Decision No. 446/2003/QD-BTM dated April 17, 2003 of the Ministry of Trade promulgating the Regulation on tax-suspension areas in border-gate economic zones

DECISION

PROMULGATING THE REGULATION ON TAX-SUSPENSION AREAS IN BORDER-GATE ECONOMIC ZONES

THE MINISTER OF TRADE

Pursuant the September 30, 1992 Law on Organization of the Government;

Pursuant to the December 26, 1991 Law on Export Tax and Import Tax and the July 5, 1993 Law and May 20, 1998 Law No. 04/1998/QH10 amending and supplementing a number of articles of the Law on Export Tax and Import Tax;

Pursuant to the June 29, 2001 Customs Law;

Pursuant to the Prime Minister's Decision No. 53/2001/QD-TTg of April 19, 2001;

On the basis of consulting with the Ministry of Finance;

Under the authorization of the Prime Minister (Document No. 272/CP-KTTH of March 8, 2002),

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on tax-suspension areas in border-gate economic zones.

Article 2.- This Decision takes effect 15 days after its signing.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the provincial/municipal People's Committees shall have to implement this Decision.

REGULATION

ON TAX-SUSPENSION AREAS IN BORDER-GATE ECONOMIC ZONES
(Issued together with Decision No. 0446/2003/QD-BTM of April 17, 2003 of the Minister of Trade)

Chapter I

GENERAL PROVISIONS

Article 1.- This Regulation governs the operation of tax-suspension areas in border-gate economic zones (hereinafter referred to as tax-suspension areas for short).

Article 2.- A tax-suspension area is an area separated from other areas in the border-gate economic zone where a customs station is set up to supervise and inspect goods on entry and exit and the tax preferences shall be applied under the provisions in Chapter II of this Regulation.

In tax-suspension areas, the following business forms may apply: import/export, temporary import for re-export, transportation of transited goods, bonded warehouses, duty-free shops, exhibitions and fairs, goods-display shops, import/export goods-producing and/or -processing establishments, branches representing domestic and foreign companies, and border-gate marketplaces.

Article 3.- The establishment of tax-suspension areas shall be decided by the presidents of the People's Committees of the provinces where exist the border-gate economic zones after consulting with the Ministry of Trade and the Ministry of Finance (the General Department of Customs).

Article 4.- Vietnamese traders of all economic sectors, foreign-invested enterprises in Vietnam and foreign companies' branches which register for operation in tax-suspension areas (hereinafter referred to as traders in tax-suspension areas) shall have to abide by this Regulation and other relevant provisions of Vietnamese laws.

Article 5.- Goods, equipment, transport means and supplies (hereinafter referred collectively to as goods), luggage and foreign exchange brought from foreign countries into tax-suspension areas shall be subject to customs supervision and inspection according to current provisions of Vietnamese laws.

Article 6.- Vietnamese citizens and foreigners must not reside in tax-suspension areas.

Chapter II

TAX PREFERENCES

Article 7.- Goods brought from foreign countries into tax-suspension areas shall be exempt from import tax.

Article 8.- Goods brought from Vietnamese inlands into tax-suspension areas, when they are exported to foreign countries and goods brought from foreign countries into tax-suspension areas, when they are imported into Vietnamese inlands, shall be governed by the Law on Export Tax and Import Tax.

Article 9.- Goods produced, processed, re-processed or assembled in tax-suspension areas, when they are exported to foreign countries, shall be exempt from export tax.

For goods produced, processed, re-processed or assembled in tax-suspension areas with the use of foreign raw materials and accessories, when being imported into Vietnamese inlands, import tax must be paid only for the part of foreign raw materials and accessories constituting these products .

Chapter III

PRODUCTION, PROCESSING AND EXPORT/IMPORT OF GOODS AND/OR SERVICES

Article 10.- Traders in tax-suspension areas may conduct export/import business according to the provisions of Vietnamese laws.

Article 11.- Goods processed, temporarily imported for re-export, transported from one border-gate to another or transiting tax-suspension areas shall have to comply with current regulations.

Goods transiting via tax-suspension areas into Vietnamese inlands for transportation to the third country shall have to comply with Vietnamese laws on goods transit.

Article 12.- The sale/purchase of goods and/or services in tax-suspension areas must comply with current provisions on goods and/or services banned from business, subject to conditional business or business restriction.

Chapter IV

ORGANIZATION OF MANAGEMENT

Article 13.- The Ministry of Finance (the General Department of Customs) shall prescribe customs procedures for goods brought into and out of tax-suspension areas.

Article 14.- The People's Committees of the provinces where exist tax-suspension areas shall, through the Management Boards of border-gate economic zones, build and develop infrastructures in tax-suspension areas and perform the uniform and concentrated management therein.

Article 15.- The Management Boards of border-gate economic zones shall have to:

1. Formulate plannings on development of infrastructures in tax-suspension areas and submit them to the People's Committees of their provinces for approval.

2. On the basis of the provisions of this Regulation, formulate specific charters on the management of tax-suspension areas and submit them to the People's Committees of their provinces for approval.

3. Organize the administrative management and settle civil disputes in tax-suspension areas.

Chapter V

IMPLEMENTATION PROVISIONS

Article 16.- Other activities of tax-suspension areas not prescribed in this Regulation shall comply with Vietnamese current relevant legal documents and international treaties which Vietnam has signed or acceded to.-