This circular guides the collection of import duties on spare parts for two-wheeled motorcycles imported from October 25, 2001 to December 31, 2001 for production and assembly in Vietnam. The tariff rate is 60%, and at year-end, the actual domestic content ratio will be settled to refund or collect additional taxes.
Scope of application
Domestic enterprises investing in the production and assembly of two-wheeled motorcycles
Key points
- Enterprises importing spare parts for two-wheeled motorcycles from October 25, 2001 to December 31, 2001 → must pay import duties at a preferential rate of 60% (Article 1)
- By the end of 2001, tax authorities and Customs will review the actual domestic content ratio of enterprises → may refund taxes or collect additional taxes (Article 1)
- Domestic enterprises producing two-wheeled motorcycles benefit from tax refunds if they achieve a high domestic content ratio;
- Enterprises must bear financial burdens when paying import duties at a high tariff rate while waiting for the settlement of the domestic content ratio.
- Consumers may benefit from reduced product costs due to tax refunds granted to enterprises.
🌐 Social impact of this document
- Domestic enterprises producing two-wheeled motorcycles benefit from tax refunds if they achieve a high domestic content ratio;
- Enterprises must bear financial burdens when paying import duties at a high tariff rate while waiting for the settlement of the domestic content ratio.
- Consumers may benefit from reduced product costs due to tax refunds granted to enterprises.
❓ Frequently asked questions
What is the amount of import duty that enterprises need to pay?
The tariff rate is 60%.
When does this tariff apply?
From October 25, 2001 to December 31, 2001.
What must enterprises do by the end of 2001?
Enterprises need to settle their actual domestic content ratio for tax authorities and Customs to review and consider tax refunds or additional collections.
If an enterprise achieves a high domestic content ratio, will it receive a tax refund?
Yes, if the enterprise meets the required domestic content ratio, tax authorities will consider granting a tax refund.
If an enterprise does not achieve the required domestic content ratio, will it be subject to additional taxes?
Additional taxes may be imposed if the domestic content ratio is not met.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 10154 TC/TCT DATED OCTOBER 25, 2001
REGARDING TAX POLICY FOR DOMESTIC CONTENT RATIO
MOTORCYCLES WITH TWO WHEELS AND ENGINES
RESPECTED: - General Department of Customs
- Domestic enterprises investing in production and assembly of motorcycles with two wheels and engines
assembly of two-wheeled motorcycles
Pursuant to Circular Joint Circular No. 176/1998/TTLT-BTC-BCN-TCHQ dated December 25, 1998 as amended by Circular Joint Circular No. 120/2000/TTLT-BTC-BCN-TCHQ dated December 25, 2000.
Pursuant to the directive of the Prime Minister at point 1.d, section III, letter number 938/CP-KTTH dated October 18, 2001 of the Government regarding tax policy for domestic content ratio of motorcycles with two wheels and engines.
The Ministry of Finance guides the collection of taxes according to the domestic content ratio for spare parts of motorcycles with two wheels and engines imported by domestic enterprises for production and assembly as follows:
Shipments of spare parts for motorcycles with two wheels and engines imported by domestic enterprises for production and assembly, with customs declarations submitted to customs authorities from October 25, 2001 to December 31, 2001, must pay import duties at a preferential rate of 60% (sixty percent). At the end of 2001, based on the actual domestic content ratio achieved by enterprises for each specific brand of motorcycle, tax authorities will cooperate with customs authorities to review and implement refund or additional collection of taxes.
This letter replaces Circular No. 3945 TC/TCT dated April 27, 2001 of the Ministry of Finance.
The Ministry of Finance instructs the General Department of Customs and domestic enterprises investing in production and assembly of motorcycles with two wheels and engines to implement this guidance. During implementation, if there are any difficulties, please report them to the Ministry of Finance and relevant ministries for timely research and resolution.
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