In what form are export processing enterprises separated from outside territories?

In what ways are export processing enterprises separated from outside territories? Who are allowed to enter and leave export processing enterprises?

1. In what form are export processing enterprises separated from outside territories?

The separation of export processing enterprises from outside territories is stipulated in Clause 2, Article 26 of Decree 35/2022/ND-CP as follows:

Separate regulations applicable to export processing zones and export processing enterprises

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Registering agency Investment Registration Certificate to issue the Export Processing Enterprise Registration Certificate to the investor within 03 working days from the date of receiving the investment policy approval document in case the investment project is not subject to the Investment Registration Certificate or recording the goal of establishing an export processing enterprise in the Investment Registration Certificate when issuing the Investment Registration Certificate in accordance with the provisions of law on investment.

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.

Thus, export processing enterprises are prevented from 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.

2. Who are allowed to enter and exit export processing enterprises?

The subjects allowed to enter and leave export processing enterprises are specified in Clause 12, Article 26 of Decree 35/2022/ND-CP as follows:

Special regulations apply to export processing zones and export processing enterprises

…

After 05 working days from the date the competent customs authority allows it to be put into use, the export processing enterprise must notify the investment registration agency of arranging a warehouse outside the export processing zone, industrial park, or economic zone to store goods and make adjustments to the investment project (if any) according to the provisions of law on investment.

11. Export processing enterprises are allowed to sell goods into the domestic market. Goods imported from export processing enterprises and export processing zones into the domestic market are subject to tax according to the provisions of law on export tax and import tax.

12. Only investors, workers working in export processing enterprises and people who have working relationships with export processing enterprises can enter and leave export processing enterprises.

Thus, according to the above regulations, only investors, workers working in export processing enterprises and people who have working relationships with export processing enterprises can enter and leave export processing enterprises.

3. Can export processing enterprises liquidate used assets into the domestic market?

The liquidation of used assets is specified at Point c, Clause 4, Article 26 Decree 35/2022/ND-CP as follows:

Separate regulations apply to export processing zones and processing enterprises export

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4. Goods exchange relationships between export processing enterprises and other areas in the territory of Vietnam, which are not non-tariff zones, are export and import relationships, except for the cases specified in Point c of this Clause and cases where customs procedures are not required according to the provisions of customs law as follows:

a) Customs procedures, customs inspection and supervision, export tax, import tax for exported and imported goods at the enterprise Export processing industries comply with regulations applicable to separate customs areas and non-tariff zones, except for separate regulations applicable to non-tariff areas in economic zones;

b) Construction materials, stationery, food, foodstuffs, and consumer goods from inland Vietnam to build works, serve office operations and daily activities of workers working at export processing enterprises do not have to comply with regulations on customs procedures, customs inspection and supervision, export tax, import tax applied to exported and imported goods according to the provisions of law. Export processing enterprises and sellers can choose whether or not to carry out export and import procedures for construction materials, stationery, food, foodstuffs, and consumer goods from inland Vietnam;

c) Export processing enterprises are allowed to sell and liquidate into the domestic market used assets and goods according to the provisions of investment law and other relevant laws. At the time of sale or liquidation into the domestic market, the policy on management of exported and imported goods is not applied, except in cases where the goods are subject to management according to conditions, standards, and specialized inspections that have not been carried out when imported; Goods managed by license must be approved in writing by the import licensing agency.

Accordingly, export processing enterprises are allowed to liquidate into the domestic market used assets and goods according to the provisions of the law on investment and other relevant laws.

Note: At the time of liquidation into the domestic market, no policy on management of exported and imported goods will be applied, except in cases where the goods are subject to management according to conditions, standards, and specialized inspections that have not been carried out upon import;

For goods managed by license, written approval from the import licensing agency is required.