In a letter sent to the Ministries of Finance, Industry and Trade, General Taxation Department and General Department of Customs, VAMA said many car importers declare falsely low import prices and sale prices in order to evade taxes. It also said that a lot of new imports are declared as “used”.

 

VAMA says manufacturer’s sale prices of Matiz AT 2009 version are USD 6,065-USD7,027, while importers declare USD2,700-3,000. In fact, the cars are selling on the market at USD11,800-14,900, yet invoices show prices of only USD10,400.

 

Another example cited by VAMA is the Hyundai Santa Fe 2188cc, dieselA 2009 version. The cars have the manufacturer’s sale price at USD20,434-26,238, but importers declare much lower price at USD11,954 only. They are selling on the market at USD48,900, while the invoice price is only USD29,340.

 

VAMA surveys show the same trade frauds have been repeated with other car models like Kia Morning, Hyundai Getz and Matiz Van.

  

Brand new Hyundai Santa Fe, for example, had the declared prices at USD12,000, USD13,300 and USD13,900 in 2007, while they dropped to USD11,000, USD12,000 and USD13,000 in 2008 and then to USD10,050, USD11,500 and USD12,000-12,600 in 2009.

 

Similarly, used cars of the same brand name had the declared prices at USD4,500, USD5,000 and USD10,500 in 2007, and USD6,000, USD7,000 and USD8,000 in 2008 and USD6,500 and USD7,300 in 2009.

 

VAMA is now worried that if importers continue evading tax successfully, the imports will increase in the future. The car imports are expected to increase by 45 percent in 2009, which will seriously affect the local automobile industry and cause big trade gaps from 2018.

 

VAMA has called on relevant ministries to take actions to prevent car import trade frauds and has promised to cooperate by providing the necessary information.