Circular 04/2020/TT-BCT auction of import tariff quotas for used automobiles

CIRCULAR

Prescribing the auction of import tariff quotas for used automobiles under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership^[1]

Pursuant to the Government’s Decree No. 98/2017/ND-CP of August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 69/2018/ND-CP of May 15, 2018, detailing a number of articles of the Law on Foreign Trade Management;

Pursuant to the Government’s Decree No. 62/2017/ND-CP of May 16, 2017, detailing a number of articles on measures to implement the Law on Property Auction;

Pursuant to the Government’s Decree No. 151/2017/ND-CP of December 26, 2017, detailing a number of articles of the Law on Management and Use of Public Assets;

Pursuant to the Government’s Decree No. 116/2017/ND-CP of October 17, 2017, prescribing the conditions for manufacture, assembly and import of automobiles and provision of automobile warranty and maintenance services;

In implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP Agreement) which was concluded on March 8, 2018;

At the proposal of the Director General of the Agency of Foreign Trade,

The Minister of Industry and Trade promulgates the Circular prescribing the auction of import tariff quotas for used automobiles under the CPTPP Agreement.

Article 1.Scope of regulation

This Circular prescribes the auction of import tariff quotas for used automobiles under the CPTPP Agreement.

Article 2.Subjects of application

1. Traders as prescribed by Vietnam’s law.

2. Organizations and individuals involved in the import of automobiles.

Article 3.Types and volumes of tariff quotas

The types, HS codes and volumes of import tariff quotas for each year are provided in Appendix I to this Circular.

Article 4.Methods of tariff quota allocation

1. The import tariff quotas for used automobiles prescribed in Article 3 of this Circular shall be allocated on the basis of auction.

2. Subjects eligible to participate in the auction of tariff quotas are traders as prescribed by Vietnam’s law.

Article 5.Regulations applicable to used automobiles to be imported under tariff quotas

1. Used automobiles mean automobiles that have been registered for sale in exporting countries before arriving at Vietnamese border gates in accordance with law.

2. Used automobiles to be imported under tariff quotas in accordance with Article 3 of this Circular must satisfy the rules of origin in the CPTPP Agreement and have certificates of origin when import procedures are carried out.

3. Used automobiles to be imported under tariff quotas in accordance with Article 3 of this Circular must comply with current regulations on technical regulations, technical quality and safety and environmental protection applicable to automobiles, and regulations on border gates of import of automobiles.

4. The types of to-be-imported automobiles must comply with automobile import licenses in accordance with law.

Article 6.Auction principles

1. The principles, order and procedures for auction of tariff quotas must comply with the law on property auction.

2. An auction session shall be held in the first quarter each year and the time of organizing an auction may be extended on a case-by-case basis but must not be later than April 15.

3. The Ministry of Industry and Trade shall establish an auction council for import tariff quotas for used automobiles to run auctions. The chairperson of the auction council shall issue a regulation on auction of import tariff quotas for used automobiles.

4. Tariff quotas shall be allocated to traders in a descending order of bids.

5. Information on an auction session and procedures for submitting auction dossiers shall be publicly announced in the mass media at least 30 (thirty) days before the date of auction.

6. The auction council may not set a minimum bid for bidders to participate in or receive quotas allocated through auction.

7. The names of the winning bidders, winning bids, and allocated quota volumes shall be publicized in the mass media within 14 (fourteen) days after an auction session.

Article 7.Notification of auction results

Within 14 (fourteen) days after obtaining the auction results from the auction council, the Ministry of Industry and Trade shall issue a notice assigning the winning bidders with the right to use import tariff quotas for used automobiles.

Article 8.Import procedures

1. Traders importing used automobiles are enterprises that have been granted automobile import licenses by the Ministry of Industry and Trade in accordance with law.

2. In case a trader participates in and wins an auction but does not possess an automobile import license, it/he/she may entrust an enterprise possessing such license to import automobiles.

3. When carrying out the procedures for importing used automobiles under tariff quotas, traders shall, apart from carrying out the import procedures in accordance with current regulations, produce to customs offices the Ministry of Industry and Trade’s notice assigning them with the right to use import tariff quotas for used automobiles.

4. The regulations on warranty, maintenance and recall of automobiles must comply with the Government’s Decree No. 116/2017/ND-CP of October 17, 2017, prescribing the conditions for manufacture, assembly and import of automobiles and provision of automobile warranty and maintenance services.

Article 9.Effect

This Circular takes effect on March 5, 2020.

Minister of Industry and Trade
TRAN TUAN ANH

Appendix I

TARIFF QUOTA VOLUMES FOR USED AUTOMOBILES TO BE IMPORTED EACH YEAR AS COMMITTED IN THE CPTPP AGREEMENT

(To Circular No. 04/2020/TT-BCT of January 22, 2020, prescribing the import of used automobiles as committed in the CPTPP Agreement)

From 2035 onward, the quantity of used automobiles to be put up for auction of import tariff quotas as committed in the CPTPP Agreement will be the same as that of 2034.-