Imported cars as presents: Create convenient mechanism but must be strictly managed

	Still wait for conditions for importing automobiles
	20,000 lines of commodities has been applied code of professional management
	Indentifying owner of the consignment 26 automobiles temporary imported for re-exported.

Saigon Port Customs officers are inspecting imported cars. Photo: T.Hoa.

In recent years, some local Customs branches have been concerned about an increasing number of applications for imported automobiles as presents and gifts, especially dealers cars with high-value imports. It is said that this is an illegal way to import luxury cars to avoid the strict rules for imported cars and tax in accordance with the new Law on Special Consumption Tax.

Regarding the issue above, Mr. Nguyen Nhat Kha - Deputy Director of Customs Supervision and Management (General Department of Vietnam Customs) said that the legal mechanism allowed enterprises to import cars as presents and gifts. Under the decrees of the Government, there is no regulation limiting business enterprises to import cars in the form of presents and gifts. Therefore, the General Department of Vietnam Customs has requested the local customs branches to implement procedures for imported cars in the forms of presents and gifts according to Circular 143/2015/ TT BTC. Customs only allows organizations and individuals to import cars in the form of presents and gifts within a year.

However, along with the facilitation for imported cars as presents and gifts, the General Department of Vietnam Customs also has new management measures to strengthen management of imported cars in this case. The General Department of Vietnam Customs requested the local customs branches to check the permits or licenses for verification.

Accordingly, at the stage of issuing import licenses, Customs carried out a review and examination of specific dossiers of import licenses under Article 4 of Circular 143/2015/ TT BTC. Also, Customs noted cases of overseas Vietnamese without official documents; the operation time of enterprises was inconsistent with the certificate of business registration in many years. Besides, Customs used the information lookup tools of the General Department of Taxation, E-manifest system, etc to look up information relating to bills of lading or importers.

If Customs officers have any doubt, they will require enterprises to submit an explanation to consider whether they should issue import licenses or not. After issuing import licenses, Customs authorities will inform Local Taxation Departments to monitor and collect all taxes, in order to strengthen the post-clearance checks to see whether they are real gifts and presents or not.

On the basis of issuing import licenses, Customs Department of provinces and cities should fully implement the import procedures for imported automobiles in the form of presents and gifts, focusing on inspection of tax calculation.

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As Mr. Kha said, imported automobiles as presents or gifts still fully incur taxes under the current tax policy including import tax, value added tax, special consumption tax. In addition, imported automobiles must bear additional income tax: for individuals, must pay personal income tax; for enterprises, must pay taxable income accounting business.