Conditions for customs inspection, supervision and application of tax policies to export processing enterprises are non-tariff zones?
- Conditions for customs inspection and supervision and application of tax policies to export processing enterprises that are non-tariff zones?
- What are the procedures for checking and certifying the satisfaction of customs inspection and supervision conditions for export processing enterprises and investors implementing investment projects to register export processing enterprises?
- Time to apply tax policy to non-tariff zones?
Conditions for customs inspection and supervision and application of tax policies to export processing enterprises that are non-tariff zones?
According to Clause 10, Article 1 of Decree 18/2021/ND-CP, Article 28 has been added to Decree 134/2016/ND-CP on conditions for customs inspection and supervision and application of tax policies to export processing enterprises are a non-tariff zone:
"Article 28a. Conditions for customs supervision and inspection and application for tax policies on exporting processing enterprises (EPE) that are free trade zones (FTZ)
1. Conditions for customs supervision and inspection of an EPE that is a FTZ include:
a) There are hard fences that separate the EPE from the outside; there are gates/doors that are the only ways for goods to enter and leave the EPE.
b) There are surveillance cameras at the entrances and exits where goods are stored throughout the day (24/24 hours, including days off and holidays); images recorded by these cameras shall be transmitted to the supervisory customs authority of the EPE and retained at the EPE for at least 12 months.
The Director of the General Department of Customs shall prescribe the format of surveillance camera data to be exchanged between customs authorities and EPEs mentioned in Point b of this Clause.
c) There software for management of duty-free goods of the EPE serves preparation of reports on receipt, discharge, inventory and use of imports required by customs laws."
Accordingly, the customs inspection and supervision and the application of tax policies to export processing enterprises that are non-tariff zones must meet conditions such as having a fence to separate the area from the outside, having camera to observe the locations of entrance gates and storage locations of goods and must have software to manage imported goods that are not subject to tax of export processing enterprises.
Conditions for customs inspection, supervision and application of tax policies to export processing enterprises are non-tariff zones?
What are the procedures for checking and certifying the satisfaction of customs inspection and supervision conditions for export processing enterprises and investors implementing investment projects to register export processing enterprises?
According to Clause 10, Article 1 of Decree 18/2021/ND-CP, supplementing Article 28 of Decree 134/2016/ND-CP:
“Article 28a. Conditions for customs supervision and inspection and application for tax policies on exporting processing enterprises (EPE) that are free trade zones (FTZ)
…
2. Procedures for inspecting and confirming fulfillment of conditions for customs supervision and inspection EPEs and investors in EPE projects.
a) In case the investor applies for the Certificate of Investment Registration for a new project (or a written confirmation by an investment registration authority if the Certificate of Investment Registration is not required):
The investor shall submit 01 written declaration of fulfillment of the conditions for customs supervision and inspection specified in Clause 1 of this Article (Form No. 24 in Appendix VII hereof) to the investment registration authority together with the application for the Certificate of Investment Registration (or application for the written confirmation by an investment registration authority if the Certificate of Investment Registration is not required).
The investment registration authority shall send an enquiry to a competent customs authority about fulfillment of customs supervision and inspection specified in Clause 1 Article 30 of the Government’s Decree No. 82/2018/ND-CP on management of industrial zones and economic zones (hereinafter referred to as Decree No. 82/2018/ND-CP) and its amending or replacing documents (if any), and fulfillment of regulations of this Decree together with the investor’s application (01 original copy).
Within 03 working days from the receipt of documents from the investment registration authority, in consideration of the investor’s application and declaration, the customs authority shall consider issuing a confirmation of fulfillment of conditions for customs supervision and inspection (Form No. 24 in Appendix VII hereof) and sending it to the investment registration authority.
b) In case the investor applies for issuance of revision of the Certificate of Investment Registration (if any), or a written confirmation by an investment registration authority if the Certificate of Investment Registration is not required for the project’s expansion:
The investor shall submit 01 written declaration of fulfillment of the project’s expansion of the conditions for customs supervision and inspection specified in Clause 1 of this Article (Form No. 24 in Appendix VII hereof) to the investment registration authority together with the application for the Certificate of Investment Registration (if any), or the application for the written confirmation by an investment registration authority if the Certificate of Investment Registration is not required.
The investment registration authority shall send an enquiry to a competent customs authority about the fulfillment of customs supervision and inspection of the project’s expansion as specified in Clause 1 Article 30 of Decree No. 82/2018/ND-CP and its amending or replacing documents (if any), and fulfillment of regulations of this Decree together with the investor’s application (01 original copy).
Within 03 working days from the receipt of documents from the investment registration authority, in consideration of the investor’s application and declaration, the customs authority shall consider issuing a confirmation of fulfillment of conditions for customs supervision and inspection (Form No. 24 in Appendix VII hereof) and sending it to the investment registration authority.
c) In case of conversion of an enterprise into an EPE:
In consideration of the investor's request, the investment registration authority shall send an enquiry to a competent customs authority about the fulfillment of customs supervision and inspection as specified in Clause 1 Article 30 of Decree No. 82/2018/ND-CP and its amending or replacing documents (if any), and fulfillment of regulations of this Decree.
Within 10 working days from the receipt of documents from the investment registration authority, the customs authority shall carry out an inspection of conditions for customs supervision and inspection according to Clause 1 of this Article and send a document (Form No. 26 in Appendix VII hereof) to the investment registration authority about whether these conditions are fulfilled.”
Thus, the procedures for inspecting and certifying the satisfaction of customs inspection and supervision conditions for export processing enterprises and investors implementing investment projects for registration of export processing enterprises are divided into two fields. In case the investor applies for an Investment Registration Certificate of a new investment project or a written certification from a competent investment registration agency, in case the issuance of an Investment Registration Certificate is not required, and in case the investor requests for issuance or adjustment of the Investment Registration Certificate (if any) or a written certification by the competent investment registration authority in case the issuance of the Certificate is not required. receive investment registration to implement expansion investment projects. Investors base themselves on the facts to determine which case they fall into and apply regulations on the procedures of that case according to the content mentioned above.
Time to apply tax policy to non-tariff zones?
Pursuant to Clause 10, Article 1 of Decree 18/2021/ND-CP, to supplement Article 28 of Decree 134/2016/ND-CP:
“Article 28a. Conditions for customs supervision and inspection and application for tax policies on exporting processing enterprises (EPE) that are free trade zones (FTZ)
…
3. Investors in investment projects (including new projects and projects’ expansions) may apply FTZ tax policies prescribed by the Law on Export and Import Duties from the day on which the EPE mentioned in the Certificate of Investment Registration, the revised Certificate of Investment Registration or the investment registration authority’s written confirmation if the Certificate of Investment Registration is not required.
Inspection of fulfillment of conditions for customs supervision and inspection serving application of FTZ tax policies shall be carried out in accordance with Clause 4, Clause 5 and Clause 6 of this Article.”
Accordingly, the time when an investor can apply the tax policy to a non-tariff zone is from the time it is considered an export processing enterprise according to the Investment Registration Certificate, the Investment Registration Certificate, and the Investment Registration Certificate. amendments or documents of the competent investment registration agency in case the issuance of the Investment Registration Certificate is not required.
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