Limiting the number of import cars as gift

The Hai Phong Customs Department has also seen the same situation for recent years: from 15 licensed cars in 2013 to 35 in only the first 9 months of 2014. The majority of gifted cars are totally new ones which often have high value.

The majority of these cases are foreign companies (or individuals) in the US donating cars for Vietnam enterprises. There are cases where a foreign company gifted many Vietnam enterprises and there are also cases where a Vietnam enterprise is gifted by many foreign companies. According to local customs departments, these cases are very suspicious and clear rules about the allowed number of imported cars as gifts must be made.

Regulations on the allowed number of imported cars as gift have been searched for in the Bac Ninh Customs Department and there was no such things. Rules only state that only 2 cars can be imported at a time and not anything else. Meanwhile, the Circular 02/2001/TT-TCHQ issued in 2001 that regulated the import of car and motorcycle in non-trade mode was no longer valid due to different document from, no regulation on allowed number of imported car/motorcycle as gift…

Therefore, the Ministry of Finance should issue a replacement for the outdated Circular 02/2001/TT-TCHQ in the near future to deal with imported car as gift to prevent exploitation from individuals/organizations.

According to representative of the Customs Management Department, a replacement for the outdated circular will soon be issued. The draft circular has been sent from the Vietnam Customs to the Department of Legal Affairs (Ministry of Finance) for feedback. The main content of the circular will focus on the allowed number of imported car/motorcycle as gift – 1 individual/organization will only be able to receive one vehicle in a period of 5 years.

The allowed number of imported car/motorcycle as gift will be governed by a new circular

The representative also stated that to deal with the increase of cases of importing cars as gift (to evade tax), in term of tax, customs departments have exchanged words with the General Department of Taxation. We have promoted a solution that tax for gifted cars will be higher than normal cars and policies for those 2 types will be the same, not to mention that gifted car will also be subject to individual/business income tax for individual/business respectively.

In addition, the draft circular also states that cars/motorcycles imported as gifts will also have to meet standard requirement similar to normal imported vehicles. Only unused motorcycle can be imported.

Private foreign experts participating in the management and implementation of ODA programs in Vietnam have to meet import conditions specified in Document 119/2009/QD-TTg issued in 2009 by the Government. Accordingly, they can import or temporarily import used motorcycle with a lifespan of less than 3 years. The draft circular is expected to be issued soon to ensure its validity with other Circular on Customs issued in 2014.