Circular No. 105/2006/TT-BTC guiding financial regime and customs procedures applicable at Van Phong Economic Zone, Khanh Hoa Province.

CIRCULAR

Guidelines on financial regulations and customs procedures

applicable at Van Phong Economic Zone, Khanh Hoa Province

_______________

 

Pursuant to the State Budget Law;

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

Pursuant to Decision No. 92/2006/QĐ-TTg dated April 25, 2006 of the Prime Minister on the establishment and issuance of operational regulations for Van Phong Economic Zone, Khanh Hoa Province;

The Ministry of Finance issues guidelines on financial regulations and customs procedures applicable at Van Phong Economic Zone 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.

1. Scope of application:

Financial regulations and customs procedures stipulated in this Circular (hereinafter referred to as financial regulations) shall be applied within the territory of Van Phong Economic Zone, Khanh Hoa Province (hereinafter referred to as Van Phong Economic Zone).

The financial regulations stipulated in this Circular shall only apply to production and business activities conducted within the Van Phong Economic Zone. In cases where organizations and individuals have production and business activities both within the Van Phong Economic Zone and in the domestic area of Vietnam, they must separately account for their business activities within the Van Phong Economic Zone as the basis for determining the applicable financial regulations.

Foreign-invested enterprises and foreign parties participating in joint venture contracts that have been granted investment licenses; domestic production and business establishments that have been granted Investment Preference Certificates at the Van Phong Economic Zone before the effective date of Decision No. 92/2006/QĐ-TTg dated April 25, 2006 of the Prime Minister (hereinafter referred to as Decision No. 92/2006/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. In cases where projects have higher preferential levels than those prescribed in this Circular, such preferential treatments shall continue to be implemented according to the Investment License for the remaining duration of the project.

2. Objects of application:

The objects of this Circular are:

Investors belonging to various economic sectors operating in accordance with the Investment Law, Enterprise Law, Cooperative Law, individual traders, and independent professionals, as well as organizations and individuals engaged in business activities in compliance with Vietnamese laws.

3. Definitions:

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

- Free Trade Zone: is a geographic area separated by a physical barrier from other functional zones of the Van Phong Economic Zone as stipulated in Articles 7 and 8 of Decision No. 92/2006/QĐ-TTg.

- Functional Zones: include industrial zones, port areas and port logistics services, tourism and entertainment areas, residential and administrative areas within the Van Phong Economic Zone (excluding export processing zones) determined in the General Master Plan of the Van Phong Economic Zone approved by the Prime Minister.

- Domestic Area of Vietnam: includes functional zones within the Van Phong Economic Zone and the remainder of the territory of Vietnam (excluding areas similar to the Free Trade Zone as defined in Clause 1, Article 5 of the Law on Export Duties and Import Duties No. 45/2005/QH11 dated June 14, 2005 and export processing zones).

- Customs Control Gate: The Free Trade Zone has two customs control gates: the customs control gate at the junction between the non-tariff port and the tariff port and foreign countries, abbreviated as Gate A; the customs control gate at the junction between the non-tariff port and the domestic area, abbreviated as Gate B.

- List of Goods Originating from the Free Trade Zone: Is a list of goods issued periodically by the Management Board of the Van Phong Economic Zone (referred to as the Management Board) (referred to as the List of Goods Originating from the Free Trade Zone) comprising goods produced, processed, recycled, and assembled in the Free Trade Zone without using imported raw materials and components from abroad.

4. Conditions for Applying Financial Regulations Related to the Free Trade Zone:

Financial mechanisms stipulated for the Free Trade Zone within the Van Phong Economic Zone shall only be applied when the Free Trade Zone satisfies the following conditions simultaneously:

- There is a physical barrier ensuring isolation of activities within the Free Trade Zone from other functional zones within the Van Phong Economic Zone;

- Within the Free Trade Zone, there are no residential areas, nor permanent or temporary residents (including foreigners);

- There is a customs authority supervising and inspecting people, goods, and means of transport entering and exiting the Free Trade Zone.

5. Some General Provisions on Customs Procedures for the Free Trade Zone:

a. Organizations and individuals operating within the Free Trade Zone may export to and import from foreign countries all goods and services not prohibited by Vietnamese law. Policies on export and import items are implemented according to the Prime Minister's regulations on managing exports and imports of goods during each period and the implementing guidance documents of relevant ministries and sectors. The export and import of goods listed in the controlled export and import goods list and restricted trade goods shall be carried out in accordance with the guidance of the Ministry of Commerce.

b. Every six months, enterprises within the Free Trade Zone are responsible for submitting to the customs authority a report on the settlement of materials, raw materials, exported and imported goods, and a stock report on products. 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, and transit; means of transport for departure, entry, and transit through the Free Trade Zone, regardless of the type, shall follow the customs procedures specified for that type.

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

đ. Goods from the domestic area exported to the Free Trade Zone and vice versa, goods from abroad passing through Gate B into the Free Trade Zone shall handle customs formalities at Gate B; goods from abroad entering the Free Trade Zone and goods from the Free Trade Zone exiting to abroad through Gate A shall handle customs formalities at Gate A.

e. Goods from the domestic area exported to foreign countries through Gate A or goods from abroad passing through Gate A into the domestic area shall handle customs formalities according to current regulations at Gate A or at a customs office outside the border gate. If handled at a customs office outside the border gate, customs procedures shall be carried out according to the regulations on goods transferred through border gates.

g. In addition to the procedures for customs formalities specified above, the relevant parties must comply with other obligations prescribed in the Law on Customs, the Law on Export Duties, Import Duties, and other documents related to export and import activities.

6. Investment incentives principle:

Projects investing in Vân Phong Economic Zone shall enjoy the maximum incentives provided for projects investing in areas with particularly difficult socio-economic conditions as stipulated in the Investment Law, the Law on Corporate Income Tax, the Value Added Tax Law, and incentives under international treaties, bilateral and multilateral trade agreements that Vietnam has signed or joined.

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

Where different legal regulations issued by the same authority provide different provisions on the same issue, the regulation of the later-issued document shall be applied.

II. SPECIFIC PROVISIONS

1. Tax policy for Vân Phong Economic Zone:

1.1. Corporate Income Tax:

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

b. Domestic and foreign organizations and individuals' investment projects in Vân Phong Economic Zone in high-tech fields meeting the criteria set out in 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. Production and business establishments investing in new production lines, expanding scale, updating technology, improving ecological environment, and enhancing production capacity shall follow current laws.

d. Income subject to corporate income tax from land use rights transfer and land lease rights transfer shall be taxed according to the guidelines in Section 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 Law on Corporate Income Tax.

e. To implement corporate income tax incentives, organizations and individuals with investment projects in Vân Phong 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 incentive applies only to production and business establishments that fully comply with accounting records, invoices, and documents registered and declared for tax purposes.

g. 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. The carry-forward period shall not exceed five years.

f. 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 implemented as stipulated herein.

1.2. Income Tax for High-Income Individuals:

Workers (including both Vietnamese and foreigners) working in Vân Phong Economic Zone shall have their income tax payable reduced by 50% for income earned from working in Vân Phong Economic Zone, including both regular and irregular income.

The declaration, payment, and settlement of income tax shall be carried out in accordance with current legal documents guiding income tax for high-income individuals.

1.3. Export Duties, Import Duties:

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

- Goods from non-tariff zones exported abroad; Goods from abroad imported into non-tariff zones and only used within such zones;

- Goods transferred or sold between non-tariff zones (as defined in Clause 1, Article 5 of the Law on Export Duties, Import Duties (Amended) in 2005), to export processing enterprises, bonded warehouses, and vice versa.

- Other goods not subject to export duties originating from Vietnam brought into non-tariff zones.

b. Goods subject to export duties originating from Vietnam brought into non-tariff zones must pay export duties and go through export procedures as prescribed.

c. Goods from non-tariff zones imported into Vietnam's mainland must pay import duties according to the following rules:

- Goods from abroad must pay import duties according to current regulations.

- Goods produced, processed, recycled, or assembled in non-tariff zones can be subject to preferential ASEAN Import Tariff rates if they meet current conditions.

- Goods listed in the non-tariff zone origin list brought into the mainland do not need to pay import duties.

- Goods produced, processed, recycled, or assembled in non-tariff zones within Vân Phong Economic Zone using imported raw materials and components directly from abroad (excluding goods imported from Vietnam's mainland that use imported raw materials and components from abroad) when imported into Vietnam's mainland only need to pay import duties on the imported raw materials and components included in the goods.

The basis for determining the import duty payable on imported raw materials and components from abroad included in goods imported into Vietnam's mainland is: the tax value determined according to current regulations; the quantity of goods imported into Vietnam's mainland; and the import duty rate applicable to each type of raw material and component.

The taxable value and tax rate applicable at the time of filing the import declaration into the domestic market. Organizations and individuals engaged in production and business operations have the responsibility to register with the Customs authority regarding the list of imported goods used as raw materials for production and the quota of raw materials and spare parts used to produce imported goods before importing them into the domestic market of Vietnam.

The value of raw materials and spare parts imported and included in each unit of imported goods into the domestic market shall be determined according to the regulations on the taxable value of imported goods at the time of importing into the domestic market of Vietnam.

d. Investment projects for production within the Van Phong Free Trade Zone by domestic and foreign organizations and individuals are exempt from import taxes on raw materials for production, materials, spare parts, and semi-finished products that cannot be produced domestically for five years, starting from the date of commencement of production.

The procedures, documents for tax exemption, declaration, and settlement of import taxes in this case shall be carried out in accordance with the Law on Export Duties and Import Duties; Decree No. 149/2005/NĐ-CP dated December 8, 2005, and Circular No. 113/2005/TT-BTC dated December 15, 2005, issued by the Ministry of Finance guiding the implementation of export duties and import duties.

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

1. 4. Special consumption tax:

a. Goods and services subject to special consumption tax produced and consumed within the duty-free zone or imported from abroad into the 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 provisions currently in force.

b. Goods and services subject to special consumption tax exported from the domestic market of Vietnam to the 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 provisions currently in force.

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

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

1. 5. Value-added tax:

Enterprises in the Van Phong Free Trade 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 within the duty-free zone and imported from abroad into the duty-free zone and vice versa are not subject to value-added tax.

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

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

d. Goods and services imported from the duty-free zone into the domestic market of Vietnam must pay value-added tax on imported goods at the rates specified under current regulations. Specifically, enterprises in the duty-free zone when selling to enterprises, organizations, and individuals in the domestic market of Vietnam issue invoices without value-added tax, crossing out the tax rate and value-added tax lines. Enterprises, organizations, and individuals in the domestic market (or enterprises in the Van Phong Free Trade Zone in the case of bringing goods into the domestic market for sale themselves) only need to pay value-added tax on imported goods based on the customs declaration when importing into the domestic market.

1. 6. Regarding prices, fees, and other types of taxes:

a. Land rental prices and land lease prices for land with built-in technical infrastructure structures, usage fees for technical infrastructure structures, service facilities, and public utilities in the Van Phong Free Trade Zone are determined by infrastructure business enterprises after negotiating with the Van Phong Free Trade Zone Management Board.

b. Other types of taxes, fees, and charges are implemented according to current regulations in the Tax Law, Investment Law, 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. Imported through Gate A:

- Organizations and individuals engaged in production and business operations importing goods have the responsibility to declare customs, submit customs documents according to current regulations for each type of import as stipulated in Clause 5, Section I of this Circular.

- The customs authority at Gate A shall handle necessary procedures according to current regulations for each type of goods.

b. Imported through Gate B: Follows current regulations for transshipment imports.

2. 2. For goods imported from abroad into the domestic market of Vietnam through Gate A and goods exported from the domestic market to abroad through Gate A: Follow current regulations.

2. 3. For goods exported from the domestic market to the duty-free zone:

a. In the case where organizations and individuals engaged in production and business operations in the domestic market register for customs procedures at the customs authority at Gate B, they must declare customs and submit customs documents according to current regulations for each type of export. In the case of internal transportation between enterprises and branches within and outside the duty-free zone, sales contracts can be replaced by warehouse release documents. The customs authority at Gate B has the responsibility to complete export procedures for organizations and individuals engaged in production and business operations in the domestic market according to current regulations for each type of export.

b. In the case where organizations or individuals engaged in production and business within the domestic area register export declarations at the border gate of the Domestic Customs Office: The customs procedures shall be carried out according to the current regulations for goods exported through border gates. The Customs Office at Gate B shall perform the duties of the export customs office for goods exported through border gates (except for confirming actual export).

2. 4. For goods from the Non-Tariff Zone being exported abroad:

a. Through Gate B: Carry out according to the current regulations for goods exported through border gates.

b. Through Gate A: Register to handle customs procedures at the Customs Office at Gate A. The Customs Office at Gate A shall carry out customs procedures according to the current regulations for exported goods.

2. 5. For goods from the non-tariff zone being brought into the domestic area:

a. For goods listed in the List of Goods Originating from the Non-Tariff Zone that are exempted from customs formalities but must declare the quantity of goods to the customs authority and be subject to supervision by the customs authority.

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

- Organizations or individuals engaged in production and business in the non-tariff zone (seller) have the responsibility to provide organizations or individuals engaged in production and business within the domestic area (buyer) with all necessary certificates, invoices, and documents as prescribed by the customs authority so that the domestic enterprise can declare customs and submit customs documents in accordance with the regulations applicable to each type of import at the Customs Office at Gate B.

- The Customs Office at Gate B has the responsibility to handle customs procedures for imported goods of domestic enterprises in accordance with the regulations. In cases where foreign goods are found to be brought into the non-tariff zone to continue importing into the domestic area, which are of the same type as goods listed in the List of Goods Originating from the Non-Tariff Zone announced by the Management Board of Van Phong Economic Zone, but the enterprise does not declare customs, the Customs Office at Gate B will request the presentation of documents proving the origin of the consignment; proceed to handle violations and complete import procedures for the consignment in accordance with the law; and simultaneously notify the Management Board of Van Phong Economic Zone to take management measures or remove such goods from the List of Goods Originating from the Non-Tariff Zone.

2. 6. For processed goods:

Customs procedures for goods that organizations or individuals engaged in production and business in the non-tariff zone process for foreign traders or hire organizations or individuals engaged in production and business within the domestic area to process, and vice versa, shall be carried out according to the 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 Non-Tariff Zone may only pass through gates equipped with customs checkpoints. Customs procedures for temporary export-reimport; temporary import-reexport; transshipment; transit and transportation within the non-tariff zone shall be carried out according to the current regulations.

2. 8. In addition to the guidelines set forth in this Circular, enterprises must also comply with other obligations stipulated in the Law on Customs, the Law on Export Duties and Import Duties, and other guiding documents on customs.

3. Preferential regime for infrastructure development

3. 1. Investment support from the state budget for infrastructure construction:

a. Scope and objects of investment support from the state budget (State Budget)

- The State Budget supports investment in constructing technical-social infrastructure projects and important public service and utility projects serving the entire Van Phong Economic Zone according to programs and targets approved in the budget approved by the competent authority. The State Budget only supports the construction of common infrastructure projects for the entire Van Phong Economic Zone, excluding infrastructure projects dedicated to individual functional zones within the Van Phong Economic Zone (except for supporting the construction of centralized wastewater treatment facilities and solid waste disposal facilities for functional zones and compensation and land clearance in functional zones and resettlement areas for families whose land has been reclaimed).

- Investment support from the State Budget for the construction of infrastructure in the Van Phong Economic Zone shall be implemented strictly in accordance with approved projects consistent with the approved planning.

- The Management Board of the Van Phong Economic Zone is the local planning entity responsible for balancing separate basic construction funds from the State Budget to construct infrastructure in the Van Phong Economic Zone; it is the direct investor managing infrastructure construction projects funded by the State Budget within the Van Phong Economic Zone in accordance with the current laws on investment management.

b. Investment support from the State Budget for infrastructure construction

- Within the first 15 years from the date Decision No. 92/2006/QĐ-TTg takes effect, the annual investment capital from the State Budget for infrastructure construction in the Van Phong Economic Zone shall not be less than the total revenue collected into the National Treasury from the Van Phong Economic Zone; including revenue from export duties, import duties, special consumption taxes on imported goods, corporate income tax, high-income tax, and other lawful revenues (excluding VAT on imported goods). For export duties, import duties, and special consumption taxes on imported goods, they shall only be implemented for actual imported and exported goods declared through customs, inspected physically at the Van Phong Economic Zone, and paid at the National Treasury in Khanh Hoa Province. Annually, based on approved economic and social infrastructure investment projects, the progress of project implementation, the provisions of the State Budget Law, and the budget revenue forecast for the Van Phong Economic Zone, the central government's budget will supplement targeted funding for Khanh Hoa Province to invest in the structural infrastructure of the Van Phong Economic Zone.

- The central state budget support funds with specific purposes for the Khanh Hoa provincial budget to invest in economic and social infrastructure projects, public service facilities, and public utilities of the Van Phong Economic Zone shall be clearly allocated in the State Budget estimates assigned to the Khanh Hoa province. In addition to the central government's support, each year, the Khanh Hoa province will allocate local budget estimates to invest in economic and social infrastructure, public service facilities, and public utilities of the Van Phong Economic Zone according to the provisions of point a of this clause.

c. All revenues generated within the area shall be submitted to the state budget. The division of revenue sources between the central state budget and the local budget shall be carried out in accordance with current laws.

d. Management and utilization of capital supported by the state budget for the construction of Van Phong Economic Zone’s infrastructure: 

Capital supported by the state budget for the construction of Van Phong Economic Zone’s infrastructure shall be managed and utilized in accordance with regulations on basic investment construction management, the State Budget Law, and current guiding documents. The preparation of the budget estimate shall be conducted in accordance with the State Budget Law.

3. 2. Mechanism for using land funds to generate development capital:

The Management Board is responsible for receiving annual targets and plans and directly managing projects funded from land funds at the Van Phong Economic Zone; the Management Board organizes bidding to select units with sufficient financial capacity, experience, and reputation to implement infrastructure projects funded from land funds at the Van Phong Economic Zone.

The Management Board compiles a list of infrastructure construction projects that use land funds to generate capital and the area of land used to generate capital for project implementation, and sends it to the Department of Finance and the Department of Planning and Investment for consolidation in accordance with the State Budget Law to submit to the People's Council of Khanh Hoa Province for approval or decision-making according to its authority.

Based on the local land use plan, the ability to collect land use fees and land lease fees from auctions, revenues from land use and leasing without auctions, and the needs for compensation and support for people whose land is expropriated, as well as the requirements for investing in infrastructure projects funded by the state budget as stipulated by law, the People's Committee of Khanh Hoa Province directs the finance department to consolidate these revenue and expenditure tasks into the annual budget estimate to be submitted to the People's Council at the same level for decision-making.

Based on the annual budget approved by the People's Council, the People's Committee assigns the finance department to coordinate with relevant units to organize the collection and expenditure from land use and lease fees, and settle accounts into the state budget in accordance with the prescribed regulations.

In cases where organizations or individuals advance funds for compensation and support for people whose land is expropriated to invest in infrastructure projects funded by the state budget, and subsequently conduct auctions to collect land use and lease fees, the proceeds from land use and lease fees must be fully recorded as income and expenditure in the state budget according to current laws to repay the organizations or individuals who advanced the funds.

The use of land funds to generate capital for constructing infrastructure in the Van Phong Economic Zone shall be implemented in accordance with Decree No. 181/2004/ND-CP dated October 29, 2004, of the Government on the Implementation of the Land Law, Decree No. 17/2006/ND-CP dated January 27, 2006, of the Government amending and supplementing certain articles of guiding decrees for the Implementation of the Land Law, Decision No. 216/2005/QD-TTg dated August 31, 2005, of the Prime Minister on the issuance of regulations on land auction for land allocation with land use fees or land leasing, and other relevant current laws.

3. 3. Raising capital through bond issuance:

The People's Committee of Khanh Hoa Province may issue domestic project bonds to raise capital for large-scale infrastructure investment projects that play a key role in the development of the Van Phong Economic Zone, in accordance with current laws.

3. 4. Infrastructure investment from ODA and other sources of capital:

Essential technical and social infrastructure projects, public service facilities, and other technical assistance required by the Van Phong Economic Zone shall be prioritized for inclusion in the ODA funding program and can utilize other forms of capital mobilization as stipulated in Article 20 of the Van Phong Economic Zone Regulation issued together with Decision No. 92/2006/QD-TTg.

4. Preferential credit regime:

Domestic enterprises belonging to various economic sectors investing in production and business activities in the Van Phong Economic Zone shall be considered for preferential state credit loans according to the current regulations of the Government on investment and development credit.

5. Financial regime applicable to the Van Phong Economic Zone Management Board:

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 in accordance with regulations must be deposited into the state budget as prescribed.

5. 2. The Management Board is permitted to collect fees and charges corresponding to the tasks entrusted by state management agencies according to current regulations. When authorized by competent state authorities to perform collection tasks, the Management Board is responsible for notifying and registering with the tax authority where the Management Board is located to handle procedures for depositing collected fees and charges from the entrusted tasks.

III. IMPLEMENTATION ORGANIZATION

1. The People's Committee of Khanh Hoa Province is responsible for ensuring the fulfillment of all conditions specified in Clause 4, Section I so that the Non-Tariff Zone can apply the financial regime stipulated in this Circular. If the conditions are not met, the application shall not be made.

2. The General Department of Customs is responsible for:

Based on the customs procedures stipulated in this Circular and the customs procedures currently applied in the Non-Tariff Zone, to specify detailed customs procedures to be applied in the Non-Tariff Zone within the Van Phong Economic Zone.

3. The Customs Authority of Khanh Hoa Province is responsible for:

- Organize anti-smuggling, commercial fraud work, and prevent illegal importation of goods from the Duty-Free Zone into the domestic market of Vietnam and other areas within the Customs' operational territory.

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

- Inspect and supervise goods and transport vehicles, prevent smuggling and illegal cross-border transportation of goods; implement tax laws for exported and imported goods; organize customs stations according to regulations, suitable to the geographical characteristics of the Duty-Free Zone to effectively perform assigned tasks.

4. The Department of Finance of Khanh Hoa Province shall be responsible for guiding enterprises in implementing Point h, Clause 1.1, Section II, 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 study and supplementary guidance.