Registration Number KOTRA자료 21-151 2020 K-V Economic Cooperation Work Program Disseminating Information on Used Machinery and Equipment Import Regulations of Viet Nam for K-V Investment Promotion Project Organizer Ministry of Economy and Finance Planning & Chul-ho Park (Head of Development Cooperation Office, KOTRA) Management Jiwon Lee (ECP Specialist, Development Cooperation Office, KOTRA) Bo-young Chung (Assistant Manager, Development Cooperative Office, KOTRA) Researchers Hyoung-Woo LEE (Korea Authorized Inspection & Research Institute Co., Ltd.(KAIRI), PI) Seung-Soo KIM (KAIRI,
Researcher) Bum-Yong KIM (KAIRI, Researcher) Jong-Gu KIM (KAIRI, Researcher) Hyun-Ju Jung (KAIRI, Researcher) Project Executors (Korea Authorized Inspection & Research Institute Co., Ltd.(KAIRI) Overseas Partners MOIT (Ministry of Industry and Trade Vietnam) MOST (Ministry of Science and Technology Vietnam) KOTRA Hanoi Trade Center SATI TECH (The Designing, Pilot Manufacturing and Testing Center - State Agency for Technology Innovation, Ministry of Science and Technology) The information in this guidebook is reference only. KOTRA is not responsible for any possible consequences arising from
some or all of the contents of the Guidebook to the Application of the Prime Minister Decision No.: 18/2019/QD-TTg dated April 19, 2021 “Import of Used Machinery, Equipment and Technological Lines.”. For more accurate and specific guidance, refer to the publications, website, laws, regulations, etc., and/or contact the authorized organizations such as KAIRI. For particularly sensitive issues, be sure to consult with the Department of Technology Appraisal, Examination and Assessment of the Ministry of Science and Technology (MOST) of Vietnam. Introduction This guidebook is established under the
“Korea-Viet Nam free trade agreement economic coopera tion work programme project proposal for 2020” and the following project and schedules. Project title ● (2020-02) Disseminating Information on Used Machinery and Equipment Import Regulations of Viet Nam for Korea-Viet Nam Investment Promotion Implementing organizations ● Research: Korea Authorized Inspection & Research Institute Co., Ltd. (KAIRI) ● Review: The Ministry of Science and Technology Vietnam (MOST) ● Direct: Korea Trade-Investment Promotion Agency (KOTRA) ● General Direct: The Ministry of Economy and Finance Korea (MOEF)
Objectives and goals ● To establish a comprehensive guidebook on used machinery and equipment import regulations of Viet Nam which will serve as a guideline with references to practical requirements and application of the regulations to Korean companies and Vietnamese customs officials. ● To promote investment by strengthening public-private cooperation between Korea and Viet Nam and encourage the enforcement of eco-friendly industrial development policy of the government of Viet Nam. Background ● The government of Vietnam is very keen to control the import of used machinery and equipment in
order to ensure a proper level of technology and prevent smuggling or massive inflows of outdated equipment from other countries which may incur environmental degradation. On 19 April 2019, the Prime Minister issued ‘Decision No. 18/2019/QD-TTg (Decision 18)’ setting out rules for the importation of used machinery, equipment and technological lines in operation in a plant to produce products. ● The ‘Decision 18’ has some new conditions for importation of used machinery and equipment from that of ‘Circular 23/2015/TT-BKNCH’ which is the previous import policy before ‘Decision 18’. First, it
separates the requirements for importing technical lines and individual machinery and equipment. Second, it acknowledges Korean standards related to safety, energy saving and environment protection. Third, the remaining value such as capacity and efficiency must meet above 85% in the case of production equipment. And the amount of raw materials or energy consumed by the technological lines produce shall not exceed 15% of its design consumed level. Fourth, the production line technology to be imported must be currently used in at least three OECD countries. ● The needs of relocation of
production line and equipment from Korea to Viet Nam has been increasing, consequently justifying the reason of providing guidelines of application of the regulation to Korean exporters. Besides, it is high time to put policy of environmentally friendly industrial development into practice for the government of Viet Nam. ● To this end, a draft project proposal was prepared by the Ministry of Economy and Finance of Korea and discussed at the mid-session meeting of V-K FTA Economic Cooperation Committee in April 2019 in Ha Noi. Project details (Activities to be carried out) ● The project
activities will be focused on establishing an integrated guideline on used machinery and equipment import regulation of Viet Nam and disseminating the guideline with trading companies and related customs officers in order to strengthen public-private cooperation between Korea and Viet Nam. a. Establish a comprehensive guidebook with references to practical requirements and application of Vietnam’s import regulations of used machinery and equipment. b. Provide information on the regulations through On- and Off- line seminars and/or face-to-face interviews. c. Post a video clip and a
downloadable type of guidebook on an information board of KOTRA for the users’ accessibility. Expected outputs or outcomes ● Develop a comprehensive guideline on used machinery and equipment import regulations of Viet Nam which will serve as a good reference on practical requirements and application of the regulations to Korean companies and Vietnamese customs officials. ● Build a network of expertise consisted of authorized agency, customs, logistics, machinery industry association, and other related entities between Korea and Viet Nam which can provide comprehensive service for used
equipment investment in Viet Nam. ● Promote trade and investment by intensifying the formation of global supply chain between Korea and Viet Nam and enhancing enforcement capacity of the industrial development policy of the government of Viet Nam. Monitoring and Evaluation ● Monitoring of the preparation and implementation process of the project will be conducted by the V-K FTA Economic Cooperation Committee. The results and updates will be reported to the V-K FTA EC Committee to monitor the needs of a follow-up action for 2 years after project termination. The purpose of the guidebook is to
provide explanations of the concepts and requirements of the Prime Minister Decision No:18/2019/QD-TTg (hereinafter referred to as the “Decision 18”) to help appropriate interpretation and application for the Decision 18/2019. It is addressed to all of the parties involved in applying the Decision 18, including machinery manufacturers, importers, distributors, and designated inspection bodies. This guidebook is published on the website of KOTRA in English, Korean, and Vietnamese. This version of the guidebook is intended to be a living document, edited and updated with the new version. It is
recommended that the users refer to a convenient language, but the final interpretation should be consulted with the Ministry of Science and Technology Vietnam (MOST). The guidebook can be downloaded and is presented in a printed format. The provision of Decision 18 is presented in boxed bold blue line, and other references in boxed thin black followed by the guidance. The provisions in the blue line box refer to the English version of Decision 18 published on the asemconnectvietnam.gov.vn. The Asemconnectvietnam.gov.vn is the website of the Vietnam Industry and Trade Information Center
(VITIC) of the Ministry of Trade and Industry Vietnam. The content order of the guidebook follows the article order of Decision 18 for users’ readability, and the guides are provided with the bottom of each articles. the guidance starts with the symbol “G” which is the first letter of guidance. The sources are given at the bottom of the references. In the case that an original was edited by KAIRI, the slash mark and KAIRI were marked together with the source of the original. The guidebook has been prepared with the help of the expert committee of Korean and Vietnamese sides. The expert
committee was composed of Korean research team, MOST, the MOST office of the Embassy of The Socialist Republic of Vietnam in Korea, the designated as an expert organiza- tion by MOST, Designing, Pilot Manufacturing and Testing Center - State Agency for Technology Innovation, Ministry of Science and Technology of the Socialist Republic of Vietnam (SATI TECH), and the registered inspectors in MOST. This guidebook was reviewed by the Ministry of Science and Technology of Vietnam on March 2021. The Korean research team thanks the members of the expert committee for their huge effort to make the
guidebook in efficient and productive. 30 March 2021 Contents SECTION I. OVERVIEW 1 A. Structure of Decision 18 3 B. Main Rules and Regulated Entities 4 SECTION II. GUIDES BY ARTICLES OF DECISION 18 7 I. LEGAL BASIS AND GENERAL PROVISION 9 A. Legal Basis 9 B. General Provision 10 i. Scope 10 1. The Scope of HS code and the banned list 10 2. Scope that does not apply to Decision 18 14 ii. Regulated Entities 15 iii. Definitions 16 iv. Rules for management of import used machinery, equipment and technological lines 20 II. IMPORT CRITERIA FOR USED MACHINERY, EQUIPMENT AND TECHNOLOGICAL LINES 22 A.
Import Criteria for Used Technological Lines. 22 B. Import Criteria for Used Machinery and Equipment. 29 III. DOCUMENTAION AND PROCEDURES FOR IMPORTING USED MACHINERY, EQUIPMENT AND TECHNOLOGICAL LINES 32 A. Documentation and Procedures for Importing Used Technological Lines 32 B. Documentation and Procedures for Importing Used Machinery and Equipment 34 C. Other Cases of Importing Used Machinery and Equipment 37 IV. INSPECTION OF USED MACHINERY, EQUIPMENT AND TECHNOLOGICAL LINES 41 A. Inspection of Used Machinery, Equipment and Technological Lines 41 B. Application and Procedures for
Designation as Inspection Body 43 V. IMPLEMETATION 45 A. Responsibility of MOST, Ministries, and Other Agencies 45 B. Responsibilities of Importers and Designated Inspection Body 47 SECTION Ⅲ. APPLICATION TO THE INSPECTION CERTIFICATION PROCEDURES AND CUSTOMS DOCUMENTS 49 I. INSPECTION PROCEDURES 51 A. Contact Designated Inspection Body 51 B. Inspection and Certification 51 II. CUSTOMS DOCUMENTS 53 Annex I. Quyết định 18/2019/QĐ-TTg Quy định việc nhập khẩu máy móc, thiết bị, dây chuyền công nghệ đã qua sử dụng 57 Annex II. Decision No.: 18/2019/QD-TTg dated April 19, 2019 of the Prime Minister
on import of used machinery, equipment and technological lines 76 Annex III. Inspection Procedures Under Decision 18 94 1 General Requirement 94 2 Preparation of inspection 95 3 Carrying out inspection activities 95 3.1 Inspection of the Technological Lines 96 3.2 Inspection of the machinery or equipment 97 3.3 Remote Inspection 98 3.4 Inspection Process of used machinery, equipment and technological lines 99 3.4.1 Technological Line 99 3.4.2 Used machinery and equipment 102 3.4.3 Cases of Exceeding Age Limits 103 Annex IV. Inspection Checklist: Used Machinery and Equipment 104 Annex V.
Inspection Check List: Technological Line 112 Annex VI. Inspection Certificate: Machinery and Equipment 117 Annex VII. Inspection Certificate: Technological Line 121 Annex VIII. Inspection Certificate: Machinery and Equipment for Article 9 126 Annex IX. List of Restricted or Prohibited Technologies Under the Technology Transfer Law Vietnam 130 Annex X. Background Information for the regulations of used machinery, equipment, and technological lines 135 SECTION I. OVERVIEW SECTION I. OVERVIEW SECTION I. OVERVIEW A. Structure of Decision 18 Decision 18 consists of the legal basis and seventeen
articles of five chapters and two appendices. The legal basis defines the responsibility
