Article 4 Preferences

1. Viet Nam shall grant the following tariff rate quotas for duty-free import of the models of motor transport vehicles imported by the joint venture(s), which shall be included in the production plan(s) in the territory of Viet Nam of such joint venture(s) approved by the Vietnamese Party:

for year 2016: 800 units;

for year 2017: 850 units;

for year 2018: 900 units.

2. Viet Nam shall grant the following tariff rate quotas for duty-free import of SKD sets necessary for production of motor transport vehicles in the semi- knocked down industrial assembly imported by the joint venture(s):

for year 2016:0 set;

for year 2017: 2500 sets;

for year 2018: 3000 sets;

for year 2019: 3000 sets;

for year 2020: 2500 sets;

for year 2021: 2500 sets.

3. Volume of quota granted in the following year shall be subject to the implementation of localisation level of the joint venture(s) in its (their) project execution schedule(s) and utilisation of quota indicated in paragraphs 1 and 2 of this Article in the previous year:

4. On the basis of the annual production plan(s) approved by the Vietnamese Party and proposals of MOlT of Russia on the distribution of quotas, the joint venture(s) will submit an application(s) to MOlT of Viet Nam for duty exemption on motor transport vehicles and/or SKD sets, which includes the Certificate of Origin as provided for in paragraph 8 of Article 3 (Specific Requirements) of this Protocol and the indicated quantity for all model(s), expected time schedules of importation and the Harmonized System 8-digit tariff lines corresponding to motor transport vehicles and/or all parts and components necessary for production of motor transport vehicles in the semi-knocked down industrial assembly, except for the parts and components produced in the territory of Viet Nam. Basing on the provisions of this Protocol, MOlT of Viet Nam will consider and issue import licenses for the applying joint venture(s) within 10 working days.

5. A joint venture(s) shall have the right to import out-of-quota sets of parts and components that will be used in the manufacturing of motor transport vehicles and these motor transport vehicles will be exported to the other ASEAN countries after production with the tax payment deadline in accordance with the respective laws and regulations of Viet Nam.

6. Russia shall provide insurance, credit and other forms of support which are within the limits of Russian respective laws and regulations for the investment cooperation in the manufacture of motor transport vehicles within the framework of this Protocol.