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New decision may force a lot of car dealers to shut down business
2011-0523
The Ministry of Industry and Trade (MOIT) has unexpectedly released a new decision, requesting car importers to show additional documents for customs procedures. Meanwhile, the documents are believed to be unattainable for many car dealers.
Reasoning the protection of consumers and the road traffic safety, on May 12, MOIT unexpectedly set up new requirements on the import of the cars with less than nine seats. From June 26, the importers of these kinds of cars will have to show the proxies issued by importers or genuine distributors, or the agency contracts issued by manufacturers. All these kinds of products must be legalized by Vietnamese diplomatic agencies in foreign countries. If the documents are copies, they must be stamped and certified.
Besides this, enterprises must show the certificates showing that warranty and maintenance workshops can meet the requirements granted by the Ministry of Transport, to be able to put cars into circulation.
The decision on the required additional procedures was issued several days after the ministry set up similar requirements on alcohol, cosmetics and mobile phone imports.
Car dealers have expressed their worries that the new decision will deal a blow on the import car market and make it more difficult to import cars to Vietnam.
A customs official commented that the decision is a kind of barrier that MOIT has set up in order to restrict the imports of cars, considered a kind of luxurious products which Vietnam does not encourage to import.
“The new regulations do not break WTO commitments, but they will make unauthorized car dealers meet difficulties, because they will not be able to satisfy the requirements on necessary documents,” the official said
Director Pham Huu Tam, of Tradoco--a big car import company, noted that the MOIT’s decision would force a series of import car companies to shut down business, because they will never get such documents.
According to Tam, to date, companies have been importing cars to Vietnam under the mode of normal procurement contracts. This means that when importing, they do not have to show genuine proxies or agency contracts, because they simply act as the goods buyers. Enterprises themselves do not know where they should contact to get the proxy for distribution. Even if enterprises can get the documents, it will take them a lot of time and money.
Under the current regulations, importers only need to show normal procurement contracts and certificates on registration and imports’ quality will be able to put the imports into circulation.
“I believe that only the authorized agencies of the 11 operational automobile joint ventures in Vietnam can have the genuine proxies, or agency contracts, while small car dealers will not have the required documents”, he said.
He went on to say that with the new regulations, if enterprises want to import Toyota cars from the US, enterprises must get the agency contracts from Toyota Vietnam. If so, all car import companies will have to become the agents of domestic automobile joint ventures, if they want to maintain their operation.
“With the new decision, the car market will fall into the hands of the members of the Vietnam Automobile Manufacturers’ Association VAMA,” he said.
Meanwhile, foreign made cars will have to be imported into Vietnam through a narrow door, while many car dealers will have to stop business due to the strict regulations.
“The MOIT’s new decision has closed all the doors to car dealers,” the owner of a big import car in HCM City commented.
Prior to that, MOIT announced that from June 1, mobile phones can be imported to Vietnam through three seaports, including Hai Phong, Da Nang and HCM City.
Reasoning the protection of consumers and the road traffic safety, on May 12, MOIT unexpectedly set up new requirements on the import of the cars with less than nine seats. From June 26, the importers of these kinds of cars will have to show the proxies issued by importers or genuine distributors, or the agency contracts issued by manufacturers. All these kinds of products must be legalized by Vietnamese diplomatic agencies in foreign countries. If the documents are copies, they must be stamped and certified.
Besides this, enterprises must show the certificates showing that warranty and maintenance workshops can meet the requirements granted by the Ministry of Transport, to be able to put cars into circulation.
The decision on the required additional procedures was issued several days after the ministry set up similar requirements on alcohol, cosmetics and mobile phone imports.
Car dealers have expressed their worries that the new decision will deal a blow on the import car market and make it more difficult to import cars to Vietnam.
A customs official commented that the decision is a kind of barrier that MOIT has set up in order to restrict the imports of cars, considered a kind of luxurious products which Vietnam does not encourage to import.
“The new regulations do not break WTO commitments, but they will make unauthorized car dealers meet difficulties, because they will not be able to satisfy the requirements on necessary documents,” the official said
Director Pham Huu Tam, of Tradoco--a big car import company, noted that the MOIT’s decision would force a series of import car companies to shut down business, because they will never get such documents.
According to Tam, to date, companies have been importing cars to Vietnam under the mode of normal procurement contracts. This means that when importing, they do not have to show genuine proxies or agency contracts, because they simply act as the goods buyers. Enterprises themselves do not know where they should contact to get the proxy for distribution. Even if enterprises can get the documents, it will take them a lot of time and money.
Under the current regulations, importers only need to show normal procurement contracts and certificates on registration and imports’ quality will be able to put the imports into circulation.
“I believe that only the authorized agencies of the 11 operational automobile joint ventures in Vietnam can have the genuine proxies, or agency contracts, while small car dealers will not have the required documents”, he said.
He went on to say that with the new regulations, if enterprises want to import Toyota cars from the US, enterprises must get the agency contracts from Toyota Vietnam. If so, all car import companies will have to become the agents of domestic automobile joint ventures, if they want to maintain their operation.
“With the new decision, the car market will fall into the hands of the members of the Vietnam Automobile Manufacturers’ Association VAMA,” he said.
Meanwhile, foreign made cars will have to be imported into Vietnam through a narrow door, while many car dealers will have to stop business due to the strict regulations.
“The MOIT’s new decision has closed all the doors to car dealers,” the owner of a big import car in HCM City commented.
Prior to that, MOIT announced that from June 1, mobile phones can be imported to Vietnam through three seaports, including Hai Phong, Da Nang and HCM City.
Source: Vietstock
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