What are the regulations on auction cost paid to auction organizations in Vietnam from July 1, 2023?
- What are the regulations on auction cost paid to auction organizations in Vietnam from July 1, 2023? How to calculate the auction service commissions?
- What are the regulations on auction service agreement for motor vehicle license plate in Vietnam?
- What are the regulations on auction deposit for motor vehicle license plate in Vietnam?
What are the regulations on auction cost paid to auction organizations in Vietnam from July 1, 2023? How to calculate the auction service commissions?
In Article 7 of Decree 39/2023/ND-CP guiding Resolution 73/2022/QH15 on pilot auction of motor vehicle license plates, it is stipulated:
Auction service agreements, auction service commissions, and auction cost paid to auction organizations
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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.
Thus, auction costs paid to auction organizations shall equal 10.000 VND for each license plate put up for auction and at the same time, 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.
What are the regulations on auction cost paid to auction organizations in Vietnam from July 1, 2023?
What are the regulations on auction service agreement for motor vehicle license plate in Vietnam?
Pursuant to Article 7 of Decree 39/2023/ND-CP stipulates:
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.
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Thus, 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.
What are the regulations on auction deposit for motor vehicle license plate in Vietnam?
Pursuant to Article 12 of Decree 39/2023/ND-CP stipulates:
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.
Thus, 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.
And the handling of deposits in specific cases shall conform to Article 39 of the Law on Property Auction of 2016.
Refer to Article 39 of the Law on Property Auction of 2016 as follows:
Advance payment and handling thereof
1. A bidder shall make an advance payment, which shall be agreed upon by the property auction organization and property seller and must be between five percent and twenty percent of the reserve price of the auctioned property.
The advance payment shall be deposited into a separate payment account opened by the property auction organization at a commercial bank or foreign bank branch in Vietnam. If the advance payment is valued at under five million Vietnam dong, a bidder may make it directly to the property auction organization. The bidder and property auction organization may reach agreement on substitution of bank guarantee for advance payment.
2. The property auction organization may only collect an advance payment from a bidder within 3 working days before the date an auction opens, unless otherwise agreed upon by this organization and bidder but the collection must be earlier than the date the auction opens. The property auction organization may not use the bidder’s advance payment for any other purpose.
3. The bidder may refuse to participate in an auction and be refunded the advance payment in case of a change in the reserve price, quantity or quality of property with information thereon already displayed or disclosed, and may receive any interest on such advance payment.
4. In case the bidder does not win the auction the property auction organization shall refund the advance payment and pay an interest thereon (if any) within 3 working days after the date the auction ends or within another time limit agreed upon by the parties, except the case specified in Clause 6 of this Article.
5. If the bidder wins the auction, the advance payment and interest thereon (if any) shall be converted into a deposit to secure the performance of a transaction or a contract on purchase and sale of the auctioned property or an obligation to buy the auctioned property after obtaining approval from a competent agency. The deposit shall be handled in accordance with the civil law and other relevant laws.
Thus, the handling of deposit for motor vehicle license plate is carried out according to the regulations mentioned above.
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