Auction of 72 units of used car under CPTPP commitment

Illustration: T.Binh

Specifically, the auctioned property is the import tariff rate quota for 72 used cars (HS: 87.02, 87.03, 87.04), including the imports tariff rate quota for 36 cars with an engine capacity of more than 3,000 cubic centimetres; the import tariff quota for 36 cars with an engine capacity of 3,000 cubic centimetres or less.

The cars, before arriving at Vietnam's border gates, and registered for circulation in countries with emissions standards equivalent to or higher than Vietnam's current emission standards.

Imported used cars must be subject to technical safety quality inspection and environmental protection for each vehicle according to regulations.

The content to note is that the automobile import business is a conditional business sector, complying with the provisions of Decree No.116/2017/ND-CP dated October 17, 2017 on production conditions, assembly, import and business of automobile warranty and maintenance services and Decree No.17/2020/ND-CP dated February 5, 2020 amending and supplementing a number of articles of the Decrees related to investment and business conditions under the State management of the MoIT.

All traders as provided for by Vietnamese law are entitled to participate in the import duty quota auction for used cars. However, only enterprises that are licensed to import cars in accordance with Decree No.116/2017/ND-CP are allowed to import the vehicles.

If the auction winner is an enterprise that has a license to import automobiles but has not registered its mark, type and condition of the vehicle expected to be imported according to the winning auction quota, the trader shall send a dossier to the MoIT to supplement the automobile import business license.

The MoIT recommends traders work with foreign partners on related matters before participating in the auction to ensure the smooth addition of licenses after a successful auction.

In case the auction winner does not have an automobile import business license as prescribed in Decree 116/2017/ND-CP, the auction winner must entrust the import to the enterprise that has business car licenses consistent with the brand, type and condition of the vehicle expected to be imported according to the winning quota.

The MoIT recommends that traders have preliminary agreements with these enterprises before participating in the auction to ensure the import after the auction is successful.

The MoIT further said that used cars imported under tariff quotas must meet the rules of origin in the CPTPP and must have proof of origin when carrying out import procedures.

The auction is scheduled to be held on April 5, 2021, in Hanoi.