Decree 39/2023/ND-CP detail Resolution 73/2022/QH15 pilot auction of automobiles’ number plates

DECREE

Detailing a number of articles of the National Assembly’s Resolution No. 73/2022/QH15 dated November 15, 2022, on the pilot auction of automobiles’ number plates

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

Pursuant to the Law on Road Traffic dated November 13, 2008;

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

Pursuant to the Law on Property Auction dated November 17, 2016;

Pursuant to the Law on Management and Use of Public Property dated June 21, 2017;

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

Pursuant to the Law on Cyberinformation Security dated November 19, 2015;

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

Pursuant to the National Assembly’s Resolution No. 73/2022/QH15 dated November 15, 2022, on the pilot auction of automobiles’ number plates;

The Government hereby issues the Decree detailing a number of articles of the National Assembly’s Resolution No. 73/2022/QH15 dated November 15, 2022, on the pilot auction of automobiles’ number plates.

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details a number of articles of the National Assembly’s Resolution No. 73/2022/QH15 dated November 15, 2022, on the pilot auction of automobiles’ number plates (hereinafter referred to as Resolution No. 73/2022/QH15), including the order and procedures for auctioning automobiles’ number plates and the management and use of the proceeds earned from auctions of automobiles’ number plates.

Article 2. Subjects of application

1. Ministry of Public Security.

2. Property auction organizations, auctioneers selected for auction of automobiles’ number plates.

3. Organizations and individuals participating in auction.

4. Other relevant agencies, organizations and individuals

Article 3. Interpretation of terms

In this Decree, the terms below shall be construed as follows:

1. Bidder means a Vietnamese individual or organization qualified for participating in an auction of automobiles’ number plates in accordance with regulations of this Decree and other relevant regulations.

2. Winning bidder means a bidder participating in an auction of automobiles’ number plates and making the highest bid compared to the reserve price or a bid equal to the reserve price in accordance with Article 5 of Resolution No. 73/2022/QH15.

3. An auction of automobiles’ number plate means the whole process of auctioning for an automobiles’ number plate.

4. An auction session of automobiles’ number plates shall include different auctions of automobiles’ number plates which are organized in an approved auction plan.

5. Winning bid means the amount of money that a winning bidder has to pay to have the right to use the automobiles’ number plate upon being granted a written confirmation of the automobile’s number plate bought through auction.

6. The management system for auction of automobiles’ number plates of the Ministry of Public Security shall be a collection, including software, infrastructure and transmission lines which are specifically designed for managing auction of automobiles’ number plates.

Article 4. Principle for online auctions

Auction of automobiles’ number plates shall be carried out online in the cyberspace and must comply with the law on property auctions and cyber safety and security.

Chapter II

ORDER AND PROCEDURES FOR AUCTIONING AUTOMOBILES’ NUMBER PLATES

Article 5. Quantity and serial number of automobiles’ number plates to be put up for auction

The Minister of Public Security shall decide on the number of automobiles’ number plates to be auctioned at each auction, including automobiles’ number plates of provinces and centrally-run cities, the serial symbols: A, B, C, D, E , F, G, H, K, L, M, N, P, S, T, U, V, X, Y, Z with white background, the numbers in black being unregistered and stored in the vehicle registration and management system of the Ministry of Public Security and shall supplement the quantity of automobiles’ number plates for Departments of Public Security of provinces and centrally-run cities in case of running out of automobiles’ number plates available for registration before the next auction session.

Article 6. Plan for organization of auction

1. The Minister of Public Security shall approve the plan to organize auction of automobiles’ number plates for each auction session.

2. The auction plan shall include the following contents:

a) List of automobiles’ number plates put up for auction;

b) The reserve price, bid increment and deposit;

c) Forms and methods of organizing the auction;

d) Time of organizing the auction;

dd) Handling the auction situations (if any);

e) Other relevant contents.

3. The auction plan must be publicized on the website portal of the Ministry of Public Security within 05 working days from the date on which the plan is approved.

Article 7. Auction service contract, remuneration for auction services, auction expenses paid to the auction organization

1. Service contracts for auction of automobiles’ number plates

a) The Ministry of Public Security shall sign the service contract for auction of automobiles’ number plates with one property auction organization to hold auction of automobiles’ number plates. The service contract for auction of automobiles’ number plates must be set in written form and comply with the civil law and Article 33 of the Law on Property Auction 2016;

b) The term of service contract for auction of automobiles’ number plates shall comply with the implementation period of Resolution No. 73/2022/QH15, except for cases where the selected property auction organization terminates its operation, or fails to meet the criteria and conditions to hold auction of automobiles’ number plates or the contract is terminated in accordance with law;

c) In cases of terminating the contract before the date on which Resolution No. 73/2022/QH15 takes effect, the Ministry of Public Security shall select another property auction organization which satisfies the conditions specified in Clause 3, Article 2 of Resolution No. 73/2022/QH15 to continue the implementation.

2. Remuneration for auction services, auction expenses paid to the auction organization

a) For each automobile’s number plate successfully auctioned, the remuneration for auction services paid to the property auction organization shall be equal to 8% of the reserve price, exclusive of the value-added tax and auction expenses;

b) Auction expenses paid to the property auction organization shall be VND 10,000 for each automobile’s number plate to be put up for auction.

Article 8. Auction regulations

Based on the contents which are agreed by the Ministry of Public Security, the property auction organization shall prescribe the Auction Regulations, including the following contents: List of automobiles’ number plates to be put up for auction, auction time for each automobile’s number plate, account to pay the deposit before participating in the auction and other contents as prescribed in Article 34 of the Law on Property Auction.

Article 9. Public display and announcement of the property auction

1. The Ministry of Public Security shall transfer the list of automobiles’ number plates to be put up for auction to the property auction organization, and at the same time publicize the list and the plan to hold auction of automobiles’ number plates on the portal of the Ministry of Public Security, the website of the Department of Traffic Police with the link to join the online auction website of the property auction organization.

2. The property auction organization shall publicize the list of automobiles’ number plates to be put up for auction on the National Property Auction Portal, the online auction website of the property auction organization and display publicly at its head office. The Auction Regulations must be displayed and announced publicly on the online auction website and at the head office of the property auction organization.

3. The deadline for publicly announcing and displaying information, Auction Regulations, lists of automobiles’ number plates to be put up for auction shall be at least 30 days before the date on which the auction session takes place.

Article 10. Conditions for participating in the auction

1. Being eligible to participate in auction in accordance with Clause 1, Article 3 of this Decree and having paid the deposit to the property auction organization in accordance with Clause 2, Article 3 of Resolution No. 73/2022/QH15.

2. Organizations and individuals registering to participate in the auction shall solely take responsibility for the accuracy and truthfulness of the information declared for registration to participate in the auction.

Article 11. Steps to organize an auction of automobiles’ number plates

1. Registration for participating in the auction

a) The registration for participating in the auction shall be carried out totally online on the online auction website of the property auction organization;

b) Bidder shall be provided with an account to get access to, be guided on how to use the account, how to offer bids and other contents on the online auction website to conduct the auction;

c) Bidders, according to their needs, shall select the automobile’s number plates in the list of automobiles’ number plates to be put up for auction of all provinces and centrally-run cities nationwide to participate in the auction;

d) Bidders shall pay the dossier expenses, the deposit for the automobile’s number plates selected for auction to the account of the property auction organization and shall be granted with a code to participate in the auction for such automobile’s number plates;

dd) The property auction organization shall be responsible for receiving information on registration for participating in the auction and the deposit continuously from the date on which the property auction is publicly announced until 03 days before the auction is organized.

2. Bidders shall access to the online auction website using their own accounts and conduct auction procedures as prescribed in the Auction Regulations.  

3. At the end of the online auction, the online auction website shall identify the winning bidder, announce the auction result, display the auction minutes for confirmation by the winning bidder, and send them to the emails of bidders who have registered with the property auction organization.

4. Auctioneers shall be responsible for organizing the online auction, authenticating the auction minutes with digital signatures to send to the winning bidder.

5. The Ministry of Public Security shall assign staff to monitor and supervise the auction organization process: the number of auctioneers, number of bidders, auction result and other related issues.

6. The orders and procedures for auction that are not specified in this Decree shall comply with the Law on Property Auction.

Article 12. Deposit to participate in the auction

1. The deposit shall be sent into a separate payment account of the property auction organization opened at the bank from the time of registration until 03 days before the auction time. In case of winning the auction, the deposit shall be transferred to the collection account of the Ministry of Public Security to be remitted into the State Budget in accordance with law regulations.

2. The handling of the deposit in specific cases shall comply with Article 39 of the Law on Property Auction.

Article 13. Transfer of auction dossiers

1. Within 01 working day from the end of the auction, the property auction organization must record the property auction results in the property auction register and notify in electronic documents to the Ministry of Public Security.

2. Within 05 working days from the end of the auction, the property auction organization must transfer the auction results, auction minutes, and list of winning bidders to the Ministry of Public Security for approval of the auction winning results and complete the relevant procedures.

Article 14. Approval of the auction results

Within 07 working days from the date of receiving the auction results, auction minutes, list of winning bidders from the property auction organization, the Ministry of Public Security shall issue a document approving the auction results.

Article 15. Notification of the auction results

1. The Ministry of Public Security shall send notification of the automobiles’ number plate auction results to the winning bidders’ emails and send notification messages to the phone numbers registered in their accounts immediately after approving the auction results; announce the winning results of the automobiles’ number plate auction instead of the contract for purchase or sale of an auctioned property or the contract for purchase or sale of State property.

2. Contents of notifications of auction winning results shall include: the automobiles’ number plates bought at auction, the identification numbers of the individuals or organizations (if the organization has not been granted an identification number, the tax identification number or serial number of the decision on establishment of the organization shall be written instead), addresses of the winning bidders, the winning bid, the amount to be paid, the number of the collection account opened by the Ministry of Public Security at a bank or foreign bank branch to pay the winning bid, time limit for payment of winning bid, cancellation of auction results if the auction winning bid is not fully paid as prescribed.

Article 16. Payment of the winning bid

Within 15 days from the date on which the auction results are notified, the winning bidders must send the entire winning bid after deducting the deposit into the collection account of the Ministry of Public Security opened at the bank or a foreign bank branch. The winning bid shall not include the vehicle registration fees.

Article 17. Granting of the written confirmation of the automobiles’ number plates bought through auction

Immediately after receiving the full winning bid, the Ministry of Public Security shall issue an electronic invoice for the sale of public property and an electronic document confirming the automobile’s number plate bought through auction and send to the email address of the winning bidder in order to conduct the vehicle registration procedures.

Article 18. Cases of suspending the auction

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

a) The Ministry of Public Security requires to suspend the auction in accordance with Point c, Point d, Clause 1, Article 47 of the Law on Property Auction;

b) Force majeure events.

2. The Ministry of Public Security shall decide on the resumption of the auction once all conditions to hold an auction are met.

Article 19. Cases of cancelling auction results, notification of auction results, written confirmation of the automobiles’ number plates bought through auction and winning bidders failing to confirm the auction minutes

1. The auction results shall be cancelled in cases specified in the Law on Property.

2. Winning bidders who fail to confirm the auction minutes shall be considered as refusing to sign the contract on purchase or sale of the auction property.

3. The notification of auction results and the written confirmation of the automobiles’ number plates bought through auction shall be cancelled in one of the following cases:

a) Winning bidders fail to fully pay the winning bid within the time limit specified in Article 16 of this Decree;

b) Winning bidders fail to carry out the procedures for registration of the automobiles’ number plates bought through auction in accordance with Point b, Clause 2, Article 6 of Resolution No. 73/2022/QH15;

c) Winning bidders violate the truthfulness of the application dossier for registration to participate in the auction.

4. The automobiles’ number plates which are already auctioned shall be put up for re-auction; the deposit and the winning bid that the winning bidders have already paid shall not be refunded and shall be remitted to the State budget in the cases specified in Clauses 1, 2 and 3 of this Article.

Article 20. Management of automobiles’ number plates bought through auctions

1. The automobiles’ number plates bought through auctions shall only be issued to the winning bidders.

2. The procedures for registration of automobiles’ number plates bought through auctions shall comply with the law on vehicle registration.

Article 21. Extension of registration period in case of force majeure events or objective obstacles

1. Before the last day of the period of 12 months from the date on which the electronic confirmation of the automobile’s number plates bought through auction is issued, if the winning bidder who has not yet carried out the procedures to register for the automobile’s number plates bought through auction face force majeure events or objective obstacles, such winning bidder must submit an electronic request for extension via the management system for auction of automobiles’ number plates of the Ministry of Public Security.

2. Within 15 days from the date on which the force majeure event or objective obstacle occurs, the winning bidder must send proofs to the Ministry of Public Security (via the Department of Traffic Police) for consideration and settlement.

3. Within 07 days from the date on which documents proving the force majeure event or objective obstacle of the winning bidder is received, the Ministry of Public Security shall consider, settle and notify the extension results to the winning bidder by electronic documents.

Chapter III

MANAGEMENT AND USE OF THE AUCTION PROCEEDS

Article 22. Management and use of the auction proceeds

1. The Ministry of Public Security is assigned to open a collection account at a bank or foreign bank branch to collect winning bids. Any interests arising (if any) on the balance of the Ministry of Public Security's collection account shall be remitted in full to the State budget.

2. The proceeds from auction of automobiles’ number plates after deducting the expenses for organizing the auction (the auction proceeds for short) and the profit arising (if any) on the balance of the Ministry of Public Security's collection account shall be subject to declaration, payment and settlement with tax authorities. The tax authorities shall manage the declaration, payment and finalizing of such proceeds in accordance with the law on tax administration.

a) No later than the 20^th of every month, the Ministry of Public Security (or an agency assigned by the Ministry of Public Security to manage the collection and payment of auction proceeds) shall declare and pay the auction proceeds collected last month with the tax authority (using Form No. 01/DG issued together with this Decree). The Ministry of Public Security (or the agency assigned by the Ministry of Public Security to manage the collection and payment of auction proceeds) shall finalize the auction proceeds annually (using Form No. 02/DG issued together with this Decree) in accordance with the law on tax administration;

b) All the auction proceeds shall be remitted to the central budget;

c) Any interest arising (if any) on the balance of the Ministry of Public Security's collection account at a bank or a foreign bank branch must be remitted to the central budget, together with the auction proceeds in the month of arising;

d) The Ministry of Public Security shall be responsible for determining and approving the costs of organizing the auctions in order to calculate the auction proceeds and remit to the State budget.

3. At the time of making the annual State budget estimate, based on the implementation progress and funding needs, the Ministry of Public Security shall develop an estimate corresponding to 30% of the previous year's auction proceeds which have been remitted to the State budget to serve the work of ensuring traffic order and safety, fighting against crime, investing in the system of facilities, training to improve the qualifications for officials performing the road traffic registration and management, ensuring security and order, and send it to the Ministry of Finance to summarize and submit to competent authorities for allocating funds for implementation in the annual State budget estimate of the Ministry of Public Security in accordance with the Law on State Budget and relevant legal documents.

4. In addition to the provisions specified in Clauses 1, 2, 3 of this Article, the management and use of the auction proceeds of automobiles’ number plates shall also be carried out in accordance with the law on State budget, fees, charges and relevant law regulations.

Article 23. Refund of auction winning bids

1. Within 12 months from the date of issuing the written confirmation of the automobile’s number plate bought through auction or the written extension of the registration deadline in case of any force majeure events or objective obstacles, if the winning bidder has not yet registered for automobile’s number plate bought through auction, the Ministry of Public Security shall send a notice to such winning bidder at the address registered in the auction registration dossier.

In cases where the winning bidder dies, his/her legitimate heirs shall be refunded the paid winning bids (after deducting the auction organization expenses as prescribed and shall not receive any interests) in accordance with law regulations.

2. The dossier of request for refund of auction winning bids shall include:

a) A written application for refund of winning bids of the auction of automobile’s number plate.

b) A notarized written declaration of inheritance or written agreement on division of inheritance as prescribed by the law;

c) A written confirmation of the automobile’s number plate bought through auction;

d) Power of attorney (if any);

dd) Citizen identity cards of the co-heirs.

3. Within 15 days from the date on which the complete application dossier for refund is received, the Ministry of Public Security shall be responsible for carrying out procedures for refunding the winning bids of the auction of automobile’s number plate to the legitimate heirs of such winning bidder as follows:

a) In case of refund before the time of remittance to the State budget: The refund shall be made from the collection account of the Ministry of Public Security opened at a bank or a foreign bank branch;

b) In case of refund after the time of remittance to the State budget: The Ministry of Public Security shall be responsible for checking and comparing the application dossier for refund with the documents of remittance to the State budget of the previously paid amount, if appropriate, the Ministry of Public Security shall issue a decision on refund and issue an order to refund the State budget revenues, and transfer it to the State Treasury where the State budget has been collected for refunding to the State budget payers.

Chapter IV
IMPLEMENTATION PROVISIONS

Article 24. Organization of implementation

The Ministry of Public Security shall take the prime responsibility for, and coordinate with relevant ministries and branches in, organizing the implementation of this Decree and assign functional units to supervise and ensure the safety, security during the organization of the auction of automobiles’ number plates.

Article 25. Effect

1. This Decree takes effect from July 01, 2023.

2. The pilot auction of automobiles’ number plates prescribed in this Decree shall be implemented from July 01, 2023 to July 01, 2026.

On behalf of the Government

For the Prime Minister

The Deputy Prime Minister

Le Minh Khai