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Question and Answer

Import SUV car from US to Vietnam

Name/Company name: Michael Tien Nguyen
Date: 14-06-2016 11:12
Question:
Hello,

I have a business in Vietnam and would like to important an SUV to drive there for business. Are there any tax breaks to important your own car for business use in Vietnam? Also what is the approximate cost for an SUV at $30,000 US?

Thank you,
Michael
Answer at 14-06-2016 11:12:

For your question, we would like to have below suggestions:

Note: Our suggestion is for your reference only, not legally obligated.

1. For import policy:

* Incase of used car meets the following conditions will be imported:

- Basing on Item 1, Article 9 of Decree no.187/2013/ND-CP dated 20/11/2013 of the Government “detailing implementation of Trade Law regulations on international buying and selling of commodities and agent activities including purchasing, selling, sourcing, outsourcing, border-gate transfer, and transiting of commodities with foreign countries”, contains provisions on the import ofautomobiles as follows:

“Article 9. Imports and exports subject to separate regulations

1. Import of automobiles:

a/ To be imported, used automobiles of all kinds must ensure the condition that they have been used for not more than 5 (five) years, counting from the year of manufacture to the year of importation;

b/ Based on management requirements in each period, the Government assigns the Ministry of Industry and Trade to regulate the import of passenger cars of all types with 9 (nine) seats or less.”

- Basing on Article 6 of Circular No. 04/2014/TT-BTC dated 27/01/2014 by Ministry of Trade and Industry guiding some regulationsDecree no.187/2013/ND-CP dated 20/11/2013 of the Government “detailing implementation of Trade Law regulations on international buying and selling of commodities and agent activities including purchasing, selling, sourcing, outsourcing, border-gate transfer, and transiting of commodities with foreign countries” stipulates:

“Article 6. Import of motor vehicles

1. Used motor vehicles (including passenger cars, cargo trucks, pickup trucks, and specialized cars) may be imported if they have not been used for more than 05 years from the manufacturing year (e.g. only the motor vehicles manufactured in 2009 and later may be imported in 2014). Other regulations shall be implemented in accordance with the instructions of relevant Ministries.

The import of passenger cars with fewer than 16 seats must comply with the Circular No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA dated March 31, 2006 of the Ministry of Trade, the Ministry of Transport, the Ministry of Finance, and the Ministry of Industry and Trade on import of used passenger cars with fewer than 16 seats, and the Circular No. 19/2009/TT-BCT dated July 07, 2009 of the Minister of Industry and Trade on amendments to the Circular No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA.”

* Incase of used vehicles of which structures have been changed for function transformation from the original design banned from the import.

- Basing on Item 7c, List of prohibited import/export goods issued enclose with the Decree no.187/2013/ND-CP dated 20/11/2013 of the Government “detailing implementation of Trade Law regulations on international buying and selling of commodities and agent activities including purchasing, selling, sourcing, outsourcing, border-gate transfer, and transiting of commodities with foreign countries”:

“7. Used supplies and vehicles, including:

a/……

….

c/ Assorted cars which have been transformed in structure compared with their original designs or have their frame or engine numbers erased, modified or tampered with;

(The Ministry of Transport shall publish a list of goods specified at Points a thru d above with HS codes in the Import and Export Tariffs)”

- Basing on Appendix III of Circular 13/2015/TT-BGTVT dated April 21, 2015 “publicizing the lists of imports subject to specialized management by the Ministry of Transport under the Government’s Decree No. 187/2013/ND-CP of November 20, 2013”:

Used vehicles of which structures have been changed for function transformation from the original design banned from the import,include the following HS codes: 87.02; 87.03; 87.04; 87.05.

2. For import tax rate:

- Basing on Article 5 of Circular No. 182/2015/TT-BTC dated 16/11/2015 by the Ministry of Finance on MFN import export tariff:

“Article 5. Preferential tariffs on socks i used car imports

Tax incentives for import of used cars imports are defined as follows:

1. Passenger cars from 15 seats (including driver) of headings 87.02 and 87.03 apply tariffs as stipulated in Decision No. 36/2011/QD-TTg dated June 29,2011 of the Prime Prime issuing import duties passenger cars of 15 seats or under used and the guidelines of the Ministry of Finance; Decision 24/2013/QĐ-TTg dated 03/5/2013 by Prime Minister,  amending and supplementing clause 1, Article 1 of the Decision No. 36/2011/QĐ-TTg dated June 29th, 2011 and the guidance documents, adjust the import dutiesof the Ministry of Finance.

2. The import tax incentives for passenger cars from 16 seats (including driver) heading 87.02 and goods transport vehicles with total vehicle weight not exceeding 5 tonnes of heading 87.04 ( Except for frozen, waste collection vehicles with compressed waste parts, car cement tanks, armored vehicles for the transport of valuable goods, cement trucks and truck-style mud bath barrel lifting is left) is 150%.

3. The import tariff preferences for different types of cars of heading 87.02, 87.03, 87.04 by 1.5 times compared to the tax rate of the preferential import new cars of the same category headings 87.02, 87.03, 87.04 specified in Section I of Annex II - Preferential Import Tariff according to the list of taxable items attached herewith.”

* For VAT: is performed as Circular No. 83/2014/TT-BTC dated June 26, 2014 of the Ministry of Finance guiding the application of value-added tax according to Vietnam’s list of imports.

* Excise Tax: is performed as Law No.27/2008/QH12 of November 14, 2008 on Excise Tax and Decree No. 26/2009/ND-CP of March 16, 2009, detailing a number of articles of the Law on 
Excise Tax of the Government.

For detail information, please study the mentioned documents for reference. If you do not understand, please kindly contact with customs branch at border gate where you plan to declare customs for detail instruction.

Yours sincerely.​