Circular No. 8286/TC/TCT stipulates the application of a minimum tax value for two-wheeled motorbike parts kits imported under preferential tax policies to ensure consistency in tax calculation and collection.
Scope of application
General Department of Customs; motorcycle manufacturing and assembly enterprises
Key points
- Motorcycle manufacturing and assembly enterprises must comply with the detailed registration form for imported parts that has been confirmed by the General Department of Taxation (Point 1).
- The tax value for non-matching parts kits imported is fifty percent of the tax value of matching parts kits (Point 2).
- The tax rate applied to non-matching parts kits is based on the domestic content ratio as announced by the Ministry of Finance (Point 2).
- Specific examples illustrating how to determine the import tax value for non-matching parts kits (Point 3).
- The General Department of Customs shall coordinate with local customs authorities to implement this circular.
🌐 Social impact of this document
- To assist motorcycle manufacturing and assembly enterprises in enjoying preferential taxes when importing parts.
- Ensuring consistency in tax calculation and collection for imported non-matching parts kits.
- Increasing the burden on local customs authorities in implementing guidance.
❓ Frequently asked questions
What must a two-wheeled motorbike manufacturing enterprise do to be eligible for preferential tax policies?
Must comply with the detailed registration form for imported parts that has been confirmed by the General Department of Taxation.
What is the tax value for non-matching parts kits?
Fifty percent of the tax value of matching parts kits.
On what criteria is the tax rate applied to non-matching parts kits based?
Based on the domestic content ratio as announced by the Ministry of Finance.
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 8286 TC/TCT DATED JULY 29, 2002
REGARDING THE APPLICATION OF A MINIMUM TAX VALUE FOR
TWO-WHEELED MOTORCYCLE KITS
Dear: General Department of Customs
Pursuant to the provisions set forth in Circular No. 92/TTLT-BTC-BCN-TCHQ dated November 20, 2001 issued by the Joint Ministry of Finance - Ministry of Industry - General Department of Customs guiding the implementation of preferential tax policies for the production of two-wheeled motorcycles with engines, which has been amended and supplemented by Circular No. 52/2002/TTLT-BTC-BCN dated June 4, 2002 issued by the Joint Ministry of Finance - Ministry of Industry, based on the recommendations of the Inter-Ministerial Working Group, the Minister of Finance has issued a notice applying preferential tax policies for enterprises producing and assembling two-wheeled motorcycles with engines (accompanied by a detailed list of imported components and domestically produced parts registered by the enterprises). To ensure consistent calculation and collection of taxes on non-standard motorcycle kits imported under preferential tax policies, the Ministry of Finance provides guidance as follows:
- List of imported components: to be implemented strictly in accordance with the registration table for component details, sub-assemblies, and parts imported (stamped by the General Department of Taxation) attached to the notice on applying preferential tax policies issued by the Ministry of Finance.
- Minimum tax value for non-standard imported kits: determined based on the minimum import tax value of standard motorcycle kits as stipulated in Decision No. 117/2001/QĐ-BTC and the temporary import tariff rate according to the notice of the Ministry of Finance.
Example: Enterprise A imports a set of non-standard components for two-wheeled motorcycles X under preferential tax policies. The minimum import tax value for standard kits of type X, as per Decision No. 117/2001/QĐ-BTC, is USD 450, and the temporary tariff rate according to the notice of the Ministry of Finance is 30% (corresponding to a localization ratio above 40% but below 50%). According to Point 3 of Decision No. 117/2001/QĐ-BTC, the minimum tax value for non-standard imported kits will be 50% of that for standard kits: USD 450 x 50% = USD 225.
The Ministry of Finance provides this information for the General Department of Customs to be aware and coordinate with local customs offices to implement accordingly.
The Ministry of Finance provides comments for the General Department of Customs to be aware of and coordinate in guiding local customs authorities to implement.
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