Decree No. 39/2023/NĐ-CP detailing certain provisions of Resolution No. 73/2022/QH15 dated November 15, 2022 of the National Assembly on piloting the auction of automobile license plates

DECREE

Regulations detailing certain provisions of Resolution No. 73/2022/QH15

dated November 15, 2022 of the National Assembly on piloting the auction of automobile license plates

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

On the basis of Decree No. 86/2012/NĐ-CP dated October 19, 2012, issued by the Government detailing and guiding implementation of certain provisions of the Metrology Law;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Auction Law dated November 17, 2016;

Pursuant to the Law on Management and Use of State Assets dated June 21, 2017;

Pursuant to the Law on Information Technology dated June 29, 2006;

||| Pursuant to the Cybersecurity Law dated November 19, 2015;

||| Pursuant to the Cyber Security Law dated June 12, 2018;

Pursuant to Resolution No. 73/2022/QH15 dated November 15, 2022 of the National Assembly on piloting the auction of automobile license plates;

The Government promulgates this Decree providing detailed regulations for certain provisions of Resolution No. 73/2022/QH15 dated November 15, 2022 of the National Assembly on piloting the auction of automobile license plates.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree provides detailed regulations for certain provisions of Resolution No. 73/2022/QH15 dated November 15, 2022 of the National Assembly on piloting the auction of automobile license plates (hereinafter referred to as Resolution No. 73/2022/QH15), including the procedures and processes for auctioning automobile license plates and managing and using the proceeds from the auction of automobile license plates.

Article 2. Applicability

1. Ministry of Public Security.

2. Auction organizations and auctioneers shall be selected to conduct the auction of automobile license plates.

3. Organizations and individuals participating in the auction.

4. Other agencies, organizations, and individuals related to the matter.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Participants in the auction are organizations and individuals who are Vietnamese citizens meeting the conditions to participate in the auction of automobile license plates as stipulated in this Decree and other relevant laws.

2. Successful bidder refers to the participant in the online auction of automobile license plates who offers the highest bid above or equal to the starting price as specified in Article 5 of Resolution No. 73/2022/QH15.

3. An auction of automobile license plates is the entire process of auctioning a single automobile license plate.

4. An auction session of automobile license plates includes all auctions of automobile license plates organized and implemented within an approved auction plan.

5. Successful bid money is the amount of money that the successful bidder pays to obtain the right to use the automobile license plate through the issuance of a confirmation document of the successfully auctioned license plate.

6. The Ministry of Public Security's auction management system for automobile license plates is a set comprising software, infrastructure, and transmission designed specifically to serve the management of automobile license plate auctions.

Article 4. Principles of Online Auction

The auction of automobile license plates must be conducted through an online method on a network environment and comply with legal regulations on asset auctions and cybersecurity.

Chapter II

PROCEDURES AND PROCESSES FOR AUCTIONING AUTOMOBILE LICENSE PLATES

Article 5. Quantity and Series Indicators of Automobile License Plates Put Up for Auction

The Minister of Public Security decides the quantity of automobile license plates put up for auction at each auction session, including license plates of provinces and centrally-administered cities, series indicators: A, B, C, D, E, F, G, H, K, L, M, N, P, S, T, U, V, X, Y, Z, white background with black letters and numbers, not yet registered, expected to be newly issued, currently in the Vehicle Registration and Management System of the Ministry of Public Security, and supplementing the quantity of license plates for provincial and centrally-administered city police forces when there is a shortage of license plates for registration before the next auction session.

Article 6. Plan for Organizing Auctions

1. The Minister of Public Security approves the plan for organizing the auction of automobile license plates for each auction session.

2. The auction plan includes the following main contents:

a) List of automobile license plates put up for auction;

b) Starting price, bid increment, and deposit amount;

c) Form and method of organizing the auction;

d) Time of organizing the auction;

d) Handling of auction situations (if any);

e) Other related contents.

3. The plan for organizing the auction must be publicly announced on the Ministry of Public Security’s electronic portal within five working days from the date of approval.

Article 7. Auction service contract, auction service fee, auction costs paid to the auction organization

1. Auction service contract for automobile license plates

a) The Ministry of Public Security shall enter into an auction service contract for automobile license plates with an asset auction organization to conduct the auction of automobile license plates. The auction service contract for automobile license plates must be documented in writing and implemented in accordance with civil law regulations and Article 33 of the Auction Law 2016;

b) The term of the auction service contract for automobile license plates shall be in accordance with the implementation period of Resolution No. 73/2022/QH15, except in cases where the selected auction organization terminates its operations, fails to meet the criteria and conditions for conducting the auction of automobile license plates, or the contract is terminated according to the provisions of the law;

c) In cases where the contract is terminated before the implementation period of Resolution No. 73/2022/QH15, the Ministry of Public Security shall select another asset auction organization that meets the conditions stipulated in Clause 3, Article 2 of Resolution No. 73/2022/QH15 to continue implementing the auction;

2. Auction service fee, auction costs paid to the auction organization

a) For each successfully auctioned automobile license plate, the auction service fee paid to the asset auction organization shall be calculated at 8% of the starting price, excluding value-added tax and auction costs;

b) The auction cost paid to the asset auction organization is VND 10,000 per automobile license plate put up for auction.

Article 8. Auction Rules

Based on the contents agreed upon by the Ministry of Public Security, the asset auction organization shall issue the Auction Rules, including: List of automobile license plates put up for auction, auction time for each automobile license plate, advance payment account for participating in the auction, and other contents as prescribed in Article 34 of the Auction Law.

Article 9. Public Notice and Announcement of Asset Auction

1. The Ministry of Public Security shall transfer the list of automobile license plates put up for auction to the asset auction organization, and simultaneously publicly announce the list and auction plan for automobile license plates on the Ministry of Public Security's electronic portal, the Traffic Police Corps' electronic information portal, with links to the online auction portal of the asset auction organization.

2. The asset auction organization shall publicly announce the list of automobile license plates put up for auction on the national electronic portal for asset auctions, the online auction portal of the asset auction organization, and post it at its headquarters. The Auction Rules must be publicly announced and posted on the online auction portal and the headquarters of the asset auction organization.

3. The public announcement and posting period for the Auction Rules and the list of automobile license plates put up for auction must be at least thirty days prior to the auction date.

Article 10. Conditions for Registration to Participate in Auctions

1. Belonging to the eligible participants as stipulated in Clause 1, Article 3 of this Decree and paying the advance deposit to the asset auction organization as prescribed in Clause 2, Article 3 of Resolution No. 73/2022/QH15.

2. Organizations and individuals registering to participate in the auction shall bear full responsibility for the accuracy and honesty of the information declared for registration to participate in the auction.

Article 11. Steps to conduct an auction for automobile license plates

1. Registration to Participate in the Auction

a) Registration to participate in the auction shall be conducted entirely online on the online auction information website of the auction organization;

b) Participants in the auction shall be provided with an access account, guided on how to use the account, how to bid, and other contents on the online auction information website to carry out the auction;

c) Participants in the auction may select automobile license plates according to their needs from the list of license plates put up for auction by all provinces and centrally-run cities nationwide to participate in the auction;

d) Participants in the auction shall pay the application fee and the deposit for the selected automobile license plate to be auctioned into the account of the auction organization and shall be issued a bidding code for that automobile license plate auction;

e) The auction organization shall be responsible for receiving registration information and deposits continuously from the date of listing the auction until three days prior to the auction date.

2. Participants in the auction shall log into the online auction information website using their access account and follow the Auction Regulations to complete the bidding procedures.

3. At the end of the online auction, the online auction information website shall determine the successful bidder, announce the auction results, display the bidding record for the successful bidder to confirm, and send it to the email address registered with the auction organization.

4. The auctioneer shall be responsible for organizing and conducting the online auction, signing the bidding record electronically to send to the successful bidder.

5. The Ministry of Public Security shall assign staff to monitor and oversee the auction process: the number of auctioneers, the number of participants, the auction results, and other related issues.

6. Where the procedures and bidding processes are not specified in this Decree, they shall be carried out in accordance with the Auction Law.

Article 12. Deposit for participation in the auction

1. The deposit shall be deposited into a separate payment account of the auction organization opened at a bank from the date of registration to participate until three days before the auction date. In case of winning the auction, the deposit shall be transferred to the dedicated collection account of the Ministry of Public Security to be paid into the state budget as prescribed.

2. The handling of the deposit in specific cases shall be carried out in accordance with Article 39 of the Auction Law.

Article 13. Transfer of auction records

1. Within one working day from the end of the auction session, the auction organization must record the auction results in the Auction Record Book and notify the Ministry of Public Security in writing.

2. Within five working days from the end of the auction session, the auction organization must transfer the auction results, bidding record, and list of successful bidders to the Ministry of Public Security for approval of the auction results and completion of related procedures.

Article 14. Approval of the auction results

Within seven working days from the date of receipt of the auction results, bidding record, and list of successful bidders from the auction organization, the Ministry of Public Security shall issue a document approving the auction results.

Article 15. Notification of Auction Results

1. The Ministry of Public Security shall send the notification of auction results for automobile license plates to the email address and send a message notifying the mobile phone number registered in the access account of the successful bidder immediately after approving the auction results; the notification of auction results for automobile license plates replaces the purchase and sale contract of auctioned assets or the asset sale contract of state-owned entities.

2. The contents of the notification of auction results include: the automobile license plate won in the auction, the name, identification code of individuals or organizations (in cases where organizations have not been assigned an identification code, the tax registration number or establishment decision number shall be recorded), the address of the successful bidder, the winning bid price, the amount payable, the dedicated account number opened by the Ministry of Public Security at banks or foreign bank branches for payment of the winning bid, the deadline for payment of the winning bid, cancellation of the auction result if the full amount of the winning bid is not paid as prescribed.

Article 16. Payment of Winning Bid Amount

Within fifteen days from the date of receipt of the notification of auction results, the successful bidder must pay the entire winning bid amount minus the deposit into the dedicated account of the Ministry of Public Security opened at banks or foreign bank branches. The winning bid amount does not include vehicle registration fees.

Article 17. Issuance of Confirmation Document for Won License Plate

Immediately upon receiving the full winning bid amount, the Ministry of Public Security issues an electronic invoice for the sale of public assets and an electronic confirmation document for the won automobile license plate sent to the email address of the successful bidder for vehicle registration procedures.

Article 18. In case of suspension of the auction

1. The auction organization must suspend the auction in the following cases:

a) The Ministry of Public Security requests the suspension of the auction according to point c and point d, Clause 1, Article 47 of the Auction Law.

b) Force majeure events.

2. The Ministry of Public Security decides to organize another auction once the conditions for organizing the auction are met as prescribed.

Article 19. Cases of Cancellation of Auction Results, Notification of Auction Results, Confirmation Document for Won Automobile License Plates, and Non-Acceptance of the Auction Record by the Successful Bidder

1. The auction results are canceled in cases prescribed by the Auction Law.

2. The successful bidder's non-confirmation of the auction record is deemed as not accepting the conclusion of the purchase and sale contract of auctioned assets.

3. The notification of auction results, confirmation document for won automobile license plates are canceled in the following cases:

a) The successful bidder fails to pay the full winning bid amount within the time limit stipulated in Article 16 of this Decree;

b) The successful bidder fails to complete the registration procedures for the won automobile license plate as prescribed in point b, Clause 2, Article 6 of Resolution No. 73/2022/QH15;

c) The successful bidder violates the authenticity of the registration documents for participating in the auction.

4. The won automobile license plate will be put up for auction again; the deposit amount and the winning bid amount paid by the successful bidder will not be refunded and will be deposited into the state budget in the cases prescribed in Clauses 1, 2, and 3 of this Article.

Article 20. Management of Won Automobile License Plates

1. The won automobile license plate can only be issued to the successful bidder.

2. The registration procedures for the won automobile license plate shall be carried out in accordance with the laws on vehicle registration.

Article 21. Extension of Registration Period in Case of Force Majeure or Objective Obstacles

1. Before the expiration of the twelve-month period from the date of issuance of the electronic document confirming the winning license plate number for the auctioned car, if the winner of the auction has not completed the registration procedures for the car to install the winning license plate due to force majeure or objective obstacles, the winner must submit a request for extension through the electronic system managed by the Ministry of Public Security.

2. Within fifteen days from the occurrence of force majeure or objective obstacles, the winner of the auction must submit proof documents to the Ministry of Public Security (through the Traffic Police Department) for examination and resolution.

3. Within seven days from the receipt of the proof documents regarding force majeure or objective obstacles submitted by the winner of the auction, the Ministry of Public Security shall examine and resolve the matter and notify the result of the extension to the winner of the auction via an electronic document.

Chapter III

MANAGEMENT AND USE OF FUNDS FROM AUCTIONS

Article 22. Management and Use of Funds from Auctions

1. The Ministry of Public Security shall open a dedicated account at a bank or foreign bank branch to collect auction proceeds. Any interest generated on the balance of this dedicated account shall be fully remitted to the state budget.

2. The funds collected from the auction of car license plates, after deducting the costs of organizing the auction (referred to as the auction sale price) and any interest generated on the balance of the dedicated account of the Ministry of Public Security, shall be declared, paid, and settled with the tax authority according to the laws governing tax management.

a) By the twentieth day of each month, the Ministry of Public Security (or the agency designated by the Ministry of Public Security to manage and pay the auction sale price) shall declare and pay the auction sale price collected in the previous month to the tax authority (in accordance with Form No. 01/DG issued together with this Decree). The Ministry of Public Security (or the agency designated by the Ministry of Public Security to manage and pay the auction sale price) shall settle the annual auction sale price (in accordance with Form No. 02/DG issued together with this Decree) in accordance with the laws governing tax management;

b) All auction sale proceeds must be fully remitted to the central government budget;

c) Any interest generated on the balance of the dedicated account of the Ministry of Public Security at the bank or foreign bank branch must be fully remitted to the central budget along with the auction sale price collected in the month it was generated;

d) The Ministry of Public Security is responsible for determining and approving the costs of organizing the auction as the basis for calculating the auction proceeds to be remitted to the state budget.

3. At the same time as preparing the annual state budget estimate, based on the progress of implementation and funding needs, the Ministry of Public Security shall prepare a corresponding budget estimate of thirty percent of the auction proceeds from the previous year that have been remitted to the state budget to support traffic safety assurance work, crime prevention efforts, investment in infrastructure systems, training to improve the competence of staff involved in vehicle registration and management, and security maintenance, and send it to the Ministry of Finance for consolidation and submission to the competent authority for inclusion in the annual state budget estimate of the Ministry of Public Security in accordance with the State Budget Law and related legal documents.

4. In addition to the provisions stipulated in Clauses 1, 2, and 3 of this Article, the management and use of funds from the auction of car license plates shall also be carried out in accordance with the laws on the state budget, fees, and related laws.

Article 23. Refund of Auction Proceeds

1. Within twelve months from the date of the document confirming the winning car license plate number or the document extending the registration period in case of force majeure or objective obstacles, if the winner of the auction has not registered the winning car license plate number, the Ministry of Public Security will notify the winner of the auction at the address registered in the bidding registration file.

If the winner of the auction dies, the lawful heir of the winner of the auction shall be entitled to a refund of the auction proceeds already paid (after deducting the costs of organizing the auction as prescribed and without interest) in accordance with the law.

2. The application for refund of auction proceeds includes:

a) A request for refund of the auction proceeds for the car license plate;

b) A declaration of inheritance acceptance or a notarized agreement on the division of inheritance;

c) The document confirming the winning car license plate number;

d) Power of attorney (if applicable);

đ) Identity cards of the co-heirs.

3. Within fifteen days from the receipt of the complete application for refund, the Ministry of Public Security shall be responsible for processing the refund of the auction proceeds to the lawful heir of the winner of the auction as follows:

a) In the case of refund before the date of state budget submission: The refund shall be made from the dedicated collection account of the Ministry of Public Security opened at a bank or foreign bank branch;

b) In cases where the refund is made after the funds have been deposited into the state budget: The Ministry of Public Security shall be responsible for checking and verifying the application for refund against the relevant payment receipts previously submitted to the state budget, and if they match, the Ministry of Public Security shall issue a decision to refund and issue an order to refund the state budget revenue, which shall be transferred to the National Treasury where the state budget was originally deposited to effect the refund to the original payer of the state budget.

Chapter IV

EFFECTIVE DATE

Article 24. Implementation Organization

The Ministry of Public Security shall take the lead and coordinate with relevant ministries and sectors to implement this Decree and assign functional units to supervise and ensure security during the organization of car license plate auctions.

Article 25. Effective Date

1. This Decree takes effect from July 1, 2023.

2. The pilot implementation of car license plate auctions as provided for in this Decree shall be carried out from July 1, 2023 to July 1, 2026./.