According to this Circular, automotive parts and accessories that may be used for different kinds of automobiles are subject to a uniform import duty rate irrespective of kinds of automobile. Meanwhile, other automotive parts and accessories are subject to import duty rates varying according to kinds of automobiles.

The classification of and application of import duty rates to automotive parts and accessories under the guidance of this Circular are uniformly applied to imported accessories and parts irrespective of whether they are used for manufacturing, assembly, maintenance, repair, business or other purposes.

LIST AND IMPORT DUTY RATES OF AUTOMOTIVE PARTS AND ACCESSORIES

The list and import duty rates of automotive parts and accessories are stipulated in List I and List II issued together with Decision No. 57/2005/QD-BTC of August 10, 2005, of the Minister of Finance (hereinafter collectively referred to as List), specifically as follows:

1. List I has been formulated on the basis of the Preferential Import Tariffs. Each 4-digit commodity heading consists of many sub-headings but only some of 6-digit or 8-digit sub-headings cover automotive parts and accessories. To facilitate the commodity reference and classification by customs declarers and customs offices, the commodity headings still include all of their 6-digit and 8-digit sub-headings.

Example: In heading 7007 (safety glass, of hardened glass or rolled glass), only 8-digit sub-heading 7007.11.10 covers safety glass of a kind used for automobiles. However, in order to facilitate reference and classification, the list still contains all sub-headings of heading 7007.

2. List II covers a number of automotive accessories and parts already classified according to general regulations in List I. However, in order to distinguish the duty rates applicable to accessories and parts of each kind of automobile, the List makes separate classifications (automobiles for the transport of under 16 persons; automobiles for the transport of 16 persons or more; cargo automobiles with a maximum loaded tonnage not exceeding 5 tons and those with a maximum loaded tonnage exceeding 5 tons). Accordingly, some categories of accessories and parts in several sub-headings in List I must be transferred to List II for application of different import duty rates. The sub-headings of commodities transferred to List II are marked with asterisks at the duty rates in List I.

Example 1: In List I, 8-digit sub-heading 8409.99.41 (carburetors and parts thereof) has the preferential import duty rate of 15% marked with an asterisk (*), which means that this sub-heading covers some automotive parts to be specified in List II which are subject to a duty rate other than 15%. Upon classification, it is necessary to refer to List II which stipulates a duty rate other than 15% for carburetors of which kinds of automobiles, specifically:

- List II specifies “carburetors and parts thereof of a kind used for cargo trucks and automobiles for the transport of 16 persons or more” at Item 4.1. with the preferential import duty of 10%. So, if carburetors and parts thereof are of a kind used for cargo trucks and automobiles for the transport of 16 persons or more, the duty rate of 10% specified in List II shall apply instead of the duty rate of 15% in List I. Accordingly, “carburetors and parts thereof” of a kind used for automobiles for the transport of under 16 persons (not specified in List II) are subject to the duty rate of 15% specified in sub-heading 8409.99.41 of List I.

Example 2: In List I, sub-heading 8708.99.99 (others) has the preferential import duty rate of 30% marked with an asterisk (*), which means that this sub-heading covers some kinds of accessories to be specified in List II which are subject to a duty rate other than 30%, specifically:                   

- The commodity “Leaf springs” at Item 20.1 of List II is subject to the preferential import duty rate of 20%; parts and accessories (excluding leaf springs) in sub-heading 8708.99.99 at Item 20.2 of List II are liable to the preferential duty rate of 5%. Meanwhile, chassis not fitted with engines are liable to the preferential import duty rate of 30% specified in sub-heading 8708.99.99 in List I.

Other automotive parts and accessories that are not specified in any headings in Lists I and II above shall be classified and liable to import duty rates specified in the Preferential Import Tariffs issued together with the Finance Minister’s Decision No. 110/2003/QD-BTC of July 25, 2003, decisions amending and supplementing Decision No. 110/2003/QD-BTC, and Circular No.  85/2003/TT-BTC of August 29, 2003, guiding the classification of goods according to the List of Imports and Exports, the Preferential Import Tariffs and the Export Tariffs.

Example: The commodity “Magnetic valves used for small automobiles for the transport of persons and for buses” is not specified in Lists I and II. So, it shall be classified and liable to an import duty rate specified in the Preferential Import Tariffs issued together with Decision No. 110/2003/QD-BTC. Accordingly, this commodity falls into sub-heading 8481.20.11 and is liable to the preferential import duty rate of 5%.

3. A number of headings and sub-headings covering automotive accessories and parts and other commodities are all liable to the import duty rates specified in Decision No. 57/2005/QD-BTC, unless such sub-headings separate automotive accessories and parts for application of different duty rates.

Example 1: Sub-heading 7099.10.00 “Rear-view mirrors of a kind used for motor vehicles” has the preferential import duty rate of 30%, which means that this duty rate is applicable to rear-view mirrors of all kinds of motor vehicles, such as automobiles, motorbikes, etc.   

Example 2: Sub-heading 8544.30.10 “Ignition wiring sets and other wiring sets of a kind used for motor vehicles” has the preferential import duty rate of 20%, which means that this duty rate is applicable to ignition wiring sets and other wiring sets of all kinds of motor vehicles, such as automobiles, motorbikes, etc.      

4. Though a number of headings in the List include headings and sub-headings covering automotive accessories and parts and other commodities, only automotive accessories and parts are separated and liable to different duty rates in List II and other commodities are still liable to duty rates specified in List I.

Example: In sub-heading 8519.99.30 of audio equipment of a kind using compact discs, only those of a kind used for automobiles are separated and specified at Item 11 of List II and are liable to the duty rate of 30%. Other audio equipment of this sub-heading are liable to the duty rate of 50% specified in List I.