Name of recommendations: Recommendations on a licensing issue of transport business without directly amount collection for enterprises

Status: Has been incompletly responded

Recommended by units: The Cat Tuong Trade and Service Joint Stock Company

Official letter: No 1602/ PTM - VP, dated: 2018-07-25

Recommended contents:

The Cat Tuong Trade and Service Joint Stock Company is a trading company; electronic sales and press release agents. We do not do transportation services, only use a truck for the operation of the company, our company only has 01 (one) truck. Recently, traffic polices have often stoped our car for punishment because there is no badge "TRANSPORT". The application of sanctions is based on the Decree 86/2014 / ND-CP as follows:

 “Article 3 of the Decree No. 86/2014 / ND-CP:

1. Transport business by auto is the use of auto to transport goods or passengers on road for profits; includes transport business with direct and indirect money collection.
2. Money collection transport business with direct money collection is the transport business by auto, in which the transport business units provide the transport services and collect freight directly from customers.
3. Transport business without direct money collection is the transport business by auto, in which the transport business units perform the transport phase and perform at least another phase in the process from production to consumption of products or services and collect freight through revenues from such products or services".

As such authorities concluded, our Cat Tuong company "is a transport business unit does not collect money directly." According to the Decree 86, the competent authority decides that the vehicle of the enterprise "is a business unit conducting business of transportation without direct charge"so, they sanctioned our company in accordance with the regulations.

However, in accordance with Article 19 of Decree 86/2014 / ND-CP; Article 50 of the Decree No. 63/2014 has stipulated that the company does not fully meet the conditions of being a transportation business unit without direct collection as follows:

"Article 19 of the Decree No. 86/2014 / ND-CP for cargo transportation business

1. The goods transport business units must meet the conditions specified in Article 13 of this Decree.

2. From July 01, 2017, enterprises and cooperatives doing business of goods transport in containers and the goods transport business units using the trailer or semi-trailer tractors and autos to transport goods on the itinerary with distance from 300 km or more must have a minimum number of autos as follows:

a) For units whose head office is located in centrally-run cities: from 10 autos or more;

b) For units whose head office is located at remaining localities: From 05 autos or more; for units whose head office is located in poor districts as prescribed by the Government: From 03 autos or more”.

"Article 50 of the Circular No. 63/2014 / TT-BGTVT dated November 7, 2014, stipulating that subjects of business units transporting goods without direct charge must have business licenses:

1. A company providing goods transport service without direct collection of money shall obtain the License for automobile transport if such company::

a) Uses vehicles for transporting hazardous goods specified by the Government on list of dangerous goods and provisions regarding transport of hazardous goods and competence to issue License for transport of hazardous goods.

b) Uses vehicles for transporting oversize/overweight goods according to regulations on vehicular weight and dimensional limits of road, use of overloaded vehicles, vehicles exceeding the dimensional limits, tracked vehicles on road, transport of oversized/overweight cargo, limits on goods loaded on road vehicles running on public roads.

c) Owns at least 05 vehicles.

d) Uses a vehicle that has carrier capacity of 10 tones or more for transporting goods”.

Meanwhile, the company has only one truck for electronic sales and press release, the parcel delivery can not meet the conditions for obtaining a license.

Therefore, Cat Tuong Trade & Service JSC would like to recommend:

1. If we apply our company as "business unit business transportation without direct charge", then we apply for a license to the company:

2. With the current regulations, if the company wants to use autos and use their own properties, the company must do illegally (thanks to a cooperative or transport company issued badges to make contracts for autos rental) The All accounting vouchers related to the operation of the vehicle must be made in error, not in accordance with the tax law;

3. The properties of the company must not be used, thus causing waste of money and financial resources which are detrimental to the interests of the company. In this case, compensation for damages shall be settled.