Tax rates on many types of cars from ASEAN countries have been reduced by 50%.

• January 4, 2014 16:17

According to Vietnam's Special Preferential Import Tariff Schedule for the implementation of the ASEAN Trade in Goods Agreement (ATIGA Tariff Schedule), 2014 was the final year in the 2012-2014 tariff reduction roadmap for goods imported from ASEAN.

Import duties on many types of automobiles from ASEAN countries will be reduced to 50% starting January 1, 2014.

Under this roadmap, many types of automobiles imported from ASEAN countries into Vietnam, such as vehicles carrying 10 or more people, including the driver; passenger cars (including extended limousines); vehicles with a maximum payload of 6 tons but not exceeding 18 tons; passenger buses, minibuses; vehicles carrying 30 or more people (excluding vehicles specially designed for airport use); ambulances; vehicles with apartment-like interiors; and small racing cars, will benefit from a 50% tax rate next year.

Thuế suất, thuế nhập khẩu nhiều loại ôtô từ các nước ASEAN sẽ giảm

Import tax rates and duties on many types of automobiles from ASEAN countries will be reduced.

This 50% tax rate will also apply to motorcycles, motorized bicycles, motorized bicycles, scooters, off-road motorcycles, etc. Looking back at the ATIGA Tariff Schedule issued with Circular No. 161/2011/TT-BTC of the Ministry of Finance, the tax rate for these items is currently 60% and has been reduced compared to 2012 (70% for cars and 75% for motorcycles).

To qualify for ATIGA preferential tariff rates, goods must be imported from ASEAN countries, have an ASEAN content of 40% or more, and possess a valid Certificate of Origin (C/O) Form D. Goods produced in a free trade zone and imported into the domestic market, if they meet all origin requirements and have a valid C/O Form D issued by the Ministry of Industry and Trade, are also eligible for ATIGA preferential treatment.

The ATIGA tariff schedule includes all goods that Vietnam has committed to reducing under ATIGA, comprising 9,368 tariff lines classified at the 8-digit level and built on the basis of conformity with the 2012 Vietnamese Commodity Classification. The ATIGA tariff schedule includes goods that Vietnam has committed to reducing.

The ATIGA tariff rates are based on the principle of adhering to commitments within ATIGA. Essentially, the tariff rates for 2012-2014 are the same as those announced in Decision No. 36/2008/QD-BTC dated June 12, 2008, of the Ministry of Finance on the promulgation of the CEPT/AFTA Special Preferential Import Tariff Schedule for the period 2008-2013.

Thus, with the reduction in import tax rates and duties, this is considered good news for Vietnamese consumers, especially as the volume of imported cars from countries in the region is increasing, particularly those from popular brands like Ford and Honda.

According to Investment Newspaper