Laws of Vietnam

I. OBJECTS AND SCOPE OF APPLICATION

1. Objects of application:

a/ Export-processing enterprises,

b/ Inland enterprises:

+ Vietnamese enterprises,

+ Foreign-invested enterprises,

c/ Cooperation groups,

d/ Family households,

e/ Individuals.

2. Scope of application:

This Circular shall apply to the purchase and sale of goods between inland Vietnam and export-processing enterprises.

II. THE SALE OF GOODS FROM INLAND VIETNAM TO EXPORT-PROCESSING ENTERPRISES FOR PRODUCTION AND BUSINESS

1. Subjects entitled to sell goods to export-processing enterprises:

- Inland enterprises,

- Cooperation groups,

- Family households,

- Individuals.

2. Goods sold from inland to export-processing enterprises include:

a/ Goods which are not on the "List of goods banned from import and/or export" of Vietnam.

b/ Export goods controlled by quotas or norms, which are sold to export-processing enterprises with amounts or value compatible with the allocated quotas or the assigned norms.

c/ Export goods subject to the specialized management and sold to export-processing enterprises according to the stipulations of the specialized ministries.

3. Customs procedures:

Goods sold by inland enterprises to export-processing enterprises shall only need to be declared in the export goods customs declaration forms with the customs agencies of export-processing zones on the basis of the trading contracts already signed with the export-processing enterprises according to the current regulations.

When buying goods from inland, export-processing enterprises shall only need to fill the declaration forms with the customs agencies of export-processing zones, and do not need to ask for the plan ratification by the management boards of such export-processing zones.

4. Export tax:

- For inland goods sold to export-processing enterprises, the sellers shall be exempt from export tax.

- For goods purchased by export-processing enterprises from inland for export (without going through the production stage), the export-processing enterprises shall have to pay export tax.

- For goods purchased from inland by export-processing enterprises for the production of export goods, when exporting those goods, such export-processing enterprises shall be exempt from export tax.

III. INLAND ENTERPRISES PURCHASE GOODS FROM EXPORT-PROCESSING ENTERPRISES

1. Goods purchased from export-processing enterprises include:

a/ Goods on the list of import substitutes, announced annually by the Ministry of Planning and Investment.

b/ Raw materials and semi-finished products for inland enterprises directly engaged in the production of export goods.

c/ Discarded materials and by-products of export-processing enterprises, which still have commercial value.

Goods mentioned in this Clause must be products made by the export-processing enterprises themselves in strict compliance with their investment licenses.

2. Subjects eligible for goods purchase from export-processing enterprises:

a/ Vietnamese enterprises established according to law, that have suitable goods lines, shall be entitled to buy all goods mentioned in Clause 1 of this Section.

b/ Cooperation groups, family households and individuals shall be entitled to buy export-processing enterprises’ discarded materials and by-products, which still have commercial value.

c/ Foreign-invested enterprises established under the Law on Foreign Investment in Vietnam shall be entitled to buy goods for their production of export goods in conformity with the production and business lines defined in their investment licenses.

3. Stipulations on the purchase of goods from export-processing enterprises:

a/ Import goods controlled by quotas or norms:

Inland enterprises shall only be entitled to buy goods from export-processing enterprises with amounts or value compatible with the allocated quotas or assigned norms.

b/ Import goods subject to the specialized management:

Inland enterprises shall only be entitled to buy goods from export-processing enterprises according to the stipulations of the specialized ministries.

c/ For discarded materials and by-products, which still have commercial value, the provisions of Joint Circular No.2880/KCM-TM of December 19, 1996 of the Ministry of Trade and the Ministry of Science, Technology and Environment on the import of discarded materials and by-products shall apply.

4. Customs procedures and import tax payment:

The customs procedures and import tax payment shall comply with the current regulations on import activities.

IV. THE SALE OF STATIONERY AND GOODS IN SERVICE OF DAILY-LIFE ACTIVITIES OF EXPORT-PROCESSING ENTERPRISES

1. The subjects mentioned in Clause 1, Section II, shall be entitled to sell stationery and goods in service of the daily-life activities to export-processing enterprises.

2. Export-processing enterprises that buy stationery or goods in service of their daily-life activities from the inland shall not have to fill the customs procedures and shall comply with the regulations of the Management Boards of Industrial Parks and Export-Processing Zones.

V. IMPLEMENTATION PROVISIONS

This Circular takes effect 15 days after its signing.

For the Minister of Trade

Vice Minister