Circular No. 119/2005/TT-BTC guiding financial regulations applicable at the Dung Quat Economic Zone

CIRCULAR

Guidelines on financial regulations applicable to the Dung Quat Economic Zone

Pursuant to the State Budget Law;

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

Pursuant to Decision No. 50/2005/QĐ-TTg dated March 11, 2005 of the Prime Minister on the establishment and issuance of the operational regulations for the Dung Quat Economic Zone, Quang Ngai Province;

Pursuant to Decision No. 72/2005/QĐ-TTg dated April 5, 2005 of the Prime Minister on the establishment and definition of functions, tasks, authorities, and organizational structure of the Management Board of the Dung Quat Economic Zone;

The Ministry of Finance issues guidelines on financial regulations applicable to the Dung Quat Economic Zone as follows:

I. GENERAL PROVISIONS

1. Scope of Application:

The financial regulations stipulated in this Circular shall be applied within the territory of the Dung Quat Economic Zone (hereinafter referred to as "Dung Quat EZone"), including the communes of Binh Chanh, Binh Thanh, Binh Dong, Binh Thuan, Binh Tri, Binh Hai, and part of the land area of the communes of Binh Phuoc, Binh Hoa, and Binh Phu within the district of Binh Son, according to the planning boundaries of the Dung Quat EZone.

The financial regulations stipulated in this Circular shall only apply to production and business activities conducted within the territory of the Dung Quat EZone. In cases where organizations and individuals have production and business activities both within the Dung Quat EZone and within the domestic territory of Vietnam, they must separately account for their production and business activities within the Dung Quat EZone as the basis for determining the financial regulations to be applied.

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 Dung Quat EZone before Decision No. 50/2005/QĐ-TTg took effect but have not yet fully enjoyed preferential policies shall enjoy the preferential policies prescribed in this Circular for the remaining period of preferential treatment.

2. Objectives of Application:

The objects subject to this Circular are:

a) Domestic investors belonging to various economic sectors operating in accordance with the Law on State-Owned Enterprises, the Enterprise Law, the Cooperative Law, 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 conducting activities under the 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.

3. Principles of Investment Incentives:

Investment projects in the Dung Quat EZone shall enjoy maximum incentives provided for investment projects in areas with particularly difficult socio-economic conditions and economic zones as stipulated in the Law on Foreign Investment in Vietnam, the Law on Encouraging Domestic Investment, the Law on Corporate Income Tax, and other relevant laws.

4. Definitions:

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

- Duty-Free Zone is a geographic area separated from other functional zones of the Dung Quat EZone by a physical barrier as prescribed in Articles 8, 9, and 10 of Decision No. 50/2005/QĐ-TTg.

- Functional Zones: It includes industrial zones, port areas and port-related services, residential areas, urban areas, tourism-service areas, and administrative areas within the Dung Quat EZone.

- Domestic Territory of Vietnam: It includes all functional zones within the Dung Quat EZone and the remainder of the territory of Vietnam (excluding export processing zones).

- Customs Control Gate: The Dung Quat EZone has customs control gates in the duty-free zones:

+ At the duty-free zone connected to Chu Lai Airport: The customs control gate adjacent to the airport (referred to as Gate A); the customs control gate of the duty-free zone adjacent to the domestic territory (referred to as Gate B).

+ At the duty-free zone connected to Dung Quat Port: The customs control gate at Dung Quat Port (referred to as Gate A); the customs control gate of the duty-free zone adjacent to the domestic territory (referred to as Gate B).

- List of Goods Originating from the Duty-Free Zone is a list of goods issued periodically by the Management Board of the Dung Quat EZone (referred to as the List of Goods Originating from the Duty-Free Zone) comprising goods produced, processed, recycled, or assembled in the duty-free zone without using imported raw materials or components from abroad.

5. Conditions for Applying Financial Regulations to the Duty-Free Zone

The financial mechanism prescribed for the Duty-Free Zone within the Dung Quat EZone shall only be applied when the Duty-Free Zone satisfies the following conditions simultaneously:

- Having a physical barrier ensuring the isolation of activities within the Duty-Free Zone from other functional zones within the Dung Quat EZone;

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

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

6. Some General Provisions on Customs Procedures for the Duty-Free Zone:

a) Organizations and individuals operating within the duty-free zone are permitted to export to and import from abroad all goods and services not prohibited by Vietnamese law. Export-import policies are implemented according to the Prime Minister's regulations on managing exports and imports of goods during each period and the implementing guidelines of related ministries and agencies. The export and import of goods listed in the restricted export-import list and goods subject to limited trade shall be carried out in accordance with the guidance of the Ministry of Trade. Organizations and individuals operating within the duty-free zone must comply with the regulations of the duty-free zone at border economic zones as prescribed in Decision No. 0446/2003/QĐ-BTM dated April 17, 2003 of the Ministry of Trade.

b) Every six months, enterprises operating within the duty-free 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 send the tax authority to verify the taxes payable.

c) Exported, imported, and transiting goods, and means of transport exiting, entering, and transiting through the duty-free zone shall be subject to customs procedures corresponding to their respective categories.

d) Exported, imported, and transiting goods, and means of transport exiting, entering, and transiting through the duty-free zone can only pass through Gate A and Gate B.

e) Goods from the domestic territory exported into the duty-free zone and vice versa: Goods from abroad passing through Gate B into the duty-free zone process customs formalities at Gate B; Goods from abroad entering the bonded zone and goods from bonded areas going out to foreign countries through Gate A shall handle customs formalities at Gate A.

e) Goods from domestic areas exported to foreign countries through Gate A or goods from abroad entering domestic areas through Gate A shall go through customs formalities according to current regulations at Gate A or at the customs office outside the border gate. If customs formalities are processed at the customs office outside the border gate, they shall be carried out in accordance with the regulations on goods transiting through border gates.

f) In addition to the above customs formalities, the relevant parties must fulfill other obligations prescribed in the Law on Customs, the Law on Export Duties and Import Duties, and other related documents concerning export and import activities.

II. SPECIFIC PROVISIONS FORM

1. Tax policy for the Dung Quat Economic Zone

1.1. Corporate Income Tax

a) Investment projects of domestic and foreign organizations and individuals to establish new production and business establishments in the Dung Quat Economic Zone shall enjoy a corporate income tax rate of 10% for 15 years, starting from when the investment project begins operations; they shall be exempted from corporate income tax for 04 years, starting from when taxable income is generated, and have their tax payable reduced by 50% for the next 09 years.

b) Investment projects of domestic and foreign organizations and individuals in the Dung Quat Economic Zone in high-tech fields meeting the provisions of Clause 2, Article 5 of Decree No. 99/2003/NĐ-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) Investment projects of domestic and foreign organizations and individuals in the Dung Quat Economic Zone with large scale and significant importance to industry development, sectoral development, or regional socio-economic development shall enjoy a corporate income tax rate of 10% throughout the implementation period of the project after being approved by the Prime Minister.

d) For investment projects constructing new production lines, expanding scale, updating technology, improving ecological environment, and enhancing production capacity, the current regulations shall apply.

Income subject to tax from the transfer of land use rights or 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 Law on Corporate Income Tax.

e) To benefit from corporate income tax incentives, organizations and individuals with investment projects in the Dung Quat Economic Zone must submit Business Registration Certificates (for domestic enterprises) or Investment Licenses (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 systems, invoices, and documents registered and declared for tax payment.

Enterprises are responsible for notifying the tax authority where the enterprise declares and pays taxes about the time frame for enjoying corporate income tax exemptions and reductions as stipulated herein.

1.2. Income Tax for High-Income Individuals

1.2.1. Workers (including both Vietnamese and foreign workers) working in the Dung Quat Economic Zone shall have their personal income tax reduced by 50% for those with high income (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 current legal documents guiding personal income tax. When declaring and temporarily paying personal income tax, the payer deducts 50% of the monthly personal income tax payable for workers working in the Dung Quat Economic Zone.

1.2.3. Specifically, for Vietnamese and foreign workers working in the Dung Quat Economic Zone for less than one year (12 months), the amount of personal income tax reduction during their working period in the Dung Quat Economic Zone is determined as follows:

a) For Vietnamese workers:

Each month, the payer temporarily deducts 50% of the monthly personal income tax payable. At the end of the year, the final tax settlement will calculate the total tax payable for the year and the tax reduction for the year using the following formula:

In which, the annual personal income tax payable is based on the total taxable income earned during the working period in the Dung Quat Economic Zone and the taxable income earned during the working period outside the Dung Quat 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 resident taxpayers, each month the payer temporarily deducts 50% of the monthly personal income tax payable. At the end of the year, the final tax settlement will calculate the total tax payable for the year and the tax reduction. The annual personal income tax reduction is calculated according to the formula specified in Point b.1, Section 1.2 of this Circular.

c) The personal income tax reduction stipulated in this Circular does not apply to non-recurring income.

1.3. Export Tax, Import Tax

a) Exported and imported goods in the following cases are not subject to export duties or import duties:

Goods imported from abroad into the bonded zone; goods exported from the bonded zone to foreign countries.

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

b) Domestic goods originating from Vietnam and brought into the bonded zone for export shall pay export duties and go through export customs formalities according to current regulations.

c) Goods imported from the bonded zone into domestic Vietnam must pay import duties according to the following rules:

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

Goods produced, processed, recycled, or assembled in the bonded zone, if the value of goods originating from ASEAN accounts for 40% or more and confirmed by an ASEAN Certificate of Origin - Form D, shall be subject to the preferential ASEAN Common Effective Preferential Tariff (CEPT) rate.

Goods listed in the List of Goods Originating from the Bonded Zone brought into domestic areas are exempt from import duties.

Goods produced, processed, recycled, or assembled at the Dung Quat Economic Zone using imported raw materials and components directly from abroad (excluding goods imported from within Vietnam that use imported raw materials and components) when imported into the domestic market of Vietnam shall only be subject to import tax on the portion of imported raw materials and components constituting such goods. The basis for determining the import tax payable on the portion of imported raw materials and components constituting goods imported into the domestic market of Vietnam is: the taxable value; the quantity of goods imported into the domestic market; the import tax rate applicable to each type of raw material and component; among which, the taxable value and the applicable tax rate shall be determined according to current regulations at the time of filing the import declaration. Enterprises and individuals engaged in business have the responsibility to register with the Customs authority regarding the list of imported goods used as raw materials for producing goods imported into the domestic market and the quota of raw materials and components used for producing imported goods before importing them into the domestic market.

The value of imported raw materials and components constituting each unit of goods imported into the domestic market shall be calculated according to the provisions on the taxable value of imported goods at the time of importation into the domestic market.

d) Domestic and foreign organizations and individuals' investment projects for production in the Dung Quat Economic Zone shall be exempted from import tax on raw materials for production, spare parts, components, and semi-finished products that cannot be produced domestically or do not meet quality standards for five years, starting from the date of commencement of production.

The procedures, documents for tax exemption, declaration, and settlement of import tax in this case shall be carried out in accordance with Circular No. 40/2000/TT-BTC dated May 15, 2000, issued by the Ministry of Finance guiding the implementation of Decision No. 176/1999/QD-BTC dated August 26, 1999, of the Prime Minister on the exemption of import tax on raw materials. Specifically, the import plan and the quota of consumption of materials, raw materials, and semi-finished products for producing products directly serving the year shall be prepared by the enterprise and accompanied by the confirmation opinion of the Management Board of the Dung Quat Economic Zone.

e) Domestic and foreign organizations and individuals engaged in production and business activities in the bonded zone who import raw materials for production, spare parts, goods from abroad but do not use up and residual products still having commercial value are permitted to sell into the domestic market of Vietnam after completing the customs procedures required to pay import tax according to current regulations.

1.4. Special Consumption Tax

a) Goods and services subject to special consumption tax produced, consumed, or imported from abroad into the bonded zone and vice versa are exempted from special consumption tax. (except passenger cars under 24 seats brought into the bonded zone which must comply with the general regulations currently in force).

b) Goods and services subject to special consumption tax exported from the domestic market of Vietnam into the bonded zone are exempted from special consumption tax. (except passenger cars under 24 seats brought into the bonded zone which must comply with the general regulations currently in force). 

c) Goods and services subject to special consumption tax transferred from or sold to export processing zones from the bonded zone and vice versa are exempted from special consumption tax.

d) Goods subject to special consumption tax imported from the bonded 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 Dung Quat Economic Zone may use value-added tax invoices according to current regulations, and implement registration, declaration, and payment of value-added tax as stipulated in 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 the bonded zone and imported from abroad into the bonded zone and vice versa are exempted from value-added tax.

b) Goods and services transferred from or sold to export processing zones from the bonded zone and vice versa are exempted from value-added tax.

c) Goods and services exported from the domestic market of Vietnam into the bonded zone enjoy a zero percent value-added tax rate.

d) Goods and services imported from the bonded zone into the domestic market of Vietnam must pay value-added tax on imported goods according to the current applicable tax rate.

1.6. Price, fees, charges, and other types of taxes

a) Land rental price, land lease price with infrastructure construction, usage fees for technical infrastructure works, service facilities, and public utilities in the Dung Quat Economic Zone shall be determined by infrastructure business enterprises after negotiating with the Management Board of the Dung Quat Economic Zone.

b) Fees, charges, and other types of taxes shall be implemented according to current regulations in the Tax Law, Investment Promotion Law (amended), Foreign Investment Law in Vietnam, Fee and Charge Ordinance, and implementing guidelines.

2. Customs procedures for goods entering and leaving the bonded zone

2.1. For goods imported from abroad into the bonded zone : 

a) Importing into the bonded zone through Gate A:

- Enterprises in the bonded zone are responsible for declaring customs, submitting customs documents in accordance with current regulations for each type of imported goods based on the provisions at 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 bonded zone through Gate B: Follow current regulations concerning transshipment 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 into the bonded zone: Customs procedures will only be carried out upon request of the enterprise. Customs procedures shall be conducted as follows:

a) In the case where domestic enterprises register to handle customs procedures at the Customs Gate B authority: Domestic enterprises are responsible for declaring customs, submitting customs documents in accordance with current regulations for each type of export. In cases of internal transportation between enterprises and branches within and outside the bonded zone, sales contracts can be replaced by warehouse release documents. The customs office at Gate B is responsible for fully conducting export customs 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 for exported goods transferred to another customs gate shall be carried out in accordance with current regulations. The customs authority at Gate B shall perform the duties of the export customs gate for exported goods transferred to another customs gate (except for confirming actual export). 2.4. For goods from bonded zones

being exported abroad: Through Gate A:

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

b) The enterprise shall register with the customs authority at Gate A to handle customs procedures. The customs authority at Gate A shall carry out customs procedures in accordance with current regulations for exported goods. 2.5. From bonded zones

being brought into domestic territory: a) For goods listed in the Catalogue of goods originating from bonded zones that are exempted from customs procedures but must declare the quantity of goods to the customs authority and be subject to supervision by the customs authority.

- The bonded zone enterprise (seller) shall provide the domestic enterprise (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 authority at Gate B.

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

- The customs authority at Gate B shall handle customs procedures for imported goods of the domestic enterprise in accordance with the regulations. In case foreign goods are found to have been brought into the bonded zone to continue importing into domestic territory and are of the same type as goods listed in the Catalogue of goods originating from bonded zones that are exempted from customs procedures, as announced by the Management Board of Dung Quat EPZ, but the enterprise has not declared customs, the customs authority at Gate B shall require the enterprise to present evidence 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 of Dung Quat EPZ to take management measures or remove such goods from the Catalogue of goods originating from bonded zones.

2.6. For processed goods:

Customs procedures for goods processed by enterprises in bonded zones for foreign traders, enterprises in bonded zones hiring domestic enterprises to process goods, and vice versa shall be carried out in accordance with current regulations.

2.7. Temporarily exported-reimported; temporarily imported-reexported; transshipped; in transit and transported:

Exported, imported, in-transit goods, vehicles exiting, entering, or in transit through bonded zones may only pass through gates equipped with customs checkpoints.

Customs procedures for temporarily exported-reimported; temporarily imported-reexported; transshipped; in-transit and transported goods within bonded zones shall be carried out in accordance with current regulations. In addition to the guidelines set forth in this Circular, enterprises must comply with other obligations stipulated in the Law on Customs, the Law on Export Duties and Import Duties, the Government Decree detailing the implementation of the Law on Customs, and other guiding documents on customs.

2.8. The Management Board of Dung Quat EPZ shall issue a reward regulation for individuals who contribute to attracting investment capital (domestic and foreign capital into the EPZ) upon approval by the Ministry of Finance.

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

3.1Funds allocated for rewarding organizations and individuals who contribute to attracting official development assistance funds, direct foreign investment projects, and domestic investment projects in Dung Quat EPZ shall be included in the annual state budget estimate of the Management Board of Dung Quat EPZ and other legitimate sources of income.

3.2. Development incentives for infrastructure

4. 4.1. Investment from the state budget for building infrastructure

a) The State budget shall support investment in constructing technical-social infrastructure projects and important public service facilities serving Dung Quat EPZ according to approved programs and plans.

b) Within the first 15 years from the effective date of Decision No. 50/2005/QD-TTg, the annual investment capital from the State budget for building infrastructure in Dung Quat EPZ shall not be less than the total revenue collected from the area of Dung Quat EPZ deposited into the National Treasury, including taxes on exports, imports, special consumption taxes on imported goods, corporate income tax, high-income individual income tax (excluding VAT on imported goods), and other lawful revenues. For export duties, import duties, and special consumption taxes on imported goods, they shall only be calculated based on actual exported and imported goods declared and paid taxes at the National Treasury in Quang Ngai Province.

c) Revenues generated in the area shall be deposited into the state budget. The division of revenue between the central government and local governments shall follow current laws. The Management Board of Dung Quat EPZ shall coordinate with relevant tax, treasury, and customs authorities to monitor revenue collection in the area to establish annual investment plans for basic construction projects in Dung Quat EPZ.

4.2. Management and use of capital invested by the central budget

for building infrastructure in Dung Quat EPZ shall be conducted in accordance with regulations on managing basic construction investments, the State Budget Law, and current guiding documents: annually, when preparing the state budget, the Management Board of Dung Quat EPZ shall cooperate with related agencies to determine the revenue from export duties, import duties, special consumption taxes on imported goods, corporate income tax, high-income individual income tax, VAT, and other lawful revenues in Dung Quat EPZ to prepare an annual basic construction investment expenditure budget consistent with approved investment project lists, which shall be submitted to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Government for submission to the National Assembly for decision.4.3. Mechanism for using land funds to develop infrastructure

Capital mobilized from land funds through land use rights auctions and bidding projects including land use rights in land allocation and leasing shall serve as the source of investment for developing infrastructure in Dung Quat EPZ.

Capital raised from land funds through the auction of land use rights and bidding for projects that include land use rights in the transfer of land or land leasing shall be a source of capital for investing in the development of infrastructure in the Dung Quat Economic Zone.

The auction of land use rights and tendering of projects including land use rights for allocating land or leasing land to create capital for developing infrastructure in the Dung Quat Economic Zone shall be carried out in accordance with Decree No. 181/2004/NĐ-CP dated October 29, 2004 of the Government on the implementation of the Land Law, Decision No. 216/2005/QĐ-TTg dated August 31, 2005 of the Prime Minister on the issuance of regulations on the auction of land use rights for allocating land with payment of land use fees or leasing land, and other relevant provisions of current laws.

4.4. Mobilizing capital through the issuance of government bonds, project bonds, and official development assistance (ODA) funds to invest in developing infrastructure in the Dung Quat Economic Zone.

The Management Board of the Dung Quat Economic Zone shall submit to the Prime Minister for decision on the issuance plan of government bonds and project bonds to construct large-scale projects that play a key role in the development of the Dung Quat Economic Zone.

The issuance of government bonds and project bonds by the Management Board of the Dung Quat Economic Zone shall be implemented in accordance with the provisions of Decree No. 141/2003/NĐ-CP dated November 20, 2003 of the Government on the Regulations on the Issuance of Government Bonds, Government-Guaranteed Bonds, Local Government Bonds, and Other Forms of Capital Mobilization as stipulated by law.

Priority shall be given to using ODA funds and preferential credit funds for investment in technical-social infrastructure works and essential public utility services in the Dung Quat Economic Zone, as well as other technical assistance. Annually and every five years, the Management Board of the Dung Quat Economic Zone shall prepare plans and lists of projects to be invested using ODA funds and preferential credit funds and submit them to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Prime Minister for consideration and approval.

5. Financial regime applicable to the Management Board of the Dung Quat Economic Zone.

The Management Board of the Dung Quat Economic Zone is a first-level state budget unit, the focal point for central budget allocation. Construction investment funds and operational expenses shall be guaranteed by the central budget.

The preparation, execution, and settlement of construction investment funds and operational expenses shall be carried out in accordance with existing guiding documents on basic construction investment and the state budget.

III. IMPLEMENTATION

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

2. The Management Board of the Dung Quat Economic Zone shall coordinate with tax authorities, customs offices, and the State Treasury where accounts are opened to separately monitor revenue sources as directed in paragraph b, Point 4, Section II, to ensure management requirements and serve the preparation of annual and five-year investment construction capital plans.

3. The Quang Ngai Customs Department shall be responsible for:

- Organizing anti-smuggling, anti-commercial fraud activities, and preventing illegal importation of goods from bonded zones into the domestic market and other areas within its jurisdiction.

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

4. The customs office in the bonded zone shall perform tasks such as inspecting and supervising goods and transport vehicles, preventing smuggling and illegal cross-border transportation of goods, organizing the implementation of tax laws on exported and imported goods, and establishing customs stations according to regulations and suitable to the geographical characteristics of the bonded zone to effectively fulfill assigned tasks.

5. The General Customs Department shall base on the customs procedures stipulated in this Circular to draft detailed regulations on customs procedures and processes applicable in bonded zones and report to the Ministry of Finance before promulgation.

6. The State Treasury Office within the Dung Quat Economic Zone shall separately monitor revenue sources requiring detailed monitoring based on the Management Board of the Dung Quat Economic Zone's request, in accordance with the principles of State Treasury management operations.

7. Any difficulties encountered during implementation shall be reported to the Ministry of Finance for study and supplementary guidance.