnam's international port system, which are capable of receiving import oil tankers or other means of transport with a tonnage of at least seven thousand (7,000) tons under its ownership or co-ownership or on a lease for at least five (5) years;

3. Having depots with a minimum capacity of fifteen thousand (15.000) cubic meters to receive imported petrol and oil from oil tankers and other means of transport, which are under its ownership or co-ownership or on a lease for at least five (5) years;

4. Having special-use means to transport petrol and oil under its ownership or co-ownership or on a lease for at least five (5) years to ensure petrol and oil supply for its distribution network;

5. Having its own petrol and oil distribution network with at least ten (10) petrol and oil retail shops under its ownership or co-ownership and a network of at least forty (40) petrol and oil retail agents;

6. Exporters and importers of jet fuel are not required to have distribution networks under Clause 5 of this Article, but must have jet fuel filling equipment under their ownership or co-ownership.

Article 8.

Competence, dossiers and order of granting petrol and oil export-import licenses

1. The Ministry of Industry and Trade shall grant petrol and oil export-import licenses to traders that fully meet the conditions specified in Article 7 of this Decree.

2. Dossiers of application for petrol and oil export-import licenses

a/ For a new license, a dossier comprises:

- An application for a petrol and oil export-import license made according to Form No. 1 attached to this Decree (not printed herein):

- A valid copy of the business registration certificate;

- A list of material and technical foundations in service of petrol and oil export and import specified in Clauses 2, 3 and 4, Article 7 of this Decree, enclosed with supporting documents;

- A list of petrol and oil retail shops under the trader’s ownership or co-ownership and a list of general agents and agents within the trader’s petrol and oil distribution network under Clause 5, Article 7 of this Decree, enclosed with supporting documents.

b/ For a supplemented or modified license

When there are changes in the contents of a petrol and oil export-import license, the trader shall compile and submit a dossier of request for supplementation and modification of the license to the Ministry of Industry and Trade. Such a dossier comprises:

- A written request for license supplementation and modification;

- The original petrol and oil export-import license;

- Documents proving contents to be supplemented or modified.

c/ For a re-granted license

When a petrol and oil export-import license is lost, burnt or otherwise destroyed, the trader shall compile and submit a dossier of request for license re-grant to the Ministry of Industry and Trade. Such a dossier comprises:

- A written request for license re-grant;

- The original or valid copy of the petrol and oil export-import license (if any).

When a petrol and oil export-import license expires, the trader shall compile a dossier of application for a new license under Point a of this Clause and submit it to the Ministry of Industry and Trade thirty (30) days before the license expires.

3. Order of granting petrol and oil export-import licenses

a/ Traders submit dossiers to the Ministry of Industry and Trade;

b/ Within thirty (30) working days after receiving valid dossiers, the Ministry of Industry and Trade shall consider, evaluate and grant petrol and oil export-import licenses according to Form No. 2 attached to this Decree (not printed herein) to traders. In case of refusal, it shall issue a written reply clearly stating the reason:

c/ When a dossier is incomplete, within seven (7) days after receiving such dossier, the Ministry of Industry and Trade shall make a written request for the trader to supplement the dossier.

4. A petrol and oil export-import license is valid for live (5) years from the date of issuance.

5. Traders obtaining petrol and oil export-import licenses shall pay charges and fees under the Ministry of Finance’s regulations.

6. A petrol and oil export-import license is revoked when it expires; or the trader no longer operates in petrol and oil export and import; or the trader goes bankrupt under law; or in other cases under law.

Article 9.

Rights and obligations of petrol and oil exporters and importers

1. Based on the minimum import quota annually assigned by the Ministry of Industry and Trade, petrol and oil exporters and importers shall import petrol and oil, ensuring the quality, volume and categories of petrol and oil for their distribution networks and the minimum petrol and oil reserve level under Article 22 of this Decree.

2. Export (of domestic petrol, oil and raw materials, and petrol and oil and raw materials originated from imports) and temporary import for re-export and export processing of petrol and oil and raw materials comply with Article 24 of this Decree.

3. To trade in petrol, oil and raw materials with other key traders.

4. To observe regulations on, and be held responsible for, prices, volume and quality of petrol and oil sold on the market.

5. Apart from selling petrol and oil directly to industrial households, to sign contracts only with traders that fully meet the conditions on general agents and agents under Articles 13 and 14, and do not violate Clause 1 or 2, Article 17, of this Decree. To register their distribution networks under the Ministry of Industry and Trade’s regulations.

6. To adopt rules on the uniform display of names of petrol and oil exporters and importers at petrol and oil retail shops within their distribution networks and to examine and supervise enterprises within their distribution networks. The use of logos, trademarks and trade indications of petrol and oil exporters and importers must comply with the Intellectual Property Law and other laws.

7. To transship and transfer alongside ships petrol and oil only at locations prescribed by the Ministry of Transport or provincial-level People’s Committees; to transship and transfer alongside ships petrol and oil from large ships or other means of transport which cannot be received directly at Vietnamese ports as prescribed by port authorities.

8. To observe the laws on fire prevention and fighting and environmental protection in business activities.

9. To import or procure domestic raw materials to process petrol and oil. Raw materials shall be imported according to registered schedules after these schedules are certified and notified by the Ministry of Industry and Trade to customs offices for customs clearance and control of traders' raw material import.

10. To supply jet fuel when fully meeting conditions under relevant laws.

11. To apply derivative instruments and operations to petrol and oil transactions and trading in conformity with international practice.

Section 2. PETROL AND OIL PRODUCTION

Article 10.

Conditions on petrol and oil production

A trader that fully meets the conditions below may produce petrol and oil:

1. Being lawfully established, having registered for petrol and oil trading as specified in its business registration certificate:

2. Having petrol and oil production establishments under approved planning and being permitted for investment by competent authorities:

3. Having laboratories and gauging facilities capable of testing the quality of produced petrol and oil under current regulations.

Article 11.

Rights and obligations of petrol and oil producers

1. To produce petrol and oil according to registered plans annually certified by the Ministry of Industry and Trade; to maintain the minimum reserve of petrol and oil and raw materials for production in conformity with approved investment projects and production plans registered with the Ministry of Industry and Trade.

2. To procure domestic raw materials, to directly import or entrust licensed petrol and oil exporters and importers to import raw materials. To import raw materials according to registered schedules after these schedules are certified and notified by the Ministry of Industry and Trade to customs offices for customs clearance and control of traders’ raw material import.

3. To process petrol and oil for domestic sale or export.

4. To circulate only petrol and oil which comply with national technical regulations and announced applicable standards.

5. To sell their petrol and oil products on the domestic market through their distribution networks under this Decree or to sell them only to other key traders.

To export their petrol and oil products according to their schedules registered with the Ministry of Industry and Trade and approved investment projects.

6. To organize domestic petrol and oil distribution networks according to regulations applicable to petrol and oil exporters and importers under Clauses 4 and 5, Article 7; and Clauses 3,4,5,6,7 and 8, Article 9 of this Decree.

Section 3. PETROL AND OIL DISTRIBUTION

Article 12.

Rights to petrol and oil distribution

Key traders may distribute petrol and oil through their attached units, including member enterprises, branches, depots and petrol and oil retail shops, or through a network of general agents and retail agents under this Section.

Article 13.

Conditions on petrol and oil general agents

A trader which fully meets the conditions below may act as a general agent for petrol and oil trading (below referred to as general agent):

1. Being lawfully established; having registered for petrol and oil trading as specified in its business registration certificate:

2. Having depots or tanks with a capacity of at least five thousand (5.000) cubic meters under its ownership or co-ownership or on a lease for at least five (5) years to ensure stable supply for its petrol and oil distribution network;

3. Having its own petrol and oil distribution network with at least five (5) petrol and oil retail shops under its ownership or co-ownership and at least twenty (20) petrol and oil retail agents. This distribution network must belong to the key trader’s distribution network and is subject to that trader’s control;

4. Having special-use means to transport petrol and oil under its ownership or co-ownership or on a lease for at least five (5) years;

5. Having its managers and sale staff technically trained in fire prevention and fighting safety and environmental protection under current regulations.

Article 14.

Conditions on petrol and oil retail agents

A trader which fully meets the conditions below may act as a petrol and oil retail agent (below referred to as agent):

1. Being lawfully established: having registered for petrol and oil trading as specified in its business registration certificate;

2. Having petrol and oil retail shops under its ownership or co-ownership;

3. Having its managers and sale staff technically trained in fire prevention and control safety and environmental protection under current regulations.

Article 15.

Conditions for petrol and oil retail shops to obtain certificates of eligibility for petrol and oil trading

A petrol and oil retail shop which fully meets the conditions below may obtain a certificate of eligibility for petrol and oil trading:

1. Having sale places which conform with the approved planning;

2. Being built and equipped in accordance with current criteria on petrol and oil retail shops promulgated by the Ministry of Science and Technology;

3. Having its managers and sale staff technically trained in fire prevention and fighting safety and environmental protection under current regulations.

Article 16.

Competence, dossiers and order of granting certificates of eligibility for petrol and oil trading to petrol and oil retail shops

1. Provincial-level Industry and Trade Departments shall grant certificates of eligibility for petrol and oil trading to petrol and oil retail shops that fully meet the conditions specified in Article 15 of this Decree.

2. Dossiers of application for certificates of eligibility for petrol and oil trading

a/ For a new certificate, a dossier comprises:

- An application for a certificate of eligibility for petrol and oil trading made according to Form No. 3 attached to this Decree (not printed herein);

- A valid copy of the business registration certificate of the owner of petrol and oil retail shop;

- A list of equipment of the petrol and oil retail shop under Clause 2, Article 15 of this Decree and documents proving the lawful construction of the shop;

- Valid copies of professional training certificates of the petrol and oil retail shop's managers and staff under Clause 3, Article 15 of this Decree.

b/ For a supplemented or modified certificate

When there are changes in the contents of a certificate of eligibility for petrol and oil trading, the trader shall compile and submit a dossier of request for supplementation and modification of the certificate to a provincial-level Industry and Trade Department. Such a dossier comprises:

- A written request for certificate supplementation and modification;

- The original certificate of eligibility for petrol and oil trading;

- Documents proving contents to be supplemented or modified.

c/ For a re-granted certificate

When a certificate of eligibility for petrol and oil trading is lost, burnt or otherwise destroyed, the trader shall compile and submit a dossier of request for certificate re-grant to a provincial-level Industry and Trade Department. Such a dossier comprises:

- A written request for certificate re-grant;

- The original or valid copy of the certificate of eligibility for petrol and oil trading (if any).

When a certificate of eligibility for petrol and oil trading expires, the trader shall compile a dossier of application for a new certificate under Point a of this Clause and submit it to a provincial-level Industry and Trade Department thirty (30) days before the certificate expires.

3. Order of granting certificates of eligibility for petrol and oil trading

a/ Traders submit dossiers to provincial-level Industry and Trade Departments;

b/ Within thirty (30) working days after receiving valid dossiers, provincial-level Industry and Trade Departments shall consider, evaluate and grant certificates of eligibility for petrol and oil trading according to Form No. 4 attached to this Decree (not printed herein) to traders. In case of refusal, they shall issue a written reply clearly stating the reason;

c/ When a dossier is incomplete, within seven (7) days after receiving such dossier, a provincial-level Industry and Trade Department shall make a written request for the trader to supplement the dossier.

4. A certificate of eligibility for petrol and oil trading is valid for five (5) years from the date of issuance.

5. Traders obtaining certificates of eligibility for petrol and oil trading shall pay charges and fees under the Ministry of Finance’s regulations.

6. A certificate of eligibility for petrol and oil trading is revoked when it expires; or the trader no longer operates in petrol and oil trading; or the trader goes bankrupt under law; or in other cases under law.

Article 17.

Rights and obligations of general agents, agents and petrol and oil retail shops

1. For a general agent, to sign a contract to act as general agent for only one (1) key trader.

2. For an agent, to sign a contract to act as agent for only one (1) general agent or one (1) key trader.

3. For a petrol and oil retail shop within a key trader’s distribution network, to be subject to the control of that trader; to post up sale prices of petrol and oil of all categories under the agency contract and sell petrol and oil at these prices; to have signboards fully indicating contents required by law.

4. To trade in petrol and oil only with traders within their distribution networks under Clauses 1 and 2 of this Article for sale to consumers and be held responsible for the quality, volume and prices of petrol and oil on sale under regulations.

5. To strictly prohibit acts of speculating or hoarding goods, unreasonably hiking prices, spreading false information, smuggling and committing trade frauds and other deceitful acts.

6. To comply with the Ministry of Finance’s regulations on voucher recording in petrol and oil trading activities.

7. To observe the laws on fire prevention and fighting and environmental protection in business activities.

8. To comply with Articles 15 and 16 and this Article, for member enterprises, branches, depots and petrol and oil retail shops of a key trader.

9. Apart from putting up traders’ signboards under current regulations, to use commercial names, logos, trademarks and trade indications of key traders only under contracts in compliance with the Intellectual Property Law.

10. For a general agent, to examine and supervise activities of agents within its distribution network; to take joint responsibility for its agents’ violations of regulations on petrol and oil trading under law.

Section 4. PROVISION OF PETROL AND OIL SERVICES

Article 18.

Conditions on provision of services to lease ports and depots for receiving petrol and oil

1. Being lawfully established, having registered for petrol and oil trading as specified in business registration certificates.

2. Having special-use wharves within the system of seaports and inland waterway ports and depots under enterprises’ own ownership or co-ownership, which are built up to prescribed standards and in conformity with approved planning.

3. Having managers and sale staff trained in fire prevention and fighting safety techniques and environmental protection under current regulations.

Article 19.

Conditions on provision of petrol and oil transport services

1. Being lawfully established, having registered for petrol and oil trading as specified in business registration certificates.

2. Having special-use means to transport petrol and oil under enterprises' own ownership or co-ownership, which meet requirements and standards on petrol and oil transportation and are examined and permitted for circulation by competent authorities under law.

3. Having managers and direct operators of means of transport trained in fire prevention and fighting safety techniques and environmental protection under current regulations.

Article 20.

Rights and obligations of petrol and oil service providers

1. To take responsibility for the quality and volume of petrol and oil in the process of receiving, preserving and transporting petrol and oil under contracts signed with traders hiring their services.

2. When engaged in other petrol and oil trading activities (general agent, agent), to comply this Decree’s provisions on those activities.

3. To comply with the laws on fire prevention and control and environmental protection in business activities.

Section 5. PETROL AND OIL RESERVES FOR CIRCULATION

Article 21.

Subjects of petrol and oil reserves for circulation

1. Subject to petrol and oil reserves for circulation are key traders.

2. National reserves of petrol and oil comply with the Government's separate regulations.

Article 22.

Petrol and oil reserves for circulation

1. From the effective date of this Decree through 2025, petrol and oil exporters and importers shall ensure stable petrol and oil reserves for circulation equal to at least thirty (30) days of supply in terms of both quantity and category according to traders’ annual sale plans.

2. From the effective date of this Decree through 2025, petrol and oil producers with domestic distribution networks shall ensure stable petrol and oil reserves for circulation equal to at least thirty (30) days of supply in terms of both quantity and category under their domestic sale plans annually registered with the Ministry of Industry and Trade.

3. After 2025, traders specified in Clauses 1 and 2 of this Article shall ensure the minimum level of petrol and oil reserves for circulation under the Prime Minister’s regulations.

Chapter II

PETROL AND OIL TRADING MANAGEMENT

Article 23.

Petrol and oil import

1. Annually, based on the national economy’s demand for petrol and oil and domestically produced petrol and oil, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in. setting petrol and oil import orientations for the subsequent year. Demand for petrol and oil for defense shall be separately identified.

2. On the basis of petrol and oil import orientations, the Ministry of Industry and Trade shall allocate annual minimum import quotas in quantity and category to licensed petrol and oil exporters and importers to carry out import procedures with customs offices.

3. Based on market demands, petrol and oil exporters and importers shall decide on the volume of petrol and oil of all categories to be imported for domestic sale, which must not be lower than their assigned minimum quotas.

4. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with concerned ministries and branches in. examining and supervising traders in importing petrol and oil to meet economic and social demands. When necessary, the Ministry of Industry and Trade may adjust the minimum import quotas assigned to traders.

Article 24.

Export, temporary import for re-export, border-gate transfer, export processing of petrol and oil and raw materials

1. Only licensed petrol and oil exporters and importers may export (domestic petrol and oil and raw materials and petrol and oil and raw materials originated from imports) and temporarily import for re-export and transder from or to border gates petrol and oil and raw materials. Only petrol and oil producers may export and process for export petrol and oil.

2. Temporary import for re-export, border-gate transfer and export processing of petrol and oil and raw materials comply with current laws.

3. The Ministry of Finance shall guide customs procedures for the export of petrol and oil and raw materials originated from imports.

Article 25.

Petrol and oil import duty

Based on the tax rate bracket promulgated by the National Assembly Standing Committee, macro-balance norms and petrol and oil world price forecasts, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in. setting stable import duly rates applicable to each category of petrol and oil and suitable to socio-economic conditions in each period and international commitments.

Article 26.

Price valorization funds

1. Key traders shall set aside funds for price valorization under Article 27 of this Decree.

2. Price valorization funds shall be left at enterprises and separately accounted and may be used only for price valorization purpose.

3. The Ministry of Finance shall guide mechanisms to set up, manage and use price valorization funds.

Article 27.

Petrol and oil sale prices

1. Principles for control of petrol and oil sale prices

a/ Petrol and oil sale prices are subject to the state-controlled market mechanism;

b/ Key traders may decide on wholesale prices. Petrol and oil retail prices shall be adjusted according to the principles and order specified in this Article. Key traders shall participate in valorizing prices under current law and may have reasonable expenses offset when participating in price valorization;

c/ The interval between two (2) consecutive price adjustments is at least ten (10) days, for a price increase, and maximum ten (10) days, for a price decrease. When adjusting petrol and oil retail prices, key traders shall concurrently submit their pricing decisions and schemes to competent state agencies;

d/ When receiving tr