Circular No. 46/2006/TT-BTC guiding financial regimes and customs procedures applicable at the Chan May-Lang Co Economic Zone, Thua Thien Hue Province.

CIRCULAR

Pursuant to Decision No. 04/2006/QĐ-TTg dated January 5, 2006 of the Prime Minister regarding the establishment and issuance of the Regulation on the operation of the Chân Mây - Lăng Cô Economic Zone, Thua Thien Hue Province

The Ministry of Finance guides the financial regime and customs procedures applicable at the Chân Mây - Lăng Cô Economic Zone as follows:

1. Scope of Application:

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Pursuant to the State Budget Law;

The financial regime and customs procedures stipulated in this Circular (hereinafter referred to as the financial regime) shall be applied within the territory of the Chân Mây - Lăng Cô Economic Zone, Thua Thien Hue Province (hereinafter referred to as the Chân Mây - Lăng Cô Economic Zone).

The financial regime stipulated in this Circular shall only apply to business activities conducted within the territory of the Chân Mây - Lăng Cô Economic Zone. In cases where organizations and individuals conduct business activities both within the Chân Mây - Lăng Cô Economic Zone and in mainland Vietnam, they must separately account for their business activities within the Chân Mây - Lăng Cô Economic Zone 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 the Chân Mây - Lăng Cô Economic Zone before the effective date of Decision No. 04/2006/QĐ-TTg dated January 5, 2006 of the Prime Minister (hereinafter referred to as Decision No. 04/2006/QĐ-TTg) but have not yet fully enjoyed preferential policies shall continue to enjoy preferential policies as 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.

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

2. Subjects of Application:

The subjects of this Circular are:

a. Domestic investors belonging to various economic sectors operating under the provisions of the Law on State Enterprises, the Enterprise Law, the Cooperative Law, individual households, and independent practitioners.

b. Foreign organizations and individuals including foreign-invested enterprises, foreign investors participating in Joint Venture Contracts, overseas Vietnamese residing abroad operating under forms prescribed in the Law on Foreign Investment in Vietnam, and foreign investors conducting business outside the scope of the Law on Foreign Investment in Vietnam.

3. Definitions:

- Non-Tariff Zone: is a geographical area separated by a physical barrier from other functional zones of the Chân Mây - Lăng Cô Economic Zone as stipulated in Articles 7, 8, and 9 of Decision No. 04/2006/QĐ-TTg.

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

- Mainland Vietnam: includes functional zones within the Chân Mây - Lăng Cô Economic Zone and the rest of the Vietnamese territory (excluding areas similar to the Non-Tariff Zone as defined in Clause 1, Article 5 of the Law on Export Duties and Import Duties (Amended) in 2005 and export processing zones).

- Customs Control Gate: The Non-Tariff 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 mainland, abbreviated as Gate B.

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

- List of Goods Originating from the Non-Tariff Zone: Is a list of goods issued periodically by the Management Board of the Chân Mây - Lăng Cô Economic Zone (referred to as the Management Board), called the List of Goods Originating from the Non-Tariff Zone, comprising goods produced, processed, recycled, or assembled in the Non-Tariff Zone without using imported raw materials or components from abroad.

4. Conditions for Applying Financial Regimes Related to the Non-Tariff Zone:

The financial mechanisms stipulated for the Non-Tariff Zone within the Chân Mây - Lăng Cô Economic Zone shall only apply when the Non-Tariff Zone satisfies the following conditions simultaneously:

- There is a physical barrier ensuring isolation of activities within the Non-Tariff Zone from other functional zones within the Chân Mây - Lăng Cô Economic Zone;

- Within the Non-Tariff 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 Non-Tariff Zone.

5. Some General Provisions on Customs Procedures for the Non-Tariff Zone:

a) Organizations and individuals operating within the Non-Tariff Zone may export to and import from foreign countries all goods and services not prohibited by Vietnamese law. Policies on export and import goods shall be carried out according to the regulations of the Prime Minister on managing exports and imports of goods during each period and the implementing guidelines of relevant ministries and sectors. The export and import of goods listed in the conditional export-import goods list and restricted trade goods shall be carried out according to the guidance of the Ministry of Commerce.

b) Every six months, enterprises in the Non-Tariff Zone 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 the stock of products. The customs authority will check and send it to the tax authority for verification and determination of taxes payable.

c) Goods, luggage for export, import, transit; means of transport for departure, entry, and transit at the Non-Tariff Zone, regardless of the type, shall follow the customs procedures specified for that type.

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

a) Organizations and individuals operating in the Duty-Free Zone are permitted to export to foreign countries and import from foreign countries all goods and services that are not prohibited by Vietnamese law. The policy on export and import items shall be implemented in accordance with the regulations of the Government Prime Minister on managing exports and imports of goods during each period and the guiding documents issued by relevant ministries and sectors. The export and import of goods listed in the conditional export and import goods catalogues and restricted business goods shall be carried out in accordance with the guidelines of the Ministry of Commerce.

b) Every six months, enterprises in the Duty-Free Zone are responsible for submitting to the customs authority a Settlement Report on materials, raw materials, exported and imported goods during the period, and a Stock-in-Stock-Out Report on products. The customs authority will check and reconcile these reports and forward them to the tax authority for verification and determination of taxes payable.

Goods, baggage for export, import, transit; means of transport exiting, entering, transiting through the Duty-Free Zone shall apply the customs procedures prescribed for their respective categories.

Goods for export, import, transit; means of transport exiting, entering, transiting through the Duty-Free Zone are only allowed to pass through Gate A and Gate B.

d) Goods from domestic areas exported to the Duty-Free Zone and vice versa, goods from abroad passing through Gate B into the Duty-Free Zone shall go through customs formalities at Gate B; goods from abroad entering the Duty-Free Zone and goods from the Duty-Free Zone exiting to abroad via Gate A shall go through customs formalities at Gate A.

e) Goods from domestic areas exported to abroad via Gate A or goods from abroad passing through Gate A into domestic areas 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 carried out at the customs office outside the border gate, then customs procedures shall be implemented according to regulations on goods transiting ports.

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, Import Duties, and other documents related to export and import activities.

6. Investment incentives principles:

Investment projects in the Chân Mây - Lăng Cô Economic Zone shall enjoy maximum incentives for investment projects in areas with particularly difficult socio-economic conditions as stipulated in the Law on Foreign Investment in Vietnam dated November 12, 1996, the Law Amending and Supplementing Certain Provisions of the Law on Foreign Investment in Vietnam dated June 9, 2000, the Law on Encouraging Domestic Investment (Amended) dated May 20, 1998, the Law on Corporate Income Tax, the Law on Value Added Tax, 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 the Chân Mây - Lăng Cô Economic Zone:

1.1. Corporate Income Tax:

a) Domestic and foreign organizations and individuals' investment projects to establish new production and business establishments in the Chân Mây - Lăng Cô Economic Zone shall enjoy a corporate income tax rate of 10% for 15 years from the start of business operations; exempted from corporate income tax for 4 years from when taxable income begins; and have their corporate income tax reduced by 50% for the next 9 years.

b) Domestic and foreign organizations and individuals' investment projects in the Chân Mây - Lăng Cô 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 establishment of the High-Tech Zone Regulations; Investment and construction projects for duty-free zone infrastructure and the Chân Mây Port shall enjoy a corporate income tax rate of 10% throughout the project implementation period.

c) Domestic and foreign organizations and individuals' investment projects in the Chân Mây - Lăng Cô Economic Zone with large scale and significant importance to industry, sector development, or regional economic and social development shall enjoy a corporate income tax rate of 10% throughout the project implementation period after approval by the Prime Minister.

d) Production and business establishments investing in building new production lines, expanding scale, updating technology, improving ecological environment, and enhancing production capacity shall comply with current laws.

đ) Taxable income from land use rights transfer and land lease rights transfer shall be subject to corporate income tax according to the guidelines set forth 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 the Chân Mây - Lăng Cô 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. Corporate income tax incentives shall only apply to production and business establishments that fully comply with accounting records, invoices, and documents registered and declared for tax purposes.

f) 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.

g) Enterprises are responsible for notifying the tax authority where they declare and pay taxes about the period during which corporate income tax exemptions and reductions are applied as stipulated herein.

1.2. Income tax for high-income earners:

Workers (including both Vietnamese and foreigners) working in the Chân Mây - Lăng Cô Economic Zone shall have their income tax reduced by 50% for the portion of income earned from working in the Chân Mây - Lăng Cô Economic Zone, including both regular and irregular income.

Declaration, payment, and settlement of income tax for high-income earners shall be carried out in accordance with current legal documents guiding such matters.

1.3. Export Duties, Import Duties:

a) Goods exported or imported in the following cases are exempt from export duties and import duties:

- Goods from the Duty-Free Zone exported to abroad; Goods from abroad imported into the Duty-Free Zone and solely used within the Duty-Free Zone;

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

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

b) Goods subject to export duties originating from domestic Vietnam brought into the Duty-Free Zone must pay export duties and follow current export procedures.

c) Goods from the Duty-Free Zone imported into domestic Vietnam must pay import duties according to the following regulations:

- Goods originating from abroad shall be subject to import duties as prescribed under current regulations.

- Goods produced, processed, recycled, or assembled within the Duty-Free Zone shall be subject to the preferential ASEAN Import Tariff (CEPT) rate if they meet the conditions stipulated under current regulations.

- Goods listed in the Origin List of the Duty-Free Zone that are brought into the domestic territory shall not be subject to import duties.

- Goods produced, processed, recycled, or assembled within the Duty-Free Zone located in the Chan May - Lang Co Economic Zone using imported raw materials and components directly from abroad (excluding goods imported from the domestic territory of Vietnam that use imported raw materials and components), when imported into the domestic territory of Vietnam, shall only be subject to import duties on the portion of raw materials and components imported from abroad that constitute part of such goods.

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

The value of raw materials and components imported into each unit of goods imported into the domestic territory shall be determined according to the regulations on the taxable value of imported goods at the time of importation into the domestic territory of Vietnam.

d) Domestic and foreign organizations and individuals investing in production within the Chan May - Lang Co Economic Zone shall be exempted from import duties on raw materials for production, materials, components, and semi-finished products that have not yet been produced domestically for five years, starting from the date of commencement of production.

Procedures, documents for exemption from import duties, declaration, and settlement of import duties 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 engaged in production and business activities within the Duty-Free Zone importing raw materials for production, materials, goods from abroad but not fully utilized, and by-products still having commercial value may sell them into the domestic territory of Vietnam after completing customs procedures, subject to import duties as prescribed under current regulations.

1.4. Special Consumption Tax:

a) Goods and services subject to special consumption tax produced, consumed, or imported from abroad into the Duty-Free Zone and vice versa shall not be subject to special consumption tax. However, passenger cars with less than 24 seats shall pay special consumption tax according to the general provisions currently in effect.

b) Goods and services subject to special consumption tax exported from the domestic territory of Vietnam to the Duty-Free Zone shall not be subject to special consumption tax. However, passenger cars with less than 24 seats shall pay special consumption tax according to the general provisions currently in effect.

c) Goods and services subject to special consumption tax transferred from or sold to Export Processing Zones and vice versa from the Duty-Free Zone shall not be subject to special consumption tax.

d) Goods subject to special consumption tax imported from the Duty-Free Zone into the domestic territory of Vietnam shall be subject to special consumption tax on imported goods according to current regulations.

1.5. Value Added Tax:

Enterprises in the Chan May - Lang Co Economic Zone shall use value-added tax invoices in accordance with current regulations, and shall register, declare, and pay value-added tax as prescribed 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 shall not be subject to value-added tax.

b) Goods and services transferred from or sold to Export Processing Zones and vice versa from the Duty-Free Zone shall not be subject to value-added tax.

c) Goods and services exported from the domestic territory of Vietnam to the Duty-Free Zone shall enjoy a zero percent value-added tax rate.

d) Goods and services imported from the Duty-Free Zone into the domestic territory of Vietnam shall be subject to value-added tax on imported goods at the applicable rates under current regulations.

1.6. Regarding prices, fees, and other taxes:

a) Rent for land, lease price for land that has been developed with technical infrastructure, and fees for using technical infrastructure projects, service facilities, and public utilities in the Chan May - Lang Co Economic Zone shall be determined by infrastructure businesses after negotiating with the Management Board of the Chan May - Lang Co Economic Zone.

b) Other types of taxes, fees, and charges shall be implemented in accordance with current regulations under the Law on Tax, the Law on Encouragement of Domestic Investment (amended), the Law on Foreign Investment in Vietnam, the Ordinance on Fees and Charges, 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 shall be responsible for declaring customs, submitting customs documents in accordance with current regulations for each type of import as stipulated in Clause 5, Section I of this Circular.

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

b) Imported 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 territory of Vietnam through Gate A and goods exported from the domestic territory to abroad through Gate A: Shall be carried out in accordance with current regulations.

2.3. For goods from domestic areas exported to the duty-free zone:

a) In the case where organizations and individuals engaged in production and business in domestic areas register to handle customs procedures at the Customs Gate B authority, they must be responsible for declaring customs, submitting customs documents according to regulations applicable to each type of export. In cases where goods are internally transported between enterprises and branches within and outside the duty-free zone, the sales contract may be replaced by warehouse release documents. The Customs Gate B authority is responsible for fully implementing export procedures for organizations and individuals engaged in production and business in domestic areas according to the regulations applicable to each type of export.

b) In the case where organizations and individuals engaged in production and business in domestic areas declare export declarations at the border gate sub-customs office: Customs procedures shall be implemented according to current regulations applicable to goods exported through border gates. The Customs Gate B authority shall perform the duties of the exporting border gate customs authority for goods exported through border gates (except for confirming actual export).

2.4. For goods from the duty-free zone exported abroad:

a) Through Gate B: Implemented according to current regulations applicable to goods exported through border gates.

b) Through Gate A: Register to handle procedures at the Customs Gate A authority. The Customs Gate A authority shall implement customs procedures according to current regulations applicable to exports.

2.5. For goods from the duty-free zone brought into domestic areas:

a) For goods listed in the List of goods of origin from the duty-free zone that are exempted from customs procedures but must declare quantities to the customs authority and be subject to customs supervision.

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

- Organizations and individuals engaged in production and business in the duty-free zone (seller) have the responsibility to provide organizations and individuals engaged in production and business in domestic areas (buyer) with complete documents, invoices, and other papers as prescribed by the customs authority so that domestic enterprises can declare customs and submit customs documents according to the regulations applicable to each type of import at the Customs Gate B authority.

- The Customs Gate B authority is responsible for handling customs procedures for imported goods of domestic enterprises according to the regulations. In cases where foreign goods are found to be brought into the duty-free zone to continue importing into domestic areas, which are of the same type as goods listed in the List of goods of origin from the duty-free zone announced by the Management Board of the Chân Mây - Lăng Cô Economic Zone, but the enterprise does not declare customs, the Customs Gate B authority will require presentation of documents proving the origin of the consignment; proceed to handle violations and process the importation of the consignment according to the law; and simultaneously inform the Management Board of the Chân Mây - Lăng Cô Economic Zone to take management measures or exclude the goods from the List of goods of origin from the duty-free zone.

2.6. For processed goods:

Customs procedures for goods processed by organizations and individuals engaged in production and business in the duty-free zone for foreign traders or hiring organizations and individuals engaged in production and business in domestic areas to process and vice versa shall be implemented according to current regulations.

2.7. Temporary export-reimport; temporary import-reexport; transshipment; transit and transportation:

Goods exported, imported, transshipped, means of transport exiting, entering, transshipping and transporting through the duty-free zone can only pass through gates equipped with customs checkpoints. Customs procedures for temporary export-reimport; temporary import-reexport; transshipment; transit and transportation in the duty-free zone shall be implemented according to current regulations.

2.8. In addition to the guidelines provided in this Circular, enterprises must 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. Reward system for those who contribute to attracting investment capital domestically and internationally

3.1. Based on the budget capacity and effectiveness of attracting investment capital, the Chairman of the People's Committee of Thừa Thiên Huế Province decides to reward organizations and individuals who contribute to attracting non-state budget investment capital to invest in economic and social projects in the Chân Mây - Lăng Cô Economic Zone after obtaining the agreement of the Ministry of Finance according to the principle that rewards for non-repayable investment attraction methods are higher than other investment attraction methods. Payment of rewards shall be made after the project goes into operation, has products circulating in the market, and the investor has contributed at least 50% of the statutory capital committed.

3.2. The funds used to reward organizations and individuals who contribute to attracting investment capital (excluding investment capital from state budget sources) to invest in economic and social projects in the Chân Mây - Lăng Cô Economic Zone shall be drawn from local government bonus funds and recorded under extraordinary bonus expenses.

4. Preferential development system for infrastructure

4.1. Support for investment from the state budget to build infrastructure:

a) Scope and target of investment from the state budget (State Budget)

- The State Budget supports investment in building technical-social infrastructure works and important public service and utility works serving the entire Chân Mây - Lăng Cô Economic Zone according to programs and targets approved in the budget approved by the competent authority. The State Budget only supports investment in common infrastructure works of the entire Chân Mây - Lăng Cô Economic Zone, excluding infrastructure dedicated to individual functional zones within the Chân Mây - Lăng Cô Economic Zone, except for supporting investment in centralized wastewater treatment works and waste disposal works of functional zones and compensation, land clearance, and resettlement for families whose land is expropriated.

- Investment support from the State Budget for building infrastructure in the Chân Mây - Lăng Cô Economic Zone shall be implemented strictly in accordance with the project consistent with the planning approved by the competent authority.

- The Management Board of Chân Mây - Lăng Cô SEZ is the local planning entity responsible for balancing construction funds from the State budget to build infrastructure for the Chân Mây - Lăng Cô SEZ; it is the direct investor managing projects to construct infrastructure funded by the State budget within the Chân Mây - Lăng Cô SEZ according to current national regulations on investment management.

b) Investment support from the State budget to build infrastructure

- Annually, based on approved socio-economic infrastructure investment projects, the progress of project implementation, the State Budget Law, and the projected state budget revenue in the Chân Mây - Lăng Cô SEZ area, the central budget supplements targeted funding to the Thừa Thiên Huế provincial budget to invest in infrastructure projects of the Chân Mây - Lăng Cô SEZ.

- Central budget support for targeted investment in infrastructure projects of the Chân Mây - Lăng Cô SEZ is clearly allocated in the annual State budget assigned to Thừa Thiên Huế Province. Along with central budget support, Thừa Thiên Huế Province annually allocates its local budget to invest in infrastructure of the Chân Mây - Lăng Cô SEZ as stipulated in paragraph a of this point.

c) Revenue generated within the area shall be paid into the State budget. The division of revenue sources between the central budget and local budgets shall be governed by current laws.

d) Management and utilization of capital supported by the State budget for infrastructure construction in the Chân Mây - Lăng Cô SEZ:

Capital supported by the State budget for infrastructure construction in the Chân Mây - Lăng Cô SEZ shall be managed and utilized in accordance with regulations on basic construction investment management, the State Budget Law, and current guiding documents. Specifically, each year at the time of preparing the State budget, the Management Board of the Chân Mây - Lăng Cô SEZ shall coordinate with relevant agencies to prepare the annual basic construction investment budget consistent with approved investment project lists, submit to the People's Committee of Thừa Thiên Huế Province for submission to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Government for decision by the National Assembly.

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

The Management Board is responsible for receiving annual plan targets and directly managing projects utilizing land funds in the Chân Mây - Lăng Cô SEZ; organizing bidding to select financially capable, experienced, and reputable entities to implement infrastructure construction projects funded by land funds in the Chân Mây - Lăng Cô SEZ.

The Management Board compiles a list of infrastructure construction projects utilizing land funds to generate capital and the area of land used to generate capital for project implementation, sending it to the Department of Finance and the Department of Planning and Investment for consolidation in accordance with the State Budget Law, to be submitted by the People's Committee of Thừa Thiên Huế Province to the Provincial People's Council for approval or decision within their authority.

Based on the local land use plan, the potential for land use fees and land lease revenues from auctions, revenues from non-auctioned land use and leasing, and the needs for compensation and support for individuals whose land has been expropriated and the needs for investment in infrastructure projects funded by the State budget as prescribed by law, the People's Committee of Thừa Thiên Huế Province directs financial authorities to consolidate these revenue and expenditure tasks into the annual local budget for decision by the same-level People's Council.

Based on the annual budget resolution decided by the People's Council, the People's Committee assigns the financial department to cooperate with related units to organize the collection and disbursement from land use and lease revenues, and settle accounts into the State budget according to established procedures.
In cases where organizations or individuals advance funds for compensation and support for individuals whose land has been expropriated to invest in infrastructure projects funded by the State budget, then subsequently conduct auctions to collect land use and lease revenues, the land use and lease revenues used to repay the organizations or individuals who advanced funds must be fully recorded as revenue and expenditure in the State budget according to current laws.

The use of land funds to generate capital for infrastructure construction in the Chân Mây - Lăng Cô SEZ shall be carried out in accordance with Decree No. 181/2004/ND-CP dated October 29, 2004, of the Government on implementing 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/QĐ-TTg dated August 31, 2005, of the Prime Minister on issuing regulations on auctioning land use rights for allocating land with land use fees or leasing land, and other relevant provisions of current laws.

4.3. Mobilizing capital through issuance of construction bonds:

The People's Committee of Thừa Thiên Huế Province may issue domestic construction bonds to mobilize capital for infrastructure construction in the Chân Mây - Lăng Cô SEZ in accordance with current laws.

4.4. Infrastructure investment from ODA and other sources of capital:

Technical and social infrastructure projects, public utility service projects, and other technical assistance needed in the Chân Mây - Lăng Cô SEZ are included in the list of ODA and other capital mobilization methods as stipulated in Article 19 of the Chân Mây - Lăng Cô SEZ Regulation issued together with Decision No. 04/2006/QĐ-TTg.

5. Preferential credit regime:

Domestic enterprises belonging to various economic sectors with investment production and business projects in the Chân Mây - Lăng Cô SEZ are eligible for consideration for State investment development credit according to current government regulations on preferential credit.

6. Financial regime applicable to the Management Board of the Chân Mây - Lăng Cô SEZ:

6.1. The Management Board is a local budget unit. Operating expenses of the Board are guaranteed by the local budget. All revenues collected by the Board in accordance with regulations must be deposited into the State budget as required.

6.2. The Management Board is permitted to collect fees and charges corresponding to the tasks delegated by state management agencies in accordance with current regulations. When authorized by competent state authorities to perform collection tasks, the Management Board shall be responsible for notifying and registering with the tax authority where the Management Board is headquartered to handle procedures related to the payment of collected fees and charges resulting from the execution of delegated tasks.      

III. IMPLEMENTATION

1. The People's Committee of Thua Thien Hue Province shall ensure that all conditions stipulated in Clause 4, Section I are met for the Non-Tariff Zone to apply the financial regime prescribed in this Circular. In cases where these conditions are not met, such application shall not be implemented.

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

Drafting detailed regulations on customs procedures based on the provisions concerning customs formalities set out in this Circular to be applied in the Non-Tariff Zone.

3. The Customs Office of Thua Thien Hue Province shall be responsible for:

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

- Cooperating with the Management Board of the Special Economic Zone and relevant agencies (Taxation, Police, Border Guard) to carry out anti-smuggling, commercial fraud activities, and prevent illegal imports of goods from the Non-Tariff Zone into the domestic market of Vietnam.

- Inspecting and supervising goods and transport vehicles, preventing smuggling and illegal cross-border transportation of goods; implementing tax laws applicable to exported and imported goods; organizing customs stations according to regulations, suitable to the geographical characteristics of the Non-Tariff Zone to effectively fulfill assigned tasks.

4. The Tax Department of Thua Thien Hue Province shall be responsible for guiding enterprises in implementing paragraph g, point 1.1, Section II, of this Circular.

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.