New regulations on industrial, export processing and economic zone
The Decree 114/2015/ND-CP to amend and supplement Article 21 of Decree 29/2008/ND-CP and Point 1 of Article 1 of Decree 164/2013/ND-CP has been issued on provisions exclusively applicable to enterprises in industrial zones, export processing zones and economic zones.
Under the new regulations, export processing zones and enterprises may apply legal provisions applicable to non-tariff areas excluding separate incentives for duty free areas of border gate economic zones. Processing enterprises are stipulated in Investment Registration Certificate (IRC) or document of competent investment registration agencies in case they don’t have to comply with investment registration procedures.
Export-processing zones or enterprises are separated from the outside territory with fence and wall systems which have entry and exit gates and doors to facilitate examination, supervision and control by customs officers and related functional agencies. Export-processing enterprises may purchase construction materials, stationery, food, foodstuffs and consumer goods from inland Vietnam to build necessary facilities and serve the operation of their offices and daily activities of their staff members and workers. Export processing enterprises (EPE) and companies who sell goods to these EPE can choose whether to make customs procedures for export or import of materials, stationery, food, food and domestic consumption cargos from inland Viet Nam. Procedures of customs, inspection and supervision on exports and imports of export processing zones and EPE comply with customs legislation. Export-processing enterprises may sell to the domestic market their liquidated assets and goods in accordance with investment and trade laws.
The exchange of goods between export-processing zones and enterprises and other areas in the Vietnamese territory, except non-tariff areas, is regarded as import and export relations. Relations of goods exchange between export processing zones and EPE with other areas in the territory of Vietnam, except for non-tariff areas are import and export relations apart from the cases stipulated in Article 3 of the Decree 114/2015/ND-CP and cases without making customs procedures prescribed by the Ministry of Finance. Export-processing enterprises may sell to the domestic market their liquidated assets and goods in accordance with investment and trade laws. At selling and liquidation time to the domestic market, export-import goods management policies are not applicable excluding cases in which goods belong to the conditional, standard, and interdisciplinary investigating management categories; license management goods must get approval from import granting agencies in document. Staffs and workers working in export processing zones and EPE don’t have to make customs declaration when they bring foreign currencies from inland Vietnam into export processing zones, export processing enterprises and vice versa.
Export processing enterprises which are granted business license for sale of goods and activities directly related to the purchase and sale of goods in Vietnam must open separate accounting book for revenues and expenses related to the operation of purchase and sale of goods in Vietnam, arrange areas for goods storage in separation with goods production activities or establishing their own branches located outside the export processing enterprise and zones to perform these activities.