04 Entities allowed to operate in non-tariff areas in Vietnam

04 Entities allowed to operate in non-tariff areas in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What are non-tariff areas?

Non-tariff areas are geographical areas with identified boundaries which are separated from the outside territory by hard fences with entrance gates and doors so as to ensure the control of customs agencies and relevant functional agencies and have customs agencies to conduct supervision and examination of goods brought into and out of and vehicles moving into and out of the areas.

In which, the following activities are carried out in non-tariff areas:

- Trade in goods, trade in services and other activities specified in the Commercial Law;

- Goods production, processing, re­processing and assembly.

(Clause 1, Article 2 and Clause 1, Article 4 of the Regulation issued together with Decision 100/2009/QD-TTg)

2. 04 Entities allowed to operate in non-tariff areas in Vietnam

According to Article 5 of the Regulation promulgated together with Decision 100/2009/QD-TTg, rntities operating in non-tariff areas (below collectively referred to as non-tariff area enterprises) include:

(1) Vietnamese traders;

(2) Branches and representative offices of Vietnamese traders;

(3) Branches and representative offices of Vietnam-based foreign traders:

(4) Investors as defined in the investment law.

3. Commercial policies applicable to non-tariff areas in Vietnam

Commercial policies applicable to non-tariff areas are specified in Chapter 2 of the Regulation issued together with Decision 100/2009/QD-TTg as follows:

- Goods and service trading and exchange relations between non-tariff areas and the inland

+ Relations of goods and service trading and exchange between non-tariff areas and the inland are considered import and export relations in accordance with Vietnam's laws on customs, tax. import and export.

+ Non-tariff area enterprises may purchase stationery, food, foodstuff and consumer goods from inland Vietnam in service of their administration work and daily-life activities of their employees and workers. Non-tariff area enterprises may decide whether or not to carry out import, export and customs procedures for these goods.

- Goods transportation

Imported and exported goods transported into and out of non-tariff areas are subject to customs examination and supervision under the Customs Law and other relevant laws.

- Goods displayed, exhibited or stored in warehouses or storing yards

Goods displayed, exhibited or stored in ware­houses or storing yards in non-tariff areas are subject to no restriction on quantity and storage duration.

- Import and export in non-tariff areas

+ Entities operating in non-tariff areas may import and export goods of all categories, except those on lists of goods banned from import or export or suspended from import or export as prescribed by Vietnam's law.

+ The import and export of goods on lists of goods imported or exported under permits, goods subject to conditional import or export or goods restricted from business comply with Vietnam's law.

- Temporary import for re-export, temporary export for re-import, transportation from or to border gate, processing and transit in non-tariff areas

+ Goods temporarily imported for re-export, temporarily exported for re-import, processed and transited in non-tariff areas must abide by Vietnam's law and treaties to which Vietnam has signed or acceded.

+ Goods are only permitted to be traded in the form of transportation from or to border gate in non-tariff areas linked with seaports.

- Other commercial activities: Other commercial activities comply with the Commercial Law and other relevant legal documents.

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