Circular No. 10/2007/TT-BTC guiding financial regulations and customs procedures applicable to Phu Quoc Island and Nam An Thoi Archipelago, Kien Giang Province

CIRCULAR

Circular No. 10/2007/TT-BTC of the Ministry of Finance guiding

financial regime and customs procedures applicable to

Phu Quoc Island and Nam An Thoi Archipelago, Kien Giang Province

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Pursuant to the State Budget Law;

Pursuant to laws and ordinances on taxes, fees, and charges;

Pursuant to Decision No. 38/2006/QD-TTg dated February 14, 2006 of the Prime Minister on the issuance of the Regulation on organization and operation of Phu Quoc Island and Nam An Thoi Archipelago, Kien Giang Province;

The Ministry of Finance guides the financial regime and customs procedures applicable to Phu Quoc Island and Nam An Thoi Archipelago, Kien Giang Province as follows.

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

Article 1. Scope of Application:

The financial regime and customs procedures stipulated in this Circular (hereinafter referred to as the financial regime) shall be applied in the administrative area of Phu Quoc Island and Nam An Thoi Archipelago, Kien Giang Province (hereinafter referred to as Phu Quoc Island) according to the provisions of Article 2 of Decision No. 38/2006/QD-TTg dated February 14, 2006 of the Prime Minister on the issuance of the Regulation on organization and operation of Phu Quoc Island and Nam An Thoi Archipelago, Kien Giang Province (hereinafter referred to as Decision No. 38/2006/QD-TTg).

The financial regime stipulated in this Circular shall only apply to business activities conducted in the administrative area of Phu Quoc Island. In cases where organizations and individuals conduct business activities both in the administrative area of Phu Quoc Island and within mainland Vietnam, they must separately account for their business activities in the administrative area of Phu Quoc Island 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 Phu Quoc Island before Decision No. 38/2006/QD-TTg took effect but have not yet fully enjoyed preferential policies shall enjoy preferential policies as prescribed in this Circular for the remaining preferential period. In cases where projects have higher preferential levels than those prescribed in this Circular, the previously prescribed preferential levels shall continue to be implemented for the remaining project period.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

The objects subject to this Circular are investors belonging to various economic sectors operating in accordance with the Investment Law, Enterprise Law, Cooperative Law; individual businesses; independent professionals; organizations and individuals engaged in business activities in accordance with Vietnamese law.

3. Definitions:

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

- Duty-free zone: Is a geographic area separated by a physical barrier from other functional zones of Phu Quoc Island as stipulated in Articles 6 and 7 of Decision No. 38/2006/QD-TTg.

- Functional zones: Include industrial zones, port and port service zones, tourism and service zones, urban zones, residential zones, and administrative zones in Phu Quoc Island determined in the General Planning for Construction of Phu Quoc Island approved by the Prime Minister.

- Mainland Vietnam: Includes functional zones in Phu Quoc Island and the rest of the territory of Vietnam (excluding areas similar to the duty-free zone as defined in Clause 1, Article 5 of the Law on Export Tax and Import Tax (Amended) 2005 and export processing zones).

- Customs control gate: The duty-free zone has two customs control gates: The customs control gate at the junction between the duty-free zone and the sea, abbreviated as Gate A; The customs control gate at the junction between the duty-free zone and mainland Vietnam, abbreviated as Gate B.

- List of goods originating from the duty-free zone: Is a list of goods issued periodically by the Management Board for Investment and Development of Phu Quoc Island (abbreviated as the Management Board) after reporting to the People's Committee of Kien Giang Province (abbreviated as the List of Goods Originating from the Duty-Free Zone), including goods produced, processed, recycled, or assembled in the duty-free zone without using imported raw materials or components from abroad.

4. Conditions for applying the financial regime related to the duty-free zone:

Financial mechanisms prescribed for the duty-free zone in Phu Quoc Island shall only apply when the duty-free zone satisfies the following conditions simultaneously:

- There is a physical barrier ensuring isolation of activities in the duty-free zone from other functional zones in Phu Quoc Island;

- There is no residential area or permanent or temporary residents (including foreigners) in the duty-free zone;

- There is a customs authority supervising and inspecting goods and means of transport entering and exiting the duty-free zone.

5. Some general regulations on customs procedures for the duty-free zone:

a. Organizations and individuals operating in the duty-free zone are allowed to export to and import from abroad all goods and services not prohibited by Vietnamese law. Policies on export and import items are carried out according to the management regulations on export and import of goods issued periodically by the Prime Minister and the implementing guidelines of relevant ministries and sectors. The export and import of goods listed in the controlled export and import list and restricted trade goods shall be carried out according to the guidance of the Ministry of Commerce.

b. Every six months, duty-free zone enterprises are responsible for submitting to the customs authority a report on the settlement of materials, raw materials, exported and imported goods during the period and a report on product stocktaking. 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, transit in the duty-free zone are classified according to their type and shall follow the customs procedures stipulated for that type.

d. Goods for export, import, transit; means of transport for departure, entry, transit through the duty-free zone may only pass through Gate A and Gate B.

đ. Goods from abroad passing through Gate B, goods from mainland Vietnam exported into the duty-free zone and vice versa into the duty-free zone shall handle customs formalities at Gate B; Goods from abroad entering the duty-free zone and goods from the duty-free zone going to abroad shall handle customs formalities at Gate A.

e. Goods exported from domestic areas to foreign countries through Gate A or goods imported from foreign countries through Gate A into domestic areas 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, the customs procedures shall be implemented according to the regulations on goods changing border gates.

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

6. Investment incentives principles:

Investment projects in Phu Quoc Island shall enjoy maximum incentives for investment projects in areas with extremely difficult socio-economic conditions as stipulated by the Investment Law, the Corporate Income Tax Law, the Value Added Tax Law, and incentives under international treaties, bilateral and multilateral trade agreements that Vietnam has signed or joined.

Where legal documents provide different levels of incentives for the same issue, the higher-ranking legal document's provisions shall apply.

Where legal documents issued by the same authority provide different provisions for the same issue, the provisions of the later-issued document shall apply.

II. SPECIFIC PROVISIONS

1. Tax policy for Phu Quoc Island:

1.1. Corporate Income Tax:

a. Domestic and foreign organizations and individuals' investment projects to establish new production and business bases in Phu Quoc Island shall enjoy a corporate income tax rate of 10% throughout the project implementation period; they shall be exempted from corporate income tax for four years starting from when taxable income is generated; and their tax payments shall be reduced by 50% for the next nine years.

b. Production and business establishments investing in building new production lines, expanding scale, updating technology, improving ecological environment, and enhancing production capacity shall comply with the current laws on corporate income tax.

c. Income subject to corporate income tax from land use rights transfer and land lease rights transfer shall be implemented according to the current laws on corporate income tax.

d. To implement corporate income tax incentives, organizations and individuals with investment projects in Phu Quoc Island 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 incentive applies only to production and business establishments that fully comply with accounting records, invoices, and certificates registered and declared for tax payment.

đ. During operation, if a loss occurs after settlement with the tax authority, the enterprise may carry forward the loss to subsequent years to offset against taxable income according to the current laws.

e. 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 clause.

1.2. High-income individual income tax:

Workers (including both Vietnamese and foreigners) working in Phu Quoc Island shall have their tax payable on income earned from work in Phu Quoc Island reduced by 50%, including both regular and irregular income.

Declaration, payment, and settlement of tax shall be carried out according to the current guiding documents of the high-income individual income tax law.

1.3. Export tax, import tax:

a. Goods exported or imported in the following cases are not subject to export tax or import tax:

- Machinery, equipment, spare parts, raw materials imported once into Phu Quoc Island for manufacturing equipment, machinery in production lines and other fixed assets during project investment; Machinery, equipment, spare parts, raw materials imported into Phu Quoc Island for expanding project scale or replacing, updating technology; Fuels, raw materials, supplies imported into Phu Quoc Island that are not yet produced domestically to serve construction and operation of BOT projects.

Investment projects in Phu Quoc Island also enjoy additional import tax exemptions according to Circular No. 113/2005/TT-BTC applicable to investment projects in areas with extremely difficult socio-economic conditions.

- Goods from the Duty-Free Zone exported to foreign countries; Goods from foreign countries imported into the Duty-Free Zone and only used within the Duty-Free Zone;

- Goods from the Duty-Free Zone transferred to or sold to other Duty-Free Zones (as defined in Clause 1, Article 5 of the Export Tax, Import Tax Law (Amended) in 2005), to export processing zones, bonded warehouses, and vice versa.

- Goods not subject to export tax originating from domestic Vietnam brought into the Duty-Free Zone.

b. Goods subject to export tax originating from domestic Vietnam brought into the Duty-Free Zone for export without undergoing production, processing, recycling, or assembly in the Duty-Free Zone shall pay export tax on the entire value of the exported goods.

c. Goods subject to export tax originating from domestic Vietnam brought into the Duty-Free Zone for continued production, processing, recycling, or assembly in the Duty-Free Zone for export to foreign countries shall only pay export tax on the portion of the value of the goods originating from domestic Vietnam that constitutes part of the exported product.

The basis for determining the export tax payable on the portion of imported raw materials and spare parts from domestic Vietnam that constitute goods exported abroad is as follows: the taxable value determined according to current regulations; the quantity of goods exported abroad; the import tax rate applicable to each type of raw material and spare part. The taxable value and tax rate shall be applied at the time of filing the export declaration. Organizations and individuals engaged in production and business operations are responsible for registering with customs authorities regarding the list of imported goods used as raw materials for producing goods exported abroad and the quota of raw materials and spare parts used for producing such goods before exporting.

d. Goods from the Duty-Free Zone imported into domestic Vietnam must pay import tax according to the following provisions:

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

- Goods produced, processed, recycled, or assembled in the Duty-Free Zone, if they meet the conditions stipulated under current regulations on preferential import tax policies pursuant to the ASEAN Comprehensive Economic Cooperation Agreement (CEPT), shall be subject to the provisions currently in force.

- Goods produced, processed, recycled, or assembled in the Duty-Free Zone located on Phu Quoc Island using directly imported raw materials and spare parts from abroad (excluding goods imported from domestic Vietnam which use raw materials and spare parts imported from abroad), when imported into domestic Vietnam, only need to pay import tax on the portion of raw materials and spare parts imported from abroad that constitute the goods.

The basis for determining the import tax payable on the portion of raw materials and spare parts imported from abroad that constitute goods imported into domestic Vietnam is as follows: the taxable value determined according to current regulations; the quantity of goods imported into domestic Vietnam; the import tax rate applicable to each type of raw material and spare part. The taxable value and tax rate shall be applied at the time of filing the import declaration. Organizations and individuals engaged in production and business operations are responsible for registering with customs authorities regarding the list of imported goods used as raw materials for producing goods imported into domestic Vietnam and the quota of raw materials and spare parts used for producing such goods before importing into domestic Vietnam.

The value of imported raw materials and spare parts constituting each unit of goods imported into domestic Vietnam is determined according to the regulations on the taxable value for imported goods at the time of importation into domestic Vietnam.

The procedures, documentation for tax exemption, declaration, and settlement of import tax in this case shall be carried out in accordance with 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 the Duty-Free Zone who import raw materials, supplies, and goods from abroad but do not fully utilize them, and residual products still having commercial value, are permitted to sell them into domestic Vietnam after completing customs formalities and paying import tax according to current regulations.

1.4. Special consumption tax:

a. Goods and services subject to special consumption tax produced, consumed within the Duty-Free Zone, or imported from abroad into the Duty-Free Zone and vice versa are exempt from special consumption tax. However, passenger cars with fewer 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 domestic Vietnam into the Duty-Free Zone are exempt from special consumption tax. However, passenger cars with fewer than 24 seats must pay special consumption tax according to the general current regulations.

c. Goods and services subject to special consumption tax transferred between the Duty-Free Zone and export processing zones, and vice versa, are exempt from special consumption tax.

d. Goods subject to special consumption tax imported from the Duty-Free Zone into domestic Vietnam must pay special consumption tax on imported goods according to current regulations.

1.5. Value-added Tax:

Business establishments investing on Phu Quoc Island may use value-added tax invoices according to current regulations, and must register, declare, and pay value-added tax according to the provisions set forth in this Circular for cases where value-added tax is required to be paid. 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 within the Duty-Free Zone and imported from abroad into the Duty-Free Zone and vice versa are exempt from value-added tax.

b. Goods and services transferred between the Duty-Free Zone and export processing zones, and vice versa, are exempt from value-added tax.

c. Goods and services exported from domestic Vietnam into the Duty-Free Zone enjoy a zero percent value-added tax rate.

d. Goods and services imported from the Duty-Free Zone into domestic Vietnam must pay value-added tax on imported goods at the tax rate specified under current regulations. Specifically, enterprises in the Duty-Free Zone, when selling to enterprises, organizations, or individuals in domestic Vietnam, issue invoices without value-added tax, crossing out the tax rate and value-added tax lines. Enterprises, organizations, or individuals in domestic Vietnam (or enterprises in the Duty-Free Zone of Phu Quoc Island in the case of self-importing goods into domestic Vietnam for sale) only need to pay value-added tax on imported goods based on the customs declaration when handling import procedures into the domestic market.

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

a. Rent for land, rental price for land that has been developed with technical infrastructure, and fees for using technical infrastructure projects, public service facilities, and utilities in Phu Quoc Island shall be determined by infrastructure businesses after negotiating with the Management Board.

b. Types of taxes, fees, and charges are implemented according to current regulations stipulated in the Tax Law, the Domestic Investment Incentive Law (amended), the Foreign Investment Law in Vietnam, the Fee and Charge Ordinance, and other guiding legal documents.

2. Customs procedures for goods entering and exiting the Duty-Free Zone:

2.1. For goods imported from abroad into the Duty-Free Zone:

a. Importing into the Duty-Free Zone through Gate A:

- Organizations and individuals engaged in production and business importing goods shall be responsible for declaring customs, submitting customs documents in accordance with current regulations applicable to each type of importation as provided for in Clause 5, Section I of this Circular.

- The customs authority at Gate A shall handle necessary procedures in accordance with current regulations applicable to each type of goods.

b. Importing into the Duty-Free Zone through Gate B: Shall be carried out in accordance with current regulations on transshipment imports.

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

2.3. For goods exported from the domestic market to the Duty-Free Zone:

a. In case organizations and individuals engaged in production and business within the domestic market register customs procedures at the customs authority at Gate B, they must be responsible for declaring customs, submitting customs documents in accordance with regulations applicable to each type of export. In cases where goods are transported internally between enterprises and branches within and outside the Duty-Free Zone, the sales contract may be replaced by warehouse release documents. The customs authority at Gate B shall be responsible for fully handling export procedures for organizations and individuals engaged in production and business within the domestic market in accordance with regulations applicable to each type of export.

b. In case organizations and individuals engaged in production and business within the domestic market declare export declarations at the domestic customs checkpoint: Customs procedures shall be carried out in accordance with current regulations applicable to transshipment exports. The customs authority at Gate B shall perform the duties of the export customs checkpoint for transshipment exports (except for confirming actual export).

2.4. For goods exported from the Duty-Free Zone to abroad:

a. Through Gate B: Shall be carried out in accordance with current regulations applicable to transshipment exports.

b. Through Gate A: Shall be registered for customs procedures at the customs authority at Gate A. The customs authority at Gate A shall handle customs procedures in accordance with current regulations applicable to exports.

2.5. For goods brought into the domestic market from the Duty-Free Zone:

a. For goods listed in the Catalogue of goods originating from the Duty-Free Zone that are exempted from customs procedures but must be declared in quantity to the customs authority and subject to supervision by the customs authority.

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

- Organizations and individuals engaged in production and business within the Duty-Free Zone (seller) shall provide organizations and individuals engaged in production and business within the domestic market (buyer) with complete documents, invoices, and other papers as required by the customs authority so that domestic enterprises can declare customs, submit customs documents in accordance with current regulations applicable to each type of importation at the customs authority at Gate B.

- The customs authority at Gate B shall handle customs procedures for imported goods of domestic enterprises in accordance with current regulations. In case foreign goods are found to have been brought into the Duty-Free Zone to continue being imported into the domestic market and are of the same type as goods listed in the Catalogue of goods originating from the Duty-Free Zone announced by the Management Board, but the enterprise has not declared customs, the customs authority at Gate B shall require the presentation of documents proving the origin of the consignment; proceed to handle violations and process the importation of the consignment in accordance with the law; and simultaneously inform the Management Board to take management measures or exclude such goods from the Catalogue of goods originating from the Duty-Free Zone.

2.6. For processed goods:

Customs procedures for goods processed by organizations and individuals engaged in production and business within the Duty-Free Zone for foreign traders or hired to process goods for organizations and individuals engaged in production and business within the domestic market, 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, transit and transportation passing through the Duty-Free Zone shall only pass through gates equipped with customs checkpoints. Customs procedures for temporary export-reimport; temporary import-reexport; transshipment; transit and transportation within the Duty-Free Zone shall be carried out in accordance with current regulations.

2.8. In addition to the guidelines set forth in this Circular, enterprises must fulfill other obligations prescribed in the Customs Law, the Export Tax Law, the Import Tax Law, and other guiding documents on customs.

3. Preferential regime for developing infrastructure:

3.1. State budget support for infrastructure construction investment:

- The Management Board for Investment and Development of Phu Quoc Island is a first-level budget unit of the Kien Giang provincial budget, directly managing investment projects for infrastructure construction under the provincial budget according to the provincial classification and implementing construction with state budget funds in accordance with current national regulations on investment and construction management.

- For investment projects under provincial management and direction for implementation: Annually, before July 25 of the preceding year, based on the total investment capital, the phased investment plan for projects on Phu Quoc Island approved by competent authorities, and the progress of project implementation, the Department of Finance and the Department of Planning and Investment shall coordinate with the Management Board for Investment and Development of Phu Quoc Island and relevant provincial agencies to advise the Provincial People's Committee to submit to the Provincial People's Council for decision on allocating funds to implement the projects within the annual plan. In cases where the investment needs of locally managed projects exceed the local budget's capacity, the Provincial People's Committee shall report to the Ministry of Finance and the Ministry of Planning and Investment to compile reports to be submitted to the Government for decision by the National Assembly to supplement targeted support for the province according to the provisions of the State Budget Law.

- For projects invested through central ministries and agencies as stipulated in point a, Clause 1, Article 22 of the Regulation on the Organization and Operation of Phu Quoc Island attached to Decision No. 38/2006/QĐ-TTg dated February 14, 2006 of the Prime Minister: During the period from 2006 to 2010, annually, based on the total investment capital approved by competent authorities for these projects, central ministries and agencies with related projects shall prepare budgets for investment needs and submit them to the Ministry of Planning and Investment and the Ministry of Finance before July 25 of the preceding year for compilation and reporting to the Government for decision by the National Assembly according to the provisions of the State Budget Law for projects funded from the centralized investment budget of the state budget. For key and critical projects, to accelerate investment progress, the Ministry of Planning and Investment shall cooperate with the Ministry of Finance to select projects, compile, and submit to competent state agencies for decision on providing investment support from government bonds.

3.2. Mechanism for using land funds to generate development capital:

The People's Committee of Kien Giang Province may use land revenue (including revenues as prescribed by laws on land such as land use fees and land lease fees) to build infrastructure and generate capital for land clearance for development, prioritizing Phu Quoc Island. Specifically, land use fees and lease fees for land within the planning of Phu Quoc Island can only be used for building infrastructure on Phu Quoc Island.

The allocation of land and leasing of land to generate capital for constructing infrastructure on Phu Quoc Island shall be carried out through public auctions of land use rights and bidding for projects involving land use pursuant to Decree No. 181/2004/NĐ-CP dated October 29, 2004 of the Government on the Implementation of the Land Law, Decree No. 17/2006/NĐ-CP dated January 27, 2006 of the Government on Amending and Supplementing Certain Provisions of Decrees Guiding the Implementation of the Land Law, and Decree No. 187/2004/NĐ-CP on the Transformation of State-Owned Enterprises into Joint Stock Companies, Decision No. 216/2005/QĐ-TTg dated August 31, 2005 of the Prime Minister on the Issuance of Regulations on Public Auctions of Land Use Rights for Allocation of Land with Payment of Land Use Fees or Leasing of Land, and other relevant current laws (except for certain cases not subject to public auction of land use rights as provided by law, such as when there are no participants in the auction, when the land has been put up for auction at least twice but was unsuccessful, or when there is only one investor proposing a project suitable for the planning).

Based on the local land use plan, the potential for land use fee revenue from auctions, and the needs for compensation and support for people whose land is being reclaimed and the needs for investment in infrastructure works funded from the state budget according to the law, the People's Committee of Kien Giang Province shall direct financial agencies to consolidate these revenue and expenditure tasks into the annual budget draft for submission to the Provincial People's Council for decision.

Based on the annual budget resolution decided by the Provincial People's Council, the People's Committee of Kien Giang Province shall instruct financial agencies to coordinate with relevant units to organize the collection and expenditure from land use fee revenue and settle accounts into the state budget according to the prescribed regulations.

In cases where organizations or individuals advance funds for compensation and support for people whose land is being reclaimed for investment in infrastructure works funded from the state budget, and subsequently conduct auctions to collect land use fees, the land use fee revenue used to repay the organizations or individuals who advanced the funds must be fully recorded as revenue and expenditure in the state budget according to current regulations.

3.3. Infrastructure Investment from Other Sources of Funds:

Technical and social infrastructure works, public utility service facilities necessary for Phu Quoc Island, and other technical assistance, if they fall within the scope of investment that can recover capital, shall mobilize investment funds through BOT, BTO, BT models or issue domestic construction bonds according to current laws. The Management Board shall examine appropriate investment forms for each specific project and report to the People's Committee of the province for submission to the Provincial People's Council of Kien Giang for decision on selecting the investment form.

4. Preferential Credit Mechanism:

Programs and projects on Phu Quoc Island eligible for preferential state credit loans according to current government regulations shall be prioritized for loan allocation to implement.

5. Financial Mechanism Applicable to the Management Board for Investment and Development of Phu Quoc Island:

5.1. The Management Board is a local budget unit. Operating expenses of the Board are guaranteed by the local budget. All revenues collected by the Management Board as prescribed must be remitted to the state budget according to regulations.

5.2. The Management Board is permitted to collect various fees and charges corresponding to the tasks delegated by state management agencies according to current regulations. When authorized by competent state agencies to perform collection tasks, the Management Board is responsible for notifying and registering with the tax authority where the Management Board is headquartered to handle procedures for remitting collected fees and charges from performing delegated tasks.

III. IMPLEMENTATION

1. The People's Committee of Kien Giang Province is responsible:

- Ensure that all conditions stipulated in Clause 4, Section I are met for the Duty-Free Zone to apply the financial regime prescribed in this Circular. In cases where these conditions have not been met, such application shall not be implemented.

- Direct the Management Board, People's Committee of Phu Quoc District, and relevant departments and agencies on Phu Quoc Island and Nam An Thoi Archipelago to implement the provisions of this Circular.

2. The General Department of Customs shall be responsible for:

Draft detailed regulations on procedures and customs formalities applicable in the Duty-Free Zone based on the customs procedures stipulated in this Circular, and report to the Ministry of Finance before promulgation.

3. The Customs Office of Kien Giang Province shall be responsible for:

- Organizing anti-smuggling, commercial fraud activities, and preventing illegal imports of goods from the Duty-Free Zone into the domestic market and other areas within its customs jurisdiction.

- Cooperating with the Management Board and related agencies (Tax, Police, Border Guard) to carry out anti-smuggling and commercial fraud activities, and prevent illegal imports of goods from the Duty-Free Zone into the domestic market.

- Inspecting and supervising goods and transport vehicles, preventing smuggling and illegal cross-border transportation of goods; organizing tax law enforcement for exported and imported goods; establishing customs stations according to regulations, suitable to the geographical characteristics of the Duty-Free Zone to effectively perform assigned tasks.

4. The Tax Department of Kien Giang Province shall be responsible for guiding enterprises in implementing Point e, Clause 1.1, Section II, of this Circular, and other tax-related contents.

5. This Circular shall take effect fifteen days after its publication in the Official Gazette. Any difficulties encountered during implementation should be reported to the Ministry of Finance for research and supplementary guidance./.