EPE RENTING FACTORY

Question:

Can a company that is an export processing enterprise lease part of its factory to another export processing enterprise?

Answer:

According to the provisions of Article 62 of Decree 31/2021/ND-CP on Activities of investors implementing investment projects in industrial parks, export processing zones, high-tech zones and economic zones as follows:

Article 62. Execution of investment projects in industrial parks, export-processing zones, hi-tech zones and economic zones

1. Leasing or purchasing warehouses and depots to serve their business operation.

2. Using and paying for the use of technical infrastructure and service facilities, including systems of roads, electricity supply, water supply and drainage, communications, wastewater treatment, waste treatment and other public facilities (hereinafter referred to as “infrastructure charges”).

3. Transferring and receiving the land use rights, leasing out and subleasing out land on which technical infrastructure has been constructed to construct buildings, offices and other works serving their business operation in accordance with regulations of law on land and real estate business.

4. Leasing out or subleasing out their buildings, offices and other works to serve their business operation in accordance with regulations of law on land and real estate business.

5. Carrying out other activities specified in the Law on Investment, this Decree , Government’s regulations on industrial parks, export-processing zones, hi-tech zones and economic zones, and relevant regulations of law.

Article 28a. Conditions for customs inspection, supervision and application of tax policies for export processing enterprises that are non-tariff zones according to Decree 18/2021/ND-CP amending Decree 134/2016/ND-CP guiding the law Import-export tax stipulates:

     1. Conditions for customs supervision and inspection of an EPE that is a FTZ include:

a) There are hard fences that separate the EPE from the outside; there are gates/doors that are the only ways for goods to enter and leave the EPE.

b) There are surveillance cameras at the entrances and exits where goods are stored throughout the day (24/24 hours, including days off and holidays); images recorded by these cameras shall be transmitted to the supervisory customs authority of the EPE and retained at the EPE for at least 12 months.

The Director of the General Department of Customs shall prescribe the format of surveillance camera data to be exchanged between customs authorities and EPEs mentioned in Point b of this Clause.

c) There software for management of duty-free goods of the EPE serving preparation of reports on receipt, discharge, inventory and use of imports required by customs laws.

We request your company to refer to this.

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