Circular No. 04/2020/TT-BCT on Auctioning Tariff Quotas for Import of Used Cars under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

CIRCULAR

Regulations on Auctioning Tariff Quotas for Importing Used Cars
pursuant to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership
                                                 

Pursuant to Decree No. 98/2017/NĐ-CP dated August 18, 2017, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 69/2018/NĐ-CP dated May 15, 2018 of the Government detailing certain provisions of the Law on Foreign Trade Management;

Pursuant to Decree No. 62/2017/NĐ-CP dated May 16, 2017 of the Government detailing certain provisions on measures for implementing the Law on Auctioning Assets;

Pursuant to Decree No. 151/2017/NĐ-CP dated December 26, 2017 of the Government detailing certain provisions of the Law on Management and Use of Public Assets;

On the basis of Decree No. 69/2018/NĐ-CP dated May 15, 2018, issued by the Government detailing certain provisions of the Foreign Trade Management Law;

Implementing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed on March 8, 2018;

At the proposal of the Director of the Department of Import-Export;

The Minister of Industry and Trade issues this Circular to regulate auctioning tariff quotas for importing used cars under the CPTPP.

Article 1. Scope of Regulation

This Circular regulates auctioning tariff quotas for importing used cars as committed under the CPTPP.

Article 2. Applicability

1. Business entities as prescribed by Vietnamese law.

2. Organizations and individuals related to the importation of cars.

Article 3. Types and Quantity of Tariff Quotas

Types, HS codes, and quantities of tariff quotas for annual imports are specified in Appendix I attached hereto.

Article 4. Method of Allocation of Tariff Quotas

1. Tariff quotas for importing used cars as stipulated in Article 3 of this Circular shall be allocated based on auctioning.

2. Bidders for the auction of tariff quotas are business entities as prescribed by Vietnamese law.

Article 5. Provisions for Used Cars Imported Under Tariff Quotas

1. Used cars are cars that have been registered for circulation in the exporting country before arriving at the Vietnamese border according to the law.

3. Used cars imported under tariff quotas as stipulated in Article 3 of this Circular must comply with current laws regarding technical standards, technical safety quality, and environmental protection for cars, and regulations on car import ports.

4. Types of cars imported must be consistent with the content of the Import License for cars as prescribed by law.

Article 6. Principles of Auctioning

2. The auction session shall be organized in the first quarter of each year and may extend the auction time depending on specific cases, but not later than April 15.

3. The Council for Auctioning Tariff Quotas for Importing Used Cars shall be established by the Ministry of Industry and Trade to oversee the auction process. The Chairman of the Council shall issue the Auction Rules for Tariff Quotas for Importing Used Cars.

4. Tariff quotas shall be allocated to business entities in descending order of bid prices.

5. Information about the auction session and bidding procedures shall be widely publicized through mass media at least thirty days prior to the auction date.

6. The Council for Auctioning does not require a minimum bid price for participation or allocation of quotas through auctioning.

7. Names of successful bidders, winning bid prices, and allocated quota quantities shall be publicly disclosed through mass media within fourteen days following the auction session.

Article 7. Notification of Auction Results

Within fourteen (14) days from the date of the auction results issued by the Auction Committee, the Ministry of Industry and Trade shall issue a notification granting the right to use the import tariff quota for used cars to the successful bidder.

Article 8. Import Procedures

1. A used car importer must be a business entity that has been granted an Import License for Used Cars by the Ministry of Industry and Trade in accordance with the law.

2. In cases where the participant in the auction wins but does not have an Import License for Used Cars, they shall entrust a business entity with an Import License for Used Cars to carry out the importation.

3. When processing the import procedures for used cars under the tariff quota, in addition to complying with the current import procedures, the importer shall present the notification from the Ministry of Industry and Trade granting the right to use the import tariff quota for used cars to the Customs authority.

4. The provisions on warranty, maintenance, and vehicle recalls shall be implemented in accordance with Decree No. 116/2017/ND-CP dated October 17, 2017 of the Government stipulating conditions for production, assembly, importation, and warranty and maintenance services for automobiles.

Article 9. Effective Date

This Circular takes effect from March 5, 2020.

Appendix I

QUOTA OF IMPORT TARIFF FOR USED CARS UNDER THE COMMITMENTS IN THE CPTPP AGREEMENT

(Annexed to Circular No. 04/2020/TT-BCT dated January 22, 2020 regulating the importation of used cars under the commitments in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership)

From 2035 onwards, the number of used cars put up for auction under the import tariff quota commitments in the CPTPP Agreement will remain at the level of 2034.