What are the cases of exemption from import duty on bus components in Vietnam?

What are the cases of exemption from import duty on bus components in Vietnam?

According to Article 1 of Circular 169/2015/TT-BTC:

Scope

1. This Circular guides the exemption of import tax for imported parts and components that have not yet been manufactured domestically for projects manufacturing, assembling public buses.

2. Components (including details, groups of details, and parts) mentioned in Clause 1 of Article 1 of this Circular are completed products that have not been assembled or are not yet complete but have the basic characteristics of completed products.

3. Parts mentioned in Clause 1 of Article 1 of this Circular are components or groups of components.

According to Article 2 of Circular 169/2015/TT-BTC:

Regulated entities

1. Organizations and individuals importing parts and components not yet manufactured domestically to manufacture, and assemble public buses.

2. Organizations and individuals importing under trust or winning bids to import parts and components not yet manufactured domestically to supply for the projects of manufacturing, assembling public buses as stipulated in Clause 1 of Article 1 of this Circular.

Therefore, organizations and individuals importing under trust or winning bids to import bus components that have not yet been manufactured domestically to supply for projects manufacturing, and assembling public buses will be exempt from import duty.

What are the cases of exemption from import duty on bus components in Vietnam? (Image from the Internet)

What are the conditions for exemption from import duty on bus components that have not yet been manufactured domestically in Vietnam?

According to Article 3 of Circular 169/2015/TT-BTC, the conditions for exemption from import duty on bus components that have not yet been manufactured domestically in Vietnam for projects of manufacturing, assembling public buses are as follows:

- The project of manufacturing, assembling public buses is approved by the competent authority according to regulations;

- Parts and components imported to serve the project of manufacturing, assembling public buses are not included in the list of parts and components used for producing, assembling public buses that are already manufactured domestically as stipulated by the competent state authority.

Is an imported 45-seat bus subject to excise tax in Vietnam?

Under the regulations mentioned in Clause 4 Article 3 of Law on Excise Tax 2008 (amended by Clause 2 Article 1 of Law on Amending Excise Tax 2014):

Non-taxable objects

Goods specified in Clause 1, Article 2 of this Law are not subject to excise tax in the following cases:

1. Goods which are directly exported by producers or processors, or which are sold or entrusted by these producers or processors to other business establishments for export;

2. Imported goods, including:

a/ Goods as humanitarian aid or non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-profcssional organizations or people’s armed forces units; and donations or gifts for individuals in Vietnam within the quotas prescribed by the Government;

b/ Goods transited or transported via Vietnamese border gates or borders, and goods transported to and from border gates under the Government’s regulations;

c/ Goods temporarily imported for re-export and temporarily exported for re-import which are not subject to import duty or export duty within the time limit specified in the law on import duty and export duty;

d/ Personal effects of foreign organizations and individuals within diplomatic immunity quotas; personal belongings within duty-free luggage quotas; and goods imported for duty-free sale under law;

3. Aircraft, yachts used for transport of goods, passengers, tourists, and aircraft used for national defense and security purposes;

4. Ambulances; prison vans; hearses; cars designed with both seats and standing places for transporting 24 or more people; cars running in recreation, entertainment and spoils areas which neither are registered for circulation nor move on roads;

5. Goods imported from abroad into non-tariff areas, goods sold from the inland into non-tariff areas for use only in non-tariff areas, and goods traded between non-tariff areas, except under-24 seat cars.

Cars designed with both seats and standing places for transporting 24 or more people are not subject to the excise tax.

Thus, an imported 45-seat bus that has over 24 seats and is designed with both seating and standing spaces is not subject to excise tax.