Procedures for registration of participation in the Program on 0% preferential import tax rate for automobile accessories in Vietnam

Procedures for registration of participation in the Program on 0% preferential import tax rate for automobile accessories in Vietnam (Internet image) 

   Form No. 08 - Registration form for participation in the tax incentive program for the automobile supporting industry in Vietnam 

Specifically, according to  Article 1 of Decree 57/2020/ND-CP supplementing Article 7b to Decree 122/2016/ND-CP, registration to apply for  0% preferential import tax rates for automobile accessories in the tax incentive program for automobile supporting industry (input or raw materials and accessories that have not yet been domestically made to manufacture, process (assemble) supporting products given priority for development of the automobile manufacturing and assembly industry (hereinafter referred to as automobile supporting products) in the period 2020 - 2024 is implemented according to the following regulations in Vietnam:

1. Subjects of application of the Program on 0% preferential import tax rate for automobile accessories in Vietnam

- Automobile parts and accessories manufacturing and processing (assembling) enterprises;

- Automobile manufacturing and assembling enterprises employing themselves to manufacture and process (assemble) automobile accessories and spare parts. 

2. Conditions for application of the Program on 0% preferential import tax rate for automobile accessories in Vietnam

- Automobile accessories and spare parts manufacturing and processing (assembling) enterprises must meet the following requirements:

+ They have an agreement on purchase and sale of automobile supporting products with automobile manufacturing and assembling enterprises holding certificates of eligibility for automobile manufacture and assembly issued by the Ministry of Industry and Trade;

+ Their investment certificates or investment registration certificates or enterprise registration certificates or business registration certificates clearly state their project's objectives or business lines, including the manufacture of spare parts and components of automobiles and other motor vehicles.

+ They have the right to own or use manufacturing and processing (assembling) facilities, machinery and equipment at manufacturing and processing (assembling) workshops within the territory of Vietnam.

- Automobile manufacturing and assembling enterprises employing themselves to manufacture and process (assemble) automobile accessories and spare parts must have Certificates of eligibility for automobile manufacture and assembly, issued by the Ministry of Industry and Trade.

- Imported raw or input materials, supplies and accessories must meet the following requirements:

+Imported raw or input materials, supplies and components or accessories

++ Including raw or input materials, supplies and components or accessories imported from July 10, 2020 which are still in stock to be carried forward from the previous periods of application of preferential duty rates for manufacture or processing (assembling) of automobile supporting products in the following periods of application of preferential duty rates;

++ Excluding raw or input materials, supplies and components or accessories which are put to use, but broken or defective) are used for the manufacture and processing (assembly) of automobile supporting products named in the List of supporting industrial products given priority for development for the automobile manufacturing and assembly industry specified in Section IV of the Appendix to the Government’s Decree 111/2015/ND-CP dated November 3, 2015.

++ In case where an automobile product is merely assembled with simple details, such as screws, bolts, nuts, rivets, and does not undergo any finished product manufacturing or processing stage, it shall not be entitled to the tax incentive program for the automobile supporting industry.

+ Imported raw materials, supplies, and components that cannot be produced domestically because enterprises that are eligible for the Automobile Support Industry Tax Incentive Program directly import or entrust the import or authorize the import . The determination of raw materials, supplies, and components that cannot be produced domestically is based on the regulations of the Ministry of Planning and Investment on the list of raw materials, supplies, and semi-finished products that can be produced domestically.

3. Documentation for participation in the tax incentive program in Vietnam

-  Registration form for participation in the tax incentive program for the automobile supporting industry by using the Form No. 08: 01 primary copy;

- Investment certificate or investment registration certificate or enterprise registration certificate or business registration certificate (applicable to automobile parts and accessories manufacturing and processing (assembling) enterprises): 01 certified true copy;

- Written notice of manufacturing and processing (assembling) facilities; machinery and equipment installed at manufacturing and processing (assembling) facilities, sent to customs authorities according to Form No. 09 (applicable to automobile parts and accessories manufacturing and processing (assembling) enterprises): 01 primary copy.

- Land use right certificates granted by competent state agencies to enterprises or land use right certificates granted by competent agencies to land owners, land, premises or workshop rental or borrowing agreements if the applicant enterprise rents or borrows them to build their manufacturing facilities: 01 certified true copy.

- Certificate of eligibility for automobile manufacturing and assembly granted by the Ministry of Industry and Trade (applicable to Automobile manufacturing and assembling enterprises employing themselves to manufacture and process (assemble) automobile accessories and spare parts): 01 certified true copy.

4. Procedures for registration of participation in the Program on 0% preferential import tax rate for automobile accessories in Vietnam

- Applicant enterprises submit applications for registration for the tax incentive program for the automobile supporting industry in the following form  right after July 10, 2020 or any time of the year. 

+ Directly

+ Via the electronic data systems of customs authorities

+ By post to customs authorities at places where enterprises are headquartered, or their automobile manufacturing, processing (assembly) facilities are located to register their participation

- After receipt of the registration application for participation in the tax incentive program for the automobile supporting industry, the customs authority shall issue a decision on the inspection and send it via the electronic data system of the customs authority or by the registered mail or fax to the applicant customs declarant within 03 working days from the signature date. The inspection shall commence 5 business days after the date of issuance of the inspection decision.  The maximum duration of each inspection must be 5 business days. Inspection’s objectives: 

+ Physical inspection of automobile manufacturing and processing facilities to verify information that enterprises have notified to customs authorities

+ Physical inspection of machinery and equipment at the manufacturing or processing facility to check conformance to customs documentation on imported goods, invoices, evidence, machinery and equipment rental and borrowing agreements

- After completion of the physical inspection, the customs authority must make a report on results of the physical inspection of the automobile manufacturing and assembling facility. Within 05 working days from the day on which the inspection report is signed, the customs authority shall notify the inspected enterprise in writing whether or not they meet manufacturing and processing (assembling) facility, machinery or equipment requirements as prescribed.

5. Some notes when registering to participate in the 0% preferential import tax rate program for auto components

- If any enterprise ,eets regulations as prescribed, they shall be entitled to 0% preferential import duty rate applied to raw or input materials, supplies and components or accessories imported for manufacturing, processing (assembling) automobile supporting products within the period of consideration of grant of tax incentive. The maximum period of consideration of grant of tax incentive shall be 06 months from January 1 to June 30, or from July 1 to December 31 each year.

- At the time of registration of the customs declaration, the customs declarant enters "A43 - Import of goods eligible for the tax incentive program" at “Type/Activity code”; enters "#&7b" at "Enterprise’s internal control number"; enters “HS code” according to the List of Vietnam’s Imports and Exports with respect to raw or input materials, supplies and components or accessories qualified for the Tax Incentive Program for the automobile supporting industry.

- During the period of participation in the tax incentive program for the automobile supporting industry, if the participant enterprise has any change in their address of manufacturing and processing facility, their rights to own or use machinery and equipment at the manufacturing and processing (assembling) facility, they must notify such change in writing to their supervisory customs authority within 5 working days after the change-making date. 

In case the enterprise meets the manufacturing and processing (assembling) facility, machinery or equipment requirements as prescribed, the enterprise must proceed with the application for the 0% preferential import tax rate in order to be entitled to these rates.

Le Vy

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