Ho Chi Minh City Customs Department immediately solve problems for the imported tractor consignment

Imported tractors were chiselled chassis number and engine number

According to Director of M. Company (the company proposed not to be named), in 2017, this company imported a consignment including 15 tractors for agriculture, originating from the US through Cat Lai Port of Ho Chi Minh City.

Only 11 tractors in this consignment were cleared by the Customs authority and the 4 remaining tractors were seized by the Customs due to that the chassis number and engine number of these tractors were chiselled.

The company said that the imported tractor for agriculture with C/O from i is subject to an import duty rate of 0% so that the chisel of chassis number and engine number does not affect the tax amount and is not a fraud.

After many times working with the Ministry of Transport, the company has not been yet approved for receiving the 4 tractors which were made a report for the violation and seized by the Customs authority.

During the waiting time for C/O form i, in order to clear the consignment, the company implemented advance payment of import duty, but due to that the seizure of the 4 tractors, so that currently the company has not yet refund duty. The company proposed to be refunded the advance payment and reported to the Prime Minister to receive the 4 tractors that were handled by the HCM City People's Committee.

Relating to the procedures for this consignment, Mr Le Nguyen Linh, Deputy Manager of Sai Gon Seaport Customs Branch of Zone 1 said that the consignment was classified into Yellow Chanel (not subject to physical inspection).

However, the results of quality inspection from the Registry Department have shown that 4 of 15 tractors were chiselled their chassis number and engine number. Basing on these results, the Customs authority made a report on administrative violations and seized these 4 tractors that were chiselled their chassis number and engine number, and the 11 remaining tractors were implemented customs clearance.

The infringing consignment is valued at over VND 6.5 billion and subject to sanctioning competency of Ho Chi Minh City People's Committee. Ho Chi Minh City Customs Department has transferred the dossier to the Ho Chi Minh City People's Committee for handling and the Committee issued a decision on administrative sanction and seized 4 infringing tractors.

Immediately solve problems for the company

Chairing the meeting with the company, in the afternoon 30th November 2018, Deputy Director of Ho Chi Minh City Customs Department Nguyen Hu Nghiep requested that right the beginning of the next week, the Sai Gon Seaport Customs Branch of Zone 1 was responsible for taking the 4 tractors to the store of Ho Chi Minh City Customs Department and considered the company’s C/O form i. If the C/O was valid, the import duty refund must be implemented for the company no later than 5th December 2018.

Regarding the imports of specialized machinery and equipment for agricultural production, the leader of Ho Chi Minh City Customs Department said that over the past time, at some border gates, problems in identifying tractor for agriculture not subject to VAT raised.

According to Clause 1, Article 3 Decree 12/2015/ND-CP of the Government and Clause 2 Article 1 Circular 26/2015/TT-BTC of the Ministry of Finance “specialized machinery and equipment for agricultural production” is not subject to VAT.

According to the guidance in Official Letter 1677/BTC dated 29th January 2016 of the Ministry of Finance, “Tractor for agriculture including tractors combined with ploughing, harrowing, cultivating, spraying pesticide, flattening the field” is not subject to VAT.

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The case raised in Ho Chi Minh City Customs Department is that the company declared the agricultural tractor for harrowing and cultivating (not attached to other machines for ploughing, harrowing and cultivating….). Therefore, the units are obstructed by VAT policy on this item.

In fact, the enterprise usually imports tractors. After importing, depending on the usage purpose, these tractors will be an engine and attached to other machines to perform ploughing, harrowing and cultivating (not attached to other machines for ploughing, harrowing and cultivating) is consistent with reality.

Ho Chi Minh City Customs Department said that if the company committed and is responsible before the law on the determination of the tractor for the agriculture not subject to VAT.

In order to facilitate the company, Ho Chi Minh City Customs Department has reported the problem to the General Department of Vietnam Customs for consideration and settlement.