New Prominent Policies Effective from Early October 2016

1. Preventing Fraud in Trade with the Eurasian Economic Union

The Ministry of Industry and Trade issued Circular 21/2016/TT-BCT regulating the implementation of Rules of Origin of goods in the Free Trade Agreement between Vietnam and the Eurasian Economic Union (VN-EAEU FTA Agreement).

Enclosed with the Circular:

- Rules of Origin of goods (Appendix I);- Specific product rules (Appendix II);- List of island countries outside EAEU but receiving 0% tax benefits as partners within the union according to Article 10 Appendix I (Appendix III);- Certificate of Origin (C/O) form EAV, supplementary declaration of C/O form EAV and instructions for declaring C/O (Appendix IV);- List of C/O issuing organizations of Vietnam (Appendix V).

The Circular specifically prescribes measures to prevent commercial fraud, avoiding situations where goods from a third country are transshipped through a participating country in the agreement and then re-exported to a country outside the agreement to benefit through the VN-EAEU FTA Agreement.

Circular 21/2016/TT-BCT is effective from October 5, 2016.

1. State Auditors Are Prohibited from Marrying Foreign Nationals Illegally

According to Decision 04/2016/QD-KTNN (effective from October 13, 2016) on the Code of Conduct for State Auditors and their family’s conduct, as follows:

- Exemplarily complying with laws and internal regulations at the place of residence and persuading family members to seriously and correctly follow the guidelines, policies of the Communist Party, and laws of the State;- Not allowing parents, adoptive parents, parents-in-law, spouses, offspring, siblings, and relatives to exploit their name for family gain;- No acts of domestic violence, violations of population policy and family planning, cohabitation with others as spouses; neither the auditor nor their children are allowed to marry foreign nationals illegally;- Not organizing extravagant, wasteful or profit-seeking activities such as weddings, funerals, holidays, birthdays, wedding anniversaries, longevity celebrations, new house celebrations, promotions, transfers, and other personal and family events.

1. Special Leave Regime for Military Personnel and Defense Public Employees

From October 8, 2016, the leave policies for professional soldiers, workers, and defense public employees will be implemented in accordance with Circular 113/2016/TT-BQP.

In addition to annual leave, holidays, and Tet, professional soldiers, workers, and defense public employees are entitled to special leave not exceeding 10 days in the following cases:

- Marriage; legitimate children or adopted children’s marriage.- The death or serious illness requiring long-term treatment at medical facilities of biological parents, foster parents, parents-in-law, legal guardians of self, spouse, or biological children, and adopted children, spouse.- Families suffering severe damage to people and property caused by accidents, natural disasters, or dangerous epidemics.

The Circular also provides for leave policies on holidays, Tet; convalescence, rehabilitation leave; pre-retirement leave.

1. Guidance on the Application of Regulations on Taxes, Fees, and Charges for EPC Packages

From October 1, 2016, the preparation of bidding documents for design, supply of goods, and construction (EPC) will follow the regulations specified in Circular 11/2016/TT-BKHDT.

Regulations on taxes, fees, and charges to be applied are as follows:

- The bid price of the contractor includes all necessary costs for the execution of the package, including taxes, fees, and charges (if any). Taxes, fees, and charges are applied according to the tax rates, fee rates, and charge rates as prescribed 28 days before the bidding deadline.- When evaluating prices, taxes, fees, and charges (if any) are not considered for comparison and ranking of contractors. If the contractor is ranked first, the costs of taxes, fees, and charges (if any) will be specifically determined during the contract negotiation step. The winning bid price and contract price must include taxes, fees, and charges (if any).

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