Are two-stroke motorcycles subject to import duty? What are the principles for determining the customs value of goods subject to import duty in Vietnam?

Are two-stroke motorcycles subject to import duty in Vietnam?

Based on Article 2 of Decree 134/2016/ND-CP stipulating the taxable objects, imported motorcycles will be subject to import duty in the following cases:

+ Motorcycles imported through Vietnam’s border gates, borders;

+ Motorcycles imported from export processing enterprises, export processing zones, bonded warehouses, bonded warehouses, and other non-tariff zones following the provisions in Clause 1, Article 4 of the 2016 Law on Export and Import Duties into the domestic market;

+ On-site imported motorcycles stipulated in Clause 3, Article 2 of the 2016 Law on Export and Import Duties implemented according to the regulations of Decree 08/2015/ND-CP;

Note: Cases not subject to import duty (Based on point c, clause 4, Article 2 of the 2016 Law on Export and Import Duties);

+ Motorcycles imported from abroad into non-tariff zones and used only in non-tariff zones; Motorcycles transferred from one non-tariff zone to another non-tariff zone.

Therefore, the importation of two-stroke motorcycles is subject to import duty and may also incur other types of duties prescribed by law.

Are two-stroke motorcycles subject to import duty? What are the principles for determining the customs value of goods subject to import duty in Vietnam? (Image from the Internet)

What are the principles for determining the customs value of goods subject to import duty in Vietnam?

Based on Article 5 of Circular 39/2015/TT-BTC as amended by Clause 4, Article 1 of Circular 60/2019/TT-BTC, the regulations are as follows:

Principles and methods for determining the customs value of imported goods

1. Principles:

a) The customs value of imported goods is the actual price paid up to the first entry border gate determined by sequentially applying the methods from points a to e, clause 2 of this Article, and stopping at the method that determines the customs value;

b) In cases where the customs declarant requests in writing, the order of application of the deduction method and the computed method may be interchangeable;

c) The determination of customs value must be based on documents, materials, objective and quantifiable data.

2. Methods for determining the customs value of imported goods:

a) Transaction value method of imported goods;

b) Transaction value method of identical imported goods;

c) Transaction value method of similar imported goods;

d) Deductive value method;

e) Computed value method;

f) Fall-back method.

Thus, according to the above regulations, there are three principles for determining the customs value as follows:

Principle 1: The customs value of imported goods is the actual price paid up to the first entry border gate determined by sequentially applying the methods from point a to e clause 2 of this Article, and stopping at the method that determines the customs value;

Principle 2: In cases where the customs declarant requests in writing, the order of application of the deduction method and the computed method may be interchangeable;

Principle 3: The determination of customs value must be based on documents, materials, objective and quantifiable data.

How is import duty reduced in some cases prescribed by law in Vietnam?

Based on Article 18 of the 2016 Law on Export and Import Duties regarding the reduction of export and import duty as follows:

Tax Reduction

1. Exported and imported goods under the supervision of customs authorities, if damaged or lost and certified by competent authorities, shall be eligible for tax reduction.

The tax reduction corresponds to the actual loss ratio of the goods. In cases where exported or imported goods are entirely damaged or lost, no tax is due.

2. The procedures for tax reduction shall comply with the provisions of the law on tax administration.

Simultaneously, based on Clause 1, Article 32 of Decree 134/2016/ND-CP, as amended by Clause 16, Article 1 of Decree 18/2021/ND-CP, it is stipulated:

Reduction of export and import duty

1. Exported and imported goods under the supervision of customs authorities according to the 2014 Customs Law and guiding documents, if damaged or lost due to objective reasons, shall be eligible for tax reduction according to Clause 1, Article 18 of the Law on Export and Import Duties.

2. The dossier for tax reduction request includes:

a) Official Dispatch requesting tax reduction from the taxpayer sent via the electronic data processing system of the customs authority according to information criteria at Form No. 3 Appendix VIIa or an official dispatch requesting tax reduction according to Form No. 08 in Appendix VII issued with this Decree: 01 original copy;

b) Insurance contract, compensation payment notice of the insurance organization (if any), in case the insurance contract does not include content on tax compensation, there must be confirmation from the insurance organization; contract or compensation agreement record from the carrier in the case of loss caused by the carrier (if any): 01 photocopy;

c) An official damage cause confirmation record from the competent authority at the location where the damage occurred (record of fire confirmation by the local fire prevention and fighting police authority where the fire occurred; confirmation document from one of the following relevant authorities or organizations: local commune-level police agency, People's Committee of the commune, ward, commune-level town; Management Board of the industrial park; Management Board of the export processing zone; Management Board of the economic zone; Management Board of the border gate; Maritime administration; Aviation administration where the force majeure event of natural disaster, disaster, epidemic, unexpected accident causing damage to imported materials, machinery, and equipment occurred): 01 original copy.

d) Inspection certificate of the quantity of lost goods or the actual loss ratio of goods by the inspection service trader: 01 original copy.

According to these regulations, exported and imported goods are eligible for tax reduction if they are under the supervision of customs authorities and are damaged or lost and certified by competent authorities or organizations.

The reduction of export and import duty corresponds to the actual loss ratio of the goods. In cases where exported or imported goods are entirely damaged or lost, no tax payment is required.