Decision No. 0035/2001/QD-BTM dated January 11, 2001 of the Ministry of Trade promulgating the regulation on bidding for quotas of textiles and garments for export into quota-regulated markets

DECISION

PROMULGATING THE REGULATION ON BIDDING FOR QUOTAS OF TEXTILES AND GARMENTS FOR EXPORT INTO QUOTA-REGULATED MARKETS

THE MINISTER OF TRADE

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

Pursuant to the Governments Official Dispatch No. 1126/CP-KTTH of September 21, 1998 allocating quotas of textiles and garments for export into quota-regulated markets;

Pursuant to Decision No. 1722/2000/BTM/QD of December 12, 2000 of the Minister of Trade on the establishment of the Council for Textile and Garment Quota Bidding;

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

DECIDES:

Article 1.- To issue together with this Decision the Regulation on Bidding for quotas of textiles and garments for export into quota-regulated markets.

Article 2.- This Decision replaces Decision No. 1405/1998/QD/BTM of November 17, 1998 and takes effect 15 days after its signing.

Article 3.- The Chairman of the Bidding Council, members of the Bidding Council, the director of the Ministrys Office, the director of the Organization and Personnel Department, the director of the Import-Export Department and enterprises participating in the bidding shall have to implement this Decision.

REGULATION

ON BIDDING FOR QUOTAS OF TEXTILES AND GARMENTS FOR EXPORT INTO QUOTA-REGULATED MARKETS
(Issued together with Decision No. 0035/2001/QD-BTM of January 11, 2001 of the Minister of Trade)

Part I.

GENERAL PROVISIONS

Article 1.- Subjects participating in the bidding

1.1. Enterprises participating in the bidding are enterprises that have business registration certificates, have compatible business lines, have already registered importing-exporting enterprises codes or have investment licenses under the Law on Foreign Investment in Vietnam. Particularly for the categories of T-shirt (Cat. 4), sweaters (Cat. 5), trousers (Cat. 6) and men�s shirts (Cat. 8), subjects participating in the bidding shall be enterprises which were allocated quotas in 2000.

Article 2.- Bidding principles:

2.1. The bidding and the opening of bids shall be organized publicly.

2.2. Based on the specific conditions of each bidding drive, the Bidding Council shall stipulate the category, the quantity of each category and the price offered for bid of each category in each bidding round.

2.3. Enterprises being subjects prescribed in Article 1 may register for participation in the bidding for categories opened for bid, and for each category, they may register the maximum quantity defined in the bidding dossiers.

Article 3.- Bidding Council

The Bidding Council shall be composed of the Trade Ministrys leading official as its Chairman and departmental-level representatives of the Ministry of Trade, the Ministry of Industry, the Ministry of Planning and Investment and the Ministry of Finance as its members.

The list of the Councils full-fledged members shall be announced by the Trade Ministrys leaders after getting comments of participating ministries. The Minister of Trade shall decide on the establishment of the Bidding Council as well as its organizational structure, functions and tasks.

The Bidding Council shall have the responsibility to prepare, organize and effect the bidding and announce the results thereof.

Part II.

ORDER OF BIDDING ORGANIZATION

Article 4.- Preparation for bidding

4.1. The Bidding Council shall provide for the categories and quota volume for the bidding, way of organizing the bidding and announce bid invitation (on the Trade, Investment, Industry and Finance newspapers).

4.2. Bids

Each enterprise shall submit only one bid, which includes:

1. The written registration of participation in the bidding

2. The copies of the business registration certificate and importing/exporting enterprises code registration or copy of the investment license under the Law on Foreign Investment in Vietnam

3. A written commitment to pay deposit to secure the fulfillment of the quota volume won in the bidding

The bid shall be sealed and inscribed with "Dossiers of participation in bidding for quotas of textiles and garments".

Article 5.- Procedures for the implementation of the bidding

5.1. Bidding registration

The participating enterprises, which fully satisfy conditions prescribed in Article 1, shall send their bids to the Ministry of Trade. The deadline for sending bids shall be the end of the working day proceeding the bid-opening day.

5.2 Time and venue for bid opening shall be prescribed in the bid invitations.

5.3. Announcement of bidding results: Within 7 working days at most after the bid opening day, the Bidding Council shall announce the bidding results on branches newspapers and notify them in writing to bid-winning enterprises.

Article 6.- Bid consideration criteria

The bid-winning enterprises shall be enterprises that have offered high prices in the order of bid calling for each category, which are not lower than the bidding prices.

- In cases where many bidders have offered the same lowest bid-winning price, the volume with the lowest bid-winning price shall be divided among such bidders according to the proportion of their registered volumes.

- In cases where the bid-winning enterprises refuse the bidding results, they shall have to notify the Bidding Council thereof in writing within 10 working days as from the date of announcement of the bidding results. The Bidding Council shall assign the quotas to the bidder with the next lower bid price if the latter agrees to take it. In cases where many enterprises have the same next lower price, the above quotas shall be divided among such bidders according to the proportion of their registered volumes.

Article 7.- Responsibilities and interests of bid-winning enterprises

7.1. Within 14 working days as from the date of receiving the notice on bid-winning, the bid-winning enterprises shall have to pay deposit money to secure the fulfillment of the won quotas, which is equal to 15% of the total amount they have to pay for the purchase of the won quotas. The deposit money shall be paid in "bank security" issued by or in transferred money of the banks where the enterprises have opened their accounts. Such "bank security" shall automatically cease to be valid when the enterprises fulfill 90% or more of their won quotas. If the enterprises fail to pay the "bank security" or transfer money within the said time-limit, the notice on the assignment of the won quotas for the corresponding goods lots shall automatically cease to be valid. The Bidding Council shall handle such goods lots according to Article 6.

Any enterprises that fail to strictly abide by the provisions of this Article shall not be allowed to participate in the bidding for quotas in the subsequent year.

The deposit money shall be unfrozen only when the enterprises fulfill 90% or more of their won quotas.

7.2. After paying the deposit money to secure the fulfillment of the won quotas as prescribed at Point 7.1, the bid-winning enterprises shall send the payment vouchers to the Ministry of Trade (the Import-Export Department), so as to get notices on assignment of won quotas.

7.3. The bid-winning enterprises may not get back their deposits for securing the implementation if they fulfill less than 90% of their won quotas or withdraw the bidding participation application after the time limit prescribed at Point 7.1.

7.4. Enterprises shall have to pay for the purchase of won quotas for each goods lot before goods delivery.

7.5. The won quotas may be transferred. Enterprises, which transfer their won quotas, shall have to send a written application to the Ministry of Trade for certification.

Article 8.- Implementation provisions

This Regulation takes effect 15 days after the signing of the decision on its promulgation and shall be sent to the ministries and State management bodies. In the course of implementation, if meeting with any problems, the concerned ministries, branches, localities and units shall have to promptly report them to the Bidding Council for consideration and proper adjustment.

APPENDIX

LIST OF QUOTAS OF TEXTILES AND GARMENTS FOR EXPORT INTO THE EU, OPENED FOR BID IN 2001
(attached to Decision No. 35/2001/QD-BTM of January 11, 2001)