To: A Chau Automobile Limited Liability Company
(Address: 6B Ton Duc Thang, Ben Nghe Ward, 1st District, Ho Chi Minh City)

General Department of Customs receives Official Dispatch No. 01/03-2019/AA dated March 20, 2019 of A Chau Automobile Limited Liability Company (hereinafter referred to as “Company”) relating to HS codes, import tax and excise tax of electric vehicles and plug in hybrid electric vehicles. General Department of Customs gives its opinions hereunder regarding this matter:

1. Regarding definition of electric vehicles (EV) and plug in hybrid electric vehicles (PHEV)

The Company is advised to contact Ministry of Transport for competent response.

2. Regarding HS codes and corresponding import tax.

Pursuant to Circular No. 65/2017/TT-BTC dated June 27, 2017 of Ministry of Finance on issuance of Vietnam nomenclature of exports and imports, the Official Dispatch of the Company failed to specify seating capacity of each vehicle model. To be specific:

- HS codes of EV may be reviewed in following headings:

+ Heading 87.02: “Motor vehicles for the transport of 10 or more persons, including the driver”, sub-heading 8702.40 “-For vehicles powered solely by electric engines:”

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Sub-heading 8703.10 “- Vehicles specially designed for travelling on snow; golf cars and similar vehicles:”

Sub-heading 8703.80 “- Others, vehicles powered solely by electric engines:”

- HS codes of PHEV may be classified into following headings:

+ Heading 87.02: “Motor vehicles for the transport of 10 or more persons, including the driver”.

Sub-heading 8702.20: “- Powered by both compression-ignition reciprocating internal combustion piston engine (diesel or semi-diesel) and electric engine:”

Sub-heading 8702.30: “- Powered by both spark-ignition reciprocating internal combustion piston engine and electric engine:”

Or

+ Heading 87.03: “Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars”.

Sub-heading 8703.10 “- Vehicles specially designed for travelling on snow; golf cars and similar vehicles:”

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Sub-heading 8703.70: “- Others, powered by both compression-ignition reciprocating internal combustion piston engine (diesel or semi-diesel) and electric engine, externally charged.”

Specific code for a product shall be determined by design, functions and article description of the product, which will enable determination of respective import tax according to Decree No. 125/2017/ND-CP dated November 6, 2017 of the Government on amendments to Decree No. 122/2016/ND-CP dated September 1, 2016 of the Government on schedules of import tariffs and preferential import tariffs, list of goods and its flat tax, compound tariff, and out-of-quota import tariff.

3. Regarding excise tax:

Pursuant to Clause 2 Article 2 of Law on Excise Tax No. 106/2016/QH13 with amendments to Clause 4 Section I of Schedule of excise tax under Article 7, tax rates of electric vehicles and hybrid electric-petroleum vehicles are as follows:

dd) Automobiles powered by petroleum in combination with electricity or biofuels, petroleum ratio does not exceed 70% of total fuel use

70% of tax rates applied to vehicles of the same types under Points 4a, 4b, 4c and 4d of the Tax schedule under this Article.

g) Electric automobiles

- Maximum seating capacity of 9

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- Seating capacity of 10 to less than 16

10

- Seating capacity of 16 to less than 24

5

- For passenger and cargo transportation

10

The Company shall refer to regulations to determine HS codes, import tax and excise tax of import goods.

For your information./.

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PP. DIRECTOR GENERAL
ACTING DIRECTOR OF IMPORT-EXPORT TAX DEPARTMENT
DEPUTY DIRECTOR




Dao Thu Huong