Circular No. 19/2014/TT-BTC dated February 11th 2014 of the Ministry of Finance on the procedures for temporary import, re-export, destruction and transfer of cars and motorcycles for entities being entitled to diplomatic privileges and immunities in Viet Nam

THE MINISTRY OF FINANCE

Circular No. 19/2014/TT-BTC dated February 11th 2014 of the Ministry of Finance on the procedures for temporary import, re-export, destruction and transfer of cars and motorcycles for entities being entitled to diplomatic privileges and immunities in Viet Nam

Pursuant to the Customs Law No.29/2001/QH10 on 29/6/2001 and 14/6/2005 42/2005/QH11 Act amending and supplementing a number of articles of the Customs Law;

Pursuant to the Law on Export and Import Tax No.45/2005/QH11 dated June 14, 2005, the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006; the Law No. 21/2012/QH13 dated November 20, 2012 amending and supplementing a number of articles of the Law on Tax Administration;

Pursuant to the Law No.78/2006/QH11 dated December 12, 2006 of the National Assembly on Tax Administration;

Pursuant to the Law No.13/2008/QH12 dated June 12, 2008 of the National Assembly on Value Added Tax and the Law No. 31/2013/QH13 dated June 19, 2013 of the National Assembly on amending and supplementing a number of Articles of the Law on Value-Added Tax;

Pursuant to the Law No. 27/2008/QH12 dated November 28, 2008 of the National Assembly on Excise Tax;

Pursuant to the Ordinance No. 25-L/CTN dated September 07, 1993 of the Standing Committee of National Assembly on the privileges and immunities relating to diplomatic mission, consular posts and representative offices of international organizations in Vietnam;

Pursuant to Decree No. 73-CP dated July 30, 1994 of the Government on detailed Regulations on the implementation of the Ordinance on the privileges and immunity of diplomatic representations, foreign consulates, and representative offices of international organizations in Vietnam

Pursuant to Decree No. 154/2005/ND-CP dated December 15, 2005 of the Government detailing a number of articles of the Customs Law regarding customs procedures, inspection and supervision;

Pursuant to the Decree No. 26/2009/ND-CP dated March 16, 2009 of the Government detailing a number of articles of the Law on Excise Tax and the  Decree No. 113/2011/ND-CP dated December 8, 2011 of the Government amending and supplementing a number of articles of the Government’s Decree No. 26/2009/ND-CP of March 16, 2009, detailing a number of articles of the Law on Excise Tax;

Pursuant to Decree No. 87/2010/ND-CP dated August 13, 2010 of the Government detailing a number of articles of the Law on Export and Import Tax;

Pursuant to the Decision No. 53/2013/QD-TTg of September 13, 2013, on temporary import, re-export, destruction and transfer of automobiles and motorbikes of entities eligible for privileges and immunities in Vietnam

Pursuant to Decree No. 187/2013/ND-CP dated November 20, 2013 of the Government detailing the implementation of the Commercial Law on activities of international purchase and sale of goods and activities of agency for sale, purchase, outsourcing and transit of goods involving foreign parties

Pursuant to the Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government on detailing and guiding implementation of several articles of Law on Value-Added Tax

Pursuant to the Decree No. 215/2013/ND-CP dated December 23, 2013 of the Government promulgating the functions, tasks, rights and organizational structure of the Ministry of Finance;

At the proposal of the General Director of the General Department of Customs;

Minister of Finance issues Circular on the procedures for temporary import, re-export, destruction and transfer of cars and motorcycles for entities being entitled to diplomatic privileges and immunities in Viet Nam,

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular deals with the temporary import, re-export, destruction, and transfer (hereinafter referred to as transfer) of cars and motorcycles (hereinafter referred to as vehicles) of the entities being entitled to diplomatic privileges and immunities in Viet Nam.

Article 2. Subjects of application

1. The diplomatic missions, consular offices and representative offices of international organizations in Vietnam that are given diplomatic privileges and immunity according to the International Agreements to which Vietnam is a signatory as specified in articles 8,9,10 of the Government s Decree No. 73/CP dated July 30, 1994;

2. The diplomats of diplomatic missions, the consular officers of consular offices, the officials of representative offices of international organizations in Vietnam that are given diplomatic privileges and  immunity according to the International Agreements to which Vietnam is a signatory.

3. Technical coordinators of diplomatic missions and consular offices that are given diplomatic privileges and immunity on the principle of reciprocity between Vietnam’s Government and the home country; officials of representative offices of international organizations in Vietnam that are given diplomatic privileges and immunity according to the International Agreements to which Vietnam is a signatory.

4. The organizations and individuals that buy vehicles of the entities mentioned in points 1,2,3 of this Article (hereinafter referred to as vehicle buyer).

5. The Custom departments.

Article 3. Conditions for temporary import, re-export, transfer and destruction of vehicles

1. The entities mentioned in points 1, 2, 3 article 2 of this Circular may temporarily import vehicles duty-free in accordance with the categories and quantity specified in point 1 article 3, point 1,2 article 4 of PM Decision No. 53/2013/QD-TTg.

2. The entities mentioned in points 1, 2, 3 article 2 of this Circular shall be entitled to temporarily import vehicles currently in use as means of transportation in accordance with points 4,5 article 4 of PM Decision 53/2013.

3. The entities mentioned in point 1 article 2 of this Circular may only be entitled to temporarily import vehicles duty-free in a quantity exceeding quota specified in point 2 article 3 of PM Decision 53/2013/QD-TTg upon written approval by MOFA.

4. Temporarily import of vehicles duty-free to supplement to the quota:

a. The entities mentioned in point 1 article 2 of this Circular may only be entitled to temporarily import vehicles duty-free to supplement quota if meet the conditions specified at the point 3.a article 4 of PM Decision 53/2013.

b. The entities mentioned in points 2,3, article 2 of this Circular may only be entitled to temporarily import vehicles duty-free to supplement quota if meet the conditions specified at the point 3.b article 4 of PM Decision 53/2013.

5. The entities mentioned in points 1, 2, 3 article 2 of this Circular may only be entitled to re-export, transfer or destroy vehicles if meet the conditions specified at articles 7,8,9 of PM Decision 53/2013.

6. Before completing procedures for re-export, transfer or destroy of vehicles, entities mentioned in points 1,2,3 article 2 of this Circular shall have to complete the revocation of registration certificate and number plate.

Entities mentioned in points 2,3 article 2 of this Circular shall have to complete the revocation of registration certificate, number plate, re-export, transfer or destroy vehicles in at least 30 (thirty) days prior to the termination of their tenure as specified in the ID card provided by MOFA.

Should the re-export, transfer or destruction of vehicles cannot be completed within said deadline, those entities shall have to authorize their offices to complete the re-export, transfer or destroy of vehicles. The authorization document must be confirmed by their office to maintain the vehicles at office place and complete such procedure no later than 6 months since the termination of diplomat s tenure.

Entities mentioned in points 1,2,3 article 2 of this Circular are not permitted to transfer the used and temporarily imported vehicles in accordance with point 2 article 9 of PM Decision 53/2013.

The buyer of vehicles from entities mentioned in points 1,2,3 article 2 of this Circular are liable for declaration and payment of any taxes and fees within deadline in accordance with existing regulations on taxes, fees and charges.

Chapter 2.

SPECIFIC PROVISIONS

Article 4. Licensing application and procedure

1. Application dossier for temporary import of vehicles shall include:

a. Application for temporary import of vehicle: 01 original copy

b. ID card issued by MOFA (for entities mentioned in points 2,3 article 2), 01 copy and present original copy for confirmation.

c. Bill of lading or other valid transportation document of equal value: 01 original and 01 copy provide by carrier (except if vehicles are temporarily imported through road border gate).

d. The registration certificate of circulation, or document to cancel such registration certificate provided by competent authority of the exporting country: 01 notarized translation into Vietnamese with legalization together with original copy for confirmation (applicable for vehicles currently being used as means of transportation).

dd. Confirmation by the organization where the entity is currently employed (applicable to entities mentioned in points 2,3 article 2) on the import of vehicles or assignment of entity from other country into Viet Nam: 01 original copy.

e. Submission of quota book for duty-free vehicles provided by MOFA for Custom Department to check and confirm.

g. Document approving the temporary import of vehicles which exceed the quota provided by MOFA (applicable where the import exceed quota): 01 original copy.

2. Procedures for licensing temporary import of vehicles by Custom department.

a. Responsibilities of entities mentioned at points 1,2,3 article 2 of this Circular:

a.1. Prepare full set of documents specified at point 1 of this article.

a.2. Submit the application for temporary import of vehicles license as specified at point 1 of this article to provincial Custom department where the office of organization is located (applicable for entities mentioned at point 1 article 2), or the organization where the diplomats are employed (applicable for entities mentioned at point 2,3 article 2).

b. Responsibilities of provincial Custom departments receiving the application:

b.1. Receive the application dossiers, checking their legitimacy and fullness, quantity permitted in the quota book. If all of these issues are confirmed, a confirmation of receipt will be provided to the applicants and the license for temporary import of vehicles will be granted within 5 working days.

Should the dossiers are not complete, inform and provide guidance to applicants to complete in accordance with existing regulations.

b.2. Each car or motorcycle temporarily imported will be provided with 1 set of document for temporary import, which includes 3 copies (template 01: G/2014/TNK OTO/XEMAY – NG issued together with this Circular). Such document must include full name, address, working title of the entity who temporarily import vehicle, vehicle brand, model, year of manufacturing, country of manufacturing, color, chassis and engine number, engine capacity, vehicle status (brand new or used) and duration of temporary import or re-export in line with tenure duration in Viet Nam specified in the ID provided by MOFA (applicable to entities mentioned in points 2,3 article 2 of this Circular). The temporary import document is valid in 30 days since date of issuance.

b.3. Upon issuance of document for temporary import, the issuing Custom department shall record information into the quota book for duty free vehicles (sections for the vehicles temporarily imported) provided by MOFA, stamp and return it to the applicant together with 02 copies of document for temporary import (together with 01 bill of lading with stamp of issuing Custom department) to submit to border gate Custom branch for temporary import.

b.4. Updating information on cars, motorcycles temporarily imported by entities entitled to privileges and immunities to the portal of Viet Nam General Department of Custom.

Article 5. Dossiers and procedures for temporary import of cars, motorcycles

1. Dossier for temporary import of cars, motorcycles

a) A temporary import of cars and motorbikes paper: 02 originals;

b) Bill of lading: 01 original (with a stamp of the Customs Departments of provinces and cities where the granting of temporary import of cars was done, motorcycles);

c) Customs declarations for non-commercial export / import (HQ/2011-PMD): 02 originals;

d) The registration quality check, technical safety and environmental protection of imported motor vehicles (for cars): 01 original;

e) The registration of quality control for imported motorcycles (for motorcycles): 01 originals;

2. Procedures for temporary import of cars, motorcycles

a) Location for procedures

a1) The procedures for temporary import of cars made at the border gate customs sub-department (where the cars are transported from overseas to the gate). As for the case of temporary import cars through the land border gate, procedures for temporary import of cars is [carried out] at international borders.

a2) The procedures for temporary import of motorcycles made at the Customs Department as prescribed by law.

b) The procedures for temporary import of cars, motorcycles are done in accordance with current regulations for imported goods not for commercial purposes.

c) Border gate customs only clears the procedures when certificate of quality, technical safety and environmental protection of imported motor vehicles (for cars), certificate of quality, safety and technical environmental protection motorcycle s quality by inspection agency is available.

d) At the end of the procedure for automobiles, motorcycles, border gate customs sub-department confirmed:

d.1) Content "automobile, motorcycle temporary import" at the right corner of customs declaration of non-commercial or export / import (HQ/2011-PMD);

d.2) procedures result of temporary imported cars, motorcycles in the 02 copies of temporarily imported vehicles paper.

Return the person [declarant] of temporary imported vehicles 01  temporary imported car paper and 01 declaration HQ/2011-PMD (filed by the declarant) to make the registration procedures for circulation and 01 copy from originals (filed by the declarant) signed, stamped and certified by the border gate Customs sub-department for "re-export or transfer in accordance with law" for procedure of re-export or transfer according to regulation;  copying and sending temporary import license or customs sub-department certified declaration to provincial or city customs dept. where the temporary import paper was granted for the sake of monitoring, controlling and data transferring the declaration to general dept. of customs for centralized information control, no declaration of origin for temporary imported cars and motorcycles.

Article 6. Dossiers and procedures for re-export of cars, motorcycles

1. Dossier for re-export of cars, motorcycles

a) A written request for re-export vehicles: 01 copy certified by the agency where the person works in Vietnam.

b) The written letter of the Ministry of Foreign Affairs (Department of State Protocol  or Department of Foreign Affairs or the local consular office where available) on the re-export of vehicles: 01 originals.

c) The stamped customs declaration for temporary import of vehicles (filed by the declarant) for "re-export or transfer in accordance with law": 01 copy certified by the Customs Department where temporary import was done.

d) Withdrawal of registration, number plates of cars, motorcycles issued by police: 01 originals.

e) Certified minute by the competent State authority on accidents, natural disasters or objective technical reason that the vehicle can no longer be used: 01 original (for case specified in Clause 3 of Article 7 of Decision No. 53/2013/QD-TTg).

2. Procedures for re-export of cars, motorcycles

a) Procedures for re-export of cars, motorcycles made at border gate Customs Sub-Departments.

b) Based on the records specified in paragraph 1 of this Article, the Customs Department implement procedures for re-export under the current regulations for the export of goods not for commercial purposes. In case of doubts about the temporary import declarations prescribed at Point c, Clause 1 of this Article, the Customs Department requires border gate customs to provide information on import declaration. Within 5 days since receiving the request from border gate customs, temporary import customs must provide re-export customs with information.

c) At the end of the procedure for re-export, border gate customs sub-department where the procedures for re-export of cars, motorcycles are done sends written notice and copy of re-export declaration to provincial/city customs where temporary import license was issued to liquidize [complete] the temporary import license according to regulation

Article 7. Dossier, procedures and tax policies for transfer of cars

1. Procedures for granting or transfer and transfer procedures done at the provincial/city Customs Department where the granting of temporary import of vehicles was done.

2. Application for transfer

a) For agency s vehicle

Request for transfer: 01 original

b, For personal vehicle

b.1) A written request for transfer vehicles: 01 copy certified by the agency where person work in Vietnam or written request for transfer by the agency (for person specified object in paragraphs 2 and 3 of Article 2 of this Circular authorizes the agency where he/she work to complete the procedure).

b.2) identity card issued by the Ministry of Foreign Affairs (for the specified object, in paragraph 2 and 3 of Article 2 of this Circular): 01 certified photocopy of the agency where the person work and one original for cross check.

b.3) Letter of the Ministry of Foreign Affairs (Department of State Protocol, Department of Foreign Affairs or the local consular office where available) on the transfer of vehicles: 01 original.

b.4) Letter of authorization: 01 original

c) revocation of registration and number plates by the police agency: 01 original.

d) The customs declaration for temporary import of vehicles (filed by the declarant) stamped for "re-export or transfer in accordance with law": 01 copy certified by the sub-department of customs at temporary import border gate.

e) The customs declaration of goods exported / imported for non-commercial purpose (HQ/2011- PMD): 02 originals.

3. Procedures for granting of transfer certificate

a) Responsibilities of the persons mentioned in Clauses 1, 2 and 3 of Article 2 of this Circular:

a.1) Prepare all documents stipulated in Clause 2 of this Article.

a.2) Filing of request for transfer of vehicle license specified in paragraph 2 of this Article at the provincial/city customs department where the granting of temporary import of vehicles was done.

b) Responsibilities of Customs Departments of provinces, cities that receives file for transfer of vehicles:

b.1) Receipt the file, check the completeness and validity of it and compare them with the transfer conditions specified in Article 9 of Decision No 53/2013/QD-TTg if appropriate, make receipt note, reply to applicant and grant the transfer permit within 05 working days from the date of receipt.

If the file is incomplete, guide the applicant in completing the documents as prescribed.

In case of doubts about the temporary import declarations stipulated in Point d, Clause 2 of this Article, requests the sub department of customs at temporary import border gate to provide information on import declaration. Within 5 days from the receipt of re-export sub-department of customs request, sub department of customs at temporary import border gate must provide information to re-export sub department of customs.

b.2) Each temporary import car is granted 01 set of transfer paper including 3 copies (form No. 02: G/2014/CN- OTO - NG issued together with this Circular), transfer paper must clearly state: the agency name, address (for agency s car); their name, address (for personal vehicles) of the transferor; numbers, dates of temporary import license, temporary import declaration, brand, model, year of production, country of production, paint, chassis number, engine number, engine capacity.

b.3) After granting the vehicle transfer, give the transferor 2 copies as prescribed in clause 1,2 and 3, file 1 and give to the transferee 1 copy for transfer procedure.

b.4) Update information management system of the General Department of Customs for cars, motorcycle temporary imported of the privileged and immune person.

4. Transfer procedures

a) Persons specified in Clauses 1, 2 and 3 of Article 2 of this Circular make 02 customs declarations for export / import of non-commercial goods (HQ/2011-PMD).

b) Responsibilities of Customs Departments of provinces and cities where the granting of car transfer license was done:

b1) Basing on the vehicle transfer papers, customs declaration specified in clause 3, clause 4 of this article and compare it with the actual vehicle to perform transfer procedures (including the calculation and collection of taxes as defined in paragraph 5 of this Article, except for vehicle buyer, receiver of gifts and donations is person specified in provisions of Clause 1, 2 and 3 of Article 2 of this Circular). Within 10 days of receipt of the application for vehicle transfer license, provincial, city  dept. of customs complete transfer procedures as prescribed.

b2) Returns 1 declaration HQ/2011-PMD (filed by declarant) and tax receipts to transferor or authorized transferor as prescribed by law for circulation registration; or collect a receipt of deposit of money into state budget in cash or check through state treasury (certified by state treasury) or authorized spending paper from transferor or authorized transferor.

b3) Perform vehicle temporary import paper liquidation

5. Tax policy for transferred vehicles

Basis for import tax are taxable value, tax rate and exchange rate at time of transfer:

a) Time of transfer shall comply with the provisions of Point c, Clause 4, Article 9 of Decision No 53/2013/QD-TTg.

b) The taxable value shall comply with the provisions of Clause 1 of Article 20 of Circular No. 205/2010/TT-BTC dated 15/12/2010 of the Ministry of Finance guiding Decree No. 40/2007/ND-CP 16/03/2007 Government regulations on the determination of the customs value of goods exports and imports.

c) Tax rate:

c1) For cars of 15 seats or less (including driver): Apply the rate of used car import as stated by Decision No. 36/2011/QD-TTg 29 / 06/2011 and the Prime Minister s Decision No. 24/2013/QD-TTg dated 03.05.2013, amending and supplementing Clause 1, Article 1 of Decision No. 36/2011/QD-TTg dated 29/06/2011 on the issuance of import tariffs for used passenger cars of 15 seats or less.

c2) For cars of 16 seats or more (including driver): Apply the rate of used vehicle of 16 seats or more in the preferential import tariff in effect at the time of transfer.

Article 8. Destruction of cars, motorcycles

1. Before performing destruction of vehicles, person defined in paragraphs 1, 2 and 3 of this Circular sends written notice to the provincial or city dept. of customs where the granting of temporary import of cars, motorcycles was made. Notice must specifies the name and address of the owner of temporary imported car, number, date, year of  temporary import license and vehicle temporary import declaration.

2. Vehicle destruction procedures shall follow the regulations of the Ministry of Natural Resources and Environment.

3. Customs Department of provinces and cities where the granting of temporary import car / motorcycle was done bases on destruction minutes (original) as prescribed by the Ministry of Natural Resources and Environment for comparison with the vehicle-related information (temporary import paper, temporary import declarations and conditions stipulated in Article 8 of Decision 53/2013/QD-TTg) to liquidate temporary imported vehicle paper as prescribed.

Chapter 3.

IMPLEMENTATION PROVISIONS

Article 9. Implementation organization

1. The General Department of Customs shall control and manage the information related to the temporary import of cars, motorcycles of those entitled to the privileges and immunities in Vietnam under principles of centralized management information.

Assign the General Department of Customs to lead the development of information management system for car, motorcycle temporary import of person of diplomatic privileges and immunities in Vietnam.

2. Customs Departments of provinces and cities which grants car, motorcycle / import license or where import procedures are done are responsible to register, transmit data about temporary imported cars, motorcycles, re-export, transfer and destruction under the guidance of the General Department of Customs;

3. General Department of Customs is responsible for receiving data from the provincial, city dept. of customs to control, centrally manage the information;

4. Quarterly or randomly, General Department of Customs is responsible for coordination with the State Protocol Department - Ministry of Foreign Affairs, Department of Road –Rail Traffic Police, Ministry of Public Security to provide and exchange information about temporary import of cars, motorcycles of those entitled to privileges and immunities in Vietnam; cars, motorcycles past the time limit for temporary import but has yet re- exported, transferred or destroyed.

5. General Director of the General Department of Customs shall direct the Customs Department of the provinces and cities to manage, monitor and implement the provisions of this Circular. In the course of implementation, if any problems arise, it should be reported promptly to Ministry of Finance (through the General Department of Customs) for guidance and direction.

Article 10. Implementation effect

1. This Circular comes into effect on 28/3/2014

2. To annul the provisions of Circular No. 29/5/2001 dated 02/2001/TT-TCHQ of the General Department of Customs on customs procedures and management of cars, motorcycles of beneficiaries of diplomatic privileges and immunity.

3. During implementation process, if the relevant document(s) referred to in this Circular shall be amended, supplemented or replaced, implementation will be according to these new documents. /.

For the Minister

The Deputy Minister

Do Hoang Anh Tuan