Application for sub-licenses for chemical trading activities

Chemicals are indispensable raw materials for the production process, promoting the development of the industry in Vietnam. According to the “Strategy for the development of Vietnam’s chemical industry to 2030, vision to 2040” approved in June 2022, it has set a goal, striving to achieve an average growth rate of 10% to 11% per year and the proportion of the chemical industry to the whole industry of about 4% to 5% by 20302.  

Pursuant to Clause 2, Article 3 of Decree No. 113/2017/ND-CP stipulating chemical trade includes sale, export and import of chemicals to provide chemicals on the market for profitable purposes. Therefore, enterprises engaged in trading, exporting and importing chemicals need to pay attention to the following issues: 

A. Conditions for applying for the Certificate of eligibility for conditional business of chemicals in the industrial sector

Pursuant to Article 8 of Decree No. 113/2017/ND-CP stipulating the conditional chemicals in the industrial sector include: 

  • Chemicals on the list of conditional industrial chemicals stated in Appendix I attached hereto;  
  • Mixtures of chemicals specified in Appendix I and Appendix II not subject to restricted industrial chemicals mentioned in Article 14 herein that are classified according to Article 23 herein subject to at least one of the following groups:  
    • Category 1/Category 2/Category 3 or type A/B/C/D hazardous material; 
    • Category 2 and Category 3 acute toxicity (through variable exposures); 
    • Category 1/Category 2/Category 2A serious eye damage/eye irritation; 
    • Category 1 and Category 2 skin corrosion/irritation; 
    • Category 2 carcinogenicity, germ cell mutagenicity or reproductive toxicity; 
    • Category 1 environmental hazard. 

Pursuant to Clause 2, Article 9 of Decree No. 113/2017/ND-CP, Clause 4, Article 8 and Clause 1, Article 9 of Decree No. 17/2020/ND-CP stipulating that in order to be granted the Certificate of eligibility for conditional trading in chemicals in the industrial sector, entities conducting chemical trading activities need to fully meet the following conditions:  

  • Established in accordance with regulations of law; 
  • The applicant’s facilities meet production requirements on conditions of workshops, warehouses, technologies, equipment, tools, packaging, preservation and transportation of chemicals; 
  • The chemical store or premises satisfies requirements for chemical and fire safety;  
  • The warehouse or the agreement on lease of warehouse or use of the warehouse of the chemical buyer or seller satisfies requirements for chemical and fire safety;  
  • Any person responsible for chemical safety of the chemical store has at least an intermediate school’s degree in chemicals; 
  • Personnel who are subject to chemical safety training must be trained in chemical safety. 

1. Components of the dossier of application for the Certificate of eligibility for business 

  • An application form; 
  • A copy of either of the enterprise registration certificate; 
  • Manifest of each business location;  
  • A copy of the written approval or confirmation of documents related to environmental safety; 
  •  A copy of the written approval of the fire safety design and commissioning of fire safety systems if the approval of fire safety design is required for each factory; or a record on inspection of fire safety or a document proving thereof if the approval of fire safety design is not required for each factory; 
  • A master plan of the factory and warehouse and contents of the plan; A copy of the document proving the use rights to the piece of land used for factory/warehouse construction or the factory/warehouse lease agreement;  
  • A declaration of technical equipment and personal protective equipment in the chemical factory; 
  • A copy of the bachelor’s degree or higher degree in chemicals of the person in charge of chemical safety; 
  • A copy of the training document on chemical safety; 
  • Safety data sheets of every hazardous chemical in the factory. 

2. Implementation process

  • Step 1: Submitting the dossier by post or send it directly or through the online public service system to the Department of Industry and Trade where the business establishment is located.  
  • Step 2: The Department of Industry and Trade shall issue a notice for the enterprise to supplement and complete the dossier in case the dossier is incomplete and valid within 03 working days from the date of receipt.  
  • Step 3: Appraising the dossier within 12 working days from the date of receipt of a complete and valid dossier. 
  • Step 4: Issuing a certificate. 

B. The conditions for applying for a License to produce and trade restricted chemicals in the industrial sector 

Pursuant to Article 14 of Decree No. 113/2017/ND-CP, chemicals restricted from production and trading in the industrial sector include:  

  • Substances included in the List of chemicals restricted from production and trading in the industrial sector issued in Appendix II attached to this Decree; 
  • Mixtures of substances containing substances listed in Appendix II attached to this Decree are classified according to the provisions of Article 23 of this Decree into at least one of the following classification groups: 
  • Acute toxicity (by different routes of exposure) grade 1; 
  • Class 1A, 1B carcinogen;
  • Reproductive toxicity level 1A, 1B; 
  • Germ cell mutation level 1A, 1B. 

Pursuant to Clause 1, 2, Article 15 of Decree No. 113/2017/ND-CP, Clause 3, 4, Article 8 and Clause 1, Article 9 of Decree 17/2020/ND-CP stipulating that in order to be granted a License to produce and trade in restricted chemicals in the industrial sector, the entity conducting chemical business activities must fully ensure the following conditions: 

 

License to produce chemicals with restricted production and trading in the industrial sector  License to trade in restricted chemicals for production and trading in the industrial sector 
  • Establishing in accordance with regulations of law; 
  • Technical facilities must meet requirements on conditions for factories, warehouses, technology, equipment, tools, packaging, preservation and transportation of chemicals; 
  • The Director or Deputy Technical Director or technical officer in charge of chemical production activities must have a university degree or higher in chemistry; 

 

  • Having a store or business location, a place of sale that ensures requirements on chemical safety, fire and explosion prevention and fighting according to the provisions of law; 
  • Having a warehouse or have a contract to rent a warehouse for storing chemicals or use the warehouse of an organization or individual buying or selling chemicals that meets the conditions for safe storage of chemicals and fire and explosion prevention and control.;
  • The person in charge of chemical safety of a chemical business establishment must have an intermediate level or higher in the chemical field; 
  • Personnel subject to chemical safety training must be trained in chemical safety. 

 

1. The components of the application for a License to produce and trade restricted chemicals in the industrial sector 

License to produce chemicals with restricted production and trading in the industrial sector  License to trade in restricted chemicals for production and trading in the industrial sector  
  • An application form;
  • A copy of either of the enterprise registration certificate;
  • Copy of the Decision approving or document confirming documents related to environmental protection; 

 

  • Declaration of each business location; 
  • Copy of Decision approving or document confirming documents related to environmental protection; 
  • A copy of the written approval of the results of the fire prevention and fighting inspection by the Fire Prevention and Fighting Police for each production facility subject to fire prevention and fighting design review; or a record of fire prevention and fighting safety inspection or a document proving that fire prevention and fighting safety conditions are met for each chemical warehouse not subject to mandatory fire prevention and fighting design review; 
  • A copy of the written approval of the results of the fire prevention and fighting inspection by the Fire Prevention and Fighting Police for each chemical warehouse subject to fire prevention and fighting design review; or a record of fire prevention and fighting safety inspection or a document proving that fire prevention and fighting safety conditions are met for each chemical warehouse not subject to mandatory fire prevention and fighting design review; 
  • Overall drawing of the factory and warehouse system, the drawing content must ensure information on the location of the factory, warehouse, chemical storage area, area and access to the factory, production area and chemical warehouse; Copy of documents proving the right to use the land plot for building the factory, warehouse or the Factory, Warehouse Lease Contract; 
  • Overall drawing of the floor plan of each business location, the drawing content must ensure information on the location of the warehouse, the chemical storage area, the area and the access to the chemical warehouse area; A copy of the document proving the right to use the land plot for the construction of the warehouse or the Warehouse Lease Contract in case of renting a storage warehouse or the Contract or agreement on the purchase and sale of chemicals in case of using the warehouse of an organization or individual buying or selling chemicals; 
  • List of technical equipment, labor protection and safety equipment of chemical production facilities; 
  • List of technical equipment, labor protection and safety equipment of each chemical business location; 
  • A copy of a university degree or higher in chemistry of the Director or Deputy Technical Director or technical officer in charge of chemical production activities of the production facility;
  • Copy of intermediate or higher diploma in chemistry of the person in charge of chemical safety; 
  • Copy of decision on recognition of chemical safety training test results; 
  • Chemical safety data sheets of hazardous chemicals;
  • Explanation of the production technology process. 
  • Business plan explanation. 

 

2. Implementation process

Step 1: Submitting the dossier by post or send it directly or through the online public service system to the Department of Chemicals (Ministry of Industry and Trade).  

Step 2: The Department of Chemicals (Ministry of Industry and Trade) shall issue a notice for the enterprise to supplement and complete the dossier in case the dossier is incomplete and valid within 03 working days from the date of receipt. 

Step 3: Appraising the dossier within 16 working days from the date of receipt of a complete and valid dossier. 

Step 4: Issuing a certificate. 

Some articles:

  1. Chemical -related activities and the chemical industry in Vietnam

  2. Noteworthy issues about chemical business

Disclaimers:

This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.

For issues related to the content or intellectual property rights of the article, please email cs@apolatlegal.vn.

Apolat Legal is a law firm in Vietnam with experience and capacity to provide consulting services related to Business and Investment and contact our team of lawyers in Vietnam via email info@apolatlegal.com.

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