Vietnam: Export processing enterprises will be conducted customs inspection and supervision before April 25, 2022 under the latest Official Dispatch issued by General Department of Customs?
- What are the deadline of the customs inspection and supervision in export processing enterprises (EPE) for Customs Sub-department?
- What are the regulations on conditions for customs supervision and inspection and application for tax policies on exporting processing enterprises (EPE) that are free trade zones (FTZ) in Vietnam?
- What are the regulations on actual inspection of conditions for customs inspection and supervision for EPEs in Vietnam?
What are the deadline of the customs inspection and supervision in export processing enterprises (EPE) for Customs Sub-department?
On April 15, 2022, the General Department of Customs issued Official Dispatch 1305/TCHQ-GSQL dated April 15, 2022 on implementing the provisions of Clause 10, Article 1 of Decree 18/2021/ND-CP issued by the General Department of Customs. Accordingly, the Customs Sub-department must perform the following contents:
(1) For EPEs that have not yet made satisfaction of the conditions for customs inspection and supervision report according to the form No.25 Appendix VII issued together with Decree 18/2021/ND-CP:
- Actively work directly at the head office of the EPE to find out the causes and reasons why the EPE has not announced that it meets the conditions for customs inspection and supervision as prescribed;
- Assess the ability of the EPE to meet or not meet the conditions for customs inspection and supervision according to the provisions of Clause 10, Article 1 Decree 18/2021/ND-CP;
- Prodvide response time for EPEs;
- Make a working minutes certified by the enterprise.
(2) For EPEs that have made a satisfaction of the conditions for customs inspection and supervision report according to the form No. 25 Appendix VII issued together with Decree 18/2021/ND-CP, the customs authority has inspected and confirmed that the condition is not met:
- Assess the ability to meet/fail to meet the conditions for customs inspection and supervision before April 25, 2022.
- Supervise and speed up EPEs to continue to improve conditions for customs inspection and supervision and conduct inspection and certification according to regulations before April 25, 2022.
(3) For EPEs that have made satisfaction of the conditions for customs inspection and supervision report according to the form No.25 Appendix VII issued together with Decree 18/2021/ND-CP, the customs authority has not yet implemented to check the conditions for customs inspection and supervision according to regulations:
Expeditiously inspect and confirm the conditions for customs inspection and supervision according to regulations before April 25, 2022.
What are the regulations on conditions for customs supervision and inspection and application for tax policies on exporting processing enterprises (EPE) that are free trade zones (FTZ) in Vietnam?
According to Clause 10, Article 1 Decree 18/2021/ND-CP supplementing Article 28a of Decree 134/2016/ND-CP, the conditions for customs inspection and supervision and application of tax policies on exporting processing enterprises (EPE) that are free trade zones (FTZ) are mentioned as follows:
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 serving preparation of reports on receipt, discharge, inventory and use of imports required by customs laws.
What are the regulations on actual inspection of conditions for customs inspection and supervision for EPEs in Vietnam?
According to Clause 10, Article 1 Decree 18/2021/ND-CP supplementing Article 28a of Decree 134/2016/ND-CP, actual inspection of conditions for customs inspection and supervision for EPEs conduct as follows:
"Article 28a. Conditions for customs supervision and inspection and application for tax policies on exporting processing enterprises (EPE) that are free trade zones (FTZ)
...
4. Inspection of fulfillment of conditions for customs supervision and inspection of EPEs (including enterprises having new projects and projects’ expansions):
a) At least 30 days before the official inauguration date of the EPE specified in the Certificate of Investment Registration, the revised Certificate of Investment Registration (if any) or the investment registration authority’s written confirmation in case the Certificate of Investment Registration is not required, or the investment registration authority’s confirmation that the EPE’s is officially inaugurated later than the date specified in the aforementioned documents, the EPE shall send a notification of fulfillment of the conditions for customs supervision and inspection specified in Clause 1 of this Article (Form No. 25 in Appendix VII hereof) to the supervisory Sub-department of Customs of the EPE.
In case official inauguration date of the EPE is not specified in its Certificate of Investment Registration, the revised Certificate of Investment Registration (if any) or the investment registration authority’s written confirmation if the Certificate of Investment Registration is not required, does not specify the, it shall be the date notified by the EPE to the customs authority.
b) Within 10 working days from the receipt of the EPE’s notification, its supervisory Sub-department of Customs shall complete the inspection of fulfillment of conditions for customs supervision and inspection specified in Clause 1 of this Article and send a written notification to the EPE (Form No. 26 in Appendix VII hereof) specifying whether these conditions are fulfilled or not. In case these conditions are not fulfilled according to the confirmation, the EPE must fulfill these conditions within 01 year from the day on which the first confirmation is issued by its supervisory Sub-department of Customs.
c) When the conditions specified in Clause 1 of this Article are fulfilled, the EPE shall send a written request for inspection of the fulfillment of these conditions (Form No. 25 in Appendix VII hereof) to its supervisory Sub-department of Customs. Within 10 working days from the receipt of the EPE’s request, the Sub-department of Customs shall carry out the inspection and send a notification (form No. 26 in Appendix VII hereof) of whether these conditions are fulfilled.
The EPE may make multiple improvements to the conditions specified in Clause 1 of this Article within 01 year from the day on which the first confirmation is issued by its supervisory Sub-department of Customs.
d) If the EPE fails to submit the notification within 01 year from the issuance date of the first confirmation of the Sub-department of Customs or fails to fulfill the conditions for customs supervision and inspection specified in Clause 1 of this Article, it will not be eligible for FTZ tax policies and has to fully pay the taxes, late payment interest and fines relevant to the imports to which FTZ tax policies were applied which accumulate from the issuance date of 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 regarding the new investment project or project’s expansion that fails to satisfy the conditions for customs supervision and inspection specified in Clause 1 of this Article.
In case the EPE fulfills the conditions for customs supervision and inspection specified in Clause 1 of this Article after 01 year and submits the notification to its supervisory Sub-department of Customs in accordance with Point c of this Clause, FTZ tax policies shall be applied from the day on which the Sub-department of Customs issues the confirmation of fulfillment of the conditions for customs supervision and inspection specified in Clause 1 of this Article."
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