Circular No. 07/2006/TT-BTC guiding financial regulations applicable at the Nhon Hoi Economic Zone

CIRCULAR

Guidelines for Financial Regime to be Applied at Nhơn Hội Economic Zone

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Pursuant to the State Budget Law;

Based on the Law and Ordinances on Tax, Fees, and Charges;

Based on Decision No. 141/2005/QĐ-TTg dated June 14, 2005 of the Government Chairman regarding the establishment and issuance of the Operational Regulations of the Nhơn Hội Economic Zone, Binh Dinh Province;

The Ministry of Finance issues guidelines for the financial regime to be applied at the Nhơn Hội Economic Zone as follows:

I. GENERAL PROVISIONS

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

The financial regime and customs procedures stipulated in this Circular (hereinafter referred to as the financial regime) shall apply within the territory of the Nhơn Hội Economic Zone (hereinafter referred to as the Nhơn Hội Economic Zone), which has a natural land area of approximately 12,000 hectares, including the communes of Nhơn Hội, Nhơn Lý, Nhơn Hải, and part of the Hải Cảng ward of Quy Nhon city; parts of the communes of Phước Hòa and Phước Sơn in Tuy Phước district; and parts of the communes of Cát Tiến, Cát Chánh, and Cát Hải in Phu Cat district, in accordance with the planning boundaries of the Nhơn Hội Economic Zone.

The financial regime stipulated in this Circular shall only apply to business activities conducted within the territory of the Nhơn Hội Economic Zone. In cases where organizations and individuals conduct business activities both within the territory of the Nhơn Hội Economic Zone and within the domestic territory of Vietnam, they must separately account for their business activities within the territory of the Nhơn Hội Economic Zone as the basis for determining the applicable financial regime.

Foreign-invested enterprises and foreign parties participating in joint venture contracts that have been granted investment licenses; domestic business establishments that have been granted Investment Preference Certificates at the Nhơn Hội Economic Zone before the effectiveness of Decision No. 141/2005/QĐ-TTg dated June 14, 2005 of the Government Chairman (hereinafter referred to as Decision No. 141/2005/QĐ-TTg) but have not yet fully enjoyed preferential policies shall enjoy the preferential policies prescribed in this Circular for the remaining period of preferential treatment.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

The objects subject to this Circular are:

a. Domestic investors belonging to various economic sectors operating in accordance with the Law on State Enterprises, the Law on Enterprises, the Law on Cooperatives, individual traders, and independent practitioners.

b. Foreign organizations and individuals including foreign-invested enterprises, foreign investors participating in Joint Venture Contracts, overseas Vietnamese residing abroad operating under forms prescribed in the Law on Foreign Investment in Vietnam, and foreign investors conducting business without being governed by the Law on Foreign Investment in Vietnam.

In this technical regulation, the following terms are understood as follows:

In this Circular, the following terms are understood as follows:

- Non-Tariff Zone: is a geographic area separated by a physical barrier from other functional zones of the Nhơn Hội Economic Zone as stipulated in Articles 7, 8, and 9 of Decision No. 141/2005/QĐ-TTg dated June 14, 2005 of the Government Chairman.

- Functional Zones: include industrial zones, residential areas, urban areas, tourism-service zones, entertainment zones, and administrative zones within the Nhơn Hội Economic Zone (excluding export processing zones) determined in the General Planning of the Nhơn Hội Economic Zone approved by the Prime Minister.

- Domestic Territory of Vietnam: includes functional zones within the Nhơn Hội Economic Zone and the remainder of the territory of Vietnam (excluding areas similar to the Non-Tariff Zone and export processing zones).

- Customs Control Gate: The Non-Tariff Zone has two customs control gates: the customs control gate located at the junction between the non-tariff zone port and the tariff zone port, abbreviated as Gate A; the customs control gate located at the junction between the non-tariff zone port and the domestic territory, abbreviated as Gate B.

- List of Goods Originating from the Non-Tariff Zone: is a list of goods issued periodically by the Management Board of the Nhơn Hội Economic Zone (hereinafter referred to as the Management Board) (referred to as the List of Goods Originating from the Non-Tariff Zone) comprising goods produced, processed, recycled, or assembled in the Non-Tariff Zone without using imported raw materials or components from abroad.

4. Conditions for Applying the Financial Regime Related to the Non-Tariff Zone

Financial mechanisms related to the Non-Tariff Zone within the Nhơn Hội Economic Zone shall only be enjoyed when the Non-Tariff Zone satisfies the following conditions simultaneously:

- There is a physical barrier ensuring isolation of activities within the Non-Tariff Zone from other functional zones within the Nhơn Hội Economic Zone;

- Within the Non-Tariff Zone, there are no residential areas, and no permanent or temporary residents (including foreigners);

- There is a customs authority supervising, inspecting persons, goods, and means of transport entering and exiting the Non-Tariff Zone.

5. Some General Provisions on Customs Procedures for the Non-Tariff Zone

a. Organizations and individuals operating within the Non-Tariff Zone may export to and import from abroad all goods and services that are not prohibited by Vietnamese law. Export and import policies shall be implemented according to the regulations of the Government Chairman on managing exports and imports of goods during each period and the implementing guidelines of relevant ministries and agencies. The export and import of goods listed in the export-import goods catalogues subject to conditions and restricted goods shall be carried out in accordance with the guidance of the Ministry of Commerce.

b. Every six months, enterprises within the Non-Tariff Zone are responsible for submitting to the customs authority a report on the settlement of materials, raw materials, exported and imported goods for the period, and a stocktaking report on production inputs and outputs. The customs authority will check and compare these reports and send them to the tax authority for verification and determination of taxes payable.

c. Goods, luggage for export, import, transit; means of transport for departure, entry, and transit at the Non-Tariff Zone regardless of the type, shall follow the customs procedures specified for that type.

d. Goods for export, import, transit; means of transport for departure, entry, and transit through the Non-Tariff Zone can only pass through Gate A and Gate B.

đ. Goods from the domestic territory exported into the Non-Tariff Zone and vice versa: Goods from abroad passing through Gate B into the Non-Tariff Zone shall handle customs formalities at Gate B; Goods from abroad entering the Non-Tariff Zone and goods from bonded areas going out to foreign countries through Gate A shall handle customs formalities at Gate A.

e. Goods exported from domestic to foreign countries through Gate A or goods imported from foreign countries through Gate A into domestic territory shall go through customs procedures according to the current regulations at Gate A or at the customs office outside the border gate. If the customs procedures are carried out at the customs office outside the border gate, then the customs procedures shall be conducted in accordance with the regulations on goods changing border gates.

f. In addition to the above customs procedures, the relevant parties must comply with other obligations stipulated in the Customs Law, Export Tax Law, Import Tax Law, and other documents related to export and import activities.

6. Investment incentives principle

Investment projects in Nhơn Hội Economic Zone shall enjoy the maximum incentives granted for investment projects in areas with special difficulties in socio-economic conditions and economic zones as prescribed by the Law on Foreign Investment in Vietnam, the Law on Encouragement of Domestic Investment, the Corporate Income Tax Law, and other tax laws.

Where different legal documents provide different levels of incentives for the same issue, the highest level of incentive shall apply. Where new policies and mechanisms are issued providing more incentives than those stipulated in this Circular, such new policies shall apply.

II. SPECIFIC PROVISIONS

1. Tax policy for Nhơn Hội Economic Zone

1.1. Corporate Income Tax

a) Domestic and foreign organizations and individuals' investment projects to establish new production and business establishments in Nhơn Hội Economic Zone shall enjoy a corporate income tax rate of 10% for 15 years from the date the investment project begins operations; exempted from corporate income tax for 4 years from the date taxable income is generated; and have their tax payable reduced by 50% for the next 9 years.

b) Domestic and foreign organizations and individuals' investment projects in high-tech fields in Nhơn Hội Economic Zone that meet the provisions of Clause 2, Article 5 of Decree No. 99/2003/ND-CP dated August 28, 2003 of the Government on the issuance of the High-Tech Zone Regulation shall enjoy a corporate income tax rate of 10% throughout the implementation period of the project.

c) Large-scale domestic and foreign organizations and individuals' investment projects in Nhơn Hội Economic Zone that are significant for industry development, sectoral development, or regional economic and social development shall enjoy a corporate income tax rate of 10% throughout the implementation period of the project after being approved.

d) For investment projects constructing new production lines, expanding scale, updating technology, improving ecological environment, and enhancing production capacity, they shall be implemented in accordance with the current laws.

đ) Income subject to tax from the transfer of land use rights and land lease rights shall be taxed according to the guidelines set forth in Part C of Circular No. 128/2003/TT-BTC dated December 22, 2003 of the Ministry of Finance guiding the implementation of Decree No. 164/2003/NĐ-CP dated December 22, 2003 of the Government detailing the implementation of the Corporate Income Tax Law.

e) To implement corporate income tax incentives, organizations and individuals with investment projects in Nhơn Hội Economic Zone must submit copies of the Business Registration Certificate (for domestic enterprises) or Investment License (for foreign-invested enterprises) to the tax authority where the enterprise declares and pays taxes. The corporate income tax incentives shall only apply to production and business establishments that fully comply with accounting records, invoices, and documents registered and declared for tax payment.

f) During the operation period, if the enterprise incurs losses after settlement with the tax authority, it may carry forward the loss to subsequent years to offset against taxable income. The carry-forward period for losses shall not exceed five years.

g) Enterprises are responsible for notifying the tax authority where the enterprise declares and pays taxes about the period during which corporate income tax exemptions and reductions are applied as specified in this section.

1.2. Income Tax for High-Income Individuals

1.2.1. Workers (including both Vietnamese and foreigners) working in Nhơn Hội Economic Zone shall have their individual income tax reduced by 50% for high-income earners (hereinafter referred to as personal income tax).

1.2.2. The declaration, payment, and settlement of personal income tax shall be carried out in accordance with the current tax laws on personal income tax. When declaring and temporarily paying personal income tax, the payer of income shall withhold 50% of the monthly personal income tax payable for workers in Nhơn Hội Economic Zone.

1.2.3. Specifically, for Vietnamese and foreign workers working in Nhơn Hội Economic Zone for less than one year (12 months), the amount of personal income tax reduction for the time worked in Nhơn Hội Economic Zone shall be determined as follows:

a. For Vietnamese workers:

Each month, the income payer temporarily withholds 50% of the monthly personal income tax payable. At the end of the year, the tax payable for the entire year and the tax reduction for the year shall be calculated using the following formula:

In which, the personal income tax payable for the year is determined based on the total taxable income earned while working in Nhơn Hội Economic Zone and the taxable income earned while working elsewhere outside Nhơn Hội Economic Zone.

b. For foreign workers:

- If they are non-residents, the tax payable shall be calculated as follows:

Personal income tax payable = Total taxable income × 25% × 50%.

- If they are residents, each month the income payer temporarily withholds 50% of the monthly personal income tax payable. At the end of the year, the tax payable for the entire year and the tax reduction shall be calculated. The personal income tax reduction for the year shall be calculated according to the formula stated in paragraph a of this point.

1.3. Export Tax, Import Tax

a) Goods exported or imported in the following cases shall not be subject to export tax or import tax:

- Goods imported from abroad into the Duty-Free Zone; goods exported from the Duty-Free Zone to foreign countries.

- Goods transferred from a duty-free zone to another duty-free zone (as defined in Clause 1, Article 5 of the Law on Export Tax, Import Tax (Amended) 2005), to export processing enterprises, bonded warehouses, and vice versa.

- Domestic goods of Vietnam that are not subject to export tax and are brought into a duty-free zone.

b) Domestic goods of Vietnam that are subject to export tax and are brought into a duty-free zone must pay the export tax and complete the export procedures according to current regulations.

c) Goods imported from a duty-free zone into the domestic territory of Vietnam must pay import tax according to the following provisions:

- Goods with foreign origin must pay import tax according to current regulations.

- Goods produced, processed, recycled, or assembled in a duty-free zone, if the value of goods originating from ASEAN accounts for 40% or more and confirmed by an ASEAN Certificate of Origin Model D, shall be subject to the preferential tariff rate under the ASEAN Trade in Goods Agreement (CEPT).

- Goods listed in the duty-free zone's origin list when brought into the domestic territory do not have to pay import tax.

- Goods produced, processed, recycled, or assembled at the Nhơn Hội Economic Zone using raw materials and components directly imported from abroad (excluding goods imported from the domestic territory of Vietnam that use raw materials and components imported from abroad) only need to pay import tax on the portion of raw materials and components imported from abroad that constitute part of the goods when imported into the domestic territory of Vietnam.

The basis for determining the import tax payable on the portion of raw materials and components imported from abroad that constitute part of the goods imported into the domestic territory of Vietnam is: the taxable price determined according to current regulations; the quantity of goods imported into the domestic territory of Vietnam; the import tax rate applicable to each type of raw material and component. The taxable price and tax rate apply at the time of filing the import declaration into the domestic territory. Enterprises and individuals engaged in business operations are responsible for registering with the customs authority regarding the list of imported goods used as raw materials for production and the quota of raw materials and components used to produce imported goods before importing them into the domestic territory.

The value of raw materials and components imported from abroad that constitute each unit of goods imported into the domestic territory is calculated according to the regulations on the taxable price for imported goods at the time of import into the domestic territory.

d) Domestic and foreign organizations and individuals investing in production projects within the Nhơn Hội Economic Zone are exempt from import tax on raw materials for production, materials, components, and semi-finished products that cannot be produced domestically for five years, starting from the date of commencement of production.

Procedures, documents for tax exemption, declaration, and settlement of import tax in this case are implemented according to Circular No. 113/2005/TT-BTC dated December 15, 2005, issued by the Ministry of Finance guiding the implementation of export tax and import tax.

đ) Domestic and foreign organizations and individuals operating in production and business activities in a duty-free zone importing raw materials for production, materials, and goods from abroad but not fully utilized, and by-products still having commercial value are permitted to sell into the domestic territory of Vietnam after completing customs procedures and paying import tax according to current regulations.

1.4. Special Consumption Tax

a) Goods and services subject to special consumption tax produced, consumed in a duty-free zone, or imported from abroad into a duty-free zone and vice versa are not subject to special consumption tax. However, passenger cars with less than 24 seats must pay special consumption tax according to the general current regulations..

b) Goods and services subject to special consumption tax exported from the domestic territory of Vietnam to a duty-free zone are not subject to special consumption tax. However, passenger cars with less than 24 seats must pay special consumption tax according to the general current regulations.

c) Goods and services subject to special consumption tax transferred from a duty-free zone to export processing zones and vice versa are not subject to special consumption tax.

d) Goods subject to special consumption tax imported from a duty-free zone into the domestic territory of Vietnam must pay special consumption tax on imported goods according to current regulations.

1.5. Value Added Tax

Enterprises in the Nhơn Hội Economic Zone may use value-added tax invoices according to current regulations, and implement registration, declaration, and payment of value-added tax for cases where value-added tax is paid according to the provisions of this Circular. For cases where goods are not subject to value-added tax, the value-added tax line in the value-added tax invoice shall be crossed out (x). Specifically, as follows:

a) Goods and services produced and consumed in a duty-free zone and imported from abroad into a duty-free zone and vice versa are not subject to value-added tax.

b) Goods and services transferred from a duty-free zone to export processing zones and vice versa are not subject to value-added tax.

c) Goods and services exported from the domestic territory of Vietnam to a duty-free zone enjoy a zero percent value-added tax rate.

d) Goods and services imported from a duty-free zone into the domestic territory of Vietnam must pay value-added tax on imported goods at the applicable rate according to current regulations.

1.6. Regarding prices, fees, charges, and other taxes

a) Land rental prices, land rental prices for infrastructure construction, and fees for the use of technical infrastructure works, service facilities, and public utilities in the Nhơn Hội Economic Zone are determined by infrastructure businesses after negotiating with the Management Board of the Nhơn Hội Economic Zone.

b) Other types of taxes, fees, and charges are implemented according to current regulations in the Laws on Taxation, Law on Encouragement of Domestic Investment (Amended), Law on Foreign Investment in Vietnam, Ordinance on Fees and Charges, and guiding legal documents.

2. Customs Procedures for Goods Entering and Leaving Duty-Free Zones

2.1. For goods imported from abroad into a duty-free zone

a) Imported into a duty-free zone through Gate A:

- Enterprises in the Tax-Free Zone shall be responsible for declaring customs and submitting customs documents in accordance with current regulations for each type of imported goods based on the provisions set out in Point 5, Section I of this Circular.

- The Customs Gate A authority shall carry out necessary procedures in accordance with current regulations for each type of goods.

b) Importing into the Tax-Free Zone through Gate B: Shall be carried out in accordance with current regulations regarding transit imports.

2.2. For goods imported from abroad into Vietnam's domestic market through Gate A and goods exported from the domestic market to foreign countries through Gate A: Shall be carried out in accordance with current regulations.

2.3. For goods exported from the domestic market to the Tax-Free Zone: The customs authority will only process the procedures upon request of the enterprise. The customs procedures shall be carried out as follows:

a) In the case where domestic enterprises register to handle customs procedures at the Customs Gate B authority: Domestic enterprises shall be responsible for declaring customs and submitting customs documents in accordance with current regulations for each type of export. In cases where goods are transported internally between enterprises and their branches within and outside the Tax-Free Zone, the sales contract may be replaced by warehouse release documents. The Customs Gate B authority shall be responsible for fully processing the export procedures for domestic enterprises in accordance with current regulations for each type of export.

b) In the case where domestic enterprises declare export declarations at the domestic customs checkpoint: Customs procedures shall be carried out in accordance with current regulations for exports transferred to different checkpoints. The Customs Gate B authority shall perform the duties of the exporting customs checkpoint for goods exported and transferred to different checkpoints (except for confirming actual export).

2.4. For goods exported from the Tax-Free Zone to foreign countries:

a) Through Gate B: Shall be carried out in accordance with current regulations for exports transferred to different checkpoints.

b) Through Gate A: The enterprise shall register to handle procedures at the Customs Gate A authority. The Customs Gate A authority shall process customs procedures in accordance with current regulations for exports.

2.5. Bringing goods from the Tax-Free Zone into the domestic market:

a) For goods listed in the Tax-Free Zone Origin Goods List which are exempted from customs procedures but must declare quantities to the customs authority and be subject to customs supervision.

b) For other goods, full customs procedures must be completed as follows:

- The Tax-Free Zone enterprise (seller) shall provide the domestic enterprise (buyer) with all required documents, invoices, and papers according to the customs authority's regulations so that the domestic enterprise can declare customs and submit customs documents in accordance with current regulations for each type of import at the Customs Gate B authority.

- The Customs Gate B authority shall process customs procedures for imported goods of domestic enterprises in accordance with current regulations. If it is found that foreign goods have been brought into the Tax-Free Zone to continue importing into the domestic market under the same category as goods listed in the Tax-Free Zone Origin Goods List which are exempted from customs procedures, but the enterprise has not declared customs, then the Customs Gate B authority shall require the enterprise to present proof of origin for the consignment; proceed to handle violations and process the importation of the consignment in accordance with current laws; and simultaneously inform the Management Board of Nhơn Hội Economic Zone to take management measures or remove the consignment from the Tax-Free Zone Origin Goods List.

2.6. For processed goods:

Customs procedures for goods processed by Tax-Free Zone enterprises for foreign traders, and goods processed by domestic enterprises for Tax-Free Zone enterprises and vice versa shall be carried out in accordance with current regulations.

2.7. Temporary export-reimport; temporary import-reexport; transshipment; transit and transportation:

Goods for export, import, transit, means of transport for exit, entry, and transit through the Tax-Free Zone shall only pass through gates equipped with customs control stations. Customs procedures for temporary export-reimport; temporary import-reexport; transshipment; transit and transportation within the Tax-Free Zone shall be carried out in accordance with current regulations.

2.8. In addition to the guidelines provided in this Circular, enterprises must comply with other obligations stipulated in the Law on Customs, the Law on Export Duties and Import Duties, Decree No. 101/2001/NĐ-CP dated December 31, 2001 of the Government detailing certain provisions of the Law on Customs concerning customs procedures, inspection and supervision systems, and other guiding documents on customs.

3. Reward system for individuals and organizations contributing to attracting investment both domestically and internationally:

1. Based on the budget capacity and effectiveness of capital mobilization, the Chairman of the People's Committee of Bình Định Province shall decide to reward organizations and individuals who contribute to attracting non-budgetary investment for economic and social projects in Nhơn Hội Economic Zone according to the principle that rewards for non-repayable capital mobilization forms are higher than other forms (after obtaining the agreement of the Ministry of Finance). Payment of rewards shall be made after the project goes into operation, produces products circulating in the market, and the investor has contributed at least 50% of the legally committed capital.

2. The funds used to reward organizations and individuals who contribute to attracting investment (excluding investment capital from the state budget) for economic and social projects in Nhơn Hội Economic Zone shall be drawn from local government bonus funds and recorded under extraordinary bonus expenses.

4. Preferential policies for infrastructure development:

4.1. Investment from the state budget for infrastructure construction:

a) Scope and target of investment from the state budget:

- The State budget supports investment in constructing technical-social infrastructure projects and important public service and utility facilities serving the entire Nhơn Hội New Urban Area according to the programs and targets approved by the competent authority in the budget estimate. The State budget only supports investment in constructing common infrastructure projects for the entire Nhơn Hội New Urban Area, excluding infrastructure dedicated to each functional zone within the area, except for supporting investment in constructing centralized wastewater and waste treatment facilities for each functional zone.

- Investment support from the State budget for constructing infrastructure in the Nhơn Hội New Urban Area shall be carried out strictly in accordance with the project plans approved by the competent authority.

- The Management Board of the Nhơn Hội New Urban Area is the local planning entity responsible for balancing the basic construction capital from the State budget to construct infrastructure in the Nhơn Hội New Urban Area; it is the direct investor managing infrastructure construction projects funded by the State budget within the Nhơn Hội New Urban Area in accordance with current national regulations on investment and construction management.

b) Level of investment support from the State budget for constructing infrastructure

- During the first 15 years from the date Decision No. 141/2005/QĐ-TTg takes effect, the annual investment capital from the State budget for constructing infrastructure in the Nhơn Hội New Urban Area shall not be lower than the total revenue collected from the area's budget submitted to the National Treasury, including revenues from export and import taxes, special consumption tax on imported goods, corporate income tax, high-income individual income tax (excluding VAT on imported goods), and other lawful revenues. For export and import taxes and special consumption tax on imported goods, they shall only apply to actual goods declared, inspected, and taxed at the Nhơn Hội New Urban Area and paid into the National Treasury within Bình Định Province. Annually, based on economic and social infrastructure investment projects approved by the competent authorities, the implementation progress of the projects, the Law on State Budget, and the budget estimate for the area, the central state budget will supplement targeted funds for Bình Định Province to invest in the infrastructure of the Nhơn Hội New Urban Area.

- Central state budget support funds for Bình Định Province to invest in the infrastructure of the Nhơn Hội New Urban Area shall be clearly allocated in the State budget estimate for Bình Định Province. Along with the central state budget support, Bình Định Province will allocate its local budget annually to invest in the infrastructure of the Nhơn Hội New Urban Area as stipulated in paragraph a of this point.

c) Revenue generated on the territory shall be deposited into the State budget. The division of revenue between the central state budget and the local state budget shall be in accordance with current laws. The Management Board of the Nhơn Hội New Urban Area shall coordinate with relevant tax, treasury, and customs agencies to grasp the actual revenue collection on the territory to have a basis for formulating the annual basic construction capital plan for projects in the Nhơn Hội New Urban Area.

d) Management and use of capital invested by the central state to construct infrastructure in the Nhơn Hội New Urban Area

Capital invested by the central state to construct infrastructure in the Nhơn Hội New Urban Area shall be managed and used in accordance with regulations on basic construction investment management, the Law on State Budget, and current guiding documents. Specifically, annually at the time of preparing the State budget estimate, the Management Board of the Nhơn Hội New Urban Area shall cooperate with relevant agencies to determine the revenue from export and import taxes and special consumption tax on imported goods collected in the Nhơn Hội New Urban Area to prepare the annual basic construction investment expenditure estimate consistent with the list of approved investment projects, which shall be sent to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Government for decision by the National Assembly.

4.2. Mechanism for using land funds to generate development capital

The Management Board is responsible for receiving annual targets and directly managing projects using capital from land funds in the Nhơn Hội New Urban Area; organizing bidding to select units with sufficient financial capacity, experience, and reputation to implement infrastructure construction projects funded by land funds in the Nhơn Hội New Urban Area.

The Management Board shall compile a list of infrastructure construction projects using land funds to generate capital and the area of land used to generate capital for implementing those projects, which shall be submitted to the People's Committee of Bình Định Province for submission to the People's Council of the province or decision within its authority.

The use of land funds to generate capital for constructing infrastructure in the Nhơn Hội New Urban Area shall be implemented in accordance with Decree No. 181/2004/NĐ-CP dated October 29, 2004, of the Government on the Implementation of the Land Law and related provisions on the use of land funds to generate capital for constructing infrastructure.

4.3. Raising capital through issuance of construction bonds

The People's Committee of Bình Định Province may issue domestic construction bonds to raise capital for constructing infrastructure in the Nhơn Hội New Urban Area. The issuance of construction bonds by the People's Committee of Bình Định Province shall be carried out in accordance with Decree No. 141/2003/CP dated November 20, 2003, of the Government on the Regulations on Issuance of Government Bonds, Government-Guaranteed Bonds, and Local Government Bonds, and other forms of raising capital as prescribed by law.

4.4. Investment in infrastructure from ODA and other sources of capital

Other infrastructure projects in the Nhơn Hội New Urban Area shall be included in the list of projects seeking ODA funding and other forms of raising capital as stipulated in Article 21 of the Regulation on the Nhơn Hội New Urban Area issued together with Decision No. 141/2005/QĐ-TTg dated June 14, 2005, of the Prime Minister.

5. Preferential credit regime

Domestic enterprises belonging to various economic sectors investing in production and business activities in the Nhơn Hội New Urban Area shall be eligible for preferential credit loans from the Development Support Fund in accordance with current regulations on preferential investment and development credit provided by the State.

6. Financial regime applicable to the Management Board of the Nhơn Hội New Urban Area

6.1. The Management Board is a local state budget unit, and its operating expenses are guaranteed by the local state budget. All revenues collected in accordance with regulations by the Management Board must be deposited into the State budget as required.

6.2. The Management Board is permitted to collect fees and charges corresponding to the tasks entrusted by state management agencies in accordance with current regulations. When authorized by competent state authorities to perform collection tasks, the Management Board shall be responsible for notifying and registering with the tax authority where the Management Board is located to handle procedures for remitting collected fees and charges from performing the entrusted tasks.

III. IMPLEMENTATION

1. This Circular shall take effect fifteen days after its publication in the Official Gazette.

2. The Management Board of the Nhơn Hội SEZ shall coordinate with the tax authority, customs office, and State Treasury branch where accounts are opened to separately monitor the revenue sources guided in paragraph b, point 4.1, Section II, of this Circular to ensure management requirements and serve the preparation of investment capital construction plans.

3. The General Department of Customs of Bình Định Province shall be responsible for:

- Organizing anti-smuggling, commercial fraud activities, preventing illegal importation of goods from the Non-Tariff Zone into the domestic market and other areas within the Customs' operational territory.

- Coordinating with the Management Board of the SEZ and related agencies (Tax, Police, Border Guard) to carry out anti-smuggling, commercial fraud activities, and prevent illegal importation of goods from the Non-Tariff Zone into the domestic market.

4. The customs agency in the Non-Tariff Zone shall perform the task of inspecting and supervising goods and means of transport, preventing smuggling and illegal cross-border transportation of goods; implementing tax laws on exported and imported goods; establishing customs stations according to regulations and suitable to the geographical characteristics of the Non-Tariff Zone to effectively fulfill assigned tasks.

5. The General Administration of Customs:

- Shall draft detailed regulations on customs procedures based on the provisions of this Circular and report to the Ministry of Finance before promulgation.

- Establish a Customs Branch of the Nhơn Hội SEZ under the General Department of Customs of Bình Định Province to ensure the fulfillment of customs-related tasks at the Nhơn Hội SEZ.

6. The State Treasury Office within the Nhơn Hội SEZ shall separately monitor revenue sources that require detailed tracking according to the Management Board's request, on the principle of being consistent with State Treasury management operations.

7. The Provincial Tax Department of Bình Định Province shall be responsible for guiding enterprises to implement paragraph g, point 1.1, Section II, of this Circular.

8. Any difficulties encountered during implementation shall be reported to the Ministry of Finance for research and supplementary guidance./.