Circular No. 10/2005/TT-BTM guiding the implementation of certain issues related to trade activities stipulated in the Special Economic-Trade Zone Lao Bao, Quang Tri Province Decision No. 11/2005/QĐ-TTg dated January 12, 2005 of the Government Prime Minister.

 CIRCULAR

Guidelines for implementing certain issues related to commercial activities

as stipulated in the Special Economic and Trade Zone Lao Bao Regulation of Quang Tri Province

issued together with Decision No. 11/2005/QD-TTg dated January 12, 2005

of the Prime Minister

Implementing Decision No. 11/2005/QD-TTg dated January 12, 2005 of the Prime Minister on the issuance of the Special Economic and Trade Zone Lao Bao Regulation, the Ministry of Trade provides guidelines for implementing certain issues related to commercial activities as stipulated in Chapter II of the Special Economic and Trade Zone Lao Bao Regulation as follows:

I. SUBJECTS ENGAGED IN COMMERCIAL ACTIVITIES IN THE SPECIAL ECONOMIC AND TRADE ZONE LAO BAO

1. Enterprises belonging to various economic sectors with their main offices located in the Special Economic and Trade Zone Lao Bao and branches of such enterprises in the Special Economic and Trade Zone Lao Bao shall be granted Business Registration Certificates by competent authorities.

2. Foreign-invested enterprises and branches of foreign-invested enterprises in Vietnam located in the Special Economic and Trade Zone Lao Bao shall be granted Investment Licenses by competent authorities.

3. Branches of foreign traders (enterprises) shall be granted Establishment Licenses by competent authorities in the Special Economic and Trade Zone Lao Bao.

The subjects engaged in commercial activities in the Special Economic and Trade Zone Lao Bao as mentioned above in Points 1, 2, and 3 are collectively referred to as enterprises operating in the Special Economic and Trade Zone Lao Bao hereinafter.

4. Individual businesses shall be granted Business Registration Certificates by competent authorities in the Special Economic and Trade Zone Lao Bao.

II. COMMERCIAL ACTIVITIES IN THE SPECIAL ECONOMIC AND TRADE ZONE LAO BAO

1. Export and import of goods

a. Enterprises operating in the Special Economic and Trade Zone Lao Bao may export and import goods according to their business needs in accordance with the industry specified in their Business Registration Certificate, Investment License, or Branch Establishment License, except for goods listed in the Catalogue of Prohibited Exports and Imports under current Vietnamese laws.

Individual businesses operating in the Special Economic and Trade Zone Lao Bao may export and import goods to the domestic market according to their business needs in accordance with the industry specified in their Business Registration Certificate, except for goods listed in the Catalogue of Prohibited Exports and Imports under current Vietnamese laws.

b. For the export and import of goods listed in the Catalogue of Prohibited Exports and Imports of Vietnam but not in the Catalogue of Prohibited Exports and Imports of Laos and internationally, enterprises operating in the Special Economic and Trade Zone Lao Bao must submit a written request to the Management Board of the Special Economic and Trade Zone Lao Bao, which will then report to the Prime Minister, and only after obtaining written approval from the Prime Minister can they proceed with the export and import of these goods.

c. For the export and import of goods to foreign markets including goods exported and imported within quotas; goods subject to specialized management; and goods exported and imported according to specific regulations of the Government, enterprises operating in the Special Economic and Trade Zone Lao Bao must submit a written request to the Management Board of the Special Economic and Trade Zone Lao Bao, which will then report to the Ministry of Trade, specialized management ministries, and the Prime Minister, and only after obtaining written approval from the Ministry of Trade, specialized management ministries, or the Prime Minister can they proceed with the export and import of these goods.

For goods exported and imported based on licenses issued by the Ministry of Trade, enterprises operating in the Special Economic and Trade Zone Lao Bao only need to submit a written request to the Management Board of the Special Economic and Trade Zone Lao Bao and can proceed after receiving written approval from the Management Board of the Special Economic and Trade Zone Lao Bao.

Goods from the domestic market of Vietnam exported to the Special Economic and Trade Zone Lao Bao and goods from the Special Economic and Trade Zone Lao Bao imported into the domestic market of Vietnam through the border gate between the Special Economic and Trade Zone Lao Bao and the domestic market of Vietnam must complete all customs procedures and be subject to inspection and supervision by customs authorities according to current Vietnamese laws governing exports and imports.

Specifically, agricultural products produced by residents in the Special Economic and Trade Zone Lao Bao and goods produced and processed in the Special Economic and Trade Zone Lao Bao, if not using raw materials or components imported from abroad, when imported into the domestic market of Vietnam, are exempt from customs procedures.

The People's Committee of Quang Tri Province shall announce the Catalogue of goods exempt from customs procedures as mentioned above.

d. Goods from the Special Economic and Trade Zone Lao Bao exported to other countries and goods from other countries imported into the Special Economic and Trade Zone Lao Bao through the border gate between the Special Economic and Trade Zone Lao Bao and Laos shall be subject to supervision by customs authorities regarding prohibited exports and imports.

e. Branches of foreign traders (enterprises) in the Special Economic and Trade Zone Lao Bao may purchase goods from the domestic market of Vietnam for sale in the Special Economic and Trade Zone Lao Bao or for export to other countries; import goods from other countries for sale in the Special Economic and Trade Zone Lao Bao or for export to the domestic market of Vietnam; purchase goods in the Special Economic and Trade Zone Lao Bao for export to other countries or for export to the domestic market of Vietnam according to their business needs in accordance with the Catalogue of goods that branches of foreign traders (enterprises) are permitted to trade in Vietnam.

2. Temporary Import and Re-export of Goods

a. Enterprises operating in the Lao Bao Special Economic Zone - Trade may temporarily import and re-export all types of goods.

The temporary import and re-export of goods listed in the Catalogue of Prohibited Export Goods and Prohibited Import Goods, or temporarily suspended from export or import according to current Vietnamese laws, enterprises operating in the Lao Bao Special Economic Zone - Trade must submit a written request to the Management Board of the Lao Bao Special Economic Zone - Trade and obtain written approval from the Management Board of the Lao Bao Special Economic Zone - Trade before proceeding.

b. Temporary import and re-export of goods includes:

- Importing goods from abroad for export overseas, with procedures for importing goods into the Lao Bao Special Economic Zone - Trade and exporting those goods out of the Lao Bao Special Economic Zone - Trade. Customs procedures for the import and export of these goods shall be carried out in accordance with the guidelines of the Ministry of Finance.

- Importing goods from within Vietnam for export overseas or importing goods from abroad for export into the domestic market of Vietnam, with procedures for importing goods into the Lao Bao Special Economic Zone - Trade and exporting those goods out of the Lao Bao Special Economic Zone - Trade. Customs procedures for the import and export of these goods shall be carried out in accordance with the guidelines of the Ministry of Finance.

3. Transshipment of goods

a. Enterprises operating in the Lao Bao Special Economic Zone - Trade may transship all types of goods.

b. Transshipment of goods includes:

- Purchasing goods from abroad to sell to another foreign country without importing those goods into the Lao Bao Special Economic Zone - Trade.

- Purchasing goods from abroad to sell into the domestic market of Vietnam without importing those goods into the Lao Bao Special Economic Zone - Trade.

- Purchasing goods from the domestic market of Vietnam to sell to another foreign country without importing those goods into the Lao Bao Special Economic Zone - Trade.

c. The transshipment of goods through Vietnamese border gates is subject to supervision by customs authorities in accordance with current Vietnamese laws.

4. Transit of goods through the Lao Bao Special Economic Zone - Trade

a. Enterprises operating in the Lao Bao Special Economic Zone - Trade providing services for receiving, transporting goods may provide services for the transit of goods through the Lao Bao Special Economic Zone - Trade.

b. The transit of goods from abroad through the Lao Bao Special Economic Zone - Trade to another foreign country shall be carried out in accordance with current Vietnamese laws.

c. Goods of domestic enterprises in Vietnam passing through the Lao Bao Special Economic Zone - Trade for export overseas or imported from abroad into the domestic market of Vietnam shall have their customs procedures processed in accordance with the guidelines of the Ministry of Finance.

5. Processing of goods

a. Enterprises operating in the Lao Bao Special Economic Zone - Trade

may undertake processing for foreign entities and the domestic market of Vietnam without limitation on the quantity or type of processed goods.

Individuals operating in the Lao Bao Special Economic Zone - Trade may undertake processing for the domestic market of Vietnam without limitation on the quantity or type of processed goods.

Processing of goods listed in the Catalogue of Prohibited Export Goods, Prohibited Import Goods, and temporarily suspended from export or import according to current Vietnamese laws, enterprises and individuals operating in the Lao Bao Special Economic Zone - Trade may only enter into contracts after submitting a written request to the Management Board of the Lao Bao Special Economic Zone - Trade and obtaining written approval from the Management Board of the Lao Bao Special Economic Zone - Trade.

b. Enterprises operating in the Lao Bao Special Economic Zone - Trade may place orders for processing outside Vietnam or within the domestic market of Vietnam for goods not listed in the Catalogue of Prohibited Circulation Goods according to current Vietnamese laws.

Individuals operating in the Lao Bao Special Economic Zone - Trade may place orders for processing within the domestic market of Vietnam for goods not listed in the Catalogue of Prohibited Circulation Goods according to current Vietnamese laws.

III. GOODS CIRCULATING AND OPERATING IN THE LAO BAO SPECIAL ECONOMIC ZONE - TRADE

1. All types of goods are freely circulating and operating in the Lao Bao Special Economic Zone - Trade, except for goods listed in the Catalogue of Prohibited Circulation Goods according to current Vietnamese laws.

2. Goods listed in the Catalogue of Restricted Business Goods according to current Vietnamese laws:

a. For goods under special restrictions on business, enterprises and individuals operating in the Lao Bao Special Economic Zone - Trade must submit a written request to the Management Board of the Lao Bao Special Economic Zone - Trade for the Management Board of the Lao Bao Special Economic Zone - Trade to seek opinions from the relevant management ministry and obtain a Business License from the relevant management ministry before proceeding.

b. For goods under general restrictions on business, enterprises and individuals operating in the Lao Bao Special Economic Zone - Trade must submit a written request to the Management Board of the Lao Bao Special Economic Zone - Trade and obtain written approval from the Management Board of the Lao Bao Special Economic Zone - Trade before proceeding.

3. Goods listed in the Catalogue of Conditionally Operated Business Goods according to current Vietnamese laws:

a. For goods requiring a Certificate of Eligibility for Business, enterprises and individuals operating in the Lao Bao Special Economic Zone - Trade must submit a written request to the Management Board of the Lao Bao Special Economic Zone - Trade and obtain a Certificate of Eligibility for Business issued by the Management Board of the Lao Bao Special Economic Zone - Trade before proceeding.

b. For goods not requiring a Certificate of Eligibility for Business, enterprises and individuals operating in the Lao Bao Special Economic Zone - Trade may operate after meeting the conditions stipulated by current Vietnamese laws.

IV. IMPLEMENTATION PROVISIONS

This Circular shall take effect fifteen days after its publication in the Official Gazette and shall replace Circular No. 11/1999/TT-BTM dated May 11, 1999, guiding the implementation of Decision No. 219/1998/QĐ-TTg dated November 12, 1998, of the Government Chairman promulgating the Regulation on the Encouraged Economic and Trade Zone of Lao Bao, Quang Tri Province.