Respectfully to: The Samsung Electronics Vietnam Co., Ltd

For replying the official dispatch No. 06/06/SEV dated June 18, 2012, of your company, on requesting for answering some questions involving customs procedures when transform the Samsung Electronics Vietnam (SEV) Co., Ltd into the export processing enterprise (EPE), the Ministry of Finance has opinions as follows:

1. Regarding the sale of goods imported by EPE into domestic market:

- At present time, the execution of the export right, import right, and distribution right, according to the Government’s Decree No. 23/2007/ND-CP dated February 12, 2007, applicable to the enterprises with foreign capital and being EPEs are facing some difficulties, in which include difficulty involving the sale of goods imported by EPE into domestic market as mentioned by your Company.

In order to solve all these difficulties, the Ministry of Finance is consulting with the Ministry of Industry and Trade, after receiving opinion of the Ministry of Industry and Trade, the Ministry of Finance will have document guiding specifically on the customs procedures to local customs offices and enterprises, included your Company for unified implementation.

- In case where SEV Co., Ltd has branch in inland and this branch not operate according to regulation of EPEs, this branch may perform the export right and import right under the Company’s authorization. The customs procedures shall comply with provisions on customs procedures for import commercial goods which shall be the same as enterprises with foreign capital in Vietnam performing the export right and import right.

- The goods purchase and sale between EPIC and its branch in inland will perform only in case where branch organizes independent accounting.

2. The handling of matters involving tax for import raw materials under type of raw materials imported for production of export goods, but these raw materials have not yet been produced into export products and still in tax grace periods when company transform into EPE, after decision on transforming into EPE has been issued.

a) SEV Company does procedures for liquidity in accordance with regulation.

...

...

...

Because the raw materials imported for production of export goods are still in grace period of tax payment, enterprise will not be sanctioned due to the delayed tax payment.

c) To simply customs procedures, based on volume of raw materials remaining in the liquidity table of warehousing, ex-warehousing and inventory; request of enterprise, the customs Sub-Department where do procedures for enterprise will confirm for changing these raw materials into the raw materials imported for production of the EPE, not required to open declaration for re-export into EPE.

d) Procedures for import of residual raw materials into EPE: Enterprise will declare documents for putting goods into EPE as guide in the Circular 222/2009/TT-BTC dated November 25, 2009, serving as the basis for entering into computer to monitor and make liquidity afterwards.

3. Regarding custom procedures relating to works construction and installment for EPE:

- Content stated in Clause 2 Article 16 of the Circular No. 06/2012/TT-BTC of the Ministry of Finance is provision on conditions for deducting and repaying VAT for works construction and installment for EPE.

- Regarding customs procedures, when not yet had new provision, to request your Company to comply with provision in clause 3 Article 21 of the Government’s Decree No. 29/2008/ND-CP dated March 14, 2008 and point b Clause 1 Article 45 of the Circular No. 194/2010/TT-BTC dated December 06, 2010 of the Ministry of Finance.

Accordingly, when putting goods from inland into EPE to perform contract of works construction and installment for EPE, customs procedures must be done in accordance with point d, Clause 3, Article 45 of the Circular No. 194/2010/TT-BTC: “The inland enterprises and EPEs shall do customs procedures according to steps and use the on-spot export and import declaration form”. If EPEs do procedures under the electronic customs form, they comply with provision in Clause 2 Article 54 of the Circular No. 222/2009/TT-BTC dated November 25, 2009, of the Ministry of Finance.

In case where the SEV Company signs contract with domestic contractor for construction and installment of its works according to the lump-sum form, the contractor is customs declarer for import of raw materials for construction and installment from inland to EPE. Customs dossier, apart from documents of customs dossier when do procedures for import of goods from inland into EPE, the customs declarer must submit additionally documents related to contractor specified in item e.7.7, point e, Clause 2, Article 11 of Circular No. 194/2010/TT-BTC dated December 06, 2010.

4. Establishment or hiring warehouse for storage of goods in inland.

...

...

...

Goods preserved in warehouse hired by your Company, and transport of goods between EPE and warehouse must be subject to management of customs agencies.

To ensure management of customs agencies, this warehouse must satisfy conditions:

- Having certificate of ensuring safety against fire, explosion issued by competent agencies;

- Warehouse must ensure to have a solid structure, and have separate distance, just be used for preservation of products manufactured by Company, be eligible for customs agencies to examine, supervise as necessary.

Transport of goods between EPE and warehouse is not required to do customs procedures.

Before using this warehouse for storage of goods of EPE, the SEV Company must notify the Customs Department, Customs Sub-Department where do customs procedures for Company to be guided specifically and perform measures of management.

The Ministry of Finance answers to Company for information and implementation.

...

...

...