REVOCATION OF INDUSTRIAL EXPLOSIVES USE LICENSE: CAN A COMPANY CONTINUE BLASTING OPERATIONS?

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Question: Dear Lawyer, in the event that our Company has its Industrial Explosives Use License revoked under Clause 4 Article 51 Decree 71/2019/NĐ-CP, are we still allowed to carry out blasting activities? If the Company still wishes to continue blasting, what is the lawful solution? Kindly advise us.

Answer:

1.Regarding whether the Company may continue blasting when its Licenses to use industrial explosive materials is revoked

Pursuant to Clause 1 Article 25 of the Law on Handling of Administrative Violations 2012 (as amended in 2020): “The definite deprivation of the right to use licenses or professional practice certificates shall apply to individuals and organizations that have seriously violated the activities written in the licenses, professional practice certificates. While being deprived of the right to use licenses and/or professional practice certificates, individuals and organizations must not carry out activities prescribed in the licenses or professional practice certificates..”

Therefore, during the period of license revocation, the Company is not permitted to organize blasting activities, manage, transport, or use industrial explosives under any form.

2. Lawful options to continue blasting operations

First option: The Company may wait until the revocation period ends in order to resume activities related to industrial explosives, including management, storage, transportation, allocation, and blasting operations.

Second option: Hiring a licensed blasting service provider

Pursuant to Point a Clause 1 Article 40 of the Law on Management and Use of Weapons, Explosive Materials and Support Instruments 2024: “Blasting service means the use of industrial explosive materials for execution of a blasting contract between a blasting service provider and an organization…”

And Pursuant to Point a Clause 3 Article 40 of the Law on Management and Use of Weapons, Explosive Materials and Support Instruments 2024: “The hirer is not required to obtain the license for the industrial explosive material-activities for which blasting services have been hired.”

Accordingly, the Company is fully entitled to hire a licensed blasting service provider, provided that:

  • The Company does not directly manage or use industrial explosives;
  • All legal responsibilities related to explosives rest with the blasting service provider;
  • The Company must coordinate and supply accurate site information as required by technical standards.

This is the only lawful and feasible solution for the Company to continue blasting activities during the license revocation period.

3.Does the Company need to apply for any permit when hiring a blasting service provider?

During the period in which the Customer is deprived of the right to use the Licenses to use industrial explosive materials, the Customer remains entitled to hire and use blasting services provided by entities that have been granted a Blasting Service License. When hiring a blasting service provider, the Company is not required to obtain an Industrial Explosives Use License. All activities related to purchasing, transporting, storing, and using industrial explosives will be carried out by the service provider under its valid license.

However, the Company must:

  • Select a service provider with a valid blasting service license;
  • Provide complete and accurate site information for the blasting plan;
  • Comply with any mandatory notification obligations to competent authorities, depending on the blasting location.

All procedures involving industrial explosives (purchase – transport – storage – use) are handled entirely by the blasting service provider.

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