CIRCULAR

RE: GUIDELINES ON IMPLEMENTATION OF SOME CERTAIN ISSUES RELATED TO TRADE ACTIVITIES AS SPECIFIED IN THE REGULATIONS ON THE LAO BAO SPECIAL ECONOMIC – TRADE ZONE OF QUANG TRI PROVINCE PROMULGATED AS AN ATTACHMENT TO DECISION 11/2005/QD-TTG DATED JANUARY 12, 2005 BY THE PRIME MINISTER

Implementing Decision 11/2005/QD-TTg dated January 12, 2005 by the Prime Minister on promulgation of the Regulations on the Lao Bao Special Economic – Trade Zone of Quang Tri province, the Ministry of Trade hereby provides guidelines on materialization of some certain issues related to trade activities as specified in Chapter II of the Regulations as follows:

I. SUBJECTS OF TRADE ACTIVITIES IN THE LAO BAO SPECIAL ECONOMIC – TRADE ZONE

1. Enterprises of every economic sector with headquarters based in the Lao Bao Special Economic – Trade Zone and branches those operating at the zone granted business registration certificate by competent agencies.

2. Enterprises with foreign investment granted investment license by competent agencies for operation in the Lao Bao Special Economic - Trade Zone and branches of foreign-invested enterprises based in this zone.

3. Branches of foreign enterprises granted license for establishment in the Lao Bao Special Economic - Trade Zone by competent agencies.

Subjects of economic – trade activities in the Lao Bao Special Economic - Trade Zone as specified in Clause 1, 2, 3 are collectively called economic enterprises at the Lao Bao Special Economic - Trade Zone.

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II. TRADE ACTIVITIES IN THE LAO BAO SPECIAL ECONOMIC - TRADE ZONE

1. Commodity export - import

a. Enterprises operating in the Lao Bao Special Economic - Trade Zone are permitted to export and import commodities for their business requirements, matching specifications of their business registration certificate, investment license, and branch investment license, and not included in the list of products under export – import prohibition in accordance with the current law of Vietnam.

Individuals with business in the Lao Bao Special Economic - Trade Zone are permitted to export and import commodities for their business requirements, matching specifications of their business registration certificate, and not included in the list of products under export – import prohibition in accordance with the current law of Vietnam.

b. For export – import of products which are included in Vietnam’s list of products under export – import prohibition but not included in the similar lists of Laos and other countries, enterprises operating in the Lao Bao Special Economic - Trade Zone must ask the Managing Board of the zone for its proposal to the Prime Minister for his approval.

c. For export – import of products under quota, special control, and Government control, enterprises operating in the Lao Bao Special Economic - Trade Zone must ask the Managing Board of the zone for its proposal to the Ministry of Trade, competent ministries, and the Prime Minister for their approval.

For export – import of products requiring license by the Ministry of Trade, enterprises operating in the Lao Bao Special Economic - Trade Zone only need to asked for approval of the Managing Board of the zone.

d. Goods exported from Vietnam to the Lao Bao Special Economic - Trade Zone and imported from the zone to Vietnam must pass the border gate between Vietnam and the zone and go through every necessary customs procedures as well as are supervised by customs authorities in accordance to the current law of Vietnam on export, import goods.

Agricultural products made by farmers in the Lao Bao Special Economic - Trade Zone and products manufactured or processed in the zone without imported materials or components are exempt from customs procedures when being imported in to Vietnam.

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e. Goods exported to a foreign country from the Lao Bao Special Economic - Trade Zone and imported from a foreign country into this zone must obey to supervision of customs authorities on prohibited export – import products.

f. Lao Bao Special Economic - Trade Zone-based branches of foreign enterprises are permitted to purchase commodities from Vietnam and sell in the zone or export to a foreign country; import goods from a foreign country to sell in the zone or export to Vietnam; purchase commodities from the zone to export to a foreign country or to Vietnam for their business requirements, matching the list of products that Vietnam-based branches of foreign enterprises are allowed to trade.

2. Temporary import and re-export of commodities

a. Enterprises operating in the Lao Bao Special Economic - Trade Zone are permitted to temporarily import and re-export commodities.

For temporary import and re-export of products included in the lists of products under export – import prohibition and temporary import – re-export ceasing in accordance with the current law of Vietnam, enterprises operating in the Lao Bao Special Economic - Trade Zone must ask the Managing Board of the zone for its approval.

b. Temporary import and re-export activities include:

- Importing goods from a foreign country to export to a foreign country with obedience to procedures on import/export of goods into/from the Lao Bao Special Economic - Trade Zone. Customs procedures on export – import of these goods are in compliance with the Ministry of Finance’s regulations.

- Importing goods from Vietnam  to export to a foreign country or from a foreign country to export to Vietnam with obedience to procedures on import/export of goods into/from the Lao Bao Special Economic - Trade Zone. Customs procedures on export – import of these goods are in compliance with the Ministry of Finance’s regulations.

3. Trans-national transport of commodities

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b. Trans-national transport of commodities includes:

- Purchasing goods from a foreign country to sell to a foreign country without going through procedures to import those goods into the Lao Bao Special Economic - Trade Zone.

- Purchasing goods from a foreign country to sell to Vietnam without going through procedures to import those goods into the Lao Bao Special Economic - Trade Zone.

- Purchasing goods from Vietnam to sell to a foreign country without going through procedures to import those goods into the Lao Bao Special Economic - Trade Zone.

c. Trans-national transit of goods via Vietnam border gates is controlled by the customs authorities in compliance with Vietnam’s law of current practice.

4. Transit of commodities via the Lao Bao Special Economic - Trade Zone.

a. Enterprises in the Lao Bao Special Economic - Trade Zone operating in the fields of forwarding and shipment are allowed to deal with transit of commodities through this zone.

b. Transit of goods from a foreign country through the Lao Bao Special Economic - Trade Zone to a foreign country must be in accordance with Vietnam’s law of current practice.

c. Goods manufactured in Vietnam exported to a foreign country or goods imported from a foreign country into Vietnam through the Lao Bao Special Economic - Trade Zone must go through customs procedures under instruction by the Ministry of Finance.

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a. Enterprises operating in the Lao Bao Special Economic - Trade Zone can process goods for businesses from Vietnam or foreign countries in any volume and any product.

Individuals with business in the Lao Bao Special Economic - Trade Zone can process goods for businesses from Vietnam or foreign countries in any volume and any product.

For processing of goods included in the list of products under export-import prohibition or ceasing in accordance with Vietnam’s law of current practice, enterprises and individuals with business in the Lao Bao Special Economic - Trade Zone can only sign contracts with approval of the Managing Board of the zone.

b. For their business requirements, enterprises operating in the Lao Bao Special Economic - Trade Zone can outsource to a foreign country or Vietnam products that are not included in the list of goods under circulation prohibition in accordance with Vietnam’s law of current practice.

For their business requirements, individuals with business in the Lao Bao Special Economic - Trade Zone are allowed to outsource to Vietnam products that are not included in the list of goods under circulation prohibition in accordance with Vietnam’s law of current practice.

III. GOODS CIRCULATED AND TRADED IN THE LAO BAO SPECIAL ECONOMIC - TRADE ZONE

1. All goods are freely circulated and traded in the Lao Bao Special Economic - Trade Zone excluding those included in the list of products under circulation prohibition in accordance with Vietnam’s Law of current practice.

2. Commodities included in the list of products under trading restriction in accordance with Vietnam’s law of current practice:

a. Enterprises and individuals doing business in the Lao Bao Special Economic - Trade Zone can only trade commodities included in the list of products under special trading restriction in accordance with Vietnam’s law of current practice if they get permit from relevant ministries. To get this permit, enterprises or individuals ask the Managing Board of the zone for its proposal to relevant ministries.

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3. Commodities included in the list of products traded under certain conditions in accordance with Vietnam’s law of current practice:

a. For products requiring Trading Qualification Certificate, enterprises and individuals doing business in the Lao Bao Special Economic - Trade Zone must asked the Managing Board of the zone for the required certificate.

b. For products not requiring Trading Qualification Certificate, enterprises and individuals doing business in the Lao Bao Special Economic - Trade Zone need to qualify conditions as specified in the Vietnam’s law of current practice.

IV. IMPLEMENTATION

This Circular will come into effect in 15 days after it is publicized on the Gazette and replace Circular 11/1999/TT-BTM dated May 11, 1999 detailing implementation of Decision 219/1998/QD-TTg dated November 12, 1998 by the Prime Minister on promulgation of the Regulations on Lao Bao area encouraged for economic and trade development of Quang Tri province./.

To:

- Central Committee Secretarial Board
- Prime Minister, Deputy Prime Ministers
- Ministries, ministry-level agencies, Government’s agencies
- People’s Councils, People’s Committees of provinces and cities under central management
- National Assembly Office, National Council, Committees of National Assembly
- President Office
- Party Central Office and Boards
- Supreme People’s Procuracy
- Supreme People’s Court
- Central bodies of organizations
- National Administration Institute
- Gazette
- Government Office
- Archive

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