Vietnam Customs to revise procedures for export processing enterprises

Vietnam Customs is moving to revise procedures for export processing enterprises (EPEs) to better align with practical business needs. This follows recommendations from the American Chamber of Commerce in Vietnam (AmCham) and the U.S.-ASEAN Business Council (USABC) regarding difficulties in tax and customs sectors.

Under current regulations, trade between EPEs and other areas within Vietnam that are not non-tariff zones is classified as import-export activity. However, existing circulars allow EPEs and their partners to choose whether or not to perform customs procedures for specific activities. These include goods used for research and development (R&D), inspection, testing, classification, and the movement of goods between factories or warehouses within an EPE sharing the same tax code.