Decision No. 1505/2003/QD-BTM promulgating the Regulation on petrol and oil trading Agency

Article 1.- To promulgate together with this Chapter I Decision the Regulation on petrol and oil trading agency. GENERAL PROVISIONS

Article 2.- This Decision takes effect as from Article 1.- Application scope and regulation January 1, 2004. subjects

Article 3.-AII the previous regulations on petrol 1. Petrol and oil mentioned in this Hegulation and oil trading, which are contrary to the provisions consist of engine petrol, diesel, kerosene and fuel of the F~egulatlon promulgated together with this oil (including petrol and oil produced and Decision, are hereby annulled. processed from imported raw materials or domnstic raw materials).

Article 4.- The presidents of the provincial/ municipal People's Committees and the directors 2, Tl1is llegulation prescribes petrol and oil of the provincial/municipal Trade Services; the tradi11~J auency and applies to (mterprbes which director of the Trade Ministry's Office, the d_irector trade in petrol and oil on the domestic market, from of the Department for Domestic Trade Policies and wholnsal(-:i to retail sale to consumers. ifo. 190 (2~ .. 11-2003) GFFICl/.,.l. (:)/VU n:

Article 2.·· lntorprntatio11 of terrns oroani1c n clep011dent system of retail agents, includin~J tlwi1· re1ail shops or stations and other A number of words and phrairns in tl1i:, retail ngent::.:. Hetail agents shal I exercise tl1eir !::i.P9ulatio11 mo construed as follows: righ1t, and fulfill ti 1eir obligations directly towards 1. Major petrol and oil entetprises mean llw qe11ontl agents, and at the same time through enterprises importing petrol and all (including the ~Jeneral agents, exercise their rights and fulfill irnport and production/processing of petrol and oil tliei1· obligations towards the major petrol and oil horn domestic raw materials or imported raw enterprises, materials), which fully meet the conditions When receiving petrol and oil from major petrol prescribed in Article 5 of the Regulation on and oil enterprises, the general agents shall be management of petrol and oi I trading, prom u lga tee! agents, when delivering petrol and oil to retail together with the Prime Minister's Decision No. agents, the general agents shall be the principals. 1ffl /2003/QD-TT g of September 15, 2003. A1ticle 3.- Regulations on agency 2. Principals mean major petrol and oil enterprises or member units representing major 1. Major petrol and oil enterprises, when selling petrol and oil enterprises (companies, branches, petrol and oil on the domestic market, apart from enterprises, depots), which deliver petrot and oil organizing the sale of petrol and oil directly to to the sale agents. industrial households and the retail to consumers, must establish the systems of petrol and oil agents 3. Agents mean enterprises which receive petrol according to the provisions of this Regulation; they and oil from principals for sale and enjoy agency remunerations. shalt be allowed to sell petrol and oil in form of agency only to enterprises in the agency systems 4. Commission agency is a form of agency and take joint responsibility for the prices, volume whereby agents sell petrol and oil at the sale prices and quality of their petrol and oil to the retail stage. set by the principals in order to enjoy a sum of remuneration in form of commission. The 2. Enterprises of all economic sectors which commission rates shall be agreed upon by the two fully meet the conditions on petrol and oil trading parties. prescribed in the Trade Ministry's Circular No. 14/ 1999/lT-BTM of July 7, 1999 shall be allowed to 5. Package agency is form of agency whereby conduct wholesale and retail sale of petrol and oil the agents undertake to se!I in package a certain on tlKi domestic market in form of agency under volume of petrol and oil at the sale prices set by the provisiorn; of this Regulation and bear the principals. Ttie remuneration enjoyed by the responsibility for ttle prices, volume and quality of apents are the difference between the actual sale :.old petrol and oil according to the commitments price:; and the prices r,ct by 1he principi'.::lls. in the agency cont1·acts. 0. Goneral agency is a form of agcmcy whereby 3. All petrol and oil retail stations and points, !he: agents of rnajor petrol and uil entcnprises which do not helu11g to tho distribution system~; of major petrol and oil enterprises or 1110 distribution :-? • Tlw petrol and oil agency systems of major systems of the general agents estab!ished by petrol and oil enterprises shall be organized in the major petrol and oil enterprises, shall not be following principal channels: allowed to trade in petrol and oil on u·1e market. 2.1. Major petrol and oil enterprises shall 4. Petrol and oil trading enterprises, including establish the systems of retail agents and directly retail agents, must abide by the regime of bool< sign contracts on delivering petrol and oil with each entries and vouchern at all stages of petrol and oil retail agent so that the latter sell petml and oil to circulation according to the Finance Ministry's consumers. regulations. 2.2. Major petrol and oil enterprises shall sign contracts on clelivering petrol and oil to the general 5. To strictly prohibit acts of goods speculation agents, which shall sell petrol and oil to industrial or associated monopoly, which destabilize the households directly consuming petrol and oil, and marlrnt; selling retro! and oil not at the posted sign contracts on delivering petrol and oil to retail prices, or selling petrol and oil with inadequate agents. volume or not with quality standards prescribed Major petrol and oil enterprises may select one for each type of petro I and oH, and other fraudulent of, or combine, the above-said channels to be acts against customers. suitable to the market and their business conditions. Chapter II 3. The general agents may sign contracts with ORGANIZATION OF THE SYSTEMS OF many major petrol and oil enterprises, but must PETROL ANO OIL AGENCY organize a separate system of retail agents for each major enterprise. One petrol and oil retail

Article 4.~ Systems of petrol and oll agency station shall be allowed to sell petrol and oil of only one major petrol and oil enterprise, s.nd such t. Petrol and oH agency systems constitute part enterprise's signboard must be inscribed wlth of the petrol and oil distribution systems of major those prescribed at Point 3.3, Clause 3, Article 5 petrol and oil enterprises. The petrol and oil of this Regulation, which must be clearly inscribed distribution systems of major petrol and oil in the agency contracts. Major petrol and oil enterprises consist of units attached to the enterprises may not accept the signing of contracts e nte rpri ses (companies, branches, <~ n te rprise s, with many major petrol and oil enterprises by the depots) which directly sell petrol and oil to industrial genEiral agents and refuse to sign contracts witll houset1olds and supply petrol and oil to agents: such general agents. petrol and oil retail shops, stations under the enterp1"ises or above-said units; and systems ol A1ticle 5.·· ~lesponsibilities of enterprises ln the petro I and. oil agents, including the w~ ne raf agents agency s ysterns and retail agents seflinq petrol and oil to conm1mers. 1. nespo1rnibiliti0i~ of major potrol and o'il No. 1~lO (24-~ "1 · 201>:J) OFMClAL bA/LlTE enterprises: i;ysloms arc based for use as bases for examination and supervision of agen1s' retail L 1. To organize the import of petrol and oil prices. strictly according lo t/in schedule regardiny llit:1 volume and category structure within the assigned 1.4. To clearly reflect in the agency contracts minimum import limits; ensure the prescribed the responsibilities of the parties for petrol and oil petrol and oil quality and fully and stably supply quality; to prescribe examination regime and petrol and oil to their distribution systems, meeting organize examination of petrol and oil quality, the petrol and oil demands in their business expertise agents' measuring equipment and localities; to regularly maintain the petrol and oil instruments and take joint responsibilities for the circulation reserve equal to 15 days' supply volume and quality of sold petrol and oil in their calculated according to the assigned minimum systems of petrol and oil agents. import\imits both in volume and ca1egory structure. 1.S. To striclf}1 comply with tl1e commitments 1.2. To organize their petrol and oil distribution signed in the agency contracts; to ensure the systems in provinces and cities suitable to their lawf u!ness of sources of petrol and oil supplied to business capabilities according to the provisions agents; provide logos and guide retail agents in in Article 4 of this Regulation; to assign petrol and posting up logos and inscribing the signboards oi I only to enterprises in the systems of their agents strictly according to the provisions of this for sale in form of agency strictly according to the Regulation; to provide relevant invoices and signed agency contracts. vouchers and pay remunerations to agents as agreed upon and committed in the contracts. To register such petrol and oil distribution systems with the Trade Ministry before January 1.6. To coordinate with the central and local 15, 2004, according to a set form, and monthly functional agencies in managing the general make additional registrations in case of changes. agents and retail agents engaged in petrol and oil To noti1y 1he provincial/municipal Trade Services trading strictly accordlng to law provlsions, of the lists of attached units, general agents and ensuring the market and price stability; to draw up retail agents witt1ln their distribution systems plans on development of their distribution networks operating in the localities for supervision. as well as tectinicaf and material foundations for petrol and oil trading in areas, regions, provinces 1.3. To set and announce according to their and cities to meet the market development compe1ence petrol and oH retail prices; to organize demands. examinations and take joint responsibility for the app\\cat\ori of petrol and o\\ retail prices in their 2. llesponsibilities of the general agents: distribution systems. 2.1. To select and sign contracts on acting as To send wr(tten decisions on petrol and oit retail petrol and oil selling general agents for major petrol prices (includin~J caseB of unexpected c:hanoe of and oil ontr~rprisos. prices) to tho provinc:ial/tnunicipal Trade Services of the localities where their attactwd units, general ?..?... To establish n1eir own petrol ancl oil agents and retail agonts within their distribution distribution sy:,tems, includino dependent depots, retail shops and stnlions a:, well as retail a110ntr,: :) . I. To abide by the reoulalions on fire• and as prescribed in Artic/o 4 of this fi.egulation, and uxp/onion-prevention safely ancJ environmental register such systems witl1 major petrol and oil i,anitation as well as other law provisions on petrol o ntorprises wr1en ~,ign i ng the general ano ncy ,md oil lt"adinq. contracts; to bear responsibilities before law and the major petrol and oil enterprises for activities of '.~. Hosponsibilities of retail agents: petml and oil distribution systems organized and managed by themselves. 3.1. lo act as a petrol and oil retail a.gent for only one enterprise (major petrol and oi! enterprise 2.3. To sell petrol and oil only to directly- or general-agent enterprise) and retail petrol and consuming industrial households under contracts, oil of only one major petrol and oil enterprise under supply petrol and oil to dependent units for retail the signed agency contracts. sale or to retail agents in their systems under the agency contracts. 3.2. To muu!Dr!y,se!/ patrol and oil on the market and not to sell petrol and oil at the prices higher 2.4. On the basis of the contracts signed with than tl1e retail prices set by major petrol and oil major petrol and oil enterprises, to ensure the enterprises. regular and stable supply of petrol and oil to retail agents in their distribution systems to meet the 3.3. Signboards at places where petrol and oil market demands, Not to receive petrol and oil from are sold must be clearly inscribed with "Petrol and sources without clear origins and out-of-system oil retail agents" and names of major petrol and oil petrol and oil for sale at dependent units and enterprises; logos of major petrol and oil delivery to sale agents. enterprises must be inscribed or hung up, and the name and logo of only one major petrol and oil 2.5. To bear responsibilities for the volume and enterprise in the agency systems shall be inscribed quality of petrol and oil received from major even in cases where they act as retail agents via enterprises under the signed contracts. To clearly the general agents. reflect the responsibilities of the parties for petrol and oil quality in contracts signed with retail agents; 3.4. To post up the sale time and retail price of to prescribe examination regime and organize eacl1 type of petrol and oil, and sell petrol and oil examination of petrol and oil quality, expertise retail at the posted-up prices. The price posting-up must agents' measuring equipment and instruments, he clear and not cause confusion to customers. and take joint responsibility for the volume and Calculation unit for engine petrol, kerosene and quality of petrol and oil sold by retail agents. r./ir:ir;P,I is VND/Hter, for fuel oil, VND/kg or VND/ liter. 2.6. To regularly inform major petrol and oil enterprises of the market situation; to coordinate :15. To bear responsibility before law and the with major petrol and oil enterprises in unceasinnly prindpalf, for tho volume and quality of sold petrol raising the petrol and oil sales in order to stabilize and oil. To abide by the regulations on petrol and the market amJ rneEit the consumption demand:, oil n1em,urinn and quality as wetl as guidance and at any time. i11i,pection of major petrol and oil onterprises or No, 190 {21\" 11 •2003) OFHC!At. GAZE.Tft the general agents. To be entitled to refuse lo petrol and oil nnents in case of signing a c:ontract receive petrol and oil from the principals it there on acflng as a general agent with tho major petrol are grounds to affirm that tlie principals fail lo irnd oil enterprise. ensure petrnl and oil quality strictly accmdino to 1.4. A certificate of ownership of petrol and oil prescribed standards. transport means in cases where the agent 3.6. Not to receive petrol and oil from sources undertakes to make transport by its own means: 1 wiU1out clear origins and out-of-system petrol and notarized copy. oil for sale at agents. 2. Agency contracts: 3.7. To regularly inform the principals of the market situation; to coordinate with the principals 2.1. The agency contracts shall be signed in in stabilizing the market and meeting the writing strictly according to law provisions on the consumption demands at any time. orinciples of negotiation, v0Juntt:trisn1, equality, mutual benefits, direct materia! responsibility and 3.8. To abide by the regulations on firew and observance of this Regulation's provisions. explosion-prevention safety and environmental sanitation as well as other law provisions on petrol 2.2. The two parties shall select and inscribe in and oil trading. the contracts the agency form: commission agency or package agency, as well as regulations and commitments on remunerations suitable to the Chapter Ill agency forms. AGENCY CONTRACTS 2. 3. The agency contracts must fully have such principal contents as names, addresses and tax Arlicle 6.w Signing of agency contracts codes of the agents and the principals; volume, quality and types of agency petrol and oil as we!! 1. Enterprises wishing to act as petrol and oil as responsibilities of each party; delivery and agents must send dossiers to the principals for reception, sale prices, agency forms, agency consideration and signing of agency contracts. remunerations and other commitments under the Suet, a dossier shall comprise: provisions of law and this Regulation. The contractual terms shall be agreed upon by the 1.1. A business regis1ration cerlilica\e, which parties, which must be at feast 6 months. registers petrol and oil commodity items: 1 notarized copy. Article 7.- Delivering and receiving agency 1.2. A certificate of eligibility for petrol and oil petrol and oil trading of petrol and oil retail shop, station, special·· i. Calculation units in delivery and reception· use petrol and oil transport means (in cases whero For engine petrol, diesel and kerosene, the they themselves (H(Janizn the transport by their calcu\a\\011 uni\ sr1aU be liter (\); for i"ue\ oil, it is means): 1 notarized copy. kilogram (kg) a\ actua\ temperature or converled 1.3. A plan on organization of thG system of into sta nda rc1 to rnpe ratu re at 15 °c. OFFICIAi~ GAZFl"ll: 2. Delivery and reception places: The partien hnv1) adecp1at13 invoices aricl vouchers on shall base themselves on the conditions and co1rnnoditios in circulation en mute according to capabilities of their transport means to anroe the Finance Ministry's regulations. thereupon, may opt to deliver commodities at the principals' depots, or at agents' depots or stations. 3. The selection of agency petrol and oil Delivery and reception venues inscribed in the transport means, the prescription of responsibilities contracts shall serve as bases tor determining the for human and means insurance, ensuring safety agency remuneratlon rates. in transport, responsibilities for petrol and oil volume and quality, loss risks, delivery and 3. Delivery and reception in volume: The volume reception process, freights and other regulations of delivered and received petrol and oil shall be shall be agreed upon and committed in the agency inscribed in the invoices issued by the principals. contracts by the parties. The determination of the volurne of delivered petrol and oil must comply with the State's current Article 9.- Regarding petrol and oil prices regulations. 1. Basing themselves on the State-oriented 4. Delivery and reception in quality: The quality prices and their powers prescribed in Clause 3, of delivered petrol and oil shall be inscribed in

Article 11 of the Regulation promulgated together chemical-testing certificates or quality certificates with the Prime Minister's Decision No. 187/2003/ issued by principals' depots to each lot of QD-TTg of September 15, 2003, the major petrol commodity, suitable to the current Vietnamese and oil enterprises shall decide on specific sale standards. prices, including the prices for delivery at their 5. Procedures for petrol and oil deliveiy and depots; retail prices at their retail shops, stations reception shall comply with the current regulations and at retail agents in their entire respective petrol on agency-commodity delivery and reception and and oil distribution systems. the rules on delivery and reception of liquefied 2. Prices for delivery at the major petrol and oil petroleum. enterprises' depots and retail prices shall be set by the major petrol and oil enterprises in form of

Article 8.-Transportation of agency petrol and written price decisions or notices, which must be oil sent to units in their respective petrol and oi! 1. Only lawful petrol and oil transport means, distribution systems before the time the new prices ensuring the requirements on technical riafety, fire come into forcn, including case of unexpected prevention and fighting safety, and environmental changes. sanitation, which are granted expertise certificates, 3. FletaH pl'icos shall serve as bases for which a re sti II effective, by compe tG nt State calculating the dolivery prices and remunerations a!'.]encies, sha!I be entitled to participate in for agent~, in th<i systems of major petrol and oil transporting agenc;y petrol nnd oil. enterprises and r:hould be kert stable, All petrol :?. Agoncy petrol and oif tran~port rncans must and oil retail shop[;, stations of rnajor petrol and 011 1;1nteiprit;(?S and ret1:til agents in thri systmnB of municipal ·1 rado Smvicof.> agfm!s must not sell petrol and oil at the pricof; The provincia.l/municipa\ Tm.do Services s\ia\\ higher \han the retail prices set lJy the maJor potrol have to assumo the prime responsibility and and oil enterprises; they must post mtail pricos coordinate with local functional agencies in and sell petrol and oil at the posted-up prices. examining and handlin9 the 0L1scrvance of this Regulation's provisions, more concretely:

Article 1o,~ Agency remunerations 1. To organize regular or unexpected i. Agency remunerations mean sums money examinations, when necessary, of all petrol and paicl by the principals to the 0-gents in form of oil retail stati.ons ot enterprise!£'. \\'\ tneif mspec\\ve comrnissions or price differences, which shall be localities. effected on the following principles: 2. 1-0 e:xamine, and coordinate with major petrol 1.1. Specific agency remurnm~tion torrns and and oil enterprises in examini11g, · petrol and oil level~ shall be. agreed upon by the patties and general agents and retail agents in the distribution inscribed in tt\e agency con\~e,.,;:-,\s. The at,ency systerns in relevant cases. remuneration rates must ensure that agents can cover all expenses, have reasonable arid lawful 3. 10 timely handle violation acts according to profits and fulfil their obligations towards the State law ptovisions in order to stabilize petrol and oil budget. market in their respective localities, prevent acts 1.2. Agency remunerations must ensure ot smuggllng and speculating petrol and oil, sell fairness, equality and non-discrimination and be petrol and oil not at set prices, not ensuring the clearly inscribed in the agency contracts. volume and quality prescribed for each type of petrol and oil, ,md other fraudulent acts. 2. Modes and time limits for payment of agency remunerations shall be agreed upon and

Article 12.- Handling of violations committed by the parties in the agency contracts according to the current regulations. Payment of 1. Enterprises trading in petrol and oil on the agency remunerations may be ma<ie in a ~Uffi? ~m domestic market which violate the provisions of or installments, which shall be agreed upon by the this Regulation shall, depending on the parties and inscribed in 1t1e contracts in association serl,ousne•,w., oi theit \/io\etk)n<a, be admin,strat\ve\y with the volume of petrol and oil received for sale sanctioned or penally handled according to law by agents. provisions. Chapter IV 2.. ThH followin~J violation acts shall all be handlod: EXAMINATION AND HANDL.ING OF VIOLATIONS 2.1. Havinri no cc-Hlificates of eligibility for petrol ar.<l oH hading tH t\1\c~ QKph'2!d t.:;;et\\\ic~ates o1

Article 11.·· Responsibilities of lhe pwvinciul/ oligibility for potrol and oil tmdin9. OFf'ICIAL GAZETTE No. HJO (24.,11-2003) 2.2. Purchasing and/01· selling potrol a11d oil plausibln reasons. without agency contracts or in contravention of this 2.7. railing to put up signboards or putting up Flogulation's provisions on agency. signboards in contravention of this Regulation's 2.3. Failing to ensure quality of sold patrol and provisions at petrol and oil retail places. oil according to standards; acts of defrauding 2.8. Failino to ensure the work of fire prevention volume or quality of petrol and oil, or mixini:J and fightl ng or environmental sanitation as assorted petrol or oil categories. prescribed in the Trade Ministry's Circular No. ·14/ 2.4. Failing to post up prices at petrol and oil 1999frT-BTM of July 7, 1999. retail places or posting up prices higher than the retail prices set by the principals, or selling petrol 2.9. Other violation acts regarding petrol and and oil at prices different from the posted-up prices. oi! trading under law provisions. 2.5. Purchasing and/or selling out--of-systorn For the Minister of Trade petrol and oil or petrol and oil without clear origins. Vice Minister 2.6. Stopping to sell petrol and oil without PHAN THE RUE