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A Guide To Export Processing Enterprises In Vietnam, Export Processing Zones (Epz)

Export processing enterprise (EPE) means a company that is established and operated within an export processing zone, or an enterprise specializes in manufacturing exported products and operates within an industrial or economic zone.EPE which is not located in export processing zones shall be differentiated from the outside area as per the regulations on non-tariff areas laid down in the laws of import and export taxes.

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Tan Thuan export processing zone in Ho Chi Minh city

Chúng ta đang xem: A guide to export processing enterprises in vietnam

The order and procedures for investing and establishing EPE comply with the provisions of the Law on Investment 2014 and the Law on Enterprises 2014. Furthermore, Decree 82/2018/ND-CP stipulates a number of additional conditions for the establishment of EPE as follows:

EPE must be separated from ordinary enterprises by a system of fences, separate paths, etc., ensuring conditions for inspection, supervision, and control by customs and related competent authorities in accordance with relevant regulations applicable to non-tariff areas.All manufactured goods must be 100% exported to foreign countries.Ensure conditions for checking and supervising by customs and related competent authorities. (Currently many Customs departments have required EPE to install surveillance cameras connected to the Customs).The establishment of an EPE must be approved by written consent from the competent customs authorities.When an EPE is licensed to conduct goods purchase and sale activities, other activities directly related to goods purchase and sale activities in Vietnam, the enterprise must open accounting books to separately account revenues and expenses related to such purchasing and selling activities in Vietnam, as well as arrange a storage area detached from the storage area for production activities of the EPE, or establish a branch locating outside the EPE’s zone or export processing zone to perform the purchase and sale activities.

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Advantages of an EPE:

EPE is allowed to buy construction materials, stationery, foodstuffs, and consumer goods from inland Vietnam to create its buildings, to serve the administration of its office, as well as its staff and workers’ daily life.EPE and its sellers may choose to or not follow export and import procedures for construction materials, stationery, foodstuffs and consumer goods from inland Vietnam.Cadres and workers working in EPE when bringing foreign exchange from inland Vietnam into EPE’s zone (physically), and vice versa, are not required to make customs declaration.

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Particular regulations for EPE:

Customs procedures, customs inspection and supervision of exported and imported goods of export processing zones and EPE shall comply with the law on customs.Goods exchange relations between EPE and other areas on the Vietnamese territory, other than non-tariff areas, are export and import relations, except for the aforementioned cases and those that are not required to carry out customs procedures as stipulated by the Ministry of Finance.EPE may sell its liquidated assets and goods to the domestic market according to the provisions of laws on investment and trade. At the time of such sale or liquidation, policies on management of exported and imported goods are not applied, except for cases where (i) goods are subjected to management under conditions, standards or specialized inspection but not yet been implemented when import; (ii) goods managed by license must be approved in writing by the import licensing authorities.

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