To establish an export processing enterprise at the same time as carrying out procedures for granting an Investment Registration Certificate, what commitments must be made?

Procedures for establishing an export processing enterprise at the same time as carrying out procedures for granting an Investment Registration Certificate are specified inPoint a Clause 1 Article 26 Decree 35/2022/ND-CP as follows:

Separate regulations apply to export processing zones and export processing enterprises

1. Documents, order and procedures for establishing an export processing enterprise:

a) In case of establishing an export processing enterprise at the same time as carrying out procedures for granting an Investment Registration Certificate, the investor shall submit a commitment on the ability to meet the conditions for customs inspection and supervision according to the provisions of law on export tax and import tax along with the application for an Investment Registration Certificate in accordance with the provisions of law on investment. The investment registration agency that issues the Investment Registration Certificate records the goal of establishing an export processing enterprise in the Investment Registration Certificate when issuing the Investment Registration Certificate;

b) In case the establishment of an export processing enterprise is not concurrent with the implementation of procedures for granting an Investment Registration Certificate, the investor submits 01 set of documents to the investment registration agency where the export processing enterprise is located, the documents include: documents on the investment project according to the provisions of law on investment; Commitment to the ability to meet customs inspection and supervision conditions according to the provisions of law on export tax and import tax. The investment registration agency shall issue the Export Processing Enterprise Registration Certificate to the investor within 03 working days from the date of receipt of complete documents as prescribed in this Point for investment projects that are not subject to the Investment Registration Certificate according to the provisions of law on investment;

Thus, according to regulations, in case of establishing an export processing enterprise at the same time as carrying out procedures for granting an Investment Registration Certificate, the investor must submit a commitment on the ability to meet the conditions for customs inspection and supervision according to the provisions of the law on export tax and import tax along with the application for an Investment Registration Certificate in accordance with the provisions of law on investment.

The investment registration agency that issues the Investment Registration Certificate records the goal of establishing an export processing enterprise in the Investment Registration Certificate when issuing the Investment Registration Certificate.

Do export processing enterprises enjoy investment incentives and tax policies?

Preferential regimes for export processing enterprises are specified in Clause 3 Article 26 Decree 35/2022/ND-CP as follows:

Special regulations applicable to export processing zones and export processing enterprises

…

2. In industrial parks, there may be industrial subdivisions for export processing enterprises. Export processing zones, export processing enterprises, and industrial subdivisions for export processing enterprises are separated from the outside territory by a fence system, with gates and doors, ensuring conditions for inspection, supervision, and control by customs authorities and relevant authorities according to regulations applicable to non-tariff zones prescribed in the law on export tax and import tax.

3. Export processing enterprises are entitled to investment incentives and tax policies for non-tariff zones from the time the investment target for establishing an export processing enterprise is recorded in the Investment Registration Certificate, Adjusted Investment Registration Certificate or Export Processing Enterprise Registration Certificate of the competent investment registration agency. After completing the construction process, the export processing enterprise must receive confirmation from the competent customs authority that it meets the conditions for customs inspection and supervision according to the provisions of law on export tax and import tax before officially going into operation. In case an export processing enterprise is not certified to meet customs inspection and supervision conditions, it will not be entitled to enjoy tax policies applicable to non-tariff zones. The inspection, confirmation, and completion of customs inspection and supervision conditions of export processing enterprises shall comply with the provisions of law on export tax and import tax.

Thus, according to the above regulations, export processing enterprises are entitled to investment incentives and tax policies for non-tariff zones.

Benefits of these policies are applied from the time the investment objective of establishing an export processing enterprise is recorded in the Investment Registration Certificate, Adjusted Investment Registration Certificate or Certificate of Export Processing Enterprise Registration issued by the competent investment registration agency.

In what cases do workers working at export processing enterprises not have to declare customs?

Employees working at export processing enterprises are regulated in Clause 5, Article 26 of Decree 35/2022/ND-CP as follows:

Special regulations applicable to export processing zones and export processing enterprises

…

5. Workers working at export processing enterprises do not have to declare customs when bringing foreign exchange from domestic Vietnam into this enterprise and vice versa.

6. Export processing enterprises are allowed to carry out other business activities in accordance with the provisions of the law on investment, the law on enterprises and other relevant laws and ensure that the following conditions are met:

a) The arrangement of the storage area for goods for export processing activities must ensure separation from the area for storing goods for other production and business activities;

b) Separately account for revenue and costs related to export processing activities and other business activities;

Thus, according to regulations, workers working at export processing enterprises do not have to declare customs when bringing foreign exchange from domestic Vietnam into this enterprise and vice versa.