Foreign diplomats get preferential treatment in importing cars into Vietnam

The Prime Minister has just issued Decision No. 10/2018/QD-TTg amending and supplementing a number of articles of Decision No. 53/2013/QD-TTg dated September 13, 2013; in which, amending the conditions for temporary tax-free import of automobiles and motorbikes of subjects enjoying preferential and immunization rights in Vietnam.

According to the newly issued decision, diplomatic missions, consular offices and representative offices of international organizations based in Vietnam are entitled to privileges and immunities under international treaties that Vietnam has signed or joined as prescribed in Articles 8, 9 and 10 of Decree No. 73/CP dated July 30, 1994 of the Government (subject 1) are allowed to temporarily import cars and motorbikes exempt from import tax, not subject to special consumption tax and value added tax according to the types and quantities prescribed in Clause 1, Article 5 of Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government after being granted temporary import standards by the Ministry of Foreign Affairs in the tax-free goods quota book as prescribed.

Technical and administrative staff of diplomatic missions and consular offices enjoy tax privileges and exemptions.

The Decision also stipulates two other subjects that are temporarily imported without import tax, not subject to special consumption tax and value added tax on cars and motorbikes according to the provisions of Clause 1, Article 5 of Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government, including: Diplomatic officers of diplomatic representative agencies, consular officers of consular agencies, officers of representative agencies of international organizations headquartered in Vietnam who enjoy privileges and immunities according to international treaties that Vietnam has signed or joined (subject 2).

Technical administrative staff of diplomatic missions and consular offices enjoy privileges and immunities based on the principle of reciprocity between the Vietnamese government and the sending country; staff of representative offices of international organizations headquartered in Vietnam enjoy privileges and immunities according to international treaties that Vietnam has signed or joined (subject 3).

The above subjects will be temporarily imported if they satisfy the following conditions:

- The Ministry of Foreign Affairs shall grant temporary import standards in the duty-free goods quota book as prescribed. In case the successor requests temporary import of cars and motorbikes, the Ministry of Foreign Affairs shall only grant temporary import standards in the duty-free goods quota book when the predecessor has completed the procedures for re-exporting or destroying cars and motorbikes, or transferring cars as prescribed, based on the notification of the Customs authority.

- Subject 2 has worked at a diplomatic mission, consular office, or representative office of an international organization headquartered in Vietnam and enjoys privileges and immunities for at least 18 months from the date the subject is issued an identity card by the Ministry of Foreign Affairs, and has worked in Vietnam for at least 12 months or more, with the working time in Vietnam stated on the identity card issued by the Ministry of Foreign Affairs.

- Subject 3 has a working period at a diplomatic mission, consular office, or representative office of an international organization headquartered in Vietnam that enjoys privileges and immunities for at least 12 months from the date the subject is issued an identity card by the Ministry of Foreign Affairs, and a working period in Vietnam of at least 9 months or more, with the working period in Vietnam stated on the identity card issued by the Ministry of Foreign Affairs.

The Decision clearly states: In case the above 3 subjects temporarily import from abroad or buy back cars and motorbikes from subjects enjoying other privileges and immunities, when carrying out procedures for granting temporary vehicle import certificates, the vehicle owner must submit documents proving vehicle ownership such as: Payment documents for vehicle purchase via bank (in case of temporary import from abroad) or vehicle registration certificate or vehicle registration cancellation certificate (in case of temporary import as movable property) to the customs authority.

The above 3 subjects are allowed to temporarily import cars and motorbikes tax-free to supplement the quantity in the following cases: Subject 1 after completing the procedures for re-exporting, destroying or transferring cars and motorbikes; Subjects 2 and 3 after completing the procedures for re-exporting or destroying cars and motorbikes that have been involved in accidents, natural disasters or due to objective technical reasons and cannot continue to be used and have a minimum working period in Vietnam of 9 months or more from the date of completion of the procedures for re-exporting or destroying the vehicle (the working period in Vietnam is recorded on the identity card issued by the Ministry of Foreign Affairs).

All three above subjects, if temporarily importing used cars, including: Cars temporarily imported from abroad and cars temporarily imported as movable assets, must comply with the regulations on importing used cars stipulated in Decree No. 187/2013/ND-CP dated November 20, 2013 of the Government detailing the Commercial Law on international goods trading activities and agency activities of buying, selling, processing, and transiting goods with foreign countries and related implementation guidelines.

The above Decision 10/2018/QD-TTg also clearly states that used motorbikes cannot be temporarily imported.