Circular No. 05/2012/TT-BKHCN Regarding the amendment and supplementation of Article 1 of Decision No. 05/2005/QD-BKHCN dated May 11, 2005 of the Ministry of Science and Technology on amending and supplementing Decision No. 28/2004/QD-BKHCN dated October 1, 2004 on the method for determining the localization rate for automobiles.

CIRCULAR

Regarding the amendment and supplementation of Article 1 of Decision No. 05/2005/QĐ-BKHCN dated May 11, 2005

of the Minister of Science and Technology on amending and supplementing Decision No. 28/2004/QĐ-BKHCN

dated October 1, 2004 on the method for determining the localization rate for automobiles

_______________________

Pursuant to Decree No. 28/2008/NĐ-CP dated March 14, 2008, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

Pursuant to Decision No. 175/2002/QĐ-TTg dated December 3, 2002 of the Prime Minister approving the Strategy for the Development of the Automobile Industry in Vietnam until 2010, with a vision to 2020;

Pursuant to Decision No. 177/2004/QĐ-TTg dated October 5, 2004 of the Prime Minister on approving the Planning for the Development of the Automobile Industry in Vietnam until 2010, with a vision to 2020;

Considering the proposal of the General Director of the Standardization, Metrology and Quality Control Department;

The Minister of Science and Technology issues this Circular amending and supplementing Article 1 of Decision No. 05/2005/QĐ-BKHCN dated May 11, 2005 of the Minister of Science and Technology on amending and supplementing Decision No. 28/2004/QĐ-BKHCN dated October 1, 2004 on the method for determining the localization rate for automobiles,

Article 1. Amending and supplementing Article 1 of Decision No. 05/2005/QĐ-BKHCN dated May 11, 2005 of the Minister of Science and Technology on amending and supplementing Decision No. 28/2004/QĐ-BKHCN dated October 1, 2004 on the method for determining the localization rate for automobiles

Article 1. Decision No. 05/2005/QĐ-BKHCN dated May 11, 2005 of the Minister of Science and Technology on amending and supplementing Decision No. 28/2004/QĐ-BKHCN dated October 1, 2004 on the method for determining the localization rate for automobiles shall be amended and supplemented as follows:

"Article 1. Amending and supplementing Clause 4 of Article 5 of Decision No. 28/2004/QĐ-BKHCN dated October 1, 2004 of the Minister of Science and Technology on the method for determining the localization rate for automobiles as follows:
4. Automotive parts imported directly by enterprises or purchased from trading enterprises importing them shall not be counted as localized products.
a) The degree of disaggregation of imported automotive parts is specified as follows: - Car body (for passenger cars, small buses, buses, and cabs for trucks): Disaggregated into a minimum of six main components, without electrostatic painting, including roof, floor, left side panel, right side panel, front section, rear section, and connecting panels (if any). - Vehicle frame: Already assembled and without electrostatic painting. For vehicle frames longer than 3.7 meters, electrostatic painting may be done before importation. - Engine: Complete and capable of being installed with clutch and transmission. - Drive system: Either assembled or unassembled with brake system. - Electrical system, lights, and amenities: Wiring harnesses, electrical panels, lights, and amenities of the car separated from the body or cab. - Truck bed: Floor, right side wall, left side wall, rear wall, and front wall of the truck bed separated without painting and the floor not attached to the auxiliary frame when imported.
b) In cases where the degree of disaggregation of imported automotive parts does not meet the provisions of point a of this clause due to changes in automobile and auto parts production technology or the new structure of automobiles and auto parts, the degree of disaggregation of imported automotive parts must be approved by the Ministry of Science and Technology.
c) Appendices 5, 6, 7, and 8 issued together with this Decision are illustrative only and shall not be used as a basis for determining the structural disaggregation level of automotive parts for various types of vehicles."

Article 2. Responsibility for Implementation

The General Department of Standardization, Metrology and Quality Assurance is responsible for guiding and organizing the implementation of this Circular.

Article 3. Implementation Provisions

1. This Circular takes effect from April 30, 2012.

2. The Director of the General Department of Standardization, Metrology and Quality, the Heads of the Department of Technology Evaluation, Appraisal and Inspection, the Department of Legal Affairs, the Director of the Department of Technology Application and Development, the Head of the Ministry's Office, and relevant organizations and individuals are responsible for implementing this Circular./.