This circular guides the application of import tariff rates based on the domestic content ratio for automobile parts manufacturing and assembly enterprises in Vietnam.
Scope of application
Enterprises engaged in the production and assembly of automotive parts
Key points
- Enterprises must submit a confirmation from the Ministry of Industry regarding technical conditions, technological capacity, and the domestic content ratio to the Customs authority (Point 7.1, Section V)
- The registration dossier is only submitted once to the Customs authority
- The Customs authority determines the import tariff rate based on the confirmed domestic content ratio by the Ministry of Industry and applies it for one year (fiscal year basis)
- "Automotive parts manufacturing enterprises benefit from reduced import tariffs based on the domestic content ratio. However, these enterprises must comply with the documentation requirements and application period stipulated."
- "What documents do automotive parts manufacturing enterprises need to submit to enjoy preferential import tariffs based on the domestic content ratio?" (Answer: Confirmation from the Ministry of Industry regarding technical conditions, technological capacity, and the domestic content ratio) "How long is the duration for applying the import tariff policy based on the domestic content ratio?" (Answer: One year based on the fiscal year)
🌐 Social impact of this document
- Automotive parts manufacturing enterprises benefit from reduced import tariffs based on the domestic content ratio.
- The Customs authority has additional responsibilities in determining and applying the tariff rate according to the domestic content ratio.
❓ Frequently asked questions
What documents do automotive parts manufacturing enterprises need to submit to enjoy preferential import tariffs based on the domestic content ratio?
Confirmation from the Ministry of Industry regarding technical conditions, technological capacity, and the domestic content ratio.
How long is the duration for applying the import tariff policy based on the domestic content ratio?
One year based on the fiscal year.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 8168 TC/TCT DATED AUGUST 28, 2001
REGARDING TAX POLICY FOR DOMESTIC CONTENT RATES
RESPECTED: General Department of Customs
In response to the letter number 3040/TCHQ-KTTT dated July 23, 2001 from the General Department of Customs regarding the application of import tax rates according to domestic content ratios based on the second registration file of NISSIN Vietnam Brake Manufacturing Company, the Ministry of Finance provides its opinion as follows:
According to the provisions of Circular Joint No. 120/2000/TTLT-BTC-BCN-TCHQ dated December 25, 2000 supplementing and amending Circular Joint No. 176/1998/TTLT-BTC-BCN-TCHQ dated December 25, 1998 of the Ministry of Finance - Ministry of Industry - General Department of Customs:
To be eligible to apply import tax rates according to domestic content ratios for a year, manufacturing and assembly enterprises must submit to the customs authority where they handle import procedures a confirmation document from the Ministry of Industry regarding technical conditions, technological capacity, and the domestic content ratio of their products and spare parts (for products and spare parts registered for domestic production in the first year) and registration documents as stipulated at Point 7.1, Section V, Circular Joint No. 120/2000/TTLT-BTC-BCN-TCHQ mentioned above. The registration document is only submitted once to the customs authority. Based on the domestic content ratio determined by the Ministry of Industry, the customs authority will calculate import taxes according to the domestic content ratio and implement this for one year (based on the fiscal year).
The Ministry of Finance provides its opinion for the General Department of Customs to be informed and to direct consistent implementation.
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