Facilitating Regulations to encourage motorcycle exports

Motorcycles for export enjoy many facilitating policies. Source: internet.

Not listed in prohibited export goods

It is common knowledge that agricultural products, which are considered the major strength of Vietnam, always account for the majority in the export volume of the country. However, thanks to priority policies on the export based economy development of the Government, many items like motorcycles are also facilitated to export.

Talking to reporters from Customs News, a leader of Customs Supervision and Management Bureau (Customs General Department) confirmed that this is a beneficial goods management policy for motorcycle exports.

Basing on the List of prohibited import/export goods issued with Government Decree no.187/2013/ND-CP dated 20/11/2013 detailing implementation of Trade Law regulations on international buying and selling of commodities and agent activities including purchasing, selling, sourcing, outsourcing, border-gate transfer, and transiting of commodities with foreign countries, motorcycles (new) are not commodities banned from export from Vietnam. He analyzed that in the list of goods banned from export from Vietnam (issued under Decree 187), there are only 7 groups of goods, mainly: Weapons, ammunition, explosives (except for industrial explosive materials), military technological equipment, relics, antiques and national treasures, rare and wild animals and plants and domestic animals, rare plants, etc. Accordingly, motorcycles are not prohibited export commodities and do not require an export license subject to specialized supervision of Ministries and Agencies.”

On the other hand, in terms of tax rate, the current Vietnam export tariff (issued under Circular 182/2015/TT-BTC) does not apply to motorcycle items (Code 87.11- Motorcycles (including mopeds, motorcycles (mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; motorcycles barrels which are grouped by Circular 103/2015 / TT-BTC of the Ministry Finance on the list of goods import and export Vietnam). Talking about this, some senior Customs officials in the field of taxation said: “if these goods are not in taxable items, the export tax rate of 0% will be applied”.

Thus, both the commodity management policy and tax policy for exported motorcycles had consensus on facilitating policy (not to be included in the list of goods banned from export or requiring licenses for export, and attracting export tax of 0%). Such items also benefit from facilitating customs procedures (exemption from actual inspection of goods, exemption from inspection records) which aim at encouraging exports, except for some investigating cases.

Many cases of faking classic motorcycle registration certificates are actively investigated

Related to wrongdoings in vehicle registrations of outdated motorcycles for export purposes in Ho Chi Minh city which have been investigated by Police Agency of District 3 (HCM city), Customs authorities are also actively cooperating in investigating and identifying relevant information.

According to the Customs report, after receiving information about the case (end of last July) Anti-Smuggling Investigation Department (Customs Department) delegated a mission to identify information at the Police District 3. However, specific information hasn’t not been announced because of confidential principles during the investigations.

At the same time, the Customs authorities are continuing to review and gather general information about exporting cases of motorcycles and antique motorcycles from customs units, including HCM City, to seek information on the export case of motorcycles and antique motorcycles. However, because such commodities in this group are of great varieties (approximately 50 different items), the initial specific information can’t be obtained.