Circular No. 23/1999/TT-BTM guides the purchase and sale of goods between export processing enterprises.

CIRCULAR

Guidelines for purchasing and selling goods with export processing enterprises

_____________________

Implementing Article 8 of Decision No. 53/1999/QĐ-TTg dated March 26, 1999 of the Prime Minister on certain measures to encourage foreign direct investment;

The Ministry of Trade guides the implementation of specific issues regarding the purchase and sale of goods with export processing enterprises as follows:

I- SCOPE OF APPLICATION AND OBJECTS

1. Scope of application:

a- Export processing enterprises,

b- Domestic enterprises:

+ Vietnamese enterprises,

+ Enterprises with foreign invested capital,

c- Cooperatives,

d- Households,

e- Individuals.

2- Scope of application:

This Circular applies to the purchase and sale of goods between domestic Vietnam and export processing enterprises.

II- SALE OF GOODS FROM DOMESTIC VIETNAM TO EXPORT PROCESSING ENTERPRISES FOR PRODUCTION AND BUSINESS

1- Entities eligible to sell goods to export processing enterprises:

- Domestic enterprises,

- Cooperatives,

- Households,

- Individuals.

2- Goods from domestic areas sold to export processing enterprises:

a- Goods not included in the "List of Prohibited Export and Import Commodities" of Vietnam.

b- Goods subject to quota management or indicators may be sold to export processing enterprises within the allocated quota or assigned indicators.

c- Goods subject to specialized sector management may be sold to export processing enterprises in accordance with regulations of the relevant ministry.

3- Customs procedures:

Goods sold by domestic enterprises to export processing enterprises only need to declare customs export goods declaration to the Customs Zone based on the signed purchase and sale contract with the export processing enterprise in accordance with current regulations.

When purchasing goods from domestic areas, export processing enterprises only need to declare to the Customs Zone, without requiring approval from the Management Board of Industrial Zones - Export Processing Zones.

4- Export tax:

- Goods sold by domestic enterprises to export processing enterprises, the seller is exempted from export tax.

Goods purchased by export processing enterprises from domestic areas for export (without production), export processing enterprises must pay export tax.

- Goods purchased by export processing enterprises from domestic areas for producing export goods, when exporting, export processing enterprises are exempted from export tax.

III- DOMESTIC ENTERPRISES PURCHASING GOODS FROM EXPORT PROCESSING ENTERPRISES

1- Goods that can be purchased from export processing enterprises:

a- Goods listed in the annual replacement import goods catalog published by the Ministry of Planning and Investment.

b- Raw materials and semi-finished products for domestic enterprises directly producing export goods.

c- Scrap and waste products of export processing enterprises that still have commercial value.

Goods mentioned in this clause must be products produced by the export processing enterprise in accordance with the provisions of the Investment License.

2- Entities eligible to purchase goods from export processing enterprises:

a- Vietnamese enterprises established under the law with appropriate industries may purchase all goods listed in Clause 1 of this Section.

b- Cooperatives, households, individuals may purchase scrap and waste products of export processing enterprises that still have commercial value.

c- Enterprises with foreign invested capital established under the Law on Foreign Investment in Vietnam may purchase goods for production of export goods of their own enterprises, consistent with the production and business fields specified in the Investment License.

3- Regulations on purchasing goods from export processing enterprises:

a- Goods subject to quota management or indicators:

Domestic enterprises may only purchase goods from export processing enterprises within the allocated quota or assigned indicators.

b- Goods subject to specialized sector management:

Domestic enterprises may only purchase goods from export processing enterprises in accordance with the regulations of the relevant ministry.

c- Scrap and waste products with commercial value shall be implemented in accordance with Circular No. 2880/KCM-TM dated December 19, 1996 of the Ministry of Trade and the Ministry of Science, Technology and Environment on importing scrap and waste products.

4- Customs procedures and payment of import duties.

Customs procedures and payment of import duties shall be carried out in accordance with current import regulations.

IV- SALE OF OFFICE SUPPLIES AND DAILY CONSUMABLES FOR THE LIVING OF EXPORT PROCESSING ENTERPRISES

1- Entities specified in Clause 1 of Section II may sell office supplies and daily consumables for the living of export processing enterprises.

2- When purchasing office supplies and daily consumables for the living of export processing enterprises from domestic areas, export processing enterprises do not need to go through customs procedures and shall comply with the regulations of the Management Board of Industrial Zones - Export Processing Zones.

V- IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days from the date of signature.