How is the management in the local area changed after dissolving Lao Bao Commercial Area Customs Branch?

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Lao Bao Special Economic- Commercial Area. Illustrative photo

In order to ensure Customs management at Lao Bao Special Economic- Commercial area, the General Department of Vietnam Customs (GDVC) has guided Quang Tri Customs Department to implement.

Accordingly, the GDVC has directed Quang Tri Customs Department to assign Lao Bao Border Gate Customs Branch to inspect and supervise for imports and exports at 3 subordinate border gates in Quang Tri province (Ta Rung, Thanh, Ban Cheng).

Regarding regulations on permission of goods trading conducted by traders at subordinate border gates and border crossings, the GDVC instructed that under provisions in Article 7 of Decision 52/2015/QD-TTg of the Prime Minister, these subordinate-border gates and border crossings must meet the following conditions:

Specialized management forces such as Customs, Border Guard and Quarantine regularly operate at Subordinate-border gates and border crossings.

Technical infrastructures to ensure State management, including headquarters of competent forces; arrears of inspection, control and supervision; warehouse and storage yards for goods gathering; roads; equipment, facilities and other necessary conditions.

Therefore, for subordinate border gates and border crossings which have not satisfied the above conditions, the GDVC has requested Quang Tri Customs Department to report and consult the People's Committee of Quang Tri province to direct, invest and complete the technical infrastructures to ensure Customs management.

For the tax treatment of investors’ vehicles with LB registration plates, the GDVC has agreed with the proposal of Quang Tri Customs Department to closely control the circulation and domestic use of these vehicles when waiting for a decision of competent level.

Specifically, Quang Tri Customs Department has proposed that the procedure of temporary import for re-export is not applied to vehicles with 74LB registration plates. At the same time, the Department needs to inform the Police of Quang Tri province to closely control the domestic area circulation of these vehicles. With the tax guidance of the GDVC, Quang Tri Customs Department will assign Lao Bao Border Gate Customs Branch to carry out relevant procedures.

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The Lao Bao Commercial area was established in 1998. In 2005, this area has enjoyed specialized preferential policies and became Lao Bao Special Economic-Commercial Area. The exchange of goods and services of Lao Bao with the outside was import and export relations. The entire area enjoyed preferential policies as a non-tariff zone, so it needed to establish the Customs Branch of the Commercial Area to inspect, supervise goods in and out and between the domestic and the Commercial Area.

When the Law on Import and Export Duties took effect (1st September 2016), the Lao Bao Special Economic-Commercial Area was not a non-tariff zone, and the exchange of goods and services between the area and the domestic area was not import and export relations.