x Domestic and foreign businesses and investors want to invest in business and production in the non-tariff area but do not clearly understand what the non-tariff area is? Who is allowed to invest here? x Do you want to know if non-tariff zones are taxable and which non-tariff zones Vietnam currently has, in which provinces? x You wonder what role a non-tariff zone plays, how is it different from an export processing zone?
When Vietnam joined the WTO and TPP, concepts such as tariffs, non-tariff zones, non-tariff areas, etc. became increasingly familiar. Let's join PROSHIP.VN to find out what non-tariff is, what a non-tariff zone is and related knowledge below.
What is non-tariff? Who can operate in the non-tariff zone?
What is non-tariff and non-tariff zone?
What is non-tariff? Non-tariffs are separate policies for import and export goods.
What is a non-tariff zone? Is a geographical area with defined boundaries, separated from the outside territory by a hard fence, with gates and doors to ensure control conditions of the Customs and related authorities. There is a Customs agency that monitors and checks goods and vehicles entering and leaving the zone.
The non-tariff zone is an area with defined boundaries and separated from the outside territory by a hard fence, operating under the control of the Customs Authority and relevant authorities.
Subjects allowed to operate in the Non-Tariff Area
In Article 5 of the Regulation on the operation of non-tariff zones in economic zones and border gate economic zones issued together with Decision 100/2009/QD-TTg stipulates:
Subjects allowed to operate in the non-tariff zone
Entities operating in the non-tariff zone (collectively referred to as non-tariff zone enterprises) include:
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Vietnamese traders;
Branches and representative offices of Vietnamese traders;
Branches and representative offices of foreign traders in Vietnam;
Investors according to the provisions of investment law.
Does Vietnam have any non-tariff zones? What do activities in the non-tariff zone include?
List of non-tariff zones in Vietnam
As the above information was shared by Proship, you already know what the non-tariff area is. Next, in order to promote production and trade activities, non-tariff zones were established in many provinces and cities nationwide. List of non-tariff zones in Vietnam:
Thanh Thuy border gate economic zone, Ha Giang province
6
Thanh Hoa
Nghi Son Economic Zone
7
Nghe An
Southeast Nghe An Economic Zone
8
Ha Tinh
Vung Ang Economic Zone
9
Quang Binh
Hon La economic zone
10
Thua Thien – Hue
Chan May – Lang Co Economic Zone
11
Quang Nam
Chu Lai commercial economic zone
Nam Giang border gate economic zone
12
Quang Ngai
Dung Quat Economic Zone
13
Pacify
Nhon Hoi Economic Zone
14
Khanh Hoa
Van Phong economic zone
15
Tay Ninh
Moc Bai border gate economic zone
16
Kien Giang
Phu Quoc non-tariff area
Ha Tien border gate economic zone
17
Phu Yen
Southern Phu Yen Economic Zone
18
Ca Mau
Nam Can Economic Zone
…
…
…
In all provinces and cities from North to South, there are non-tariff zones to facilitate the production and business investment plans of many traders.
Activities in the non-tariff zone
Pursuant to Article 4 of the Regulations on the operation of non-tariff zones in economic zones and border gate economic zones promulgated together with Decision 100/2009/QD-TTg stipulates:
Activities in the non-tariff zone
1. In the non-tariff zone, there are activities:
a. Activities of trade in goods, trade in services and other activities specified in the Commercial Law;
b. Manufacturing, processing, recycling, assembling and processing goods.
2. The activities specified in Clause 1 of this Article must comply with relevant provisions of Vietnam's laws on goods and services banned from business, restricted business and conditional business.
What is the role of the non-tariff zone?
What is a tariff, what is a non-tariff zone, where are the non-tariff zones in Vietnam concentrated? have been answered. Next will be what is the role of the non-tariff area, is the non-tariff area subject to taxes?,...
In fact, the establishment of a non-tariff zone makes an important contribution to attracting investment and promoting economic development, especially trade activities. Because, non-tariff zone businesses can:
Income tax incentives for Vietnamese workers and foreign experts directly working, producing and doing business in border gate economic zones;
Corporate income tax incentives;
Goods and services produced and consumed in the non-tariff zone of the border gate economic zone are not subject to value added tax;
Goods and services from the non-tariff zone of the border gate economic zone exported abroad are not subject to value added tax;
The expanded tariff-free zone will attract business investment and promote economic development.
Goods and services traded between non-tariff zones in border-gate economic zones are not subject to VAT;
Goods and services from other functional areas in the border economic zone and goods and services from inland Vietnam exported to the non-tariff zone of the border economic zone are subject to a VAT rate of 0. %.
Distinguish between export processing zones and non-tariff zones
Export processing zones and non-tariff zones have the following differences:
An export processing zone is an industrial park specializing in the production of export goods, providing services for export production and export activities, and is separated from the outside area.
A non-tariff zone is an economic area located within the territory of Vietnam, established in accordance with the law, with defined geographical boundaries, separated from the outside area by a hard fence.
Establishment goals
To focus on producing export goods, providing services for export production and export activities
Helps customs and related agencies easily carry out inspection and supervision work.
The nature of geographical boundaries
Having geographical boundaries determined in the General Planning for construction of economic zones and border-gate economic zones approved by competent authorities in accordance with the provisions of law
Tax incentive policy
Implementing new investment projects in areas with difficult socio-economic conditions is eligible for a preferential tax rate of 20% for a period of ten years (10 years).
Tax exemption for 02 years and a 50% reduction in tax payable for the next 04 years for income from implementing new investment projects
Exemption from land rent for 07 years...
Goods in the non-tariff zone are subject to a VAT rate of 0% for each specific case,...
Proship Logistics has clarified the concept of what a non-tariff zone is , what a non-tariff zone is,... and through this you can also know whether a non-tariff zone is taxable or not as well as easily distinguish the difference between an Export Processing Zone and an Export Processing Zone. What is the non-tariff area to have a suitable investment and business plan... For any related questions or if you need to use cheap Multi-modal transport service, contact immediately 0909 344 247 .
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Bao Yen
Bao Yen is the editor of Proship.vn with many years of experience in the fields of transportation, logistics, import-export, and will bring readers the most useful information and knowledge.
