LOGISTICS

Question:

We plan to import van trucks, to be imported in 2 complete units (CBU) and full form of assembly (CKD) from China. Description of vehicle type: 2-seater van truck (driver's seat and extra seat), a closed box with a monolithic cargo compartment with a passenger compartment, with loading and unloading doors at the back and sides of the wall vehicle, with a partition between the cargo compartment and the passenger compartment. So please advise to help import procedures for this type of vehicle with 2 types of CBU and CKD? Regarding the HS code, how much is the import tax rate and is it subject to SCT?

Reply:

1. Regarding import procedures:

1.1 Import of complete valve cars

The goods of frozen goods are in group 8704, 100% brand new, left-hand drive is not on the list of banned import issued together with Decree No. 187/2013 / ND-CP dated November 20, 2013. The company can import as normal goods according to the provisions of Circular No. 38/2015 / TT-BTC dated March 25, 2015 of the Ministry of Finance.

Procedures for technical safety quality inspection and environmental protection of imported motor vehicles comply with Circular No. 31/2011 / TT-BGTVT dated April 15, 2011, Circular No. 55/2014 / TT-BGTVT October 20, 2014 and Circular No. 42/2018 / TT-BGTVT dated July 30, 2018 of the Ministry of Transport.

Procedures for technical safety inspection and environmental protection of road motor vehicles comply with Circular No. 70/2015 / TT-BGTVT dated November 9, 2015.

1.2 Import of valve car assembly components

- Automobile assembly components and components are not subject to conditional export or export as prescribed in Decree No. 69/2018 / ND-CP dated May 15, 2018 of the Government, so does the Company have can be imported like other common goods.

However, only in cases where companies in Vietnam have certificates of eligibility for car production and assembly, they can import auto components (100% new) according to Article 7 of Decree 116/2017. / ND-CP dated October 17, 2017 of the Government stipulating conditions for manufacturing, assembling, importing, and providing automobile warranty and maintenance services:

“Article 7. Automotive production and assembly conditions

Enterprises established in accordance with the law are granted certificates of eligibility for automobile production and assembly when they satisfy the following conditions:

1. Facilities:

a) Enterprises must have legal rights to workshops, assembly technology lines, welding lines, paint lines, product quality control lines and automobile test lines that meet the minimum requirements. minimum in Appendix I attached to this Decree;

b) Have an automobile warranty and maintenance facility owned by the enterprise, or signed a lease contract by the enterprise, or under the authorized agency system of the enterprise that satisfies the provisions of this Decree.

2. Persons in charge of techniques of automobile production and assembly lines must have at least a university or higher degree in mechanics and automobiles and have at least 05 experience in the field of automobile production and assembly. year.

3. Having sufficient manpower and plans to ensure occupational safety and sanitation in accordance with the law on occupational safety and sanitation.

4. Satisfying the fire prevention and fighting safety conditions and fire-fighting plans according to the provisions of law on fire prevention and fighting.

5. Having all dossiers on environmental protection applicable to automobile production and assembly factories already approved by competent agencies according to the provisions of law on environmental protection.

In addition, when importing components, the Company submits a registration for state quality inspection certified by the inspection agency to the customs authority for imported automobile components in Appendix II - List Products and goods must be certified or announced conforming to the Circular 41/2018 / TT-BGTVT.

1.3 Regarding customs documents and procedures:

- Goods import procedures and procedures are specified in Articles 16 and 18 of Circular No. 38/2015 / TT-BTC dated March 25, 2015 (amended and supplemented in Clauses 5 and 7 of the Circular). Circular No. 39/2018 / TT-BTC dated 20/04/2018) of the Ministry of Finance.

2. Regarding import tax and special consumption tax:
Because the company did not specify the designed total volume of cargo cars to be imported, the consultant team could not accurately answer the specific import tax rate.

Request the company to compare the entire design volume of the cargo car to be imported with the Preferential Import Tariff issued together with the Government's Decree No. 57/2020 / ND-CP dated May 25, 2020. government to accurately determine the import tax rate.

- Pursuant to Point d, Clause 1, Article 2 of the Law on Special Consumption Tax

“Article 2. Taxable subjects

1. Goods:

d) Cars with less than 24 seats, including passenger cars and cargo cars of two or more seats with a fixed partition design between the passenger compartment and the cargo compartment; "

In cases where vehicles designed for both passenger and cargo transport of two or more rows of seats, with design of fixed partitions between the passenger compartment and the cargo compartment, they are subject to special consumption tax. Special consumption tax rates depending on cylinder capacity will be between 15% and 25% (according to the Law Amending and Supplementing a Number of Articles of the Law on Special Consumption Tax No. 106/2016 / QH13 dated June 6. 04/2016).

3. About HS code:

The company can refer to 06 (six) classification rules in Appendix II issued together with Circular No. 65/2017 / TT-BTC dated June 17, 2017; Circular No. 14/2015 / TT-BTC dated 30/01/2015 of the Ministry of Finance; Import and export tariff promulgated together with Decree No. 57/2020 / ND-CP dated May 25, 2020 of the Government and compared with imported goods and constituent materials to determine HS codes.