This Decision amends the names, codes, and rates of preferential import tariffs for motor vehicles, spare parts, and components of motor vehicles. In particular, it stipulates higher tariff rates for used motor vehicles and adjusts the assembly tariff rates for motor vehicles from 2003 to 2004.
Scope of application
Importers of motor vehicles, spare parts, and components of motor vehicles; customs authorities
Key points
- Used motor vehicles are subject to a higher tariff rate of 50% compared to new vehicles of the same type (Article 2).
- The preferential import tariff rates for various types of vehicle assembly operations are adjusted during the period from 2003 to 2004 (Article 3).
- The names, codes, and preferential import tariff rates for certain items of motor vehicles and spare parts of motor vehicles are amended (Article 1).
- The preferential import tariff rate for motor vehicles group 8704 from 2005 onwards shall be applied at the same rate as for motor vehicles groups 8702 and 8703.
- This Decision takes effect from January 1, 2003.
🌐 Social impact of this document
- Increase state budget revenue through raising import tariffs on used motor vehicles and adjusting assembly tariff rates.
- Reduce the import of old motor vehicles into Vietnam, promoting the development of domestic assembly industry.
- Businesses dealing in used motor vehicles are negatively affected regarding import costs.
❓ Frequently asked questions
What is the higher preferential import tariff rate for used motor vehicles compared to new ones?
Higher by 50% than the preferential import tariff rate of new vehicles of the same type.
What are the preferential import tariff rates for CKD1, CKD2, and IKD assembly types in 2003?
CKD1: 60% of the import tariff rate of new complete vehicles; CKD2: 40%; IKD: 10%.
When does this Decision take effect?
January 1, 2003.
Full text
DECISION OF THE MINISTER OF FINANCE
Regarding the amendment of the name, rate of import tax on automobiles and spare parts and components for automobiles in the Preferential Import Tax Tariff
-----------------------------------
THE MINISTER OF FINANCE
Pursuant to the guidance of the Prime Minister in Circular No. 75/CP-QHQT dated December 10, 2004, and Circular No. 49/VPCP-QHQT dated January 28, 2004.
BASED ON DECREE NO. 178/CP DATED OCTOBER 28, 1994 OF THE GOVERNMENT ON THE TASKS, POWERS AND ORGANIZATIONAL STRUCTURE OF THE MINISTRY OF FINANCE;
Pursuant to the tariff rates framework stipulated in the Import Tax Tariff according to the List of Goods Subject to Tax promulgated together with Resolution No. 63/NQ-UBTVQH10 dated October 10, 1998 of the Standing Committee of the National Assembly, Ten;
Pursuant to Article 1 of Decree No. 94/1998/NĐ-CP dated November 17, 1998 of the Government detailing the implementation of the Law Amending and Supplementing Certain Provisions of the Law on Export Tax and Import Tax No. 04/1998/QH10 dated May 20, 1998;
Pursuant to the guidance of the Prime Minister in Circular No. 5519/VPCP-KTTH dated October 3, 2002 of the Government Office regarding automobile taxes;
After consulting the opinions of relevant Ministries and Agencies and based on the proposal of the Director General of the General Department of Taxation;
Pursuant to …;
Article 1: Amend the name, code number, preferential import tax rate of certain items of automobiles and spare parts for automobiles specified in the Preferential Import Tax Tariff promulgated together with Decision No. 1803/1998/QĐ/BTC dated December 11, 1998 of the Minister of Finance which has been amended and supplemented in the Lists amending the name and import tax rate of certain goods groups promulgated together with Decisions No. 29/1999/QĐ/BTC dated March 15, 1999; Decision No. 139/1999/QĐ/BTC dated November 11, 1999; Decision No. 41/2000/QĐ/BTC dated March 17, 2000; Decision No. 210/2000/QĐ/BTC dated December 25, 2000 of the Minister of Finance to become new names, codes, and preferential import tax rates as specified in the List amending the name and preferential import tax rate of certain automobile and spare parts items promulgated together with this Decision.
Article 2: Prescribe the preferential import tax rate for used automobiles of the type designed for cargo transportation with a maximum gross weight not exceeding 20 tons (group 8704), and used automobiles designed for passenger transport, including used automobiles designed for passenger transport with separate luggage compartments (groups 8702, 8703), at a rate higher than 50% (fifty percent) compared to the preferential import tax rate of new automobiles of the same type prescribed in the current Preferential Import Tax Tariff.
The formula for calculating the preferential import tax rate for used automobiles is as follows:
|
The preferential import tariff rate for used automobiles |
= |
Preferential import tax rate for new automobiles of the same type |
+ |
{Preferential import tax rate for new automobiles of the same type x 50%} |
Article 3: Amend the preferential import tax rate prescribed for 5 (five) types of automobile assembly specified in the Preferential Import Tax Tariff promulgated together with Decision No. 1803/1998/QĐ/BTC dated December 11, 1998 of the Minister of Finance which has been amended and supplemented in the Lists amending the name and import tax rate of certain goods groups promulgated together with Decisions No. 29/1999/QĐ-BTC dated March 15, 1999; Decision No. 139/1999/QĐ-BTC dated November 11, 1999; Decision No. 41/2000/QĐ/BTC dated March 17, 2000; Decision No. 210/2000/QĐ-BTC dated December 25, 2000 of the Minister of Finance to become new preferential import tax rates prescribed for each type of automobile assembly as follows:
1- From January 1, 2003 to December 31, 2003
|
Serial number |
Type of assembly |
Preferential import tax rate (%) |
|
|
automobiles group 8702 and 8703 |
automobiles group 8704 |
||
|
(1) |
(2) |
(3) |
(4) |
|
1 |
CKD1 |
60% of the import tax rate of new automobiles |
40% of the import tax rate of new automobiles |
|
2 |
CKD2 |
40% of the import tax rate of new automobiles |
20% of the import tax rate of new automobiles |
|
3 |
IKD |
10% of the import tax rate of new automobiles |
5% of the import tax rate of new automobiles. |
2- From January 1, 2004 to December 31, 2004
|
Serial number |
Automobiles group 8704 |
Automobiles group 8702 and 8703 |
||
|
Type of assembly |
Preferential import tax rate (%) |
Type of assembly |
Preferential import tax rate (%) |
|
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
CKD1 |
50% of the import tax rate of new automobiles |
CKD |
70% of the import tax rate of new automobiles |
|
|
CKD2 |
30% of the import tax rate of new automobiles |
|||
|
IKD |
10% of the import tax rate of new automobiles |
|||
The formula for calculating the preferential import tax rate for each type of automobile assembly is as follows:
|
Preferential import tax rate for each type of automobile assembly |
= |
Preferential import tax rate for new automobiles |
x |
preferential import tax rate ratio prescribed for each type of automobile assembly |
The preferential import tax rate prescribed for 3 (three) types of automobile assembly in group 8704 as stated in Point 2 shall only apply until December 31, 2004. From January 1, 2005, automobiles in group 8704 will be subject to the same import tax as automobiles in groups 8702 and 8703 as stated in Point 2.
Article 4: This Decision takes effect and applies to import declarations submitted to customs authorities starting from January 1, 2003. Abolish previous regulations that conflict with this Decision./.
|
To be sent to: - Party Central Committee Office - NATIONAL ASSEMBLY SECRETARIAT, PRESIDENTIAL PALACE SECRETARIAT - Provincial People's Committees, Departments of Finance, Taxation Departments of provinces, centrally governed cities - Ministries, agencies equivalent to ministries, and agencies directly under the Government - Gazette, File: VP (HC, TH), General Department of Taxation (HC, NV3) - Departments, Bureaus, Institutes, Commissions, units directly under the Ministry of Finance - Representatives of the General Department of Taxation in southern provinces - To be filed: VP (HC, TH); GDT (HC, NV3) |
CERTIFIED BY THE MINISTER OF FINANCE Vice Minister (Signed) Truong Chi Trung |
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