THE
MINISTRY OF INDUSTRY
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
02/2002/TT-BCN
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Hanoi,
September 18, 2002
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CIRCULAR
GUIDING THE INVESTMENT
IN THE MANUFACTURE AND/OR ASSEMBLY OF MOTORCYCLE ENGINES BY DOMESTIC
ENTERPRISES
Pursuant to the Prime Minister’s Decision No.
38/2002/QD-TTg of March 14, 2002 on the management of the manufacture, assembly
and import of motorcycle accessories;
Pursuant to the Government Office’s Notice No. 99/TB-VPCP of June 6, 2002
announcing the Prime Minister’s conclusions on the realization of motorcycle
localization policy;
Pursuant to Joint Circulars No. 92/2001/TTLT-BTC-BCN-TCHQ of November 20,
2001 of the Ministry of Finance, the Ministry of Industry and the General
Department of Customs and No. 52/2002/TTLT-BTC-BCN of June 4, 2002 of the
Ministry of Finance and the Ministry of Industry guiding the realization of the
tax preference policy for the manufacture of motorcycles and their engines;
The Ministry of Industry hereby guides the investment in the manufacture and
assembly of motorcycle engines by domestic enterprises as follows:
I. OBJECTS OF APPLICATION:
This Circular applies to enterprises of all economic
sectors, which are set up under Vietnam’s law (except foreign-invested
enterprises).
II.
SPECIFIC PROVISIONS:
1. The investment projects on the manufacture
and/or assembly of motorcycle engines must be formulated in strict accordance
with the provisions in the Regulation on construction and investment
management, which was issued together with the Government’s Decree No.
52/1999/ND-CP of July 8, 1999 and amended and supplemented in Decree No.
12/2000/ND-CP of May 5, 2000, then submitted to the Ministry of Industry for
consideration and appraisal.
2. The investment projects on the manufacture
and/or assembly of motorcycle engines must comply with Item d, Point 2 of the
Regulation on criteria of motorcycle-manufacturing and -assembling enterprises,
issued together with Decision No. 24/2002/QD-BCN of June 7, 2002 of the
Minister of Industry.
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The enterprises shall have to make investment in
technology and workshop by themselves, so as to be capable of manufacturing
details of the assembly they have registered (listed in Appendix 6 attached to
Joint Circular No. 52/2002/TTLT-BTC-BCN of June 4, 2002 of the Ministry of
Finance and the Ministry of Industry) from raw materials and semi-finished
products under a complete technological process. They may buy the casting,
pressing and forging blanks of such details and detail assemblies from other
manufacturers (at home or overseas) and shall not necessarily have to
manufacture assorted gaskets and such standardized details as bolts, nuts,
bearings
3. The enterprises shall have to implement the
motorcycle localization program according to the annual specific target and
tempo as follows (counting from the first year after the projects are put into
operation):
The first year: The localization rate of engines
≥20%
The second year: The localization rate of
engines ≥30%
The third year: The localization rate of engines
≥45%
The fourth year: The localization rate of
engines ≥60%.
The localization rate of motorcycle engines
shall be calculated according to the provisions in Appendix 6, issued together
with Joint Circular No. 52/2002/TTLT-BTC-BCN of June 4, 2002 of the Ministry of
Finance and the Ministry of Industry.
4. The motorcycle engines, which are
manufactured and/or assembled by enterprises, must be checked according to the
provisions at Item c, Point 4 (criteria on technical and technological levels)
of the Regulation on criteria of motorcycle-manufacturing and -assembling
enterprises, issued together with Decision No. 24/2002/QD-BCN of June 7, 2002
of the Minister of Industry.
5. The motorcycle-manufacturing enterprises must
obtain copyright for motorcycle engines designs (which are researched or
developed by the enterprises themselves or lawfully transferred by original
manufacturers). In cases where the enterprises buy the designs and
engine-manufacturing technologies from foreign partners, they must obtain technology
transfer contracts and/or contracts for the transfer of trademarks and
industrial property rights from foreign partners to the Vietnamese side for the
manufacture and/or assembly of engines.
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- Documents on products designs,
- Documents on engine-manufacturing and/or
-assembling technologies,
- Permits for the use of trademarks,
- Training programs,
- Technical assistance programs.
Contracts on the transfer of motorcycle
engine-manufacturing technology from foreign countries into Vietnam must be
expertised and approved under current law provisions.
6. The motorcycle engine-manufacturing and/or
-assembling enterprises must not infringe upon the industrial property right to
trademarks and industrial designs in the manufacture and/or assembly of
motorcycle engines, have to make registration for their manufactured and/or
assembled engines according to current law provisions, and comply with the
regulations on the management of motorcycle engines’ numbers, issued by State
management agencies.
III. IMPLEMENTATION ORGANIZATION:
1. The investment projects on the manufacture
and/or assembly of motorcycle engines shall send dossiers to the Ministry of
Industry for consideration and appraisal (for State enterprises, such dossiers
shall be sent via the investment-managing agencies). Within 15 working days as
from the date of receiving valid dossiers, the Ministry of Industry shall
release its official opinions on the contents of the investment projects.
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Enterprises having investment projects on the
manufacture of motorcycle engines at home may borrow the State’s development
investment credit capital under the provisions in Article 3 of the Prime
Minister’s Decision No. 38/2002/QD-TTg of March 14, 2002 on the management of
the manufacture, assembly and import of motorcycle accessories.
3. The motorcycle-manufacturing and/or
-assembling enterprises, after being inspected and recognized by the Ministry
of Industry as having met the criteria issued together with Decision No.
24/2002/QD-BCN of June 7, 2002 of the Ministry of Industry and Joint Circular
No. 52/2002/TTLT-BTC-BCN of June 4, 2002 of the Ministry of Finance and the
Ministry of Industry, shall be entitled to import motorcycle engines in
complete sets (if the enterprises have not yet had motorcycle engine-assembling
chains) or motorcycle engines component sets (if the enterprises have already
invested in engine-assembling chains) as prescribed in the Prime Minister’s
Decision No. 46/QD-TTg of April 4, 2002 on the management of goods import and
export in the 2001-2005 period.
4. The enterprises manufacturing and/or
assembling motorcycle engines, when carrying out procedures for the import of
engines component sets, shall have to produce to the customs offices the
written certifications of qualification for the manufacture and assembly
thereof, issued by the Ministry of Industry.
5. This Circular takes effect 15 days after its
signing.
FOR THE MINISTER OF INDUSTRY
VICE MINISTER
Nguyen Xuan Chuan