Report on doing business in the field of car in Vietnam

Nội dung bài viết

SBLAW would like to provide you our report on doing business in the field of car in Vietnam for your kind reference.

We would like to brief fact of the case as follows:

1.PROCEDURE TO IMPORT NEW CARS TO VIETNAM BY LOCAL PARTNER AND INDIVIDUAL END-USER (INCLUDING CUSTOMS PROCEDURE AND CAR QUALITY INSPECTION, REQUIRED DOCUMENTS FOR IMPORTATION).

1.1.Procedure to import new cars to Vietnam by local partners

a) Condition to import new cars to Vietnam by local partners

- According to Article 14 of Decree 116/2017/ND-CP, the licenses for new cars import shall only be considered granting to enterprises is established and operating under Vietnam Laws. The enterprises shall be entitled to import new cars after fulfilling all requirements for new cars imports as follows.

+ The car warranty/maintenance center owned/leased by the car importer or belonging to the dealer network authorized by such importer.

+ There is a physical confirmation or document proving that the motor vehicle importer is eligible to represent a foreign motor vehicle manufacturer/assembler to recall defective motor vehicles imported into Vietnam.

- Before importing new cars the enterprise shall have to obtain the license of car import, in which, an application for issuance of the license for car import shall consists the documents as below:

i) An application for license of car import;

ii) A copy of the enterprise registration certificate or equivalent documents;

iii) A copy of the documents proving that the importer meets the motor vehicle import requirements including: (i) a copy of the document proving that the importer’s motor vehicle warranty/maintenance center meets the requirements; (ii) a copy of the physical confirmation or document proving that the motor vehicle importer is eligible to represent a foreign motor vehicle manufacturer/assembler to recall defective motor vehicles imported into Vietnam that has been authenticated by a diplomatic mission of Vietnam in a foreign country.

- The Ministry of Industry and Trade shall have the power to issue licenses for car import. Within 10 working days from the day on which the valid application is received, the Ministry of Industry and Trade shall consider issuing the license to the applicant.

b) Quality standards of the imported new cars

- New cars imported to Vietnam shall be inspected for technical standards and environment safety by the control authorities under Circular No.03/2018/TT-BGTVT.

- The control authorities shall inspect every shipment of new cars. The sample vehicles of each motor vehicle type in the shipment must undergo emission test and technical safety inspection as follows:

i) Inspect the consistency of the manufacturer’s certificates of quality inspection; consistency between the manufacturer’s certificate of quality inspection and the Certificate of Type approval of the same cars type in the shipment.

ii) Compare the chassis number, engine number of each vehicle in the shipment with those in the application for inspection; inspect the consistency of vehicles of the same type in the shipment; select random vehicles of each type in the shipment and compare their specifications with those in the application.

iii) The inspecting authority will randomly choose 1 or 2 sample vehicles (if the importer wishes to have 1 vehicle undergoing safety inspection and 1 vehicle undergoing emission test) of each type in the shipment and the importer will deliver them to the testing facility. The sampling must be recorded, which will be presented to the testing facility.

iv) Emission test shall be carried out in accordance with QCVN 86: 2015/BGTVT “National technical on the fourth level of gaseous pollutants emission for new assembled, manufactured and imported automobiles” (except evaporation test).

v) Technical safety test shall be carried out in accordance with QCVN 09:2015/BGTVT “National technical regulation on safety and environmental protection for automobiles”, QCVN 10:2015/BGTVT “National technical regulation on safety and environmental protection for urban bus” , QCVN 82:2014/BGTVT “National technical regulation on urban buses designed for easy access for disabled people” and effective regulations of law (except for rearview mirrors, windshield, front lamps, tires, rims, flameproof materials and structures).

- An application for inspection of new cars consists of:

i) The application form in Appendix I of Circular 03/2018/TT-BGTVT;

ii) A copy of the certificate of registration issued by a foreign authority;

iii) A copy of the certificate of type approval of the tire, rearview mirrors, front lamps and windshield issued by a competent authority;

iv) The original copy of the certificate of quality inspection issued by the foreign manufacturer to each vehicle;

v) Copies of documents about assessment of the foreign manufacturer’s quality assurance conditions issued by foreign authorities;

vi) A copy of the invoice;

vii) A copy of the VIN decoder (for first type approval);

viii) The original copy of the Information sheet of imported motor vehicle in Appendix III of Circular 03/2018/TT-BGTVT;

ix) A copy of the manufacturer’s technical manual;

x) A copy of the import declaration (for physical application) or declaration number and date (for electronic application);

xi) A copy of the emission test report;

xii) A copy of the safety test report.

- Inspection procedures:

+ Step 1: The importer shall submit an application for inspection to the inspecting authority, whether directly or electronically.

An electronic copy of the manufacturer’s certificate of quality inspection shall be submitted online, and the physical copy shall be submitted to the inspecting authority before the inspection.

+ Step 2: The inspecting authority shall receive and check the application within 1 working day. If the application is satisfactory, the inspection authority shall give a confirmation in the application form. If the application is not satisfactory, the inspecting authority shall request the importer to complete it.

+ Step 3: Vehicle inspection

The importer shall deliver the vehicles to the inspection site at the registered time.

If the importer fails to deliver the vehicles within 10 days from the application date, the inspecting authority shall suspend the certification process, in which case the importer must apply from the beginning.

+ Step 4: Testing sample vehicles.

For new vehicles, the importer shall deliver the sample vehicles to the testing facility for testing. The testing result is the basis for issuance of the certificate of quality.

+ Step 5: Issuance of certificate of quality

Within 04 working days from the end of the inspection and receipt of adequate documents, the inspecting authority shall issue the physical or electronic certificate of quality

- Competent Authority for Inspection:

Vehicle Certification Department (VAQ) -  Vietnam Register

c) A customs dossier of imports

- According to Article 16.2 of Circular No. 38/2015/TT-BTC amended by Section 5.2 of Circular No. 39/2018/TT-BTC the customs application dossier of imports shall have the following documents:

i) A customs declaration;

ii) Commercial invoices or equivalent documents if the buyer has to pay the seller;

If the goods owner buys the goods from a seller in Vietnam and is instructed by the seller to receive goods overseas, the customs authority shall accept the invoice issued by the seller in Vietnam to the goods owner;

The declarant is not required to submit the commercial invoice in the following cases: (i) goods are imported to execute a processing contract with a foreign trader; (ii) goods are imported without invoices and the buyer is not required to pay the seller;

iii) The bill of lading or equivalent transport documents if goods are transported by sea, air, railroad, or multi-modal transport as prescribed by law (unless goods are imported through a land checkpoint, goods traded between a free trade zone and the domestic market, imports carried in the luggage upon entry);

iv) License of car import;

v) Value declaration: the declarant shall make the value declaration using the set form and send the electronic declaration to the e-customs system or submit 02 original copies to the customs authority (in case of submission of physical customs declaration);

vi) Documents certifying goods origins specified;

vii) Entrustment contract;

- The declarant is not required to submit the documents mentioned in Point (iv) and Point (vi) if they are sent electronically through the National Single-window Information Portal by the inspecting authority or regulatory authority or through the Association of Southeast Asian Nations Single-window Information Portal by a competent authority of the exporting country or through another portal conformable with international treaties to which Vietnam is a signatory.

- According to Article 23 of Law on Customs, time limit for customs authorities (Customs Department) to carry out customs formalities:

+ Customs authorities shall receive, register and verify customs documents right after customs declarants submit dossiers.

+ After customs declarants satisfy all requirements for carrying out customs formalities prescribed at Points a and b, Clause 1, Article 21 of Law on Customs, the time limit for customs officials to complete the verify dossiers and conduct physical inspection of goods and vehicle following the procedure below:

Complete the verification of dossiers within 2 working hours after customs authorities receive complete customs documents;

Complete the physical inspection of goods within 8 working hours after customs declarants fully produce goods to customs authorities.

For lots of goods in large quantities and of many types or in case the inspection is complicated, heads of customs authorities where customs formalities are carried out shall decide to defer the time limit for physical inspection of goods for within 2 days.

1.2.   Procedure to import new cars to Vietnam by individual end user

a) Condition to import new cars by individual end used

- According to Article 4 of Circular 143/2015/TT-BTC the individual end used would like to import the new cars for non-commercial purpose, they are required to grant the permit for import. The application for grant of import permit shall consist the documents as follows:

i) Written request for import of motor vehicles with certification of competent persons in agencies or organizations in which information provided in the written request (if entities are agencies or organizations), or of the police authority of communes, wards or commune-level towns in which permanent residence address (if entities are individuals), is verified, which provides clear information about brand name, model, manufacturing year, country, color, frame number, engine number, engine cylinder capacity, operational condition;

ii) Business registration certificate, office establishment license (applicable Vietnamese or overseas organizations); family register (applicable to Vietnamese individuals;

iii) Bill of lading or other transport documents having the equivalent value;

iv) Written confirmation of term of office of experts sent to work abroad, granted by the governing agency.

- Customs Department shall responsible for granting the license of car import. Within a permitted period of 07 working days of receipt of all required documents, the Customs Department of cities or provinces shall issue the permit for import or temporary import of motor vehicles and motorcycles. The permit for import or temporary import of motor vehicles and motorcycles shall be valid within 30 days as from the grant date.

b) Regulating the inspection of quality on technical safety and environmental protection

- Upon importation of new car to Vietnam, individual en-used shall be required to register inspection of quality on technical safety and environmental protection.

- According to Article 6 of Circular No.31/2011/TT-BGTVT amended by Clause 2 Article 1 of Circular No.55/2014/TT-BGTVT, the application for inspection registration shall include the following main documents:

+ Original copy of the inspection registration form in which frame number, engine number and production year of the motor vehicle must be specified according to the Annex I of Circular No.55/2014/TT-BGTVT.

+ Copy of the import documents bearing confirmation from importers includes: commercial invoice or equivalent papers; Customs Declaration for imported goods.

+ Copy of product specification documents given confirmation by importers in which the regulations in Section 2 of the Annex II of Circular No.55/2014/TT-BGTVT are shown. In case such materials are not available, the registration form of technical specifications for imported motor vehicles filled out by importers can function as a substitute according to the form stipulated in the Annex II of Circular No.55/2014/TT-BGTVT.

+ Original copy of the finished product inspection note issued to each motor vehicle by the manufacturer in which the frame number, engine number are specified, or original copy of the Certificate of Quality issued to the imported motor vehicle by the manufacturer. These materials are applied to the motor vehicles subject to the inspection performed by the method of type approval as stipulated in Clause 1, Article 7 of Circular No.55/2014/TT-BGTVT.

Procedures for issuing Certificate of quality, technical safety and environmental protection for imported motor vehicles:

+ The importer shall send an application for inspection to the inspection authority directly or by post or via the national single-window system.

+ The inspection authority shall receive the application and verify information provided therein and notify the result to the importer within 1 working day. If the application is found satisfactory, the inspection authority shall specify that in the application form. If the application is found unsatisfactory, the inspection authority shall instruct the importer to provide additional information.

+ The inspection authority and the importer shall mutually agree on the time and place of inspection. The inspection shall be carried out within 5 working days from the date proposed by the importer.

+ The inspection agency shall inspect imported motor vehicles at the place agreed with the importers and issue Notification of quality inspection exemption or Notification of unsatisfactory quality.

+ Method of the implementation: The importers apply for registration for inspection directly in the inspection agency and receive quality certificate after made payment of fees and charges in accordance with the current regulations relating to the inspection and grant of certificate of quality for imported motor vehicles.

+ Time limit for settlement: For the inspection of dossier registering for inspection and certification into the written registration for inspection: within 01 working day. The quality certificate shall be issued within 4 working days from the day on which the vehicle passes the inspection and adequate documents are received.

c) Custom dossier for import of cars

- According to Article 5 of Circular 143/2015/TT-BTC custom dossier for car import shall include the following documents:

i) The permit for import or temporary import of car;

ii) Bill of lading or other transport documents having the equivalent value;

iii) Declaration of imported goods;

iv) Registration form of inspection of quality, technical safety and environmental protection for imported motor vehicles (applicable to automobiles)

- Procedure for import of motor vehicles shall be implemented at the Customs Department in accordance with laws.

- According to Article 23 of Law on Customs, time limit for customs authorities (Customs Department) to carry out customs formalities:

+ Customs authorities shall receive, register and verify customs documents right after customs declarants submit dossiers.

+ After customs declarants satisfy all requirements for carrying out customs formalities prescribed at Points a and b, Clause 1, Article 21 of Law on Customs, the time limit for customs officials to complete the verify dossiers and conduct physical inspection of goods and vehicle following the procedure below:

Complete the verification of dossiers within 2 working hours after customs authorities receive complete customs documents;

Complete the physical inspection of goods within 8 working hours after customs declarants fully produce goods to customs authorities.

For lots of goods in large quantities and of many types or in case the inspection is complicated, heads of customs authorities where customs formalities are carried out shall decide to defer the time limit for physical inspection of goods for within 2 days.

  • Tariff

The import duty rate applied for cars imported from non-ASEAN market shall be 70%. Meanwhile, with regard to cars imported from ASEAN market, as per ASEAN Trade in Goods Agreement (ATIGA), from the date of January 01st, 2018, the applied rate is 0%.

1.3    Kind of new cars of prohibited imports

- Please noted that, according to Point 8 Section 2 Appendix I - list of prohibited exports or imports attached with Decree No.69/2018/ND-CP, the Client shall not permit to import the kind of new cars as follows:

i) Right-hand drive means of transport (including those in knocked-down forms and those with converted drive before being imported in Vietnam), excluding special-use right-hand drive vehicles operating within a restricted location and not joining traffic, including:  crane trucks; canal diggers, street sweepers, street washers; garbage trucks; road builders; passenger cars in airports and lifting trucks in warehouses and ports; concrete-pumping vehicles; vehicles moving only within golf courses or parks.

ii) Assorted automobiles, four-wheeled drives and their spare parts which have their frame or engine numbers erased, modified or tampered with.

2. PROCEDURE TO IMPORT SECOND-HAND CARS TO VIETNAM (INCLUDING CUSTOMS PROCEDURE AND CAR QUALITY INSPECTION, REQUIRED DOCUMENTS FOR IMPORTATION).

2.1    Conditions to import used cars

The used cars imported into Vietnam have to meet these following conditions:

- The imported cars’ duration from the manufacturing year to the time of arrival to Vietnam’s ports shall not exceed 05 years.

- The manufacturing year of a car shall be determined in the following order of priority: (i). The identification number of the car; (ii). The chassis number of the car; (iii). Technical documents: catalogue, specifications manual, identification software, the car label or information from the manufacturer; (iv). The manufacturing year written on the original copy of the vehicle registration certificate or the notice of cancellation of registration if the car is registered overseas; (v). In special cases, the manufacturing year shall be determined by a group of experts found by the quality inspection authority; and (vi). In case of doubtful chassis number or engine number, the quality inspection authority shall request verification by a police authority, the conclusion of which will be the basis for completion of quality inspection procedures as regulated.[1]

- In addition, such cars are not right-hand drive cars, including those which are in knock-down form or with converted drive before being imported into Vietnam.

- Please kindly note that it is not required to obtain import license in order to import used cars into Vietnam.

2.2.   Required documents for import:

- For imported used cars, apart from customs dossiers as commonly required (e.g: customs declaration, commercial invoices or equivalent documents, The bill of lading or equivalent transport documents, Inspection certificate, The certificate of eligibility to import of the enterprises, value declaration, Entrustment contract...[2]), the importers shall submit to customs offices 01 original and 01 copy (signed and stamped by enterprises’ directors) of one of the following papers:

+ Registration Certificate;

+ Circulation Certificate;

+ Certificate of cancellation of Registration Certificate or Circulation Certificate.

- Such documents shall be issued by competent agencies of the countries where the cars are registered for circulation.

2.3    Import and circulation registration process:

Please kindly note that the used cars are only imported to Vietnam through the international border-gate seaports of Cai Lan - Quang Ninh province, Hai Phong, Da Nang, Ho Chi Minh city and Ba Ria – Vung Tau.[3]

To be more specific, the custom and circulation registration procedures could be briefed as follows:

- After the cars go through Vietnamese ports, within 3 working days as from the day the customs office (Sub-department of Customs where goods are imported) inspects the actual conditions of cars, the importers shall submit registry-application dossiers and notify the registry office (Vietnam Register) of the sites for quality, technical safety and environmental protection inspection. The documents submitted to registry office include:

+ The Registration certificate or Circulation certificate;

+ Documentary evidences of vehicle origin.[4]

- Within 30 days after receiving registry-application dossiers, the registry office shall notify the registry results to the importers.

- Customs offices shall release goods and fulfill customs procedures only after obtaining registry offices’ quality inspection results, certifying the satisfaction of the prescribed import conditions. Past 33 days counting from the day of customs inspection of the actual conditions of goods, if the importers still fail to produce the quality inspection results or the inspection results show that the import conditions are not fully met, handling measures shall be applied according to the provisions of law.

- Where it is necessary to prolong the inspection duration for survey, registry offices shall notify customs offices and the importers thereof in writing.

- The traffic police agencies shall inspect dossiers of imported cars before carrying out registration procedures. If detecting that the import conditions are not fully met, they shall not carry out registration procedures and notify in writing customs offices thereof for handling according to regulations.[5]

  • Tariff

The import duty rate on used cars is applied as follows:

a) Regarding cars not exceeding 1,000 cc

Description Unit Flat tax (USD)
Of a cylinder capacity not exceeding 1,000 cc Piece 10.000
  1. b) Regarding cars of a cylinder capacity exceeding 1,000 cc
Description Unit Flat tax (USD)
Motor vehicles (including station wagons, SUVs and sports cars, but not including vans): Piece 200% or 150% plus (+) 10,000 USD whichever is lower
Other vehicles:    
Of a cylinder capacity exceeding 1,000 cc but not exceeding 2,500cc Piece X + 10.000USD
Of a cylinder capacity exceeding 2,500 cc Piece X + 15,000USD

Note: X =  Taxable price of used motor vehicles multiplied by (x) the duty rate imposed on new ones as mentioned in Section 4.1.3 above.

PROCEDURE TO IMPORT NEW CAR SPARE PARTS TO VIETNAM (INCLUDING CUSTOMS PROCEDURE, APPLICATION REQUIRED DOCUMENTS FOR IMPORTATION).

Condition to import new car spare parts to Vietnam

-The local partners as enterprise duly established and operating under Vietnam is allowed  to import new car spare parts without the license of import.

- Importer are not required to register inspection of quality upon importation of spare parts into Vietnam.

2.3.Quality standards for imported spare parts

According to Section E Appendix II of Circular 41/2018/TT-BGTVT the list of commodities subject to of certification or declaration of conformity as below:

No. Name of commodity Regulation/

Standard

HS Code Regulated by
1. Rear-view mirrors for automobiles QCVN 33:2011/BGTVT 7009.10.00 Circular No. 57/2011/TT-BGTVT
2. Safety glazing for automobiles QCVN 32:2017/BGTVT 70.07 Circular No.  31/2017/TT-BGTVT
3. Pneumatic tyres for automobiles QCVN 34:2017/BGTVT 4011.10.00; 4011.20 Circular No. 31/2017/TT-BGTVT
4. Materials used in the interior structure of automobiles QCVN 53:2013/BGTVT 8708.99.80 Circular No.  40/2013/TT-BGTVT
5. Light alloy wheels for automobiles QCVN 78:2014/BGTVT 8708.70 Circular No. 25/2014/TT-BGTVT
6. Fuel tank for automobiles QCVN 52:2013/BGTVT 8708.99 Circular No. 40/2013/TT-BGTVT

3.4. A customs dossier of imports

- According to Article Clause 2 Circular 16 of Decree 38/2015/ND-CP amended by Clause 5 Article 1 of Circular 39/2018/TT-BTC the customs application dossier of imports shall have the following documents:

i) A customs declaration;

ii) Commercial invoices or equivalent documents if the buyer has to pay the seller;

If the goods owner buys the goods from a seller in Vietnam and is instructed by the seller to receive goods overseas, the customs authority shall accept the invoice issued by the seller in Vietnam to the goods owner;

The declarant is not required to submit the commercial invoice in the following cases: (i) goods are imported to execute a processing contract with a foreign trader; (ii) goods are imported without invoices and the buyer is not required to pay the seller;

iii) The bill of lading or equivalent transport documents if goods are transported by sea, air, railroad, or multi-modal transport as prescribed by law (unless goods are imported through a land checkpoint, goods traded between a free trade zone and the domestic market, imports carried in the luggage upon entry);

iv) Value declaration: the declarant shall make the value declaration using the set form and send the electronic declaration to the e-customs system or submit 02 original copies to the customs authority (in case of submission of physical customs declaration);

v) Documents certifying goods origins specified;

vi) Entrustment contract.

- According to Article 23 of Law on Customs, time limit for customs authorities (Customs Department) to carry out customs formalities:

+ Customs authorities shall receive, register and verify customs documents right after customs declarants submit dossiers.

+ After customs declarants satisfy all requirements for carrying out customs formalities prescribed at Points a and b, Clause 1, Article 21 of Law on Customs, the time limit for customs officials to complete the verify dossiers and conduct physical inspection of goods and vehicle following the procedure below:

Complete the verification of dossiers within 2 working hours after customs authorities receive complete customs documents;

Complete the physical inspection of goods within 8 working hours after customs declarants fully produce goods to customs authorities.

For lots of goods in large quantities and of many types or in case the inspection is complicated, heads of customs authorities where customs formalities are carried out shall decide to defer the time limit for physical inspection of goods for within 2 days.

2.4    Kind of spare parts of prohibited imports

- Please noted that, according to Point 9 Section 2 Appendix I - list of prohibited exports or imports attached with Decree No.69/2018/ND-CP, the Client shall not permit to import the kind of used supplies and vehicles, including:

i) Engines, frames, inner tubes, tires, spare parts and motors of cars, trailers, semi-trailers, four-wheeled drives.

ii) Chassis of cars and tractors, fitted with engines (including new chassis fitted with used engines and used chassis fitted with new engines

3.CONCLUSION

Based on the above analysis, upon importing the new car, second -hand car and new car spare parts the Client should:

3.1.For the importing of new cars by local partner   

- In case local Vietnam partners to import the new car to Vietnam, they required to obtain the license of car import before performance of import procedure.

- New cars imported to Vietnam shall be inspected for technical standards and environment safety by the control authorities under Circular No.03/2018/TT-BGTVT.

- The import duty rate applied for cars imported from non-ASEAN market shall be 70%. Meanwhile, with regard to cars imported from ASEAN market applied rate is 0%.

- Kind of new cars of prohibited imports including: (i) Right-hand drive means of transport (including those in knocked-down forms and those with converted drive before being imported in Vietnam), excluding special-use right-hand drive vehicles operating within a restricted location and not joining traffic, including:  crane trucks; canal diggers, street sweepers, street washers; garbage trucks; road builders; passenger cars in airports and lifting trucks in warehouses and ports; concrete-pumping vehicles; vehicles moving only within golf courses or parks; (ii) Assorted automobiles, four-wheeled drives and their spare parts which have their frame or engine numbers erased, modified or tampered with.

- The procedure for importing new car into Vietnam shall undergo the steps below:

+ Step 1: The importer as local partners who has the license to import new car and satisfy condition by law, submits the custom dossier to the customs authority under Circular No.38/2015/TT-BTC amended by Circular No.39/2018/TT-BTC.

+ Step 2: The importer as local partners shall submit application for inspection of new cars under Circular 03/2018/TT-BGTVT.

+ Step 3: After having the inspection result, the importer shall submit the inspection result to the customs authority and payment of relevant tax for importation procedure.

+ Step 4: Customs authority shall issue decision on customs clearance of goods.

3.2.For the importing of new cars by individual end –user   

- In case the individual end used would like to import the new cars for non-commercial purpose, they are required to grant the permit for import. In addition, the individual can also buy the new cars from the local partners. In this case, the individual does not require to grant the permit for import.

- New cars imported to Vietnam shall be register inspection of quality on technical safety and environmental protection under Circular No.31/2011/TT-BGTVT amended by Circular No.55/2014/TT-BGTVT.

- The procedure for importing new car into Vietnam shall undergo the steps below:

+ Step 1: The importer as individual end-user shall submits application for grant of import permit under Circular 143/2015/TT-BTC.

+ Step 2: The importer as individual end-user shall submits the custom dossier to the customs authority under Circular 143/2015/TT-BTC.

+ Step 3: The importer shall submit application for inspection registration of new cars under CirculareNo.31/2011/TT-BGTVT amended by Circular No.55/2014/TT-BGTVT..

+ Step 4: After having the inspection result, the importer shall submit the inspection result to the customs authority and payment of relevant tax for importation procedure.

+ Step 5: Customs authority shall issue decision on customs clearance of goods.

3.3. For the importing of second hand cars

- The condition of the imported second-hands car:

+ The imported cars’ duration from the manufacturing year to the time of arrival to Vietnam’s ports shall not exceed 05 years.

+ The manufacturing year of a car shall be determined in the following order of priority: (i). The identification number of the car; (ii). The chassis number of the car; (iii). Technical documents: catalogue, specifications manual, identification software, the car label or information from the manufacturer; (iv). The manufacturing year written on the original copy of the vehicle registration certificate or the notice of cancellation of registration if the car is registered overseas; (v). In special cases, the manufacturing year shall be determined by a group of experts found by the quality inspection authority; and (vi). In case of doubtful chassis number or engine number, the quality inspection authority shall request verification by a police authority, the conclusion of which will be the basis for completion of quality inspection procedures as regulated.

- The import duty rate on second -hand cars is applied as follows:

Regarding cars not exceeding 1,000 cc

Description Unit Flat tax (USD)
Of a cylinder capacity not exceeding 1,000 cc Piece 10.000

Regarding cars of a cylinder capacity exceeding 1,000 cc

Description Unit Flat tax (USD)
Motor vehicles (including station wagons, SUVs and sports cars, but not including vans): Piece 200% or 150% plus (+) 10,000 USD whichever is lower
Other vehicles:    
 Of a cylinder capacity exceeding 1,000 cc but not exceeding 2,500cc Piece X + 10.000USD
Of a cylinder capacity exceeding 2,500 cc Piece X + 15,000USD

Note: X =  Taxable price of used motor vehicles multiplied by (x) the duty rate imposed on new ones as mentioned in Section 4.1.3 above.

- The procedure for importing second hand car into Vietnam shall undergo the steps below:

+ Step 1: The used cars arrive at Vietnamese specific port including: of Cai Lan - Quang Ninh province, Hai Phong, Da Nang, Ho Chi Minh city and Ba Ria – Vung Tau. The custom office inspect actual conditions of the cars.

+ Step 2: Within 3 working days, the importers shall submit registry-application dossiers and notify the sites with the registry office for quality, technical safety and environmental protection inspection. This step may last for 30 working days.

+ Step 3: The registry office shall notify the registry results to the importers.

+ Step 4: Customs offices shall release goods and fulfill customs procedures on the basis of registry office’s quality inspection results. The importers pay the import duty when implementing the custom procedures.

+ Step 5: Before registering for circulation in Vietnam, the traffic police agencies shall inspect dossiers of imported cars before carrying out registration procedures.

3.4       For importing of new car spare parts

- The local partners as enterprise duly established and operating under Vietnam is allowed to import new car spare parts without the license of import.

- Importer are not required to register inspection of quality upon importation of spare parts into Vietnam.

- There are several kind of commodities mentioned in the above Section 4.3.2 of this Legal Opinion is subject to of certification or declaration of conformity.

- The kind of used supplies and vehicles shall not permit to import, including: (i) engines, frames, inner tubes, tires, spare parts and motors of cars, trailers, semi-trailers, four-wheeled drives; (ii) chassis of cars and tractors, fitted with engines (including new chassis fitted with used engines and used chassis fitted with new engines).

- The procedure for importing car spare parts into Vietnam shall undergo the steps below:

+ Step 1: After the goods arrive at Vietnamese ports, the importer shall carry out customs produce with customs offices. The customs offices shall inspect actual conditions of the goods. This step commonly lasts for 10 hours to 2 days based on the actual amount of goods. The importers pay the import duty when implementing the custom procedures;

+ Step 2: Customs offices shall release goods;

[1] Point 1, Section II, Circular No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA

[2] Article 24, Law on Custom; Clause 2, Article 16, Circular No. 38/2015/TT-BTC amended by Clause 5, Article 1 Circular No. 39/2018/TT-BTC

[3] Point 2, Section III, Circular No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA amended by Article 3, Circular  No. 06/2019 / TT-BCT

[4] Clause 1 Article 5, Circular No. 70/2015/TT-BGTVT

[5] Point 7 Section III, Circular No. 03/2006/TTLT-BTM-BGTVT-BTC-BCA

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