Amendments on Conditions for duty-free temporary import of motor vehicles and motorcycles in Vietnam

Amendments on Conditions for duty-free temporary import of motor vehicles and motorcycles in Vietnam (Internet image)

Clause 1, Article 1, Decision 14/2021/QD-TTg amends and supplements the conditions for duty-free temporary import of motor vehicles and motorcycles in Vietnam as follows:

- The diplomatic missions, consular offices and representative offices of international organizations in Vietnam that are given diplomatic immunity and privileges according to the International Agreements to which Vietnam is a signatory as prescribed in Article 8, Article 9, and Article 10 of Decree No. 73/CP dated July 30, 1994 may temporarily import vehicles without paying import duty, excise duty and VAT on vehicles in accordance with relevant tax laws after being granted temporary import quota in the quota book for duty-free goods (hereinafter referred to as “quota book”) by the Ministry of Foreign Affairs.

Currently, the above subjects are only allowed to temporarily import cars and motorbikes tax-free according to the type and quantity specified in Appendix I issued with Decision 53/2013/QD-TTg.

- The entities mentioned in Clause 2 and Clause 3 Article 2 of Decision 14/2021/QD-TTg may temporarily import vehicles without paying import duty, excise duty and VAT in accordance with relevant tax laws if the following conditions are fulfilled:

•  The entity mentioned in Clause 3 Article 2 of this Decision has worked at the diplomatic mission, consular office, or representative office of a international organization in Vietnam and is granted diplomatic immunity and privileges for at least 18 months from the day on which the he/she is issued with the ID card by the Ministry of Foreign Affairs and the remaining term of office in Vietnam is at least 12 months according to the ID card issued by the Ministry of Foreign Affairs;
• The entity mentioned in Clause 3 Article 2 of this Decision has worked at the diplomatic mission, consular office, or representative office of a international organization in Vietnam and is granted diplomatic immunity and privileges for at least 12 months from the day on which the he/she is issued with the ID card by the Ministry of Foreign Affairs and the remaining term of office in Vietnam is at least 09 months according to the ID card issued by the Ministry of Foreign Affairs;
• He/she has been granted temporary import quota by the Ministry of Foreign Affairs in the quota book as prescribed by law.

In addition, Decision 14/2021/QD-TTg also stipulates that the Ministry of Foreign Affairs issues temporary import standards in the tax exemption quota book for the case of successors, specifically as follows:

• In case the successor wishes to temporarily import another vehicle, the Ministry of Foreign Affairs will only grant temporary import quota in the quota book after the customs authority issues a notification that the predecessor has completed procedures for re-export or destruction of the vehicle or the vehicle buyer has completed procedures for transfer of the vehicle from the predecessor.
• In case the predecessor transfers the motor vehicle to the successor and the Ministry of Foreign Affairs grants temporary import quota in the quota book before the  procedures for transfer of the motor vehicle is completed, the Ministry of Foreign Affairs shall write down information on predecessor’s ID card (ID card number, full name, position, workplace, expiration date) and info about the predecessor's vehicle (type of vehicle, year of manufacture, country of origin, chassis number, engine number, number and date of issue of the temporary import permit) in the quota book.

Thus, from May 15, 2021, the above-mentioned objects will be temporarily imported free of import tax, not subject to special consumption tax or value-added tax for cars and motorbikes, according to regulations (currently, only temporary tax-free imports are allowed). At the same time, Decision 14/2021/QD-TTg adds the condition that the Ministry of Foreign Affairs must grant temporary import standards in the tax exemption quota book according to the provisions of law for a number of subjects.

Bao Ngoc

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