ANNOUNCEMENT 25 May 2020

In May 2020, Vietnam introduced a regulation that exempted the import duties of car components for the manufacturing of the automobile industry.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

[Custom News, "New regulations on import tax of automobile components", published on 10 June 2020, retrieved on 16 October 2020, in English]: https://customsnews.vn/new-regulations-on-import-tax-of-automobile-components-14777.html

[HKDTC, "Duty Exemptions Announced for Imported Automotive Components", published on 8 June 2020, retrieved on 16 October 2020, in English]: https://research.hktdc.com/en/article/NDUyOTkyMzM5

Inception date: 01 Jul 2020 | Removal date: 31 Dec 2020

Import tariff

On 25 May 2020, Vietnam issued the Decree No.57/2020/ND-CP to temporarily eliminate the import tariff on spare parts and accessories of the motor vehicles for purpose of manufacturing the automobile industry. The import duty was reduced variably from 21.1% - 10% to 0%.

The import duty elimination would come into force from 1 July 2020 to 31 December 2020.

AFFECTED SECTORS

 
Inception date: 01 Jul 2020 | Removal date: 31 Dec 2020

Internal taxation of imports

On 25 May 2020, following the issuance fo the Decree No.57/2020/ND-CP, Vietnam temporarily eliminated the import tariff on spare parts and accessories of the motor vehicles for purpose of manufacturing the automobile industry. The import duty was reduced variably from 21.1% - 10% to 0%. The tariff rebates for the automobile industry are selective tax cuts since the import of spare parts and accessories of the motor vehicles for other purposes will not get the exemption.

The import duty elimination would come into force from 1 July 2020 to 31 December 2020.

 
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