The Ministry of Finance issued Circular 20/2014/TT-BTC regulating the import of automobiles and motorcycles under the mode of movable assets of Vietnamese citizens residing abroad with registration for permanent residence in Vietnam approved.
This ruling will plug the loopholes Circular 118/2009/TT-BTC.
Easily dodging the law
Right after Circular 118/2009/TT-BTC took effect on September 24, 2009, a lot of shortcomings were revealed. Specifically, the ruling allowed each Vietnamese to import one personal car in use when they repatriated. However, the unclearly specified concept "car in use" in this circular is invoked to circumvent the Circular 20 of the Ministry of Industry and Trade, which specifies that new vehicle import must have authorization paper of authorized dealer). Meanwhile, under the Joint Circular No. 03/2006/ TTLT-BTM-BGTVT-BTC-BCA dated March 31, 2006 of the Ministry of Transport, the Ministry of Finance, the Ministry of Trade (now the Ministry of Industry and Trade) and the Ministry of Public Security on instructions for import of used automobiles with less than 16 seats, a used automobile is an automobile used and registered for at least six months and having run at least 10,000 km by the time it arrives at the port of Vietnam. However, overseas Vietnamese registered to import automobiles in the form of movable assets. After the registration papers are completed, the imported vehicles usually run 5-10 miles (8-16 km).
Filling the hole
Circular 20 stipulates that beneficiaries are Vietnamese citizens residing abroad and having valid foreign passports or papers in place of foreign passports.
Automobiles and motorcycles will be imported under the mode of movable assets if they are ensured to have been registered for circulation in the country of residence or the countries where Vietnamese citizens residing abroad went to work (different from the country of residence) for at least six months and have run at least 10,000 km by the time arriving at Vietnamese ports.
After completing registration procedures for permanent residence in Vietnam, vehicles imported by overseas Vietnamese will be exempt from import duty but liable to taxes and fees.
After completing automobile and motorcycle import procedures with the customs agencies, importers must pay vehicle registration fee and vehicle circulation registration fee for use at Police Agencies. Vehicles cannot be sold, given and presented to individuals and organisations in Vietnam when the owners have not been declared, paid registration fees and registered for circulation.
After completing vehicle registration procedures for use, if overseas Vietnamese want to transfer their vehicles, they must declare changes and pay import duties at customs agencies where vehicle import licences were granted. Taxable value of vehicles is determined at the time of registering new declaration. Vehicle transferees pay registration fees and circulation fees for use.
M.L
Vietnamese
