Official Dispatch No. 10240/BCT-KH dated October 25, 2012 of the Ministry of Industry and Trade Concerning the purchase and sale of goods between export processing FDI enterprises and domestic FDI enterprises

To:General Department of Customs

TheMinistry of Industry and Trade has received the opinions of some foreign-invested enterprises (FDI enterprises) to reflect problems concerning thepurchase and sale of goods betweenexport processing FDI enterprises and domestic FDI enterprises, the Ministry of Industry and Trade hereby expresses its on the relation of purchase and sale of goods as follows:

1.In the officialdispatch No. 7483/BCT-XNK dated August 16, 2012, the Ministry of Industry and Trade has exchanged opinions with the General Department of Customs on some contents related to the import and export activities particularly on a number of cases where the export processing FDI enterprises have been granted right of import ( for business purpose) but carried out a number of activities ofsale and purchase of goods not in accordance with the provisions of Decree No.23/2007/ND-CP dated February 12, 2007 of the Government.

The exchanged content said above has notmentioned of the relations of sale and purchase of goods (produced in Vietnam or abroad) between export processing FDI enterprises with the local market (including domestic FDI enterprises) to create fixed assets, replace and repair machinery and equipment; serve as raw materials for production, processing, installation of products; build and operate the infrastructure system (treatment of wastewater, domestic clean water ...) ... for the purpose of implementing investment projects of enterprises. The sale and purchase of goods shall comply with the provisions of Article 6, Section II of the Circular No.04/2007/TT-BTM dated April 4, 2007 of the Ministry of Trade (now the Ministry of Industry and Trade) guiding the import and export activities, import, processing,disposal imported goods of foreign-invested enterprises stipulated in Decree No. 108/2006/ND-CP dated September 22, 2006 of the Government stipulating in detail and guiding the implementation of some articles of the Law on Investment.

2.For the case of FDI enterprises (including export processing FDI enterprises) have been licensed to conduct the activity of sale and purchase of goods (right of export, import and distribution) are subject to the direct adjustment of the Decree No. 23/2007/ND-CP dated February 12, 2007 of the Government; Circular No. 09/2007/TT-BTM dated July 17, 2007 of the Ministry of Trade (now the Ministry of Industry and Trade) and other relevant legal documents. The management agencies shall base on the purpose of export, import and distribution (wholesale and retail) regulated in the Certificate of investment to manage and supervise the operation of the business.

The above is the opinion of the Ministry of Industry and Trade to explain a number of problems related to the purchase and sale of goods of FDI enterprises (including export processing enterprises). Requesting the General Department of Customs to direct the local customs authorities to consider and settle the procedures for export, import and distribution of goods of FDI enterprises in accordance with the legal documents above mentioned. /.