GDVC analyzes the basis for rejecting the declared value of imported cars of General Motors Vietnam

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Cars are imported into Cai Lan Port. Photo: T.Tr

According to the official letter sent to the General Department of Vietnam Customs, General Motors Vietnam Co. Ltd., said that the company’s imported car shipment met conditions to be applied the transaction value method stipulated in Clause 3 Article 6 Circular 39/2015/TT-BTC, but the Customs rejected the declared value for not meeting 1 of 4 conditions in the above mentioned provision.

According to the General Department of Vietnam Customs, the Customs has rejected the declared value of imported car shipment of the company due to following reasons:

The company and its partner have a special relationship but the company cannot prove that the special relationship does not affect the transaction value in accordance with provisions in Clause 2 Article 7 Circular 39/2015/TT-BTC.

The formation of price of imported goods of the company is calculated under the expected selling price in domestic market, minus the distribution cost and target profit in Vietnam to propose the buying price with the seller. Thereby, the price formation principle of the company does not satisfy the second condition of 4 conditions to be applied a transaction value in accordance with provision in Clause 3 Article 6 Circular 39/2015/TT-BTC.

In addition, the company has not explained why the declared price of cars version 2017, which were produced in 2017 and imported by the Company, lower than cars version 2016, which were produced in 2015 and 2016 and imported by the company.

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With the above reasons, the General Department of Vietnam Customs said that the Customs rejects the Company’s declared value not only due to not satisfying conditions to an applied transaction value described in Clause 3 Article 6 Circular 39/2015/TT-BTC but also not explaining and proving the special relationship that does not affect the transaction value and the lower price of cars version 2017 than cars version 2016. Therefore, the rejection is in accordance with provisions in Article 39 of Law on Tax management, Decree 83/2013/ND-CP and Circular 39/2015/TT-BTC.

Currently, the Customs has determined Customs value, imposed tax and handled a second complaint from General Motors Vietnam Co., Ltd.