Luật 22/2012/QH13

THE NATIONAL ASSEMBLY --------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness ----------------
No.22/2012/QH13	Hanoi, November 20th 2012

 

LAW

ON THE NATIONAL RESERVE

Pursuant to the Constitution of the Socialist Republic of Vietnam1992, amended in the Resolution No. 51/2001/NQ-QH10 bổ sung điều của Hiến pháp nước cộng hoà xã hội chủ nghĩa Việt Nam năm 1992">51/2001/QH10;

The National Assembly promulgates the Law on the National Reserves,

Chapter I

GENERAL REGULATIONS

Article 1. Scope of regulation

This Law prescribes the formation, management, and use of the national reserves; the rights and responsibilities of organizations and individuals to the activities related to national reserves.

Article 2. Subjects of application

This Law applies to agencies, organizations and individuals involved in the formation, management, administration and use of the national reserves.

Article 3. Objectives of the national reserve

The State forms and uses the national reserves to proactively meet unexpected and urgent requirements in the prevention, combat and remedy of consequences of natural disasters, catastrophes, fires and epidemics and to serve national defense and security.

Article 4. Interpretation of terms

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

1. National reserves are the reserves of supplies, equipment and commodities managed and stored by the State.

2. Activities related to national reserves are the formulation and implementation of strategies, plans and budget estimates for the reserves; the development of the infrastructure system; and the management and use of national reserves.

3. Commodities in national reserve are supplies, equipment and commodities in the list of commodities in national reserve under the management of the State serving the national reserves.

4. The List of commodities in national reserve consists of  the names of groups of commodities, names of supplies and names of equipment in national reserves.

5. Administration of the national reserves includes the management, storage, release, purchase, sale, preservation and protection of commodities in national reserve.

6. The agencies in charge of commodities in national reserve are the Ministries, ministerial agencies or governmental agencies that directly manage national reserves under the assignment of the Government.

7. National reserves unit is an organization affiliated to an agency in charge of commodities in national reserve which is assigned to directly manage, store, release purchase, sell, preserve and protect commodities in national reserve.

8. Emergencies are the states of natural disasters, fire or epidemics that threaten to spread on a large scale; National or social security objectives that must be immediately accomplished.

9. Total national reserves are the total value of national reserves.

10 Level of distribution for national reserves is an amount of money for the national reserves in annual state budget estimates.

11. Storage duration of commodities in national reserve is the maximum period from the storage to the release of commodities from the national reserve storage.

12. Release of commodities in national reserve is the distribution of commodities in national reserve to organizations and individuals free of charge.

Article 5. State policies on the national reserve

1. The State shall adopt strategies and plans for developing national reserves that conform to the national socio-economic development and strategies and plans in each period.

2. The State shall build solid and well-structured national reserves to ensure accomplishment of the national reserve objectives and the balancing capacity of the state budget.

3. The State shall provide policies on investments in scientific research on national reserves, and application of preservation technology and information technology in order to modernize activities related to national reserves.

4. The State adopts policies to mobilize resources and encourage organizations and individuals to participate in activities related to national reserves.

5. The Government shall elaborate this Article.

Article 6. Sources of national reserve

The national reserves is formed from the following sources:

1. The state budget;

2. Lawful resources other than the state budget, which are put into the national reserves, include resources acquired from voluntary investment to construct physical foundations, the supply of information technology for the management and preservation of commodities in national reserve, direct preservation of commodities in national reserve; commodities and supplies mobilized from organizations and individuals in emergencies in accordance with law.

Article 7. Principles of management and use of commodities in national reserve

1. Commodities in national reserve must be strictly, safely and secretly managed in accordance with law, and meet the national reserve requirements and objectives. Released commodities in national reserve must be adequately and promptly restocked.

2. Commodities in national reserve must be used for proper purposes and in accordance with law, and may not be used for commercial purposes.

Article 8. National reserve organization

1. The National reserve organization must ensure the uniformity under the administration of the Government and the Prime Minister. The Government shall assign ministries and agencies to manage commodities in national reserve in accordance with law.

2. The national reserve organization system shall be arranged at the central level and in strategic areas nationwide in order to promptly fulfill the national reserve requirements and objectives, including:

a/ The specialized national reserve management agencies affiliated to the Ministry of Finance, which are hierarchically organized, including the central agency and local agencies;

b/ The units affiliated to the Ministry of National Defense and the Ministry of Public Security, and the units in charge of national reserves affiliated to the agencies in charge of commodities in national reserve.

Article 9. Policies on national reserve personnel

1. National reserve personnel includes:

a/ Officials and public employees working at the specialized national reserve management agency;

b/ National reserve personnel being servicemen and police officers;

c/ Officials and public employees doing national reserve works in Ministries and agencies.

2. The national reserve personnel defined in Points a and b Clause 1 of this Article are entitled to seniority benefits and occupational benefits depending on the discipline and nature of their work.

The Government shall elaborate this Clause.

Article 10. The state management of the national reserve

1. Promulgate, and organize the implementation of, legal documents on the national reserves.

2. Decide the national reserve development strategies, plans and policies.

3. Compile the list of commodities in national reserve; allocate state budget for national reserves; decide the storage, release, purchase and sale of commodities in national reserve.

4. Organize the research and application of scientific and technological advances and preservation technologies to commodities in national reserve.

5. Propagate and disseminate the law on the national reserves.

6. Provide training in national reserves.

7. Carry out inspections, settle complaints and accusations, and handle violations against the laws on the national reserves.

8. Organize international cooperation in the national reserves.

Article 11. Specialized national reserve inspection

1. Agencies in charge of the state management of national reserves shall carry out inspections in accordance with the laws on inspection.

2. Specialized national reserve inspection is inspecting the observance of the laws on the national reserves in accordance with this Law and relevant regulations.

3. The authority and responsibilities of the specialized national reserve inspectorates; the rights and obligations of inspected subjects and related organizations and individuals must comply with the inspection law.

Article 12. Responsibilities and entitlements of the National Assembly and the National Assembly Standing Committee

1. The National Assembly has the following responsibilities and entitlements:

a/ Decide national reserve development policies, orient national reserve resources, and approve 5-year national reserve plans;

b/ Decide the rate of annual central budget allocation for the national reserves.

2. The National Assembly Standing Committee has the following responsibilities and entitlements:

a/ Decide the annual additional central budget allocations for the national reserves (if any);

b/ Decide the budget for restocking for the released commodities in national reserve;

c/ Adjust the list of commodities in national reserve.

Article 13. Responsibilities and entitlements of the Government and the Prime Minister

1. The Government shall perform the unified state management of the national reserves, having the following tasks and powers:

a/ Request the National Assembly to decide national reserve development policies, orient national reserve resources and 5-year national reserve plans;

b/ Request the National Assembly to decide the level of annual central budget allocation for the national reserves;

c/ Request the National Assembly Standing Committee to decision annual additional central budget allocations for the national reserves (if any);

d/ Request the National Assembly Standing Committee to decide central budget to make up for the released commodities in national reserve;

e/ Request the National Assembly Standing Committee to adjust to the list of commodities in national reserve;

f/ Appoint Ministries and agencies to manage commodities in national reserve.

2. The Prime Minister has the following tasks and powers:

a/ Approve the national reserve strategies, annual national reserve plans and the planning for the system of national reserve warehouses;

b/ Assign state budget plans and estimates for the national reserves within the state budget estimates approved by the National Assembly;

c/ Decide the storage and release of commodities in national reserve in accordance with this Law and relevant laws.

Article 14. Responsibilities and entitlements of the Ministry of Finance

The Ministry of Finance shall assist the Government in performing the state management of the national reserves, having the following tasks and powers:

1. Preside and cooperate with the Ministry of Planning and Investment in advising the Government on national reserve development policies, national reserve resource orientations and 5-year national reserve plans for submission to the National Assembly;

2. Preside and cooperate with the Ministry of Planning and Investment in preparing state budget estimates and central budget allocation plans for the Government to submit to the National Assembly for deciding annual plans for central budget allocation for the national reserves to the agencies in charge of commodities in national reserve;

Preside and cooperate with the Ministry of Planning and Investment in sending reports on the addition to the annual central budget for national reserves to the Government;

3. Preside and cooperate with the Ministry of Planning and Investment and the agencies in charge of commodities in national reserve in formulating the national reserve strategies, annual national reserve plans on the system of national reserve warehouses, scientific research and application of national reserve commodity preservation technologies, for submission to the Prime Minister for approval;

4. Preside and cooperate with the agencies in charge of commodities in national reserve in formulating and promulgating national technical standards and economic – technical norms of commodities in national reserve;

5. Manage the activities related to national reserves, to examine and inspect the implementation of annual plans and the Prime Minister's decisions on the national reserves; to settle complaints and denunciations and handle violations of the law on the national reserves;

6. Based on annual state budget estimates, national reserve plans and economic-technical norms of commodities in national reserve, ensure financial resources for the national reserves for the agencies in charge of commodities in national reserve; verify and summarize the final declaration of state budget expenditures for the national reserves;

7. Promulgate documents on regimes of financial and budgetary management, decide the maximum purchase prices, minimum sale prices, prices of damage compensation for commodities in national reserve and costs of the storage, release, purchase, sale, preservation and insurance of commodities in national reserve; guide, monitor and inspect the quantity, quality and value of commodities in national reserve; organize the implementation of regulations on management, preservation, purchase, sale, storage, release and exchange of commodities in national reserve in turn.

Article 15. Responsibilities and entitlements of the Ministry of Planning and Investment

1. Preside and cooperate with the Ministry of Finance in arranging and allocating capital construction investment funds for the national reserves.

2. Cooperate with the Ministry of Finance in formulating national reserve strategies, planning, 5-year and annual plans for submission to the Prime Minister.

3. Cooperate with the Ministry of Finance in advising the Government on annual plans on central budget allocation for the national reserves to be submitted to the National Assembly for decision; to cooperate with the Ministry of Finance in sending reports to the Government on the level of annual central budget addition for the national reserves (if any) for submission to the National Assembly Standing Committee for decision.

Article 16. Responsibilities and entitlements of the agencies in charge of commodities in national reserve

1. Participate in formulating strategies, plans and lists of commodities in national reserve, technical standards of commodities in national reserve, technical-economic norms of commodities in national reserve and reserves level of each kind of national reserves commodity;

2. Direct the affiliated national reserves units to implement national reserve plans; sign and perform contracts to preserve of commodities in national reservein accordance with law;

3. Send reports on the management and use of commodities in national reserve to the Ministry of Finance for it to summarize and send reports to the Prime Minister.

Article 17. Responsibilities and entitlements of specialized national reserves agencies

1. Advise the Ministry of Finance on the state management of the national reserves; directly manage commodities in national reserve in accordance with this Law and other relevant laws.

2. Advise the Ministry of Finance on presiding and cooperating with the agencies in charge of commodities in national reserve in summarizing the management and use of commodities in national reserve and sending reports to the Prime Minister.

3. Inspect the storage, release, purchase, sale, preservation and use of commodities in national reserve in accordance with this Law.

4. Assist the Ministry of Finance in presiding and cooperating with the related ministries and agencies in formulating national technical standards and economic-technical norms for commodities in national reserve; summarize and send reports on activities related to national reserves to the Ministry of Finance for submission to the Prime Minister.

5. Request the Ministry of Finance to decide the budget for management and preservation allocated to the units in charge of national reserve preservation.

Article 18. Responsibilities and entitlements of national reserve units

1. Directly preserve and protect commodities in national reserve, ensuring their adequacy, quality, types, locations as required by competent agencies.

2. Satisfy the demand for commodities in national reserve in all circumstances.

3. Store, release, purchase and sell commodities in national reserve under decisions by competent agencies.

4. Supervise the storage, release, purchase, sale and exchange of commodities in national reserve in accordance with law.

Article 19. Responsibilities and entitlements of provider of preservation services

1. Directly preserves commodities in national reserve, ensuring their adequacy, quality, types, locations according to the contracts signed.

2. Store, release, purchase and sell commodities in national reserve under decisions by competent agencies.

3. Replace old commodities of national reserves with new ones, ensure the correct quantity and categories as prescribed by law.

4. Report the storage, release and residual quantities of commodities in national reserve to specialized national reserves agencies and to the service buyer.

Article 20. Responsibilities and entitlements of provincial People's Committees

1. Propagate, disseminate and implement policies and laws on national reserves.

2. Direct functional agencies to cooperate with local agencies and units that directly manage national reserves in their localities in storing, releasing, purchasing, selling, preserving and transporting commodities in national reserve, ensuring the safety and confidentiality for activities related to national reserves locally.

3. Allocate land for national reserve warehouses according to the approved planning for the national reserve warehouse system.

Article 21. Assignment of management of commodities in national reserve

1. The Ministry of Finance shall directly organize the management and preservation of commodities in national reserve to meet the demands of production, living, rescue, relief, prevention, suppression, and alleviation of consequences of natural disasters, catastrophes and fires.

2. The Ministry of National Defense and the Ministry of Public Security shall directly organize the management and preservation of commodities in national reserve to fulfill the requirements of National defense and security.

3. The Government shall appoint Ministries and agencies to manage and preserve the commodities of national reserves that are not specified in Clauses 1 and Clause 2 of this Article.

Article 22. Prohibited acts

1. Revealing state secrets about national reserves.

2. Taking advantage of the storage, release, purchase, sale, preservation or transportation of commodities in national reserve, altering prices of commodities in national reserve without permission for profiteering.

3. Irresponsibly or deliberately acting against the regulations on the management of national reserves, thus causing damage, loss or waste of assets belonging to national reserves.

4. Violating or sabotaging infrastructure or commodities of national reserves.

5. Obstructing activities related to national reserves.

6. Using commodities of national commodity for improper purposes.

7. Storing, releasing, purchasing and selling commodities in national reserve ultra vires, or inconsistently with the proper types, quantities, quality, or locations.

8. Illegally intervening in activities related to national reserves.

9. Improperly implementing the laws on accounting and statistics in activities related to national reserves.

10. Hiring unqualified organizations to preserves commodities in national reserves.

Chapter II

NATIONAL RESERVE STRATEGIES AND PLANS

Article 23. National reserve strategies

1. Principles of formulation of national reserve strategies:

a/ Conformity with strategies and plans for socio-economic development, defense and security maintenance, and with sectoral and regional planning in each period;

b/ Suitability to the state budget balancing capacity;

c/ Being based on forecasts about the world, regional and domestic situations and possible emergencies.

2. Contents of a national reserves strategy:

a/ National reserves objectives, ensuring sustainable development requirements and conformity with the process of international economic integration;

b/ National reserves resources; plans on national reserves arrangement for different strategic regions and areas; assurance of efficient and proper management and use; readiness to respond to emergencies;

c/ National reserves development orientations;

d/ Major tasks and solutions to the implementation of the national reserves strategy.

3. National reserves strategies must be formulated for every 10-year period with a 20-year orientation and conformable with socio-economic development strategies.

Article 24. National reserves plans

1. National reserves plans must be formulated every five years and annually and included in socio-economic development plans.

2. Grounds for formulation of national reserve plans:

a/ National reserve development strategy;

b/ National reserve objectives;

c/ The state budget balancing capacity;

d/ Forecasts of domestic and international socio-economic situations.

3. Contents of a national reserve plan:

a/ The national reserve level at the end of periods;

b/ Plan for increase and reduction of the national reserves, exchange of commodities;

c/ Investment in the development of physical and technical foundations;

d/ Scientific and technological research and application;

e/ Plans for balacing financial sources for activities related to national reserves.

Article 25. Total National Reserves

The total national reserves is guaranteed for the attainment of national reserve objectives.

Article 26. National reserve methods

The national reserves is reserved in supplies, equipment and commodities.

Article 27. Lists of commodities in national reserve

1. Commodities on the list of commodities in national reserve must satisfy the national reserve objectives specified in Article 3 of this Law and one of the following criteria:

a/ Being strategic and essential, having a high use frequency or an effect of timely response in emergencies;

b/ Being of special types, which cannot be replaced;

c/ Being supplies, equipment and commodities assuring defense and security but their domestic production has not yet met the quantity, quality and type requirements.

2. The list of commodities in national reserve covers the following commodity groups:

a/ Food;

b/ Rescue and salvage supplies and equipment;

c/ Supplies of common use for industrial mobilization;

d/ White salt;

e/ Fuel;

f/ Industrial explosives;

g/ Plant seeds;

h/ Pesticides;

i/ Germicides used for environment cleaning, treatment of water for living and aquaculture;

j/ Medicines used for preventing and treating diseases on humans;

k/ Drugs for treating diseases on cattle, poultry, plant and aquatic organisms;

1/ Supplies, equipment and commodities serving National defense and security .

3. Where it is necessary to adjust the list of commodities in national reserve, the Government shall report it to the National Assembly Standing Committee for consideration and decision.

4. The Government shall detail Clause 2 of this Article.

Chapter III

STATE BUDGET EXPENDITURES FOR THE NATIONAL RESERVE

Article 28. State budget expenditures for the national reserve

1. State budget expenditures for the national reserves comply with the Law on the State Budget and are included in annual state budget estimates.

2. The Ministry of Finance shall manage and allocate funds for the purchase of commodities for national reserve, purchase of commodities for national reserve to make up for the released ones in the planning year after they are approved by competent authorities.

Article 29. State budget expenditures on purchasing commodities for national reserve

1. Based on national reserve plans and assigned expenditure estimates for the national reserves, the Ministry of Finance shall allocate funds for the agencies in charge of commodities in national reserve to purchase commodities for national reserve as prescribed.

2. When making purchases to make up for the released commodities in national reserve, the agencies in charge of commodities in national reserve shall send the additional budget estimates to the Ministry of Finance for submission to the Prime Minister.

3. For the state budget estimates assigned to ministries and agencies for purchase to increase or to replenish the commodities in national reserve in the planning year which have not yet been used up due to inadequate purchase of commodities for national reserve; supplies, equipment and commodities with a manufacture or production cycle longer than the budget year or a seasonable cycle; special commodities to serve defense and security, the Minister of Finance shall consider and decide to transfer them to the subsequent year at the proposal of the heads of these ministries or agencies.

Article 30. State budget expenditures on fundamental investment in the national reserve

1. State budget expenditures on capital construction investment in the national reserves are included in annual development investment plans of the agencies in charge of commodities in national reserve.

2. The agencies in charge of commodities in national reserve shall manage and use capital construction investment funds in accordance with law.

Article 31. State budget expenditures for national reserve management activities

1. State budget expenditures for national reserve management activities cover expenditure for operations of the management apparatus; expenditure for storage, release, purchase, sale, preservation, protection and insurance of commodities in national reserve; expenditures for scientific research and application of preservation technologies; expenditures for training and training of cadres, civil servants and public employees performing national reserve work and other expenditures prescribed by law.

2. State budget expenditures for national reserve management activities of ministries, agencies and national reserve units comply with plans, estimates, norms and contracts to provide preservation services for commodities in national reserve and with the current financial and budgetary management regimes.

3. Expenditures on the storage, release and preservation of commodities in national reserve comply with the package funding regime.

4. Expenditures on the storage, release, and free supply of commodities in national reserve under the Prime Minister's decisions must be allocated by the Ministry of Finance according to the approved estimates.

The agencies in charge of commodities in national reserve shall base themselves on economic-technical norms and national reserves commodity preservation contracts to prepare budget estimates for the storage, release, and preservation of commodities in national reserve and report them to the Ministry of Finance for approval before implementation; pending such approval, the Minister of Finance may decide to pay advances for national reserves agencies and units to deploy the implementation.

Article 32. Financial mechanism, accounting and audit regimes, statistical and reporting regimes applicable to the national reserve

1. The financial mechanism applicable to the national reserves must comply with the Law on the State Budget and relevant laws.

The agencies in charge of commodities in national reserve shall estimate state budget expenditures for activities related to national reserves and send them to the Ministry of Finance for examination, appraisal, summarization and sending reports to the Government for submission to the National Assembly for approval.

After the above state budget expenditure estimates are approved by the National Assembly, the Prime Minister shall decide the assignment of these estimates and the Ministry of Finance shall distribute them to the agencies in charge of commodities in national reserve .

2. The agencies in charge of commodities in national reserve and national reserves units and organizations in charge of the preservation of commodities in national reserve shall abide by the laws on financial and budgetary management, accounting, statistical, audit and the reporting regime applicable to the national reserves.

3. The Ministries and agencies in charge of the management of commodities in national reserve shall examine and approve the settlement of state budget funds already allocated to units in charge of the preservation of commodities in national reserve, and take responsibility for the approved settlement; summarize the settlement and report it to the Ministry of Finance, which shall appraise and summarize the national reserve settlement for sending reports to the Government.

National reserve state budget settlement reports must be audited in accordance with law.

Chapter IV

MANAGEMENT AND ADMINISTRATION OF THE NATIONAL RESERVE

Section 1: STORAGE AND RELEASE OF COMMODITIES IN NATIONAL RESERVE

Article 33. Rules for the storage and release of commodities in national reserve

The storage and release of commodities in national reserve must:

1. Conform to plans and competence;

2. Ensure of correct types, quantity, quality, prices, locations, punctuality and safety; comply with the procedure for storage and release prescribed by law.

Article 34. The cases in which  commodities in national reserve are stored and released

1. The storage and release of commodities in national reserve under the Prime Minister's decisions are specified in Article 35 of this Law.

2. The storage and release of commodities in national reserve in emergencies are specified in Article 36 of this Law.

3. The storage, release and exchange of commodities in national reserve according to given targets are specified in Article 37 of this Law.

4. The storage and release of commodities in national reserve in other cases are specified in Article 39 of this Law.

Article 35. Storage and release of commodities in national reserve under the Prime Minister's decisions

1. The Prime Minister shall decide the storage and release of commodities in national reserve when:

a/ Presidents of People's Committees of central-affiliated cities and provinces (hereinafter referred to as provincial People's Committees) announce the occurrence of an epidemic in their localities;

b/ Preventing and suppressing, and alleviating consequences of natural disasters, catastrophes, epidemics, fires, or relieving famine;

c/ Market prices fluctuate;

d/ Satisfying the demands of the defense or security.

2. The process of releasing commodities in national reserve

a/ When releasing commodities in national reserve as prescribed in Points a and b Clause 1 of this Article, presidents of provincial People's Committees and heads of governing ministries or agencies shall send reports to the Prime Minister for consideration and decision. The Ministry of Finance shall appraise them before submission to the Prime Minister.

b/ Where commodities in national reserve are released when the market prices rise or fall steeply, the Minister of Finance shall request the Prime Minister to make decision.

c/ When releasing commodities in national reserve to meet the  National defense and security requirements, the Ministry of National Defense or the Ministry of Public Security shall send a written request to the Ministry of Finance for appraisal and submission to the Prime Minister for decision.

Article 36. Storage and release of commodities in national reserve in emergencies

In the emergencies specified in Clause 8, Article 4 of this Law, the authority to decide the storage or release of national commodities is exercised as follows:

1. The Prime Minister shall promptly decide the storage or release of commodities in national reserve.

2. The Minister of Finance, the Minister of National Defense, the Minister of Public Security and the Minister of Agriculture and Rural Development shall decide the storage and release of commodities in national reserve according to the following provisions:

a/ Temporarily release national reserves supplies and equipment to timely serve arising tasks; after the tasks are fulfilled, immediately recover them for maintenance, replenishment and preservation according to regulations or send reports to the Prime Minister for decision.

b/ Immediately store or release for free supply commodities in national reserve with a value within the legal authority of the Minister of Finance to decide the  budget expenditure prescribed in the Law on the State Budget for promptly performing every task that may arise.

3. Persons competent to decide the storage or release of commodities in national reserve prescribed in Clause 2 of this Article shall manage and use the commodities for proper purposes and subjects; send reports to the Prime Minister and notify it to the Ministry of Finance within 3 working days from the day on which the decision is made and take responsibility for their decisions.

4. The Ministry of Finance shall inspect the storage and release of commodities in national reserve prescribed in this Article, report violations to the Prime Minister for timely handling and take responsibility for inspection results.

Article 37. Storage and release of commodities in national reserve under plans and exchange of commodities in national reserve

1. The storage and release of commodities in national reserve under plans and exchange of commodities in national reserve must be carried out annually. The agencies in charge of commodities in national reserve shall draw up plans on storage, exchange and release of commodities in national reserve and send them to the Ministry of Finance for summarization and sending reports to the Prime Minister for decision.

2. Heads the Ministries and agencies in charge of the management of commodities in national reserve shall organize the implementation of the plans for storage, release and exchange of commodities in national reserve, if the plans are not completed in the planning year, they shall send reports to the Ministry of Finance for submission to the Prime Minister for consideration and decision.

3. If the amount of money earned from the sale of commodities for rotation are not enough for the purchase of commodities with adequate quantities under the approved plans due to changes in price, the Ministries and agencies in charge of the management of commodities in national reserve shall purchase an amount of commodities in proportion to the amount of money earned.

4. When purchasing commodities in national reserve of seasonal nature, if new commodities must be purchased before old commodities are sold, the Minister of Finance shall consider and decide the advance payment of the state budget for such purchase; the Ministries and agencies in charge of the management of commodities in national reserve  shall repay the advance payment within the planning year.

Article 38. Internal transfer of commodities in national reserve

1. Heads of the Ministries and agencies in charge of the management of commodities in national reserve  shall decide the internal transfer of commodities in national reserve in the following cases:

a/ According to plan to ensure safety and suitability to the conditions of national reserves commodity warehouses and preservation;

b/ The commodities in national reserve are available in regions struck by national disasters or fires or in unsafe areas;

c/ Commodities in national reserve are transferred to necessary places for performing tasks that may arise;

d/ It is necessary for counting, handover, inspection or investigation.

2. Heads of the Ministries and agencies in charge of the management of commodities in national reserve shall notify the Minister of Finance of the internal transfer of commodities in national reserve within three working days from the day on which the transfer is decided.

Article 39. Storage and release of commodities in national reserve in other cases:

1. Heads of the ministries and agencies in charge of the management of commodities in national reserve shall decide the storage and release of commodities in national reserve in other cases, including:

a/ Release of commodities in national reserve for liquidation and destruction;

b/ Storage of commodities in national reserve for excessive commodity quantities upon actual inventory compared to those stated in the accounting books.

2. The Government shall detail this Article.

Section 2: PURCHASE AND SALE OF COMMODITIES FOR NATIONAL RESERVE

Article 40. Methods of purchasing commodities for national reserve

Commodities for national reserve may be purchased by the following methods:

1. Purchase in accordance with the bidding law;

2. Public purchase directly from all subjects.

Article 41. Purchase of commodities for national reserve in accordance with the bidding law

1. The purchase of commodities for national reserve in accordance with the bidding law is carried out in the following forms:

a/ Public bidding;

b/ Direct procurement;

c/ Competitive offering;

d/ Appointment of contractors.

2. The appointment of contractors must comply with the bidding law and applies to the following cases:

a/ Confidentiality must be assured in accordance with the law on protection of state secrets, for bidding packages to purchase commodities for national reserve for defense and security tasks.

b/ Neither public bidding nor competitive offer can apply due to the emergency, urgency, seasonal and temporal requirements with regard to bidding packages to purchase commodities for national reserve being drugs, germicides, pesticides and plant seeds.

Article 42. Conditions for contractor appointment

1. The cases of contractor appointment prescribed in Clause 2, Article 41 of this Law must satisfy the following conditions:

a/ It is included in the assigned national reserve commodity purchase plans;

b/ The plan for contractor appointment is approved;

c/ The budget estimate is approved according to regulations;

d/ The period of contract performance does not exceed 12 months.

2. The appointment of contractors must be carried out within 30 days from the day on which the requirement dossiers are approved;  or 60 days if the bid package is big and elaborate.

3. The authority and process of contractor appointment must comply with the bidding law.

Article 43. Public direct purchase from all subjects

1. The public direct purchase from all subjects is only made when purchasing grain for national reserve.

2. The public direct purchase from all subjects is made as follows:

a/ The unit assigned to purchase commodities for national reserve shall make a plan for public direct purchase from all subjects and submit it to the head of the specialized national reserve management agency for approval;

b/ Determining the quantity, quality and types of grain to be purchased, purchase locations, purchase time and purchase prices;

c/ Based on the approved plan, the unit assigned to purchase commodities for national reserve shall publish the purchase plan in 3 consecutive issues of a newspaper or on television three times in three consecutive days and post it up at the locations where grain are purchased; the purchase must be made in accordance with the plan and the posted prices.

Article 44. Methods of selling commodities in national reserve

Commodities in national reserve may be sold by the following methods:

1. Auction;

2. Appointed sale;

3. Public direct sale to all subjects.

Article 45. Auction of commodities in national reserve

1. The auction of commodities in national reserve must comply with the law on auction.

2. In case of unsuccessful auction, units assigned to sell commodities in national reserve shall report it to the heads of the ministries or agencies  in charge of the management of commodities in national reserve for decision on public direct sale to all subjects.

Article 46. Appointed sale or public direct sale to all subjects

1. Commodities in national reserve to serve defense and security can be put on appointed sale only for defense and security purposes.

2. Commodities in national reserve put on public direct sale to all subjects include:

a/ Grain, vaccines, germicides, pesticides, plant seeds and white salt;

b/ Commodities in national reserve other than those specified in Clause 1 and at Point a of this Clause, which must be auctioned but cannot be sold after two unsuccessful auctions. The price for public direct sale to all subjects must not be lower than the reserves price of the auctions.

3. The appointed sale and public direct sale to all subjects are carried out in the following process:

a/ The unit assigned to sell commodities in national reserve draws up a plan for appointed sale or public direct sale to all subjects and submits it to the head of the Ministries and agencies in charge of the management of commodities in national reserve for approval;

b/ Determining the name, quantity and quality of commodities in national reserve being sold; sale locations, sale time and sale prices;

c/ Based on the approved plan, the unit assigned to sell commodities in national reserve publishes the sale plan on a newspaper for three consecutive issues or on television for three consecutive times in three days and posts it up at the sale locations; organize the sale strictly according to the plan and at the quoted price.

For commodities in national reserve specified in Clause 1 of this Article, notification in the mass media is not required; the sale price must be the price approved by the Minister of National Defense or the Minister of Public Security.

Article 47. Liquidation of commodities in national reserve

1. Commodities in national reserve which fail to meet the criteria for serving the national reserves objectives must be liquidated in accordance with law. Heads of the Ministries and agencies in charge of the management of commodities in national reserve shall decide the liquidation of commodities in national reserve.

2. Money earned from the liquidation of commodities in national reserve must be remitted into the state budget after paying reasonable expenses.

3. Unusable commodities in national reserve must be destroyed. The Prime Minister shall decide the destruction of commodities in national reserve.

Article 48. Authority to decide methods of purchasing and selling commodities in national reserve

Heads of the Ministries and agencies in charge of the management of commodities in national reserve  shall decide the methods of purchasing and selling commodities in national reserve and take responsibility for their decisions in accordance with this Law.

Section 3: PURCHASE PRICES, SALE PRICES, STORAGE EXPENSES, RELEASE EXPENSES AND PRESERVATION EXPENSES OF COMMODITIES IN NATIONAL RESERVE

Article 49. Purchase prices and sale prices of commodities in national reserve

1. The purchase prices of commodities in national reserve through bidding and the sale prices of commodities in national reserve though auction comply with the law on bidding or auction and the law on pricing.

2. The purchase and sale prices of commodities in national reserve through public direct purchase or sale to all subjects are prescribed as follows:

a/ The Minister of Finance shall decide the maximum purchase prices and the minimum sale prices for commodities in national reserve at the proposal of the heads of the Ministries and agencies in charge of the management of commodities in national reserve ;

b/ Heads of the Ministries and agencies in charge of the management of commodities in national reserve, excluding the Minister of National Defense and the Minister of Public Security, shall decide specific prices, based on the market prices at the time and places of purchasing or selling the commodities in national reserve under their management, which, however, must not be higher than the maximum purchase prices and lower than the minimum sale prices decided by the Minister of Finance;

c/ When purchasing or selling commodities in national reserve, if the fluctuating market prices are higher than the maximum purchase prices or lower than the minimum sale prices, the Minister of Finance shall examine and adjust the maximum purchase prices and the minimum sale prices at the proposal of the heads of the Ministries and agencies in charge of the management of commodities in national reserve .

3. The Minister of National Defense and the Minister of Public Security shall decide the purchase prices and sale prices of defense- or security-related commodities in national reserve after reaching an agreement with the Minister of Finance on the pricing principles.

Article 50. Expense levels for storage, release and preservation of commodities in national reserve

1. The expenditures on the storage, release and preservation of commodities in national reserve depend on the economic-technical norms for commodities in national reserve and the national technical standards of commodities in national reserve.

2. The Minister of Finance shall prescribe expense levels for storage and release at the doors of national reserve warehouses and the maximum release expenses outside the warehouse doors and preservation expenses at the proposal of the Ministries and agencies in charge of the management of commodities in national reserve .

Section 4: PRESERVATION OF COMMODITIES IN NATIONAL RESERVE

Article 51. Principles of preservation of commodities in national reserve

1. Commodities in national reserve must be kept separately, at prescribed locations and preserved under the national technical standards and economic-technical norms of commodities in national reserve and the contracts to provide preservation services for commodities in national reserve, ensuring their quantity, quality and safety.

2. If loss is caused during the preservation of commodities in national reserve beyond the law-prescribed level for subjective reasons, the preserving units and persons shall compensate for such lost quantity; if the loss is below the prescribed level, organizations and persons will be rewarded according to the Government's regulations.

3. Commodities in national reserve which are damaged or degenerated in quality during preservation must be restored or released for timely sale to limit the damage. If commodities in national reserve are damaged or degenerated in quality for objective reasons, the preserving units or persons are not required to compensate; if it is due to subjective causes, they shall compensate and be handled in accordance with law.

Article 52. Responsibility for preservation of commodities in national reserve

1. The agencies in charge of commodities in national reserve shall observe the national technical standards and economic-technical norms of commodities in national reserve and the law on protection of state secrets.

2. Heads of the agencies in charge of commodities in national reserve shall direct and inspect the preservation of commodities in national reserve; promptly stop and handle acts of violation of the law on preservation of commodities in national reserve.

3. Heads of units directly managing commodities in national reserve and persons directly managing and preserving commodities in national reserve are responsible for the quantity and quality of the assigned commodities in national reserve.

4. For commodities in national reserve with special technical, storage and preservation requirements, the agencies in charge of commodities in national reserve shall select organizations or enterprises satisfying the conditions specified in Article 53 of this Law to sign contracts to provide preservation services.

5. The specialized national reserves agency shall inspect and check the preservation of commodities in national reserve by the agencies in charge of commodities in national reserve as well as the organizations in charge of the preservation of commodities in national reserve .

Article 53. Conditions for providing preservation services for commodities in national reserve

Organizations or enterprises hired by the Ministries and agencies in charge of the management of commodities in national reserve to preserve commodities in national reserve must satisfy the following conditions:

1. Having the legal entity status;

2. Producing and trading in commodities similar to the commodities being preserved;

3. Warehouses and equipment for storage, release and preservation must satisfy the technical requirements of commodities in national reserve;

4. Technical staff possess appropriate managerial and professional experience to meet the requirements of national reserves commodity preservation.

5. Having full financial capability for the performance of national reserves commodity preservation contracts.

Article 54. Application of national technical standards and economic-technical norms of commodities in national reserve

1. Agencies managing and organizations and enterprises preserving commodities in national reserve shall apply the national technical standards of commodities in national reserve. The Ministry of Finance shall preside and cooperate with related ministries and agencies in inspecting the application; review, revise and promptly add national technical standards of commodities in national reserve suitable to commodities in national reserve in accordance with the law on technical standards and regulations.

2. The agencies in charge of commodities in national reserve and the specialized national reserves agency shall formulate plans and budget estimates for purchasing preservation services for commodities in national reserve based on the economic-technical norms. The Ministry of Finance shall preside and cooperate with the agencies in charge of commodities in national reserve in studying, reviewing, revising and adding the economic-technical norms of commodities in national reserve to suit reality and meet management requirements.

Section 5: THE USE OF COMMODITIES IN NATIONAL RESERVE

Article 55. Rules for the use of commodities in national reserve

1. Commodities in national reserve must be used for proper purposes and subjects and in accordance with the financial, state asset management and statistical regimes prescribed by law.

2. The organizations using commodities in national reserve are subject to supervision, examination and inspection by competent agencies; and shall report the use commodities in national reserve to the specialized national reserves agency.

3. Heads of the agencies in charge of commodities in national reserve, and presidents of provincial People's Committees shall propose the supply and use of commodities in national reserve.

Article 56. Responsibility for release for free supply, and receipt of commodities in national reserve

1. Agencies, organizations and units assigned to deliver for free supply of commodities in national reserve shall strictly implement the procedures for release, transportation and handover of commodities at prescribed locations in a timely and safe manner with correct quantity, quality and types.

2. Ministries, agencies and provincial People's Committees which are assigned to receive commodities in national reserve shall promptly receive and distribute them strictly according to prescribed regimes and policies and to proper subjects; strictly comply with the financial, state asset management and statistical regimes and are subject to supervision and examination by competent agencies.

Article 57. Management and use of commodities in national reserve

After receiving commodities in national reserve, ministries, agencies, provincial People's Committees, agencies and organizations shall:

1. Manage and use commodities in national reserve for proper purposes and subjects and according to the norms prescribed by law, ensuring neither loss nor waste;

2. Compile dossiers for monitoring, accounting and reporting the management and use of supplied commodities in national reserve in accordance with the laws on accounting and statistics. Particularly for commodities in national reserve which can be used for many times, books must be opened for detailed monitoring as prescribed by law.

Chapter V

NATIONAL RESERVE WAREHOUSES, SCIENTIFIC RESEARCH AND APPLICATION OF PRESERVATION TECHNOLOGY TO COMMODITIES IN NATIONAL RESERVE

Article 58. Planning for the system of national reserve warehouses

1. Principles of planning the system of national reserve warehouses:

a/ Conformity with socio-economic, defense, security and regional development strategies;

b/ Conformity with the national reserves strategies and land planning;

c/ Uniformity and suitability to places of commodity sources, population density and safety.

2. Contents of the planning for the system of national reserve warehouses must meet the following requirements:

a/ Conformity with the national reserves objectives and requirements;

b/ Connectivity of the system of national reserve warehouses according to territorial lines and regions;

c/ Development toward modernization;

d/ Suitability to investment capital capacity;

e/ Clear identification of implementation solutions and roadmaps.

3. The Ministry of Finance shall preside and cooperate with the Ministry of Planning and Investment as well as the agencies in charge of commodities in national reserve in formulating the planning for the system of national reserve warehouses for submission to the Prime Minister for approval.

Article 59. Detailed planning for the network of national reserve warehouses

1. The detailed planning for the network of national reserve warehouses must ensure:

a/ The conformity with the planning for the system of national reserve warehouses and local land planning;

b/ The convenience for fire prevention and suppression, transport, communication, storage and release of commodities; the protection from flooding; uniformity, advanced preservation technologies, and mechanization for the storage and release of commodities in national reserve.

2. The detailed planning for the network of national reserve warehouses must:

a/ Ensure the continuity and connection between major economic centers and different regions nationwide, convenience in the storage and release of commodities in national reserve;

b/ Ensure high efficiency;

c/ Ensure the development toward modernization of preservation technologies and storage and release processes;

d/ Be suitable for investment capital capacity;

e/ Identify the implementation solutions and roadmaps.

3. Heads of the agencies in charge of commodities in national reserve shall formulate and approve detailed plans on the network of national reserve warehouses under their respective management after reaching agreement with the Ministry of Finance and the Ministry of Planning and Investment.

Article 60. Planning of land funds used for construction of national reserve warehouses

1. The agencies in charge of commodities in national reserve shall base themselves on the detailed plans on the network of national reserve warehouses to draw up plans on the use of land for the construction of national reserve warehouses in conformity with local land planning.

2. State agencies competent in the formulation of land planning, land allocation and land lease shall arrange land funds for the construction of national reserve warehouses according to planning and perform the state management of land used for the construction of national reserve warehouses.

Article 61. Requirements on national reserve warehouses

1. National reserve warehouses must be built according to the approved planning; step by step meet the requirements of modernization with advanced preservation technology, adequate technical equipment and facilities necessary for mechanization and automation of the storage and release of commodities in national reserve.

2. National reserve warehouse premises must be strictly protected, safe and secret as prescribed by law; be furnished with adequate technical equipment necessary for the observation, supervision, prevention and fighting of natural disasters, fires, damage, loss and other factors which may cause damage to commodities in national reserve.

3. Based on the approved planning national reserve warehouses, the agencies in charge of commodities in national reserve shall mobilize organizations, enterprises and individuals to invest in the construction of national reserve warehouses according to the warehouse standards specified in Article 62 of this Law for rent by national reserves units or for the performance of contracts to provide preservation services for commodities in national reserve.

Article 62. Standards of national reserve warehouse

1. The standards of national reserve warehouse must conform to the preservation technology requirements and the specific characteristics of each type of commodities in national reserve.

2. The Minister of Finance shall decide the standards of national reserve warehouse after reaching an agreement with the Minister of Planning and Investment and heads of the agencies in charge of commodities in national reserve. For national reserve warehouses serving national defense and security, the Minister of National Defense or the Minister of Public Security shall decide their standards after reaching an agreement with the Minister of Finance and the Minister of Planning and Investment.

Article 63. Modernization of activities related to national reserves

The investment in scientific research and application of technologies to preservation, investment in IT development and other facilities shall be prioritized to ensure the modernization of activities related to national reserves.

Article 64. Scientific research into and application of national reserve commodity preservation technologies

1. Scientific research and application of technologies to national reserve commodity preservation must:

a/ Be able to prolong the storage and preservation duration, ensure quality and redice the loss of commodities in national reserve; restrict environmental pollution;

b/ Be suitable for reality; adopt and transfer advanced foreign preservation technologies in a selective manner.

2. The contents of scientific research into and application of national reserve commodity preservation technologies include:

a/ Research into new preservation technologies for replacing of obsolete and polluting technologies, and replacing imported technologies;

b/ Expansion of international cooperation in the transfer and application of advanced technologies to national reserve commodity preservation;

c/ Training qualified human resources.

3. The Ministry of Finance shall preside and cooperate with the agencies in charge of commodities in national reserve in formulating plans for scientific research and application of technologies to national reserve commodity preservation.

Chapter VI

IMPLEMENTATION

Article 65. Effect

This Law takes effect on July 01^st  2013.

Article 66. Elaboration and implementation guidance

The Government and competent agencies shall elaborate and guide the implementation of the articles and clauses assigned in this Law.

This Law is passed on November 20^th 2012 by the 13^th National Assembly of the Socialist Republic of Vietnam during its 4^th session.

 

PRESIDENT OF THE NATIONAL ASSEMBLY Nguyen Sinh Hung