Circular 20 on automobile imports

15:02 | 23/08/2016 Entertainment

The Ministry of Industry and Trade (MoIT) has asked the Prime Minister not to approve a proposal on discharging regulations on automobile guarantees and maintenance services in the 2014 Investment Law. There was disagreement between auto businesses between when the MoIT put the circular's contents into a draft decree.

Circular 20 on automobile imports

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Instead of the circular's regulation requiring importers of CBUs with less than nine seats to show proof that they are authorised dealers of foreign automakers, the ministry is planning to ask for automobile guarantee and maintenance services from the brand's official suppliers.

If the proposal is approved, car users will have to get a guarantee and maintenance certificate from official suppliers or authorised businesses.

Vehicles without guarantee and maintenance certificates issued by official suppliers or authorised businesses would not be allowed to be used in Viet Nam, the MoIT proposal said.

MoIT wanted to co-ordinate with the transport ministry and relevant ministries and sectors to quickly issue regulations that have impacts similar to Circular 20 applying on all road vehicles, ensuring that all have guarantee and maintenance certificates or repair being done as per international regulations and meeting the safety standards of Viet Nam. 

The ministry said it would rely on regulations of competition to supervise the import and distribution of automobiles in Viet Nam to ensure a fair and competitive environment for businesses, especially small and medium ones.

Following five years of implementation, Circular 20 on automobile imports -- issued in 2011 by the industry and trade ministry requiring importers of CBUs with less than nine seats to show proof that they are authorised dealers of foreign automakers and give certificates of qualified guarantee and maintenance services granted by the transport ministry -- was alleged to have created exclusive rights for several businesses, limited the automobile joint ventures' capacity for localisation and eliminated many small auto enterprises from the auto import sector./.

 

Source: VNS

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