Vietnam – New Decision On The Import Of Used Machinery, Equipment And Technological Lines.

On 19 April 2019, the Prime Minister issued Decision No. 18/2019/QD-TTg (Decision 18) on the import of second-hand machinery, equipment and technological lines. Decision 18 shall take effect as from 15 June 2019. Below are some highlights of the key provisions under Decision 18:

 

(i)  Import criteria for second-hand technological lines

 

• It was manufactured in accordance with the standard national technical regulations (SNTR) on safety, energy saving and environmental protection. If there is no SNTR on the imported technological line, then such line must have been manufactured in accordance with the technical criteria of Vietnam’s national standards or the national standards of a G7 country or of South Korea on safety, energy saving and environmental protection;

• Its residual capacity (calculated as the number of products produced by the technological line within a given unit of time) or its residual efficiency must be 85% or more of the design;

• The rate of consumption of raw materials, supplies and energy must not exceed 15% of the design;

• The technology of the technological line is not on the lists of technologies the transfer of which is prohibited or restricted; and

• ·  The technology of the technological line is currently being used by at least three (3) manufacturing facilities in member countries of the Organization for Economic Cooperation and Development (OECD).

A second-hand technological line is permitted to be imported if it satisfies the following criteria:

 

(ii)  Import criteria for second-hand machinery or equipment
 

Second-hand machinery or equipment is permitted to be imported when it satisfies the following

criteria:

 

• The age of the equipment does not exceed ten (10) years (a different age is provided for in Appendix 1 of Decision 18 with respect to machinery and equipment belonging to a number of specific sectors); and

• It was manufactured in accordance with the SNTR on safety, energy saving and environmental protection. If there is no SNTR on the imported machinery, then such machinery must have been manufactured in accordance with the technical criteria of Vietnam’s national standards or the national standards of a G7 country or of South Korea on safety, energy saving and environmental protection.