Decision No. 131/TC-QĐ-VT Issuing the Auction Sale Regulation for Cars Imported from Non-Repayable Aid Sources of 3 Billion Japanese Yen for Fiscal Year 1994-1995

Pursuant to …;

Regarding the issuance of the Auction Rules for Cars Imported from Non-Repayable Aid Sources of 3 Billion Japanese Yen for Fiscal Year 1994-1995

 Non-repayable aid of 3 billion Japanese yen for fiscal year 1994-1995

__________________

THE MINISTER OF FINANCE

Pursuant to Decree No. 15-CP dated March 2, 1993 of the Government stipulating the tasks, powers, and responsibilities for state management of Ministries and agencies at the level of ministries;

BASED ON DECREE NO. 178/CP DATED OCTOBER 28, 1994 OF THE GOVERNMENT ON THE TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;

Pursuant to the guidance of the Prime Minister as stated in Circular No. 5529/QHQT dated November 1, 1996, issued by the Government Office on the method of selling cars imported from the non-repayable aid source of 3 billion Japanese yen;

Based on the proposal of the Council for Auctioning Cars Imported from Non-Repayable Aid Sources of 3 Billion Japanese Yen;

DECISION:

Article 1. Attached herewith is the "Auction Rules for Cars Imported from Non-Repayable Aid Sources of 3 Billion Japanese Yen" issued pursuant to this Decision.

Article 2. These Rules shall take effect from the date of signature. Members of the Council for Auctioning Cars Imported from the 3 Billion Japanese Yen source shall be responsible for implementing this decision.

REGULATIONS

COUNCIL FOR AUCTIONING CARS IMPORTED FROM NON-REPAYABLE

AID SOURCES OF 3 BILLION JAPANESE YEN 

(Issued pursuant to Decision No. 131 TC/QD/VT dated February 15, 1997 of the Minister of Finance)

To implement the auction method for all cars imported from the non-repayable aid source of 3 billion yen provided by the Government of Japan for fiscal year 1994-1995, ensuring speed and efficiency; collecting full payment promptly and timely depositing it into the State Budget, and avoiding any negative manifestations that may arise, the Ministry of Finance hereby promulgates the following auction rules for these vehicles:

Article 1. Participants in the auction:

Enterprises meeting the necessary and sufficient conditions below shall be eligible participants in the auction:

1. Necessary Conditions:

* The enterprise must have the business function of selling automobiles as specified in its business license.

* The enterprise's sales revenue in 1995, as reported in the final accounts, must reach over 100 billion VND.

* The enterprise must not have overdue debts exceeding 50% of its operating capital, nor inventory exceeding 30% of its sales revenue.

2. Sufficient Conditions:

* The enterprise must register to purchase a minimum of 20 units of various types of vehicles.

* The enterprise must have the ability to pay the entire amount due for the registered vehicles in one lump sum (as evidenced by the balance in the enterprise's bank account).

* The enterprise must deposit VND 100,000,000 as a bid bond into the account of the State Budget opened at the Vietnam Bank for Foreign Trade under the name of the Management Board and International Aid Reception Office with account number 361.111.000.017 (or submit directly via check or bank draft). If the enterprise participates in the auction but does not win the bid, this amount will be refunded immediately after the conclusion of the auction.

* Pay the auction fee of VND 2,000,000 (this amount will not be refunded even if the enterprise does not win the bid).

Article 2. Principles of the auction:

* Conduct the auction openly, honestly, and transparently, ensuring the rights and interests of the State and enterprises.

* The minimum price (floor price) shall be proposed by the Council based on market prices and submitted to the Minister of Finance for approval prior to organizing the auction.

* The sale price shall be the highest among all bid sheets and higher than the minimum price for each type of vehicle.

* The procedure for conducting the auction shall comply with the provisions set forth in Article 16 of Decree No. 86/CP dated December 19, 1996 of the Government.

* In case two or more entities offer the highest bid and the total quantity of vehicles they wish to purchase exceeds the quantity available for sale, the Council shall allocate the vehicles proportionally according to the quantity each entity wishes to purchase.

* In the event that the highest bidder does not purchase the entire quantity of vehicles offered for sale, the remaining vehicles shall be handled as follows: First, sell to those who did not reach the highest bid but are willing to buy at the highest bid price (in descending order of priority as recorded on the bid sheet).

* The remainder shall be carried over to the next auction session.

Article 3. Registration for Auction Participation:

* Businesses that meet the conditions set forth in Article 1 must submit a registration form to participate in the auction along with the required documents to the International Aid Management Board, Ministry of Finance - No. 4 Phan Huy Chu Street, Hanoi, at least one day before the auction date. The auction date will be publicly announced through mass media; registration forms submitted after this date will not be valid.

* The registration form to participate in the auction must clearly state the business name, address, bank where transactions are conducted, and account number, accompanied by the bank's confirmation of the account balance as of the date of submitting the registration form, and the quantity of each type of vehicle registered for purchase. The auction participation documents include:

1. Application for auction participation.

2. Photocopy of the decision granting the business license.

3. Bank confirmation of the account balance.

4. Proof of payment of the deposit and fees.

5. Photocopy of the approved settlement report for the year 1995.

6. Tax authority confirmation regarding the fulfillment of tax obligations.

Article 4. Organization of the Auction Sale:

* After reviewing the registration documents, the auction committee will announce the list of businesses meeting the participation requirements.

* Bidding sheets will be distributed by the auction committee to businesses prior to each bidding round.

* Participating businesses must fill out the bidding sheet with their business name, quantity of each type of vehicle registered for purchase (which cannot be lower than the quantity registered in the participation registration form), and the bid price for each type of vehicle.

* Bidding will follow the principle of secret ballot.

* The auction committee will conduct the vote counting, prepare minutes on the bidding results, and announce the buyer of the auctioned assets.

Article 5. Provisions on Delivery and Payment for Purchased Goods:

* The business purchasing the auctioned asset must complete the necessary procedures for the sale of goods with the International Aid Management Board and the auction committee within no later than two days from the announcement of the auction results.