Decision No. 35/2001/QD-BTM Regarding the Issuance of the Tendering Regulation for Quota Textile and Garment Products Exported to Markets with Quota Regulations

DECISION

Regarding the issuance of the Tender Regulation for Quota Textile and Garment Export Products to Markets with Quota Regulations

textiles and garments exported to markets with quota regulations

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THE MINISTER OF TRADE

Pursuant to Decree No. 95/CP dated December 4, 1993 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Trade;

Pursuant to Circular No. 1126/CP-KTTH dated September 21, 1998 of the Government on the allocation of quotas for textile and garment export products to quota markets;

Pursuant to Decision No. 1722/2000/QĐ-BTM dated December 12, 2000 of the Minister of Trade on the establishment of the Quota Tender Council for Textile and Garment Products;

At the proposal of the Chairman of the Quota Tender Council for Textile and Garment Products,

DECISION:

Article 1The Tender Regulation for Quota Textile and Garment Export Products to Markets with Quota Regulations is hereby promulgated together with this Decision.

Article 2. This Decision replaces Decision No. 1405/1998/QĐ-BTM dated November 17, 1998 and shall take effect fifteen days from the date of signature.

Article 3. The Chairman of the Quota Tender Council, members of the Quota Tender Council, the Director of the Office, Heads of the Department of Organization and Cadres, Heads of the Department of Import and Export, and participating enterprises are responsible for implementing this Decision.

REGULATION ON TENDER FOR QUOTA

TEXTILE AND GARMENT EXPORT PRODUCTS TO MARKETS WITH QUOTA REGULATIONS

(Issued together with Decision No. 35/2001/QĐ-BTM dated January 11, 2001)

of the Minister of Trade)

Part I

GENERAL PROVISIONS

Article 1Objectives of participation in tendering.

1.1. Enterprises participating in the tender must have business registration certificates, appropriate business activities, registered enterprise codes for import and export operations, or investment permits under the Law on Foreign Investment in Vietnam. For specific products such as T-shirts (Category 4), wool sweaters (Category 5), trousers (Category 6), and men's shirts (Category 8), the participants must be enterprises that were allocated quotas in 2000.

Article 2Tender principles:

2.1. Tender organization and opening shall be conducted publicly.

2.2. Based on the specific conditions of each tender round, the Tender Council will determine the product category (Category-Cat.), quantity of each product, and bidding price for each tender round.

2.3. Enterprises eligible under Article 1 may register to bid for the product categories (Cat.) put up for tender, and each Cat. may be registered with a maximum quantity as specified in the tender invitation.

Article 3. The Tender Council:

The Tender Council consists of a leader of the Ministry of Trade as Chairperson and representatives at the department level from the Ministry of Trade, the Ministry of Industry, the Ministry of Planning and Investment, and the Ministry of Finance as members.

The list of official members of the Tender Council will be announced by the leadership of the Ministry of Trade after obtaining opinions from the participating ministries.

The Minister of Trade decides on the establishment of the Tender Council, its organizational structure, and its functions and responsibilities.

The Tender Council is responsible for preparing, organizing, implementing the tender, and announcing the tender results.

Part II

PROCEDURE FOR IMPLEMENTING BIDDING

Article 4Preparation for tendering:

4.1. The Tender Council will specify the product categories, quota quantities for tendering, the method of organizing the tender, and issue a tender invitation (published in the Trade, Investment, Industry, and Finance newspapers).

4.2. Bidding documents:

Each enterprise shall submit only one sealed envelope containing the bidding documents, including:

1. A registration form for participation in the tender.

2. Copies of the business registration certificate and registration of the enterprise code for import and export operations or Investment Permit under the Law on Foreign Investment in Vietnam.

3. A commitment to deposit a guarantee to ensure the implementation of the winning quota.

The envelope containing the bidding documents shall be sealed, stamped, and clearly marked "Bid documents for quota textile and garment tender."

Article 5. Implementation process of the tender:

5.1. Registration for tendering:

Enterprises participating in the tender and meeting the conditions set out in Article 1 shall submit their bidding documents to the Ministry of Trade. The final deadline for receiving bidding documents is the end of working hours on the day before the opening of the tender.

5.2. The time and location for opening the tender are specified in the tender invitation.

5.3. Announcing the tender results: within seven working days from the date of opening the tender, the Tender Council will announce the tender results in industry newspapers and notify the winning enterprises in writing.

Article 6. Criteria for evaluating bids:

The winning enterprise is the one with the highest bid price in order until the full quantity called for each type of goods and not lower than the bidding price.

In cases where multiple bids achieve the lowest winning price, the quantity of the lowest winning price will be divided according to the ratio of the quantity registered by the bidding enterprises for that product category.

If the winning enterprise refuses the winning result, it must notify the Tender Council in writing within ten working days from the date of announcement of the results. The Council will then assign the next highest bidder to implement if these enterprises accept. In cases where multiple next highest bidders have the same winning price, the quota quantity will be divided according to the ratio of the quantity registered by the bidding enterprises for that product category.

Article 7. Responsibilities and benefits of winning enterprises:

7.1. Within fourteen working days from the date of receipt of the notification of winning, the winning enterprises must deposit a performance guarantee equal to 15% of the total amount payable for the winning quota. The guarantee can be deposited through a "Bank Guarantee" or bank transfer from the bank where the enterprise has an account. The Bank Guarantee automatically expires when the enterprise implements 90% of the winning quota. If the enterprise does not deposit the "Bank Guarantee" or make the bank transfer within the specified period, the notification of allocation of the winning quota for the corresponding batch will automatically expire. These batches will be handled according to Article 6 by the Tender Council.

Any enterprise failing to comply with this requirement will not be allowed to participate in the tender for the following year's quota.

This performance guarantee will only be released when the enterprises implement 90% or more of the winning quota.

7.2. After depositing the performance guarantee for the winning quota as stipulated in Point 7.1, the winning enterprises shall submit proof of payment to the Ministry of Trade (Department of Import and Export) to receive the notification of allocation of the winning quota.

7.3Winning enterprises will not receive back the performance guarantee if they fail to implement 90% or more of the winning quota or withdraw their bid after the time specified in Point 7.1.

7.4Enterprises must pay for the winning quota for each batch before delivery.

7.5The winning quota can be transferred.

The enterprise transferring the quota winning bid must submit a document to the Ministry of Trade for confirmation.

Article 8Implementation Provisions.

These regulations shall take effect fifteen days from the date of issuance of the Decision and shall be sent to relevant ministries and state management agencies. During implementation, if there are any difficulties, ministries, sectors, localities, and related units shall promptly reflect them to the Tender Board for review and adjustment as appropriate./.

ANNEX

LIST OF QUOTAS FOR EXPORT TEXTILE PRODUCTS TO THE EU PUT UP FOR TENDER IN 2001

EXPORT TEXTILE PRODUCTS TO THE EU PUT UP FOR TENDER IN 2001

(Pursuant to Decision No. 35/2001/QĐ-BTM dated January 11, 2001