Export processing enterprises must meet inspection and supervision conditions before April 25

	Condition of implementing customs inspection and supervision for export processing enterprise
	Which case will not accept cancellation due to making an incorrect declaration
	Goods of domestic enterprises hiring other enterprises for export processing must be declared

Illustrative Photo: Internet

Disadvantages of tax policies

To implement the provisions of Clause 10, Article 1 of Decree 18/2021, the General Department of Customs has directed local Customs Departments to review the inspection and supervision conditions of EPEs in their areas; urge enterprises that have not yet made a notice of satisfaction of inspection and supervision conditions as prescribed (notice form No. 25, Annex VII of Decree 18/2021), explain to them about preferential tariff policies after April 25, 2022; and complete the inspection and report results before April 25, 2022.

Regarding the application of tax policy, the General Department of Customs has provided specific information on tax policies for cases failing to meet the inspection and supervision conditions.

Clause 5, Article 28a of Decree 18/2021 stipulates that Within a year from the effective date of this Decree, the EPE shall fulfill the conditions for customs supervision and inspection specified in Clause 1 of this Article.

After such conditions are fulfilled, the EPE shall send a notification (Form No. 25 in Appendix VII hereof) to its supervisory branch of Customs.

If the EPE fails to submit the notification Form No. 25 in Appendix VII hereof within a year from the effective date of this Decree or fails to fulfill the conditions for customs supervision and inspection specified in Clause 10 of Article 1 of this Article, it will not be eligible for FTZ tax policies from the expiration date of this 1-year time limit.

In case the EPE fulfills the conditions for customs supervision and inspection and submits the notification to the customs branch of the inspection and the customs branch issues the confirmation of fulfillment of the conditions for customs supervision and inspection specified in Clause 10 of Article 1 of Decree 18/2021, the EPE shall be eligible for FTZ tax policies from the day on which the confirmation is issued.

Urge businesses to meet conditions

In order to avoid problems related to the application of FTZ tax policies after the effective date of Decree 18/2021/ND-CP of the Government (April 25, 2022) for export processing enterprises (EPEs), the Customs is actively urging enterprises to meet the requirements on conditions.

For EPEs that have not yet made a notification of fulfillment of the conditions for customs inspection and supervision, the customs authority shall work with them at their headquarters to find out the reasons that the EPEs has not yet notified the fulfillment of the conditions for customs inspection and supervision as prescribed; assess the ability of EPEs that meet or not meet the conditions for customs inspection and supervision as prescribed in Clause 10, Article 1 of Decree 18/2021; and expect time to fulfill the conditions; and make a record certified by the EPEs.

For EPEs that have made a notification of fulfillment of the conditions for customs inspection and supervision, and the customs authority has checked and confirmed that they have not yet met the conditions, the customs shall assess their ability to meet or fail to meet the conditions for customs inspection and supervision before April 25, 2022.

At the same time, the customs shall urge EPEs to continue to meet conditions for customs inspection and supervision and confirmation according to regulations before April 25, 2022.

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For EPEs that have made a notification of fulfillment of the conditions for customs inspection and supervision, the Customs authority shall urgently inspect and confirm the conditions before April 25, 2022.