Circular No. 20/2014/TT-BTC on the importation of automobiles and motorcycles under the regime of movable assets repatriation for overseas Vietnamese citizens who have been granted permanent residence registration in Vietnam.

CIRCULAR

Regulations on the importation of automobiles and motorcycles under the asset transfer regime for Vietnamese citizens residing abroad who have been granted permanent residence registration in Vietnam relocation of Vietnamese citizens residing abroad has beenregistered for permanent residence in Vietnam

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Pursuant to the Law on Customs No. 29/2001/QH10 dated June 29, 2001 and the Law Amending and Supplementing Certain Provisions of the Law on Customs No. 42/2005/QH11 dated June 14, 2005;

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

Pursuant to the Law on Tax Administration No. 78/2006/QH10 dated November 29, 2006; the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration No. 21/2012/QH13 dated November 20, 2012;

Pursuant to the Law on Residence No. 81/2006/QH11 dated November 29, 2006;

Pursuant to the Law on Value Added Tax No. 13/2008/QH12 dated June 3, 2008; the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax No. 31/2013/QH13 dated June 19, 2013;

Pursuant to the Law on Special Consumption Tax No. 27/2008/QH12 dated November 14, 2008;

Pursuant to Decree No. 154/2005/NĐ-CP dated December 15, 2005 of the Government detailing certain provisions of the Law on Customs regarding customs procedures and customs inspection and supervision;

Pursuant to Decree No. 107/2007/NĐ-CP dated June 25, 2007 of the Government detailing and guiding the implementation of certain provisions of the Law on Residence;

Pursuant to Decree No. 26/2009/NĐ-CP dated March 16, 2009 of the Government detailing the implementation of certain provisions of the Law on Special Consumption Tax and Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government amending and supplementing certain provisions of Decree No. 26/2009/NĐ-CP dated March 16, 2009 of the Government detailing the implementation of certain provisions of the Law on Special Consumption Tax;

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

Pursuant to Decree No. 187/2013/NĐ-CP dated November 20, 2013 of the Government detailing the implementation of the Law on Commerce regarding international trade activities and agency purchase, sale, processing, and transit of goods with foreign countries;

Pursuant to Decree No. 209/2013/NĐ-CP dated December 18, 2013 detailing and guiding the implementation of certain provisions of the Law on Value Added Tax.

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Implementing the directive of the Deputy Prime Minister as set forth in Circular No. 8522/VPCP-KTTH dated October 11, 2013 of the Government Office.

At the proposal of the Director General of the General Department of Customs,

The Minister of Finance hereby issues this Circular regulating the importation of automobiles and motorcycles under the asset transfer regime for Vietnamese citizens residing abroad who have been granted permanent residence registration in Vietnam.

PART I
GENERAL PROVISIONS

Article 1. Scope of Application

This Circular regulates the importation of automobiles and motorcycles under the asset transfer regime for Vietnamese citizens residing abroad who have been granted permanent residence registration in Vietnam (hereinafter referred to as Vietnamese citizens residing abroad who have returned home).

Article 2. Applicability

1. Vietnamese citizens residing abroad holding foreign passports or foreign travel documents valid for use that have been granted permanent residence registration in Vietnam in accordance with current Vietnamese laws.

2. Vietnamese citizens residing abroad holding Vietnamese passports and foreign-issued residence certificates that have been granted permanent residence registration in Vietnam in accordance with current Vietnamese laws.

Customs authorities.

4. The subjects mentioned in Clause 1 and Clause 2 of this Article shall directly perform the procedures stipulated in this Circular; they may not delegate such procedures to other organizations or individuals.

Chapter II
SPECIFIC PROVISIONS

Article 3. Conditions for importing motor vehicles under the regime of movable property transfer

1. Imported motor vehicles must meet the following conditions: They have been registered for circulation in the country of residence or in the country where Vietnamese citizens work abroad (different from the country of residence) for at least 6 (six) months and have traveled a minimum distance of 10,000 kilometers up to the time the vehicle arrives at a Vietnamese port.

2. Motor vehicles imported into Vietnam must comply with the provisions of Decree No. 187/2013/NĐ-CP dated November 20, 2013, issued by the Government detailing the implementation of the Law on Trade regarding international trade activities and foreign agency buying, selling, processing, and transiting goods, and the provisions of Circular No. 31/2011/TT-BGTVT dated April 15, 2011, issued by the Ministry of Transport concerning the inspection of technical safety quality and environmental protection of imported motor vehicles.

Article 4. Conditions for importing motorcycles under the regime of movable property transfer

1. Motorcycles must be registered for circulation in the country of residence or in the country where Vietnamese citizens work abroad (different from the country of residence) before the time when Vietnamese citizens residing abroad return home and are granted permanent registration in Vietnam. The time of granting permanent registration in Vietnam is determined based on the permanent resident household registration book issued by the police authority.

2. Motorcycles must belong to types that are permitted to be registered and circulated in Vietnam.

3. Imported motorcycles must meet the condition: Not more than 03 years from the year of manufacture to the time the motorcycle arrives at a Vietnamese port.

4. Motorcycles imported into Vietnam must comply with the provisions of Circular No. 44/2012/TT-BGTVT dated October 23, 2012, issued by the Ministry of Transport concerning the inspection of technical safety quality and environmental protection of imported motorcycles and mopeds, and imported engines used for producing and assembling motorcycles and mopeds.

Article 5. Procedures for issuing import permits for motor vehicles and motorcycles

1. Application dossier for issuing an import permit

a) An application form for importing motor vehicles and motorcycles (with confirmation of the permanent address by the police station, commune, ward, town), specifying the brand name, model, year of manufacture, country of manufacture, paint color, chassis number, engine number, engine displacement, vehicle condition, and mileage: 01 original copy;

b) Foreign passport (stamped with entry clearance stamp by the immigration management authority at the border gate or stamped with entry clearance stamp by the immigration management authority at the border gate on the separate visa for cases where a separate visa is issued) or other travel documents issued by foreign countries still valid (stamped with entry clearance stamp by the immigration management authority at the border gate): 01 certified Vietnamese translation from the original, accompanied by the original for verification (for subjects specified in Clause 1, Article 2 of this Circular);

Or Vietnamese passport (stamped with entry clearance stamp by the immigration management authority at the border gate): 01 notarized copy of the passport, accompanied by the original for verification and proof of permission to reside abroad: 01 certified Vietnamese translation from the original, accompanied by the original for verification and comparison (for subjects specified in Clause 2, Article 2 of this Circular);

c) Permanent resident household registration book issued by the police authority, in which the section "Previous place of residence before moving" in the household registration book must clearly state the address of residence abroad (written in Vietnamese phonetic script): 01 notarized copy, accompanied by the original for verification and comparison;

d) Certificate of registration for circulation or certificate of cancellation of registration for circulation of motor vehicles and motorcycles issued by the competent authority of the host country or the country where Vietnamese citizens working abroad come from (different from the country of residence): 01 certified Vietnamese translation from the original, accompanied by the original for verification and comparison;

đ) Bill of lading or other transport documents of equivalent value: 01 original and 01 copy (except in cases of importing motor vehicles and motorcycles through land border gates).

2. Procedure for issuing an import permit for motor vehicles and motorcycles

a) Responsibilities of Vietnamese citizens residing abroad who have returned home

a.1) Prepare a complete dossier as prescribed in Clause 1 of this Article.

a.2) In cases where Vietnamese citizens residing abroad who have returned home have their permanent residence addresses in provinces or cities without provincial or municipal Customs Departments, such citizens shall submit a written request to the nearest provincial or municipal Customs Department for issuance of an import permit for motor vehicles and motorcycles as stipulated.

b) Responsibilities of the Customs Department receiving the application dossier for issuing an import permit for motor vehicles and motorcycles

b.1) Receive and check the application dossier of Vietnamese citizens residing abroad who have returned home. If the dossier is found to be complete, issue a receipt and give one copy to the citizen. If the dossier is incomplete or invalid, guide the citizen to complete the dossier according to regulations.

b.2) For received dossiers, the Customs Department will inspect the documents and organize verification of the permanent residence registration of Vietnamese citizens residing abroad who have returned home at the place of registration (if necessary). If the dossier is found to be valid, issue the import permit for motor vehicles and motorcycles as stipulated. If it is not valid, refuse issuance and provide a written explanation of the reasons, while notifying the customs office at the point of entry for supervision and handling according to regulations.

b.3) Within 07 working days from the date of receiving a complete dossier, the provincial or municipal Customs Department shall issue the import permit for motor vehicles and motorcycles. In cases requiring verification, the issuance period shall not exceed 15 working days from the date of receiving the dossier. The import permit is valid for 30 days from the date of issuance.

b.4) Each automobile or motorcycle shall be issued one set of import permits consisting of three copies (in accordance with the model GP/2014/NK OTO/MOTO-VKHH attached to this Circular), the permit must clearly state the name, address of the person importing the vehicle, the brand, model year (model), year of manufacture, country of manufacture, paint color, chassis number, engine number, engine displacement, and condition of the vehicle. Stamp the original transport document with a hanging stamp, except in cases where automobiles or motorcycles are imported through international land border crossings, and transfer one copy of the permit along with two copies of the import permit to overseas Vietnamese citizens who have returned home to complete the import procedures.

b.5) Update information (including both cases where import permits have been issued and where they have been refused) into the information management system of the General Department of Customs for automobiles and motorcycles imported by overseas Vietnamese citizens who have returned home.

Article 6. Import Procedures for Automobiles and Motorcycles

1. Import Documents

a) Import Permit for Automobiles and Motorcycles: Two original copies.

b) Transport Document: One original copy (stamped with a hanging stamp from the Customs Office of the province or city issuing the automobile and motorcycle import permit).

c) Export/Import Non-Tariff Goods Declaration Form (HQ/2011-PMD): Two original copies.

d) Certificate of Quality Inspection for Safety Technical Standards and Environmental Protection of Imported Motor Vehicles (for automobiles): One certified copy accompanied by the original for verification and comparison.

đ) Certificate of Quality Inspection for Imported Motorcycles (for motorcycles): One certified copy accompanied by the original for verification and comparison.

2. Procedure for Importing

a) Place of procedure

a.1) The import procedure for automobiles shall be carried out at the Customs Sub-Department at the port of entry (where the automobile is transported from abroad to the port) according to current regulations for used automobiles. For overseas Vietnamese citizens residing in countries sharing a land border, the import procedure may be conducted at an international border crossing when bringing automobiles back home.

a.2) The temporary import procedure for motorcycles shall be carried out at the Customs Sub-Department in accordance with the law.

b) The import procedure for automobiles and motorcycles under the movable property regime shall be carried out in accordance with current regulations for non-commercial imports and related guiding documents.

c) The Customs Sub-Department at the port of entry will only clear customs upon receipt of the Certificate of Quality Inspection for Safety Technical Standards and Environmental Protection of Imported Motor Vehicles (for automobiles) or the Certificate of Quality Inspection for Safety Technical Standards and Environmental Protection of Motor Vehicles and Motorcycles (for motorcycles) from the quality inspection agency.

d) Upon completion of the customs clearance procedure for automobiles and motorcycles, the head of the Customs Sub-Department at the port of entry shall confirm the content "automobiles and motorcycles imported under the movable property regime" on the Export/Import Non-Tariff Goods Declaration Form (HQ/2011-PMD), no origin declaration form will be issued for imported automobiles and motorcycles; return one copy of the import permit (with confirmation of the results of the automobile and motorcycle import procedures from the Customs Sub-Department where the import procedures were carried out), one copy of the HQ/2011-PMD Declaration Form (the declarant's retained copy) for registration and circulation procedures in accordance with current laws, and one certified copy of the HQ/2011-PMD Declaration Form (the declarant's retained copy) stamped for transfer and confirmation by the Customs Sub-Department at the port of entry; send a copy of the export/import non-tariff goods declaration form with confirmation from the Customs Sub-Department at the port of entry to the Customs Office of the province or city issuing the import permit for monitoring and updating full data on the import declaration form into the information management system of the General Department of Customs for centralized information management.

Article 7. Tax policy for imported automobiles and motorcycles, and their transfer

1. Tax policy for imported automobiles and motorcycles

Vietnamese citizens residing abroad who have returned to Vietnam and completed the procedures for permanent residence registration in accordance with regulations may import one automobile and one motorcycle. The tax policy for imported automobiles and motorcycles shall be implemented as follows:

a) Import tax: Exempt from import tax in accordance with Clause 2, Article 12 of Decree No. 87/2010/NĐ-CP dated August 13, 2010 of the Government.

b) Special consumption tax: Must pay special consumption tax in accordance with the Special Consumption Tax Law, except for types of vehicles specified in Clause 4, Article 3 of the Special Consumption Tax Law, which are guided by Clause 4, Article 3 of Decree No. 26/2009/NĐ-CP dated March 16, 2009 of the Government, Clause 2, Article 1 of Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government, and Clause 5, Article 3 of Circular No. 05/2012/TT-BTC dated January 5, 2012 of the Ministry of Finance.

The basis for calculating special consumption tax (taxable value, tax rate) shall be carried out according to current regulations at the time of taxation:

Where:

- The time of special consumption tax calculation is the time of registering the customs declaration for importing automobiles and motorcycles.

- Taxable value of special consumption tax = Taxable value of import tax + Import tax.

- The taxable value of import tax is determined according to the provisions of export tax and import tax laws. In cases where imported goods are exempted or reduced from import tax, the taxable value does not include the amount of import tax that is exempted or reduced.

- The taxable value of imported automobiles and motorcycles: Implemented according to the guidance provided in 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 determining the customs value of exported and imported goods.

c) Value-added tax: Subject to value-added tax according to Article 3 of the Value-Added Tax Law.

The basis for calculating value-added tax (taxable value, tax rate) shall be carried out according to current regulations at the time of taxation:

Where:

- The time of value-added tax calculation is the time of registering the customs declaration for importing automobiles and motorcycles.

- Taxable value of value-added tax = Taxable value of import tax + Import tax + Special consumption tax.

- The taxable value of import tax is determined according to the provisions of export tax and import tax laws. In cases where imported goods are exempted or reduced from import tax, the taxable value does not include the amount of import tax that is exempted or reduced.

- The taxable value of imported automobiles and motorcycles: Implemented according to the guidance provided in 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 determining the customs value of exported and imported goods.

d) Time limit for payment of tax: Implemented according to the Law on Tax Administration, the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration, and related guiding documents.

đ) Pay stamp duty at the first rate;

đ) Pay registration fee for circulation of automobiles and motorcycles according to current regulations.

2. Vietnamese citizens residing abroad who have returned home after completing the procedures for importing automobiles and motorcycles under the regime of movable assets must declare and pay stamp duty at the local tax authority and register for circulation of automobiles and motorcycles for use with the Public Security agency in accordance with regulations; the name and address of the owner of the vehicle on the circulation registration certificate for automobiles and motorcycles shall be the name and address of the owner on the permit and declaration for importing automobiles and motorcycles issued by the Customs authority and processed for importation; they are not allowed to sell, give, present, or gift (hereinafter referred to as transfer) to organizations or individuals in Vietnam before declaring and paying stamp duty and registering for circulation of automobiles and motorcycles in accordance with regulations.

3. Tax policy for imported automobiles and motorcycles that have been exempted from import tax and then transferred

a) Vietnamese citizens residing abroad who have returned home and have completed the procedures for registering for circulation of automobiles and motorcycles for use in accordance with Clause 2 of this Article, if transferring automobiles and motorcycles, shall declare a change in purpose and pay import tax at the customs authority issuing the import permit for automobiles and motorcycles in accordance with regulations. The procedure for declaring a change in usage purpose shall be carried out according to the guidance provided in Clause 8, Article 11 of Circular No. 128/2013/TT-BTC dated September 10, 2013 of the Ministry of Finance guiding customs procedures; customs inspection and supervision; export tax, import tax, and tax management for exported and imported goods.

The basis for calculating taxes for automobiles and motorcycles when transferred is the taxable value, tax rate, and exchange rate at the time of re-registering the new declaration. Among them:

a.1) The taxable value of import tax shall be carried out according to the guidance provided in 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 determining the customs value of exported and imported goods.

a.2) The tax rate for calculating import tax shall be applied according to the tax rate at the time of re-registering the new declaration.

b) The person receiving the transfer of used imported automobiles and motorcycles from overseas Vietnamese returning home shall pay stamp duty at the second rate and onwards and pay the registration fee for circulation of automobiles and motorcycles according to current regulations.

Article 8. Procedures for declaration and payment of taxes on cars and motorcycles when transferring ownership

1. Responsibilities of overseas Vietnamese citizens who have returned to Vietnam

a) Submit to the Customs Department of the province/city issuing the import permit for cars and motorcycles the following documents:

a.1) Application for transfer of ownership of cars and motorcycles by overseas Vietnamese citizens who have returned to Vietnam: 01 original copy;

a.2) Certificate of cancellation of registration for cars and motorcycles issued by the police authority: 01 certified copy.

a.3) Export/import non-trade goods customs declaration form (HQ/2011-PMD): 01 copy of the declaration form HQ/2011-PMD (copy retained by the declarant) stamped for the transfer procedure and confirmed by the Sub-Customs Department at the port of entry.

a.4) Export/import non-trade goods customs declaration form (HQ/2011-PMD): 02 original copies.

a.5) Proof of special consumption tax and value-added tax payment at the import stage for cars and motorcycles, and proof of stamp duty payment.

b) Carry out tax payments as prescribed.

c) Implement decisions on handling violations by the Customs Authority regarding declaration and tax payment procedures for cars and motorcycles during the transfer process.

2. Responsibilities of the Customs Departments of provinces/cities issuing import permits for cars and motorcycles

a) Based on the documents specified in point a, Clause 1 of this Article and compare with the actual cars and motorcycles to carry out the transfer procedures, calculate import duties, and collect import duties at the time of declaration registration according to the prescribed procedures.

b) Provide receipts for tax payments to overseas Vietnamese citizens who have returned to Vietnam (in cases of cash payment)/Receive copies of cash payment vouchers or checks through state treasuries (with confirmation from the treasury that the money has been received) or bank payment orders from overseas Vietnamese citizens who have returned to Vietnam.

b.1) Cancel the import permit for cars and motorcycles.

b.2) Handle violations according to the law for cases where overseas Vietnamese citizens who have returned to Vietnam violate declaration and tax payment procedures for cars and motorcycles during the transfer process.

Article 9. Handling of cars and motorcycles not meeting import conditions under asset transfer regime

1. In cases where imported cars under the asset transfer regime of overseas Vietnamese citizens who have returned to Vietnam do not meet the import conditions stipulated in this Circular, such citizens must carry out re-export procedures for the cars out of Vietnam at the Sub-Customs Department at the port of arrival or handle the import procedures under non-trade categories and pay all applicable taxes as prescribed for used imported cars (if the car meets the current legal import conditions for used imported cars).

2. For motorcycles, violation handling and forced re-export will be carried out. If overseas Vietnamese citizens who have returned to Vietnam fail to re-export within the prescribed period, confiscation measures will be taken.

3. In cases where the Customs Authority discovers fraud or signs of law violations, they shall handle them according to the law.

Chapter III
IMPLEMENTING PROVISIONS

Article 10. Implementation Organization

1. The General Department of Customs shall implement control and management of information related to the import of cars and motorcycles under the asset transfer regime of overseas Vietnamese citizens who have been permitted to return to Vietnam based on centralized information management principles.

Entrust the General Department of Customs to take the lead in building and implementing an information management system for cars and motorcycles imported by overseas Vietnamese citizens who have returned to Vietnam to control and manage information related to the import of cars and motorcycles under the asset transfer regime of overseas Vietnamese citizens who have been permitted to return to Vietnam.

2. The Customs Departments of provincial cities directly under the central government shall issue import permits for cars and motorcycles and direct Sub-Customs Departments to handle import and transfer procedures for cars and motorcycles according to Articles 5, 6, 8, and 9 of this Circular;

3. The General Department of Customs shall be responsible for receiving data transmitted by the Customs Departments of provinces/cities, implement centralized control and management of related information; within 5 working days from the date of receipt of data transmitted by the Customs Departments of provinces/cities to the General Department of Customs, provide feedback on inspection and control results for the Customs Departments of provinces/cities to base their issuance or refusal to issue import permits for cars and motorcycles as prescribed.

4. The General Department of Customs shall be responsible for coordinating with relevant agencies to provide and exchange information related to overseas Vietnamese citizens who have been permitted to return to Vietnam and have imported cars and motorcycles under the asset transfer regime.

Article 11. Effective Date

1. This Circular takes effect from April 1, 2014.

For cars and motorcycles of overseas Vietnamese citizens who have returned to Vietnam that arrived at Vietnamese ports before the effective date of this Circular, they shall be handled according to the guidance provided in Circular No. 118/2009/TT-BTC dated June 9, 2009, and related guiding documents.

2. This Circular abolishes:

a) Circular No. 118/2009/TT-BTC dated June 9, 2009, of the Ministry of Finance guiding the import of used cars under the asset transfer regime of overseas Vietnamese citizens who have completed permanent residence registration in Vietnam.

b) Point 2.2.c, Section I of Circular No. 16/2008/TT-BTC dated February 13, 2008, of the Ministry of Finance guiding the import and temporary import of two-wheeled motorcycles not for commercial purposes and regulations applicable to individuals who are overseas Vietnamese citizens permitted to return to Vietnam as stipulated in this Circular and Circular No. 215/2010/TT-BTC dated December 29, 2010, of the Ministry of Finance.

c) Point 1.1, Section I of Circular No. 02/2001/TT-TCHQ dated May 29, 2001, of the General Department of Customs stipulating customs procedures and management of cars and motorcycles for those permitted to import and temporarily import under non-trade regimes and regulations applicable to subjects enjoying diplomatic privileges and immunities as stipulated in this Circular.

3. During implementation, if the relevant documents cited in this Circular are amended, supplemented, or replaced, they shall be implemented according to the amended, supplemented, or replacement document from the date such amended, supplemented, or replacement document takes effect./.