QUESTION 4&5: SELLING IMPORTED GOODS NOT PROCESSED IN PROCESSING ZONE

Our company is currently engaged in the business of selling imported goods, that are not processed in Tan Thuan Export Processing Zone. However, according to Decree No. 164/2013/NĐ-CP and the related official letter, from the end of June this year, if we do not establish our own branch outside the export Processing Zone TTZ, we are not permitted to conduct the above activities. But untill now, there is no guideline on the establishment of a branch. And when we asked relevant departments on how to continue business operations from late June, we did not receive the clear answers. We expect at least until the regulations on the establishment of branches be declared and the establishment of a branch be completed, enterprise can still continue to operate re-sell business at the export processing zone. Do enterprises have to submit application?

IZ EPZ Management Board responded:

According to Document No. 5087/VPCP-KTTH dated 08/07/2014 on the implementation of Clause 9, Article 1 of Decree No. 164/2013/ND-CP by the Government, Deputy Prime Minister – Mr.Vu Van Ninh asked the Ministry of Finance to act accordingly to the Prime Minister’direction in Notice No. 100/TB-VPCP dated 10/03/ 2014 and Notice No. 240 / TB-VPCP dated 23/06/2014 by the Government Office, expeditiously report and guide to implementing provisions of Clause 9, Article 1 of Decree No. 164/2013/NĐ-CP dated 12/11/2013 by the Government before 01/10/2014. While waiting for the report and the guidance of the Ministry of Finance, allow the export processing enterprises continue to implement regulations on the sale of goods and activities directly related to the purchase and sale of goods under Decree No. 29/2008/NĐ-CP dated 14/03/2008 by the Government.

Department of Planning and Investment answer:

On 12/11/013, the Government has issued Decree No. 164/2013/NĐ-CP amending and supplementing a number of articles of Decree No. 29/2008/NĐ-CP dated 14/03/2008 by the government, regulated on industrial park, export processing zones and economic zones (hereinafter referred to as "Decree 164").

To date, although the Decree took effect from 01/01/2014, the Ministry of Finance, Ministry of Industry and Trade, Ministry of Planning and Investment has no circular guiding implementation. Through the process of implementing the above provisions, the state agency in Ho Chi Minh City (Department of Planning and Investment and the Ho Chi Minh City Export Processing and Industrial Zones Authority) received feedbacks that business performs function of buying and selling goods can not implement provisions of Clause 9, Article 1 of Decree 164.

Therefore, Department of Planning and Investment and Ho Chi Minh City Export Processing and Industrial Zones Authority in collaboration with Customs Department of Ho Chi Minh city wrote Official Letter No.953/BQL-PQLĐT dated 16/04/2014, report to The People's Committee of the city.

On 08/07/2014, the Government Office wrote Letter no.5087/VPCP-KTTH on the implementation of Clause 9, Article 1 of Decree No. 164/2013/NĐ-CP by the Government, with below directions (attached documents):

"At the request of the Ministry of Finance in Official Letter No. 8569 / BTC-TCHQ dated 26/06/ 2014 on the implementation of the provisions of Clause 9, Article 1 of Decree No. 164/2013/NĐ-CP dated 12/11/2013 by theGovernment, on behalf of the Prime Minister, Deputy Prime Minister Vu Van Ninh asked the Ministry of Finance to act accordingly to the Prime Minister’s directions in Notice No. 100/TB -VPCP dated 10/03/2014 and Notice No. 240 / TB-VPCP dated 23/06/2014 by the Government Office, promptly report and provide guidelines to implement the provisions in Clause 9, Article 1 of Decree No. 164/2013/NĐ-CP dated 12/11/2013 by Government before 01/10/2014. While waiting for the report and the above guidance of the Ministry of Finance, allow the export processing enterprises to continue to implement regulations on the sale of goods and activities directly attributable to the purchase and sale of goods under Decree No. 29/2008 /NĐ-CP dated 14/03/2008 by the Government. "

Hepza has additional answer below:

As the spirit of the draft, enterprises established before January 01, 2014 will be implemented regulations on the sale of goods and activities directly related to the purchase and sale of goods under Decree No. 29/2008/NĐ-CP dated 14/03/2008 by the Government and do not have to establish its own subsidiary outside the EPZ.