Condition of implementing customs inspection and supervision for export processing enterprise

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Professional activities at Bac Ninh Customs Branch. Photo: Quang Hùng
Professional activities at Bac Ninh Customs Branch. Photo: Quang Hùng

Accordingly, the General Department of Vietnam Customs issued Decision No. 247/QD-TCHQ dated March 2, 2022 stipulating how to connect and exchange data of surveillance camera systems of export processing enterprises with Customs authorities following Clause 10, Article 1 of Decree 18/2021/ND-CP and the customs supervision of export processing enterprises through the camera system.

The General Department of Vietnam Customs has also issued Official Dispatch No. 697/TCHQ-GSQL dated March 2, 2022 with specific instructions.

To carry out the inspection of customs supervision conditions for export processing enterprises in accordance with the provisions of Clause 10, Article 1 of Decree 18/2021/ND-CP before April 25, 2022, the General Department of Vietnam Customs requests the Customs Departments of provinces and cities to disseminate widely to export processing enterprises and follow the instructions in Decision No. 247/QD-TCHQ and Official Dispatch No. 697/TCHQ-GSQL.

Previously, in Section 5 of Official Dispatch No. 2687/TCHQ-TXNK dated June 1, 2021, the Customs authority also guided the implementation of Clause 10, Article 1 of Decree 18/2021/ND-CP.

The General Department of Vietnam Customs suggested that the JCCI should base implementation on the provisions of Decree 18/2021/ND-CP and the above guidance documents.

The JCCI also requested the Customs authority to check the conditions for customs inspection and supervision so that export processing enterprises can apply the tax policy for non-tariff zones after April 25, 2022.

Regarding this issue, according to the General Department of Vietnam Customs, in Clause 10, Article 1 of Decree 18/2021/ND-CP, Point b, Clause 4 of Official Dispatch No. 697/TCHQ-GSQL dated March 2, 3022, in case of exceeding one year from the effective date of Decree 18/2021/ND-CP (April 25, 2021), but the export processing enterprise does not notify the customs branch where the export processing enterprise is managed according to Form No. 25, Appendix 7 issued together with Decree 18/2021/ND-CP or failing to meet the conditions for customs inspection and supervision as prescribed in Clause 1, Article 28a of Decree 134/2016/ND-CP amended and supplemented in Clause 10, Article 1 of Decree No. 18/2021/ND-CP, the enterprise may not apply the tax policy for the non-tariff zones from the date as mentioned above.

According to the General Department of Vietnam Customs, in case the enterprise then meets the conditions for customs inspection and supervision and has sent a notice to the customs branch where the export processing enterprise is managed for inspection and certified to meet the conditions specified in Clause 1, Article 28a of Decree 134/2016/ND-CP as amended and supplemented in Clause 10, Article 1 of Decree 18/ 2021/ND-CP by the management customs branch, the enterprise is entitled to apply the tax policy for non-tariff zones from the date the customs branch where the export processing enterprise is in charge issues a confirmation letter that the conditions for inspection and supervision have been satisfied.

Furthermore, the General Department of Vietnam Customs stressed that, in Decree 18/2021/ND-CP, there is no regulation on the extension of submission of dossiers requesting the Customs authority to check the conditions for customs inspection and supervision so that export processing enterprises are eligible to apply the tax policy of non-tariff zones after the deadline of April 25, 2022 and the authority to extend for this case.

Therefore, the General Department of Vietnam Customs requested the JCCI to notify Japanese businesses to comply with the provisions of Decree 18/2021/ND-CP.

In the case that export processing enterprises have not made a notification following form No. 25, Appendix 7 issued together with Decree 18/2021/ND-CP yet, the General Department of Vietnam Customs requested provincial and municipal Customs Departments to continue urging and guiding export processing enterprises to make announcements in accordance with the regulations; find out clearly the causes and problems of export processing enterprises in the delay of making a notification of satisfaction of the conditions for customs inspection and supervision following the provisions of Clause 1, Article 28a of the Decree 18/2021/ND-CP.

At the same time, customs units should support and explain the law to export processing enterprises about the preferential tariff policy for export processing enterprises after April 25, 2022.

In addition, customs departments of provinces and cities need to actively report to the People’s Committees of the provinces and cities where the export processing enterprise implements the investment project about the progress in accordance with the provisions of Article 28a of Decree 18/ 2021/ND-CP. It is proposed that the People’s Committees of provinces and cities should take measures to urge export processing enterprises that have not yet notified the customs authority about the conditions for customs inspection and supervision using form No. 25, Appendix 7 issued together with this Decree. 18/2021/ND-CP so that they will fulfill soon.

Regarding tax policy in case the conditions for inspection and supervision of export processing enterprises are not satisfied, the General Department of Vietnam Customs requested the Customs Departments of provinces and cities to comply with the provisions of Clause 5, Article 28a Decree 18/2021/ND-CP.

Accordingly, within a maximum period of not more than one year from the effective date of Decree 18/2021/ND-CP, the export processing enterprise has been granted an investment registration certificate or a document from the competent investment registration authority (in case an investment registration certificate is not required) before the effective date of Decree 18/2021/ND-CP and is in the process of operating (including export processing enterprises that have been certified by Customs on the conditions for customs inspection and supervision before the effective date of Decree 18/2021/ND-CP), they must complete the conditions for customs inspection and supervision as specified in Clause 10, Article 1 of Decree 18/2021/ND-CP.

In case an export processing enterprise fails to satisfy the conditions for customs inspection and supervision, the export processing enterprise may complete the conditions for customs inspection and supervision many times but not exceeding one year from the effective date of Decree 18/2021/ND-CP.

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