Decree No. 39/2023/ND-CP dated June 26, 2023 on elaborating the Resolution No. 73/2022/QH15 on pilot auction of motor vehicle license plates

DECREE

ELABORATING THE RESOLUTION NO. 73/2022/QH15 DATED NOVEMBER 15, 2022 OF THE NATIONAL ASSEMBLY ON PILOT AUCTION OF MOTOR VEHICLE LICENSE PLATES

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on amendment to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

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

Pursuant to the Law on 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 Safety dated November 19, 2015;

Pursuant to the Law on Cybersecurity dated June 12 ,2018;

Pursuant to Resolution No. 73/2022/QH15 dated November 15, 2022 of the National Assembly on pilot auction of motor vehicle license plates;

The Government promulgates Decree elaborating the Resolution No. 73/2022/QH15 dated November 15, 2022 of the National Assembly on pilot auction of motor vehicle license plates.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree elaborates Resolution No. 73/2022/QH15 dated November 15, 2022 of the National Assembly on pilot auction of motor vehicle license plates (hereinafter referred to as “Resolution No. 73/2022/QH15”), including auction procedures for motor vehicle license plates and management, use of revenues generated by auction of motor vehicle license plates.

Article 2. Regulated entities

1. Ministry of Public Security.

2. Property auction organizations and auctioneers selected to conduct motor vehicle license plate auctions.

3. Organizations and individuals participating in auctions.

4. Other agencies, organizations, and individuals.

Article 3. Definitions

In this Decree, terms below are construed as follows:

1. “auction participant” means a Vietnamese organization or individual eligible to participate in motor vehicle license plate auction according to this Decree and other relevant law provisions.

2. “auction winner” means a participant of online motor vehicle license plate auction which pays the highest price relative to the starting bid or equal to the starting bid in accordance with Article 5 of Resolution No. 73/2022/QH15.

3. “lot auction” means the entire auction process of one motor vehicle license plate.

4. “auction session” consists of multiple lot auctions within an approved auction plan.

5. “winning bid” means the amount paid by the auction winner(s) to acquire use right of motor vehicle license plate via issuance of written certification of the winning motor vehicle license plate.

6. “managing system for motor vehicle license plate auctions” of the Ministry of Public Security means a combination of software, infrastructures, and transmission designed specifically to serve motor vehicle license plate auctions.

Article 4. Rules for online auction

Auctions of motor vehicle license plates shall be conducted online and must comply with regulations on property auction and cyber safety and security.

Chapter II

AUCTION PROCEDURES FOR MOTOR VEHICLE LICENSE PLATES

Article 5. Quantity and code of motor vehicle license plates to be auctioned

The Minister of Public Security shall decide on the quantity of motor vehicle license plates to be auctioned at each auction session, including motor vehicle license plates of provinces and central-affiliated cities that contain the following codes: A, B, C, D, E, F, G, H, K, L, M, N, P, S, T, U, V, X, Y, Z, have white background with black lettering, have not been registered, are to be issued anew, are currently logged in managing system for motor vehicle license plate auctions of the Ministry of Public Security and provide police authorities of provinces and central-affiliated cities with additional license plates in case license plates available for registration have depleted before the next auction session starts.

Article 6. Auction plan

1. The Minister of Public Security shall approve plan for each auction session.

2. Auction plans contain primary details below:

a) List of motor vehicle license plates to be auctioned;

b) Starting bid, increment, and deposit;

c) Format and method of auction;

d) Time of auction;

dd) Handling of situations during auction (if any);

e) Other relevant details.

3. Auction plans must be publicized on websites of the Ministry of Public Security within 5 working days form the date on which the plans are approved.

Article 7. Auction service agreements, auction service commissions, and auction cost paid to auction organizations

1. Auction service agreement for motor vehicle license plate

a) The Ministry of Public Security shall enter into auction service agreement for motor vehicle license plates with a property auction organization in order to auction vehicle license plates. Auction service agreement for motor vehicle license plates must be produced in writing and conform to civil laws and Article 33 of the Law on Property Auction of 2016;

b) Term of auction service agreements for motor vehicle license plates shall conform to Resolution No. 73/2022/QH15, except for cases where selected auction organizations terminate their operation voluntarily, fail to meet standards or conditions to conduct auctions of motor vehicle license plates, or have the auction service agreements terminated as per the law;

c) If auction service agreements are terminated before effective date of Resolution No. 73/2022/QH15, the Ministry of Public Security shall choose a different auction organization satisfying conditions under Clause 3 Article 2 of Resolution No. 73/2022/QH15 to proceed with the auction.

2. Auction service commissions and auction cost paid to auction organizations

a) For each license plate to be auctioned, auction service commissions paid to auction organizations shall equal 8% of starting bid and do not include VAT and auction costs;

b) Auction costs paid to auction organizations shall equal 10.000 VND for each license plate put up for auction.

Article 8. Auction rules

Based on details specified by the Ministry of Public Security, auction organizations shall promulgate Auction rules containing: List of motor vehicle license plates to be auctioned, auction time for each license plate, deposit account, and other details in accordance with Article 34 of the Law on Property Auction.

Article 9. Public listing and announcement of auction

1. The Ministry of Public Security shall transfer list of motor vehicle license plates to be auctioned to auction organizations while publicizing the list and auction plan on their website, website of Department of Traffic Police and the link to online auction site of auction organizations.

2. Auction organizations shall publicize list of motor vehicle license plates to be auctioned on national information portal for property auction, online auction site of auction organizations and at their head office. Auction rules must be publicly listed and announced on online auction site and at head office of auction organizations.

3. Auction rules and list of motor vehicle license plates to be auctioned must be publicly announced and listed for at least 30 days before the auction takes place.

Article 10. Eligibility to participate in auctions

1. Organizations and individuals applying for participation in auction must be qualified as auction participants under Clause 1 Article 3 hereof and have submitted deposits to auction organizations in accordance with Clause 2 Article 3 of Resolution No. 73/2022/QH15.

2. Organizations and individuals applying for participation in auction must be responsible for accuracy and truthfulness of information declared for the purpose of participating in the auction.

Article 11. Steps of each lot auction of motor vehicle license plate

1. Apply for participation in auction

a) Application for participation in auction shall be done entirely on online auction website of auction organization;

b) Auction participants shall be issued with login accounts and provided with instructions on how to use the account, how to bid, and other details on online auction website in order to bid;

c) Auction participants are allowed to choose motor vehicle license plates among the list of motor vehicle license plates to be auctioned of all provinces and central-affiliated cities;

d) Auction participants shall send payments for application and deposits for motor vehicle license plates that they have selected to account of auction organizations and shall be issued with code to participate in motor vehicle license plate auction;

dd) Auction organizations are responsible for receiving application for participation in auctions and deposits throughout the period from the date on which the auction is publicly listed to 3 day

2. Auction participants shall access online auction website with their accounts and comply with auction procedures under auction rules.

3. At the end of online lot auction, online auction website shall announce auction winners, declare lot auction results, disclose auction records to enable auction winners to verify, and send to email address of auction participants registered to auction organizations.

4. Auctioneers are responsible for organizing online auctions, verifying auction records using digital signature and sending auction records to auction winners.

5. The Ministry of Public Security shall assign officials to monitor, supervise the auction process: quantity of auctioneers, quantity of auction participants, auction results, and other relevant issues.

6. Auction procedures not mentioned under this Decree shall conform to the Law on Property Auction.

Article 12. Auction deposit

1. Deposits shall be sent to a separate checking account of auction organizations. Deposit can be made from participation registration date until 3 days before auction date. Auction participants that win the auction shall have their deposits transferred to collection accounts of the Ministry of Public Security in order to be submitted to the state budget as per the law.

2. Handling of deposits in specific cases shall conform to Article 39 of the Law on Property Auction.

Article 13. Transfer of auction documents

1. Within 1 working day from the date on which auction session ends, auction organizations must record auction results in property auction log and notify the Ministry of Public Security via electronic documents.

2. Within 5 working days from the date on which auction session ends, auction organizations must transfer auction results, auction records, list of auction winners to the Ministry of Public Security for approval and relevant procedures.

Article 14. Approval of winning auction results

Within 7 working days from the date on which auction results, auction records, and lists of auction winners sent by auction organizations are received, the Ministry of Public Security shall promulgate written approval for auction results.

Article 15. Notice on winning auction

1. The Ministry of Public Security shall send notice on winning auction to email address and text messages to registered phone number of auction winners after approving auction results; notice on winning auction which serves as an alternative to contracts for sale of auction property or contract for sale of state property.

2. Notice on winning auction consists of: The license plate for auction, name and ID code of individual or organization (if the organization has not been issued with ID code, specify TIN or number of decision on establishment), address of auction winner, winning bid, amount payable, collection account number of the Ministry of Public Security opened in banks, foreign bank branches for deposits, time limit for submitting winning bid, cancellation of auction results in case of failure to submitting the winning bid as per the law.

Article 16. Submission of winning bid

Within 15 days from the date on which notice on winning auction is issued, auction winners must submit the winning bid minus their deposits to collection account of the Ministry of Public Security opened in banks, foreign bank branches. Winning bid does not include vehicle registration charges.

Article 17. Written confirmation of won license plates

As soon as the Ministry of Public Security has received the winning bid, the Ministry of Public Security shall issue e-invoice for the sale of public property and electronic documents confirming won license plates and send to email address of auction winners for vehicle registration purposes.

Article 18. Suspension of auction

1. Auction organizations are required to suspend auction sessions when:

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

b) Force majeure occurs.

2. The Ministry of Public Security shall decide on continuation of auction if they deem all conditions for auction have been met as per the law.

Article 19. Cancellation of auction results, notice on auction results, written confirmation of won license plates and auction winner’s failure to verify auction records

1. Auction results shall be cancelled under situations mentioned under the Law on Property Auction.

2. Auction winners failing to confirm auction records are considered to have cancelled contract for sale of auction property.

3. Notice on winning auction and written confirmation of won license plates shall be cancelled when:

a) Auction winners fail to adequately submit winning bid within the time limit mentioned under Article 16 hereof;

b) Auction winners fail to register their won license plates in accordance with Point b Clause 2 Article 6 of Resolution No. 73/2022/QH15;

c) Auction winners fail to guarantee legitimacy and adequacy of auction registration.

4. Won license plates shall be available for auction again; deposits and winning bid submitted by auction winners shall not be eligible for refund but shall be submitted to state budget under cases of Clause 1, Clause 2, and Clause 3 of this Article.

Article 20. Management of won license plates

1. Won license plates shall only be issued to auction winners.

2. Registration procedures of won license plates shall conform to vehicle registration laws.

Article 21. Extension of registration time limit in case of force majeure or objective hindrance

1. If auction winners have not performed vehicle registration and utilize won license plates within 12 months from the date on which electronic documents confirming won license plates and are met with force majeure or objective hindrance, auction winners must file a request for extension via managing system for motor vehicle license plate auctions of the Ministry of Public Security.

2. Within 15 days from the date on which force majeure or objective hindrance occurs, auction winners must submit written proof to the Ministry of Public Security (via Department of Traffic Police).

3. Within 7 days from the date on which written proof for force majeure or objective hindrance sent by auction winners is received, the Ministry of Public Security shall review, process, and notify extension results to auction winners via electronic documents.

Chapter III

MANAGEMENT AND USE OF AUCTION REVENUES

Article 22. Management and use of auction revenues

1. The Ministry of Public Security shall open collection accounts at banks, foreign bank branches to collect winning bid. Interests (if any) of balance of collection account of the Ministry of Public Security shall be submitted to the state budget.

2. Revenues generated by auctioning license plates minus organizing costs (hereinafter referred to as “auction revenues”) and interests (if any) of balance of collection accounts of the Ministry of Public Security shall be declared, submitted, and finalized with tax authority. Tax authority shall manage declaration, submission, and finalization of the revenues in accordance with tax laws.

a) The Ministry of Public Security (or agencies assigned by the Ministry of Public Security to manage collection and submission of auction revenues) must declare and submit auction revenues of the previous month to tax authority (using form No. 01/DG attached hereto) by the end of the 20^th of each month. The Ministry of Public Security (or agencies assigned by the Ministry of Public Security to manage collection and submission of auction revenues) shall finalize auction revenues on an annual basis (using Form No. 02/DG attached hereto) in accordance with tax administration laws;

b) Auction revenues shall be entirely submitted to central government budget;

c) Interests (if any) of balance of collection account of the Ministry of Public Security and auction revenues of the month shall be submitted to the state budget;

d) The Ministry of Public Security is responsible for determining and approving auction organizing costs which serve as the basis for determining auction revenues submitted to the state budget.

3. When producing annual state budget estimates, depending on actual progress and expenditure demand, the Ministry of Public Security shall develop estimates equivalent to 30% of auction revenues submitted to the state budget in the previous year for the purpose of maintaining traffic order and safety, preventing and fighting crime, investing in infrastructure, providing training for officials in charge of registration and management of road vehicles, maintaining security and order, submitting to the Ministry of Finance to request competent authority to allocate funding for implementation in annual state budget estimates of the Ministry of Public Security in accordance with the Law on State Budget and relevant law provisions.

4. In addition to Clauses 1, 2, and 3 of this Article, the management and use of auction revenues must also comply with state budget laws, fee and charge laws, and relevant law provisions.

Article 23. Refund of winning bid

1. If auction winners have not registered won license plates attached to vehicles within 12 months from the date on which written confirmation of won license plates or documents on extension of registration time limit due to force majeure or objective hindrance, the Ministry of Public Security shall send notice to address registered by auction winners in auction registration.

If auction winners decease, legitimate heirs of the auction winners shall receive refund of the winning bid (minus auction organizing costs as per the law and without interests) as per the law.

2. Application for winning bid refund consists of:

a) Written application for refund of license plate winning bid;

b) Documents acknowledging inheritance or documents on distribution of inheritance notarized as per the law;

c) Written confirmation of won license plates;

d) Power of attorney (if any);

dd) Citizen ID Cards of co-heirs.

3. Within 15 days from the date on which adequate application for refund is received, the Ministry of Public Security is responsible for refunding winning bid to legitimate heirs of auction winners as follows:

a) If the winning bid has not been submitted to the state budget: Refund shall be made from collection account of the Ministry of Public Security in banks, foreign bank branches;

b) If the winning bid has been submitted to the state budget: the Ministry of Public Security is responsible for examining and cross-checking refund application against proof of payment made to the state budget and if the results are appropriate, the Ministry of Public Security shall promulgate decision on refund, produce refund order for state budget revenues, and transfer to State Treasury where submission to the state budget is made in order to refund.

Chapter IV

ENTRY INTO FORCE

Article 24. Organizing implementation

The Ministry of Public Security shall take charge and cooperate with relevant ministries, central departments in organizing implementation of this Decree and assigning authorities to supervise, maintain security and safety during auction of motor vehicle license plates.

Article 25. Entry into force

1. This Decree comes into force from July 01, 2023.

2. Details on pilot auction of motor vehicle license plates under this Decree shall be effective from July 1, 2023 to July 1, 2026.