Decision No. 01/2003/QD-BKHCN on issuing the "Regulations on Quality Management, Industrial Property Rights, and Technology Transfer for Two-Wheeled Motorbikes, Engines, and Two-Wheeled Motorbike Spare Parts Produced, Assembled Domestically, and Imported

Pursuant to …;

OF THE MINISTER OF SCIENCE AND TECHNOLOGY

Regarding the issuance of "Regulations on Quality Management, Industrial Property, and Technology Transfer for Two-Wheeled Motorized Vehicles, Engines, and Two-Wheeled Motorized Vehicle Spare Parts Produced and Assembled Domestically and Imported"Pursuant to Decision No. 147/2002/QĐ-TTg dated October 25, 2002 of the Prime Minister on the management mechanism for export and import, production, and assembly of two-wheeled motorized vehicles and spare parts for the period 2003-2005;Pursuant to the guidance of the Prime Minister in Circular No. 1665/CP-KTTH dated December 25, 2002 on strengthening quality management and tax valuation for imported two-wheeled motorized vehicles, engines, and spare parts;

THE MINISTER OF SCIENCE AND TECHNOLOGY

Pursuant to the Ordinance on Quality of Goods dated December 24, 1999;

Pursuant to Decree No. 22/CP dated May 22, 1993 of the Government on tasks, powers, and organizational structure of the Ministry of Science, Technology, and Environment (now the Ministry of Science and Technology);

Pursuant to Decree No. 86/CP dated December 8, 1995 of the Government stipulating the division of responsibilities for state management over product quality;

Pursuant to the guidance of the Prime Minister in Circular No. 1699/CP-KTTH dated December 31, 2002 on implementing measures to manage imports, production, assembly, and circulation of two-wheeled motorized vehicles in 2003;

Based on the proposal of the General Director of the Standardization, Metrology, and Quality Control Agency, the Director of the Intellectual Property Office, and the Director of the Technology and Environmental Assessment Office of Investment Projects;

Issued herewith are the "Regulations on Quality Management, Industrial Property, and Technology Transfer for Two-Wheeled Motorized Vehicles, Engines, and Two-Wheeled Motorized Vehicle Spare Parts Produced and Assembled Domestically and Imported."

The Standardization, Metrology, and Quality Control Agency, the Intellectual Property Office, and the Technology and Environmental Assessment Office of Investment Projects shall organize, guide, and inspect the implementation of this Decision.

DECISION:

Article 1. The Standardization, Metrology, and Quality Control Agency, the Intellectual Property Office, the Technology and Environmental Assessment Office of Investment Projects, related agencies and organizations, and enterprises producing, assembling, and importing two-wheeled motorized vehicles, engines, and spare parts thereof shall be responsible for enforcing this Decision.

Article 2. On Quality Management, Industrial Property, and Technology Transfer for Two-Wheeled Motorized Vehicles, Engines, and Spare Parts of Two-Wheeled Motorized Vehicles Produced and Assembled Domestically and Imported

Article 3. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 4. (Issued with Decision No.: 01/2003/QĐ-BKHCN dated January 30, 2003 of the Minister of Science and Technology)

REGULATIONS

1.1. This document applies to the following entities:

- Enterprises producing and assembling two-wheeled motorized vehicles (hereinafter referred to as motorcycles).

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

- Enterprises producing and assembling motorcycle engines and motorcycle spare parts.

- Enterprises importing complete motorcycles, engines, and motorcycle spare parts (including non-synchronous engine components).

1.2. This document stipulates the contents and procedures for quality management, industrial property, and technology transfer for domestically produced and assembled motorcycles, motorcycle engines, and motorcycle spare parts, as well as imported motorcycles, engines, and spare parts.

1.3. Domestic and imported motorcycles and motorcycle engines that have fully met the requirements for quality management, industrial property, and technology transfer as set forth in these Regulations shall be subject to inspection according to the regulations of the Ministry of Transport.

1.4. The quality inspection of domestically produced motorcycles and motorcycle engines shall be carried out according to the regulations of the Ministry of Transport, as assigned by the Prime Minister in Clause 5, Article 2 of Decision No. 147/2002/QĐ-TTg dated October 25, 2002.

1.5. Enterprises producing and assembling motorcycles, motorcycle engines, and motorcycle spare parts, including individual engine components, must declare their product quality standards according to the Interim Provisions on Declaration of Product Quality Standards issued with Decision No. 2425/2000/QĐ-BKHCNMT dated December 12, 2000 of the Minister of Science and Technology and Environment (now the Ministry of Science and Technology).

1.6. Domestic and imported motorcycles, motorcycle engines, and motorcycle spare parts listed in the mandatory application of Vietnamese Standards must be declared by the producing and assembling enterprises as compliant with the standards according to the Interim Provisions on Declaration of Compliant Products with Standards issued with Decision No. 2424/2000/QĐ-BKHCNMT dated December 12, 2000 of the Minister of Science and Technology and Environment (now the Ministry of Science and Technology).

1.7. State management agencies for quality shall organize inspections of the declaration of product quality standards and the declaration of compliant products with standards by enterprises producing and assembling motorcycles, motorcycle engines, and motorcycle spare parts, and handle violations according to the law.

1.8. Domestic and imported motorcycles, motorcycle engines, and motorcycle spare parts must comply with laws on industrial property.

1.9. Enterprises producing and assembling motorcycle engines must have technology transfer contracts from partners (foreign or domestic) who have researched and produced motorcycle engines meeting Vietnamese Standards or equivalent foreign standards.

II. ON QUALITY MANAGEMENT

1. Contents and Procedures for Quality Management of Motorcycles

1.1. For domestically produced and assembled motorcycles

- Enterprises producing and assembling motorcycles must implement:

- Declaration of quality standards for motorcycles.

- Declaration of motorcycles compliant with Vietnamese Standards (TCVN) on motorcycles according to Point 1.6, Part I of this document.

- Registration and quality inspection at the inspection agency according to the regulations of the Ministry of Transport.

1.2. For imported complete motorcycles

1.2.1. For imported complete motorcycles from partners who have implemented Mutual Recognition Agreements, the quality of imported motorcycles is determined based on the quality certificate issued by the authorized agency or organization of the exporting country recognized by both parties (the partner and Vietnam).

1.2.2. For imported complete motorcycles from countries that have signed Mutual Recognition Agreements on certification results with Vietnam, customs clearance of imported motorcycles into Vietnam will be conducted based on the quality certificates for each batch of motorcycles issued by the certification agency or organization of the exporting country recognized by both parties.

1.2.3. Imported complete motorcycles from other countries not having Mutual Recognition Agreements with Vietnam will be inspected for quality according to the regulations of the Ministry of Transport.

The Customs Authority will base the customs clearance procedures for these batches of motorcycles on the quality certificates issued by the Ministry of Transport's inspection agency.

1.2.3. Motorcycles imported from other countries that have not signed mutual recognition agreements with Vietnam shall be inspected for quality in accordance with the regulations of the Ministry of Transport.

The Customs authority shall base the clearance procedures for these batches of motorcycles on the quality certification issued by the inspection agency of the Ministry of Transport.

A list of foreign agencies and organizations issuing quality certificates for imported complete motorcycles from the aforementioned exporting countries, along with the certificate samples and accompanying seals/stamps, will be widely announced by the Ministry of Science and Technology for relevant agencies and enterprises to be aware of.

2. Content and procedures for managing the quality of motorcycle engines

2.1. For domestically produced engines

- Enterprises producing and assembling engines must carry out:

- Announcing quality standards for engines and engine components.

- Announcing engine products and engine components that comply with Vietnamese Standards (VNS) as stipulated in Point 1.6 Part I of this document.

- Implementing inspection registration in accordance with regulations of the Ministry of Transport.

2.2. For imported engines

2.2.1. For imported complete engines

Imported complete engines shall be managed similarly to imported complete motorcycles.

2.2.2. For imported non-synchronous engine components

Imported non-synchronous motorcycle engine components into Vietnam must have clear origin, including the name and address of the manufacturer/supplier, quality confirmation certificates issued by authorized agencies/organizations, quality testing reports from testing organizations recognized by authorized authorities of the exporting country, or quality confirmation/testing certificates issued by the manufacturer/supplier recognized by authorized authorities of the exporting country.

Enterprises are only permitted to import non-synchronous engine components from production facilities that have been certified to have a quality management system according to ISO 9000 or QS 9000 or equivalent quality management systems applicable to the field of motorcycle engine manufacturing and assembly. In special cases, the Ministry of Science and Technology will consider specifically and make decisions.

Enterprises must submit documents on the origin of the components and copies of the quality management system certification mentioned above to the Ministry of Science and Technology for review. The Ministry of Science and Technology has the responsibility to inform relevant agencies to coordinate in management. Customs at the border gate will base their clearance of imported non-synchronous engine components on the review results of the Ministry of Science and Technology. Inspection agencies under the Ministry of Transport will manage quality based on this list in accordance with regulations of the Ministry of Transport.

Engines assembled from imported non-synchronous components and domestically produced components must undergo inspection registration in accordance with regulations of the Ministry of Transport.

3. Content and procedures for managing the quality of motorcycle spare parts

3.1. For domestically produced motorcycle spare parts

- Enterprises producing motorcycle spare parts must carry out:

- Announcing quality standards for spare parts.

- Announcing motorcycle spare part products that comply with Vietnamese Standards (VNS) as stipulated in Point 1.6 Part I of this document.

3.2. For imported motorcycle spare parts

Implement the contents as prescribed for imported non-synchronous engine components in Point 2.2.2 Section 2 Part II of this document.

III. REGARDING INDUSTRIAL PROPERTY RIGHTS

1. Enterprises producing, assembling motorcycles and motorcycle spare parts must present one of the following documents to be considered as having a trademarked product protected:

a. Trademark registration certificate, where the enterprise is the Trademark Owner; or

b. Confirmation from the National Office of Industrial Property regarding the trademarked product protected in Vietnam under the Madrid Agreement, where the enterprise is the Trademark Owner; or

c. Trademark licensing contract registered at the National Office of Industrial Property, where the enterprise is the Licensee.

2. Activities such as importing complete motorcycles, motorcycle spare parts, producing, commissioning domestic production of motorcycle spare parts, assembling spare parts into complete vehicles, and circulating (selling, distributing) spare parts and complete vehicles must comply with laws on industrial property rights.

Enterprises directly implementing these activities must ensure they do not infringe upon others' industrial property rights (for patents, utility models, industrial designs, trademarks).

3. When applying for permission to import, produce, assemble motorcycles, enterprises must provide a commitment not to infringe upon protected industrial property rights, and if infringement occurs, they must bear legal responsibility as prescribed.

IV. REGARDING TECHNOLOGY TRANSFER

1. The content of technology transfer contracts shall be implemented in accordance with Decree No. 45/1998/ND-CP dated July 1, 1998 of the Government detailing technology transfer and Circular No. 1254/1999/TT-BKHCNMT dated July 12, 1999 of the Ministry of Science, Technology, and Environment (now the Ministry of Science and Technology) guiding the implementation of Decree No. 45/1998/ND-CP dated July 1, 1998 of the Government detailing technology transfer.

2. Technology transfer contracts for producing, manufacturing, and assembling motorcycle engines from abroad into Vietnam and domestic technology transfer contracts must be reviewed, approved, or registered in accordance with current laws on technology transfer.

V. IMPLEMENTATION

1. Regarding quality management

1.1. Enterprises organizing the announcement of product quality standards and announcing products that comply with standards as prescribed must implement them accurately as announced. Previous announcements by enterprises that do not conform to the Vietnamese Standards listed in the mandatory application of Vietnamese Standards for motorcycles, engines, and motorcycle spare parts will be invalid, and enterprises must reannounce them accordingly.

1.2. Within seven days from the date of announcing quality standards and compliance with standards, enterprises must send copies of these announcements to the Ministry of Science and Technology (General Department of Standardization, Metrology, and Quality) and the Department of Science and Technology and Environment (Local Standardization, Metrology, and Quality Control Bureau) where the enterprise's main office is located.

1.3. The Ministry of Science and Technology assigns the General Department of Standardization, Metrology, and Quality to organize inspections of the announcement of product quality standards and compliance with standards for domestically produced and assembled motorcycles, engines, and motorcycle spare parts by enterprises.

2. Regarding industrial property rights

2.1. To ensure that there is no violation of laws and no disputes regarding industrial property rights, enterprises must conduct legal checks on the objects of industrial property rights (trademarks, industrial designs, patents, utility models...) related to motorcycles and motorcycle parts from the preparatory stage (preparing to sign import contracts for parts, preparing conditions for production or domestic manufacturing of parts, and preparing conditions for assembly).

2.2. Information on industrial property rights protected in Vietnam is published in the Industrial Property Gazette and recorded in the Register of Industrial Property Rights (kept at the National Office of Industrial Property). Therefore, enterprises can independently search these sources to determine whether their components and assembled products are protected and, if so, who they belong to. If an enterprise lacks the ability to resolve this issue on its own, it may utilize the search services provided by the National Office of Industrial Property.

2.3. In cases where the audit results show that the industrial property rights used for parts and assembled vehicles are not protected in Vietnam, the importation of parts and vehicle assembly will not initially violate industrial property rights. However, if parts or complete vehicles are found to contain protected industrial property rights, the enterprise must promptly contact the owner of such rights to negotiate and conclude a License Agreement, which must then be registered with the National Office of Industrial Property.

3. Regarding technology transfer

The Model Technology Transfer Contract and procedures, approval documents, and registration of such contracts are stipulated in Circular No. 1254/1999/TT-BKHCNMT dated July 12, 1999, issued by the Ministry of Science, Technology, and Environment (now the Ministry of Science and Technology), and Circular No. 11/2002/TT-BKHCN dated November 29, 2002, issued by the Ministry of Science and Technology.

4. Periodically or at random, the Ministry of Science and Technology will organize inspections to verify compliance with the provisions of this Decision by enterprises producing, assembling motorcycles, motorcycle engines, and motorcycle parts.

5. Enterprises violating the provisions set forth in this consolidated document shall not be permitted to produce, assemble, or import motorcycles, motorcycle engines, and motorcycle parts, and shall be subject to legal sanctions as prescribed by law./.