Circular No. 116/2011/TT-BTC guiding the implementation of Decision No. 36/2011/QD-TTg dated June 29, 2011 of the Prime Minister on the issuance of import tax rates for used passenger cars with up to 15 seats.

CIRCULAR

Guidelines for implementing Decision No. 36/2011/QD-TTg dated June 29, 2011 of the Prime Minister on the issuance of import tax rates for passenger cars with up to 15 seats (including driver) that have been used.người từ năm座位及以上的已使用车辆

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Pursuant to the Law on Export Duties and Import Duties No. 45/2005/QH11 dated June 14, 2005;

Pursuant to the Government's Decree No. 87/2010/NĐ-CP dated August 13, 2010 detailing certain provisions of the Law on Export Duties and Import Duties;

Pursuant to Decree No. 40/2007/NĐ-CP dated March 16, 2007 of the Government on the determination of customs value for exported and imported goods;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 36/2011/QD-TTg dated June 29, 2011 of the Prime Minister on the issuance of import tax rates for passenger cars with up to 15 seats (including driver) that have been used;

The Ministry of Finance issues guidelines for implementing Decision No. 36/2011/QD-TTg dated June 29, 2011 of the Prime Minister as follows:

Article 1. Scope of Regulation and Applicability

1. Scope of application: This Circular guides the implementation of Decision No. 36/2011/QD-TTg dated June 29, 2011 of the Prime Minister on the issuance of import tax rates for passenger cars with up to 15 seats (including driver) that have been used.

2. Applicability: Organizations, individuals, customs authorities, and customs officers when performing tasks related to customs declaration, determining tax rates, inspection, consultation, and determining taxable value for passenger cars with up to 15 seats (including driver) that have been used for importation.

Article 2. Rights and Obligations of the Customs Declaration Maker

1. To declare fully and accurately the import tax rate, related costs associated with purchasing and selling passenger cars with up to 15 seats (including driver) that have been used for importation, and to self-determine the taxable value according to the regulations, including detailed reporting of the name of the item, brand, manufacturer, origin, type of car (Sedan, Hatch Back, SUV, MPV, Pickup...), engine displacement, number of seats, number of doors, number of axles, transmission type (manual, automatic), fuel type (gasoline, diesel, electric...), model year, other model symbols if applicable (such as Limited, Premium, XLE, LE,...), production year, mileage.

2. To perform other rights and obligations as guided in Article 5 and Article 6 of Circular No. 205/2010/TT-BTC dated December 15, 2010 of the Ministry of Finance guiding Decree No. 40/2007/NĐ-CP dated March 16, 2007 of the Government on the determination of customs value for exported and imported goods (hereinafter referred to as Circular No. 205/2010/TT-BTC).

Article 3. Responsibilities and Authorities of the Customs Authority

1. To check the contents of the declaration, determine the tax rate, and taxable value of the customs declaration maker according to the guidance in this Circular.

2. To determine the taxable value in the following cases:

2.1. When the customs declaration maker cannot determine the taxable value according to the methods of valuation;

2.2. Failure to report or incorrect reporting of adjustment items as guided in Article 14 of Circular No. 205/2010/TT-BTC;

2.3. Cases where the customs authority rejects the declared price as guided in point 1.3.2.2 clause 1 Article 24 and point 4.4.1 clause 4 Article 26 of Circular No. 205/2010/TT-BTC;

2.4. Cases where there is doubt about the price level as guided in Article 6 Clause 2 of this Circular, and at the same time, the customs declaration maker agrees to pay taxes according to the price determined by the customs authority as per Form No. 1 issued together with Circular No. 205/2010/TT-BTC (hereinafter referred to as Form No. 1);

2.5. When the customs declaration maker does not comply with the provisions of Decree No. 40/2007/NĐ-CP dated March 16, 2007 of the Government, Circular No. 205/2010/TT-BTC, and the guidance in this Circular.

3. To perform other responsibilities and authorities as guided in Article 7 and Article 8 of Circular No. 205/2010/TT-BTC.

Article 4. Determination of Import Tax Rates

1. Apply the absolute import tax rate specified in Clause 1 and Clause 2, Article 1 of Decision No. 36/2011/QĐ-TTg for used passenger cars with up to nine seats (including driver) having engine displacement under 1,500cc and used passenger cars with ten to fifteen seats (including driver), without distinction regarding: brand, manufacturer, origin, type, number of doors, number of axles, transmission type, fuel type, model year, other model codes, production year, mileage.

2. Apply the import tax rate specified in Clause 3, Article 1 of Decision No. 36/2011/QĐ-TTg for used passenger cars with up to nine seats (including driver) having engine displacement of 1,500cc or more, belonging to tariff code 8703 in the Preferential Import Tariff Schedule. This import tax rate shall be determined based on the criteria of imported goods as guided in Clause 1, Article 2 of this Circular.

3. The taxable value of used passenger cars referred to in Clause 1 and Clause 2 of this Article shall be determined according to the guidance provided in Article 5 of this Circular.

Article 5. Determination of Taxable Value

1. The taxable value of used passenger cars with up to fifteen seats (including driver) imported is the actual price paid up to the first port of entry.

1.1. The taxable value for used passenger cars with up to nine seats (including driver) having engine displacement under 1,500cc and used passenger cars with ten to fifteen seats (including driver) is determined for special consumption tax and value-added tax.

1.2. The taxable value for used passenger cars with up to nine seats (including driver) having engine displacement of 1,500cc or more as stipulated in point c, Clause 3, Article 1 of Decision No. 36/2011/QĐ-TTg is determined for import tax, special consumption tax, and value-added tax.

2. The actual price paid up to the first port of entry (the first port of entry is implemented according to the guidance in Circular No. 205/2010/TT-BTC) is determined by sequentially applying six methods of determining the taxable value from Article 7 to Article 12 of Decree No. 40/2007/NĐ-CP, including:

2.1. Method of determining the taxable value based on the transaction value of imported goods.

2.2. Method of determining the taxable value based on the transaction value of identical imported goods.

2.3. Method of determining the taxable value based on the transaction value of similar imported goods.

2.4. Method of determining the taxable value based on the deductive value.

2.5. Method of determining the taxable value based on the computed value.

2.6. Reasoning method to determine the taxable value.

3. Customs authorities shall determine the taxable value in cases specified in Clause 2 of Article 3 of this Circular.

4. The taxable value determined by the customs authorities must comply strictly with the procedures, principles, and methods of determining the taxable value specified in Clause 2 of this Article, based on information data at the time of determination, but not lower than the verified price of identical or similar vehicles listed in the General Department's Import Goods Risk Management Directory. In cases where there is no verified price of identical or similar vehicles in the General Department's Import Goods Risk Management Directory, the determined price shall not be lower than 10% less each year of use compared to the new vehicle price of the same type and production year.

5. The price database includes all information related to the verification and determination of the taxable value declared and provided by the declarant to the customs authority or collected by the customs authority related to the imported vehicle, up to the time of verification and determination of the taxable value. This information is managed and used internally within the customs sector to serve the inspection of declared values and determination of the taxable value for imported vehicles.

Article 6. Examination of Declared Value

1) Conduct examination of declared value immediately at the clearance stage for all consignments of passenger cars with up to 15 seats (including driver) that have been used and imported according to the guidelines set out in Article 24 of Circular No. 205/2010/TT-BTC.

2) Based on the tax valuation price declared by the importer, the customs authority shall compare and cross-reference with the available price database at the time of examination and determine signs of suspicion regarding the declared price if it falls under any of the following circumstances:

2.1) The imported vehicle has a declared price lower than the lowest tax valuation price of identical or similar vehicles determined by the customs authority; or lower than the lowest declared price of identical or similar vehicles (excluding those already under suspicion), which have been accepted by the customs authority based on the declared price.

Identical or similar vehicles used for comparison are those exported to Vietnam on the same day or within a period of 60 days before or after the export date of the vehicle being examined. If identical or similar vehicles cannot be found within this timeframe, the period may be extended but not beyond 90 days before or after the export date of the vehicle being examined.

2.2) The imported vehicle has a declared price lower than the inspection price of identical or similar vehicles listed in the Import Goods Risk Management Directory issued by the General Department.

2.3) The imported vehicle has a declared price lower than the price collected by the customs authority from other sources after being converted to the same conditions as the consignment being examined.

2.4) The imported vehicle has a discount factor where the declared price after deducting the discount is lower than the price of identical or similar vehicles specified in the price database.

2.5) In cases where identical or similar vehicles cannot be found for comparison and examination of the declared price, the concept of identical or similar vehicles can be flexibly expanded, specifically:

2.5.1) The imported vehicle has multiple features and functions that can be compared with an identical vehicle with a basic feature already present in the price database;

2.5.2) The imported vehicle has higher-end equipment that can be compared with an identical vehicle with lower-end equipment already present in the price database;

2.5.3) The imported vehicle originates from developed countries or regions and can be compared with an identical vehicle from developing or emerging countries or regions already present in the price database (for example: An imported vehicle requiring examination with origin from Japan can be compared with an identical vehicle with origin from Thailand already present in the price database).

2.6) The declared price is lower than 10% per year of use compared to the new vehicle price of the same type and production year in the price database.

3) When determining signs of suspicion regarding the declared price, the customs authority must notify the declarant of the basis, grounds for suspicion of the declared price, the method, and the price determined by the customs authority according to Form No. 1.

If the declarant agrees with the method and price determined by the customs authority, the customs authority shall issue a Notice of Determined Value according to Form No. 4 promulgated together with Circular No. 205/2010/TT-BTC, implement taxation according to the determined price, and clearly record on the Import Declaration the method of determining the tax valuation price and the determined price before clearing the imported vehicle.

In case the declarant disagrees with the method and price determined by the customs authority in Form No. 1 and requests consultation, the customs authority shall issue a guarantee amount notice according to Form No. 2 promulgated together with Circular No. 205/2010/TT-BTC and proceed to consult according to the guidelines set out in Article 7 below.

4) Accept the declared value for cases without suspicion regarding the price as stipulated in Clause 2 of this Article.

Article 7. Consultation

1) The customs authority shall organize consultation for cases with doubts about the price level in accordance with the guidance provided in Clause 2, Article 6 of this Circular, but if the declarant disagrees with the method and price level determined by the customs authority in Form No. 1 and requests to conduct consultation.

2) The time limit for consultation and determination of the taxable value: Maximum of 30 days from the date of registration of the customs declaration.

3) The procedures, formalities, authorities, contents, forms of consultation, and handling of the results of consultation shall be carried out in accordance with the guidance provided in Article 26 of Circular No. 205/2010/TT-BTC.

4) Some notes during the consultation process:

4.1) Collecting full information before consultation including:

4.1.1) Information on identical or similar vehicles available in the pre-determined Tax Value Data System;

4.1.2) Information on identical or similar vehicles already present in the Import Goods Risk Management List at the General Department level;

4.1.3) Information on the selling prices of identical or similar vehicles on the Internet;

4.1.4) Information on the market selling prices of imported vehicles;

4.1.5) Other relevant information related to imported vehicles.

4.2) Reviewing, compiling, and analyzing to assess the reliability of collected information sources to eliminate low-reliability or unsupported information before conducting consultation.

4.3) During consultation, attention should be paid to factors affecting the price of imported vehicles such as: Vehicle condition, mileage, year of manufacture, origin, model, brand, purchase method to clarify doubts about declared prices, and reject declared prices according to the provisions in Item 4.4.1, Point 4.4, Clause 4, Article 26 of Circular No. 205/2010/TT-BTC.

Article 8. Collection, updating of information, building of price database, and reporting system

1) Collection and updating of information by the customs authority:

1.1) The customs authority shall collect information based on existing price databases at the time of valuation or related price information provided by other agencies, units, and enterprises to serve as the basis and foundation for inspection, consultation, and valuation.

1.2) Update the results of inspections, signs of doubt, consultation outcomes, and valuation results into the Tax Value Data System on the day of inspection, consultation, or valuation or the next working day, and transmit data to the General Department of Customs in accordance with regulations for monitoring and inspection.

1.3) The collection, updating, exploitation, and use of the price database shall be conducted in accordance with Decision No. 1102/QD-BTC dated May 21, 2008, of the Minister of Finance.

2) Building the price database:

2.1) The Director-General of the General Department of Customs shall establish and adjust the inspection price levels for passenger cars with up to 15 seats (including driver) that have been used, following the guidance provided in Clause 5, Article 23 of Circular No. 205/2010/TT-BTC, on the principle that the inspection price of used cars shall not be lower than 10% less per year of use compared to the inspection price of new cars of the same type and year of manufacture.

2.2) Provincial Customs Departments shall organize the collection, analysis, and compilation of reports to the General Department of Customs (in the form issued together with Decision No. 1102/QD-BTC dated May 21, 2008, of the Ministry of Finance) to propose supplements to the inspection price levels of used passenger cars into the Import Goods Risk Management List at the General Department level.

3) Reporting system: Before the 10th day of each month, Provincial Customs Departments shall report to the General Department of Customs on the management of passenger cars with up to 15 seats (including driver) that have been used, according to the form issued together with this Circular.

Article 9. Implementation Organization

1) Apply the tax rates prescribed in Article 1 of Decision No. 36/2011/QĐ-TTg for passenger cars with up to 15 seats (including driver) that have been used, imported from August 15, 2011.

2) Provincial Customs Departments shall allocate personnel and implement well the regulations on managing used imported vehicles to ensure compliance with the law and sufficient tax revenue for the state budget.

3) Organize the verification of declared values, identify signs of doubt, organize consultations, and determine the taxable value in accordance with the provisions of Decree No. 40/2007/NĐ-CP dated March 16, 2007, of the Government, Circular No. 205/2010/TT-BTC dated December 15, 2010, Decision No. 30/2008/QĐ-BTC dated May 21, 2008, Circular No. 163/2009/TT-BTC dated August 13, 2009, Decision No. 1102/QD-BTC dated May 21, 2008, Circular No. 7293/BTC-TCHQ dated June 3, 2011, of the Ministry of Finance, and the guidance provided in this Circular.

Article 10. Effective Date

1) This Circular takes effect from August 15, 2011.

2) During implementation, if the related documents mentioned in this Circular and the attached reporting forms are amended, supplemented, or replaced, they shall be implemented according to the newly amended, supplemented, or replaced documents./.