Imported automobile parts: enterprises only declare in code 98.49 to enjoy tax incentive

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Customs officers at Ky Ha Customs Branch (Quang Nam) inspect imported automobile parts. Photo: M.H

It was stated by a representative of QuangNgai Customs Department at apreliminary meeting on import the tax incentive program for automobile parts under provisions in Article 7a of Decree 125/2017/ND-CP chaired by Deputy General Director Nguyen Duong Thai with participation by municipal and provincial Customs Departments.

Clause 6, Article 1 of Decree 125/2017/ND-CP supplementing Section b Clause 2 Article 7a stipulates that the programme shall apply to enterprises that are eligible for manufacture and assembly of automobile in accordance with regulations on requirements for manufacture, assembly, import and warranty service and maintenance of automobiles.

Accordingly, “the enterprises mentioned in Point a of this Clause shall import automobile parts for manufacture and assembly or authorize other organisations or individuals to import such automobile parts which shall satisfy the following requirements: they are mentioned in heading 98.49 and cannot be manufactured domestically”.

According to Clause 6 Article 1 Decree 125/2017/ND-CP, “if enterprises meet conditions to enjoy the tax incentive programmeand enterprises paid tax on imported automobile parts, higher than tax payable according to tax rate of Heading 98.49, the Customs agency shall handle the overpaid tax in accordance with the Law on Tax administration and guiding documents".

Ky Ha Customs Branch realises that automobile parts importers have declared goods in heading 98.49.

The Branch has closely controlled declaration and checked the tax refund dossiers of enterprises to prevent the abuse the tax incentive policy.

Deputy General Director Nguyen Duong Thai requested Customs branches implementing the tax refund programme for automobile parts closely manage this issue.

Thai said if tax refund dossiers for imported automobile parts are not strictly managed, it will be difficult for Customs authorities to check and supervise. Thus,Thai requested competent units under the General Department of Vietnam Customs to build management software for the tax refund programme.

Currently, the Customs sector has refunded 2,193 billion VND of import tax for automobile parts under the program. It is expected that the import tax refund for this item is VND 213 billion.

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Hai Phong Customs Department refunded 129 billion VND, Ha Noi Customs Tax Department refunded 121 billion VND, Ha Nam Ninh Customs Department refunded 740 billion VND; Quang Nam Customs Department refunded 1,202 billion VND.

Some cases have not been refunded due to shortcomings on codes in Circular 14/2015/TT-BKHĐT of the Ministry of Planning and Investment (currently replaced by Circular 01/2018/TT-BKHDT). These shortcomings are being resolved to refund tax for enterprises.