Ha Nam Ninh Customs: Actively implementing import tax incentives for auto components

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Production activities at Hyundai Thanh Cong Vietnam Auto JSC. Photo: Hoang Vinh

More than VND5,300 billion tax refunded

According to the representative of Ha Nam Ninh Customs Department, the two-year implementation of the import tax incentive program for auto components under Decree No. 125/2017 / ND-CP (Decree 125) has brought certain effects, harmonizing theinterests of the State, enterprises and consumers, contributing to promoting the development of the automobile industry and the supporting industry and creating jobs and income for employees.

In order to create the best conditions for the production and business activities of enterprises in this field, Ha Nam Ninh Customs has closely directed its units to proactively apply relevant regulations and guided enterprises to apply regulations in practice to achieve the highest efficiency under the tax incentive program for imported auto components.

According to statistics, there are five enterprises which have joined the import tax incentive program for auto spare parts and components so far, including Hyundai Thanh Cong Auto Manufacturing Joint Stock Company; Hyundai Thanh Cong Vietnam Auto JSC; Sejung Vietnam Co., LTD; DEAWON AUTO Vina Co., LTD and Samsung Climate Control Vietnam Co., LTD.

Among five enterprises in this program, Ha Nam Ninh Customs has refunded overpaid tax for enterprises eligible for enjoying the 0% tax rate of heading 98.49 for imported auto spare parts and components for automobile manufacturing and assembly.

Accordingly, in 2019, VND2,950 billion was refunded for import declarations of air compressors used for automobile air conditioners, which were registered from 2019 and earlier. In 2020, VND2,418 billion was refunded for import declarations for auto spare parts and components for automobile production and assembly, which were registered from January 1, 2020 to the end of November 30, 2020.

The representative of Ha Nam Ninh Customs Department added that the import tax incentive program for auto components had contributed to improving competitiveness, expanding the production scale of domestic automobile manufacturing and assembly enterprises, enhancing competitiveness of domestically manufactured and assembled automobiles compared to imported ones, contributing to increasing state budget revenue.

The implementation of the tax incentive program for automobile manufacturing and assembly amid the serious influence of the Covid-19 pandemic of the Customs sector in general and the Ha Nam Ninh Customs in particular has been appreciated by the business community.

The representative of Hyundai Thanh Cong Vietnam Auto JSC said that Ha Nam Ninh Customs had actively spoken with the company about the import, business and production plans and had taken active actions in tax refund for imported auto spare parts. This helped the company achieve the set targets, improve the competitiveness in the market and stand firm amid the Covid-19 pandemic.

Continue to accompany enterprises

The representative of Ha Nam Ninh Customs Department said that the timely issuance of Decree 57/2020 / ND-CP had continued to remove difficulties for enterprises in production activities. For example, Decree 57 adds a 0% import tax incentive program for imported raw materials, supplies and components for manufacturing supporting products for the automobile industry, which will contribute to reducing input costs for supporting products of Vietnam, contributing to expand the domestic market size and increasing the localization rate and improving competitiveness with imported automobiles of domestic enterprises.

Therefore, to provide maximum support to the business and production activities of enterprises, Ha Nam Ninh Customs Department has added professional human resources and planned tax refund processes for enterprises. In particular, the department has carried out many channels to exchange, capture information and promptly remove problems arising for enterprises that registered to participate in the tax incentive program for imported auto spare parts and components.

At the same time, Ha Nam Ninh Customs regularly exchanges new policies related on automobile imports, specifically regulations related to Article 7b of Decree No. 57/2020/ND-CP under the guidance of the General Department of Customs.

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The representative of Ha Nam Ninh Customs said that he would continue to receive the opinions of enterprises and quickly solve problems under his power and report problems beyond his power to the General Department of Customs and relevant authorities for handling, avoiding negative impact on the production of enterprises.