Circular No. 185/2012/TT-BTC dealing with the exemptions to be granted on import duties for spare parts and components for the manufacture and assembly of buses in the sector of public passenger transportation in the cities of Hanoi and Ho Chi Minh and which will be effective from December 14,2012 was issued on 30th October 2012.
As per this circular, import duty exemption shall be applicable on the investment projects that shall be implemented in the period 2012-2015, for the domestic manufacture and assembly of buses using the components that has not yet been produced or manufactured in Vietnam. The competent state authorities under the guidance of Ministry of Transport shall approve such investment projects on the basis of the duration of the project, quality, quantity, type and value of the spare parts and components that would be imported.
The project owner to avail this exemption should ensure that the spare-parts and components that has to be imported shall not be ones that can be domestically manufactured or produced. In other words, the machinery, raw-materials, spare-parts and components that are declared as indigenous by the Ministry of Planning and Investment cannot be imported.
The project owner shall submit the list of the imported goods for registration requesting tax exemption from the import duty to the Customs departments of the provinces or cities where the project is to be implemented with a written dossier along with the copy of the investment license or investment incentive certificate. The written dossier and the procedures for duty exemption shall be in compliance with the Circular 194/2010/TT-BTC dated 6th December 2010. The tax amount exempted for each item shall also be declared after proper calculation shall also be provided by the project owner while submitting the dossier. The tax to be exempted shall be approved by the Customs office after comparing the requested amount with the current regulations regarding tax exemption.
This circular is helpful to encourage more players in transportation sector and ensure the quality and standards of transportation in Vietnam meet the international standards.