Vietnam to Raise Import Duty on Second-hand Cars

According to Vietnam Investment Review on July 20, 2011, Vietnam will implement new import duty rates on second-hand cars from August 15, 2011. There will be almost no price differences between second-hand car imports and new car imports.

According to current provisions, the import duty on less-than-9-seat second-hand cars is 50%, with 32% lower than that on new cars.

Local importers making use of the duty difference largely import second-hand luxury cars, and some profiteers even adjust the service history and mileage of new cars in advance, and then declare to the customs in the name of second-hand cars to make an excessive profit.

In order to crack down fraudulent conduct and rectify the market order, Vietnam's relative departments decided to largely increase import duties on second-hand cars to control its imports.