DECISION

ON THE MECHANISM FOR ADMINISTRATION AND MANAGEMENT OF THE IMPORT, EXPORT, MANUFACTURE AND ASSEMBLY OF MOTORCYCLES AND THEIR ACCESSORIES IN THE 2003-2005 PERIOD

THE PRIME MINISTER

Pursuant o the Law on Organization of the Government of December 25, 2001;
In order to manage the manufacture of quality motorcycles and their accessories, to encourage export thereof and check the rapid increase in the number of motorcycles causing traffic congestion and accidents as well as serious environmental pollution;
At the proposals of the Ministries of Industry, Finance, and Planning and Investment,

DECIDES:

Article 1.- To prescribe the mechanism for administration and management of the import, export, manufacture and assembly of motorcycles and their accessories in the 2003-2005 period as follows:

1. The import of motorcycles and their accessories shall comply with the Prime Minister�s Decision No. 46/2001/QD-TTg of April 4, 2001 on the management of goods import and export in the 2001-2005 period.

2. Foreign-invested enterprises manufacturing and/or assembling motorcycles shall strictly abide by the stipulations in their investment licenses.

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4. Motorcycles manufactured and/or assembled at home must be registered for industrial property right protection, and their quality must be registered according to law provisions.

Motorcycle products manufactured in Vietnam without registration for industrial property right protection, and without quality registration as prescribed by law shall not be allowed to be registered for circulation.

Assorted accessories for motorcycle assembly, including imported and home-made accessories, must have clear and lawful origins, and their quality must be registered according to the current law provisions.

By January 1, 2004, enterprises manufacturing and/or assembling motorcycles and motorcycle engines must obtain certificates of the ISO 9001 (version 2000) quality control system for the motorcycle- and motorcycle engine-manufacturing and/or -assembling system.

5. As from January 1, 2003, the tax policies applicable to motorcycles and motorcycle accessories shall be as follows:

a/ The minimum rate of import tax on motorcycles and engines in complete units shall be 100%;

b/ The current rates of import tax on motorcycle accessories and motorcycle engine components shall be kept unchanged.

Article 2.- Implementation organization:

1. The Ministry of Industry shall have to direct the organization of implementation of this Decision; from now till before December 31, 2002, assume the prime responsibility and coordinate with the concerned agencies in organizing the re-inspection of all existing motorcycle-manufacturing and/or � assembling enterprises, and only those enterprises which fully meet the conditions under the Industry Ministry’s Decision No. 24/2002/QD-BCN of June 7, 2002 and the provisions in Clause 4, Article 1 of this Decision, can continue to manufacture and/or assemble motorcycles.

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3. The Ministry of Finance shall guide the implementation of the tax policies prescribed in Clause 5, Article 1 of this Decision; negotiate with other ASEAN members on the non-inclusion of motorcycles into the list of those entitled to tax exemption and/or reduction, and taxes shall be exempted and/or reduced only for motorcycle accessories as from January 1, 2006.

4. The Ministry of Science and Technology shall have to specifically prescribe and tightly control the registration of industrial property right protection and quality for motorcycles and motorcycle accessories of the motorcycle- and motorcycle accessories-manufacturing and/or -assembling enterprises.

5. The Ministry of Communications and Transport shall have to closely manage the registration of motorcycles and motorcycle engines; expeditiously elaborate and promulgate before December 31, 2002 the system of technical standards of motorcycles and motorcycle accessories in accordance with the current law provisions.

6. The Ministry of Trade shall direct the market-managing bodies to closely coordinate with the Public Security and the Customs forces in enhancing the measures to combat smuggling, trade fraud and fake goods-making in the fields of manufacture, import, export and circulation of motorcycles and their accessories.

Article 3.- This Decision takes effect as from January 1, 2003.

All the previous stipulations contrary to this Decision are hereby annulled.

In order to create favorable conditions for the implementation of this Decision, as from November 1, 2002, the ministries, branches, and People’s Committees of the provinces and centrally-run cities shall not license new projects on motorcycle manufacture and/or assembly.

Article 4.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.

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FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Tan Dung