1. The Hon La Economic Zone consists of major functional zones: the non-tariff zone and the tariff zone.

- The non-tariff zone of the Hon La Economic Zone is a zone delimited in the general planning for socio-economic development and general planning for building. The non-tariff zone is separated from the tariff zone in the Hon La Economic Zone and Vietnam’s inland with a fencing system, has gates and entrances to ensure the control by concerned functional agencies. In the non-tariff zone, there is a customs office to supervise, check and carry out customs procedures for goods taken into and out of the zone. There will be no permanent or temporary residents (including foreigners).

- The tariff zone is the remaining zone of the Hon La Economic Zone. In the tariff zone, there are other functional zones such as industrial parks, export-processing zones, port and port logistics service areas, urban zones, service-tourist zones, residential areas and administrative zones.

The size and location of each functional zone are specified in the general planning of the Hon La Economic Zone approved by the Prime Minister.

2. The Management Board of the Hon La Economic Zone may hire foreign consultants to participate in making detailed planings on functional zones such as urban zone, non-tariff zone, tourist zone and other functional zones in line with the general planning.

3. In the non-tariff zone, the following major production and business activities may be carried out:

a) Goods entrepot, receiving, transhiping and transporting goods from domestic to abroad and vice versa;

b) Producing, processing, recycling, assembling exports, imports and goods for on-spot use;

c) Trade in goods including export, import, border-gate shift, temporary import for re-export, temporary export for re-import, distribution, duty-free shops and department stores;

d) Trade in services including sorting, packaging and forwarding of goods in transit, preservation, storage, bonded warehouse, post, telecommunications, finance, banking, transportation, insurance, recreation and entertainment, restaurants;

e) Trade promotion including fairs and exhibitions, product display shops, branches and representative offices of domestic and foreign companies, and financial-banking institutions and other commercial activities.

4. Relations of exchange of goods and services between the non-tariff zone and non-tariff zones of other economic zones with foreign countries and among economic organizations in the non-tariff zone shall comply with regulations on relations of exchange among foreign countries. Economic organizations operating in the non-tariff zone may export abroad and import from abroad all goods and services not banned by Vietnamese law from import and export. Goods from abroad imported into non-tariff zone or goods from non-tariff zone exported abroad shall not be liable to export or import tax (excluding goods specified in Clause 2, Article 15 of this Regulation).

5. The storage of goods in the non-tariff zone shall not be subject to temporal restrictions.

6. Foreign ships may directly enter the non-tariff port zone for receiving and handling goods, with people onboard not required to go through entry/exit procedures. Only ships are required to go through entry/exit procedures at buoy zero.

7. Goods taken into and out of the tariff zone in the Hon La Economic Zone shall comply with regulations on customs law, import-export tax, applicable to the convenient customs procedures.

8. Goods may be freely circulated between the tariff zone and Vietnam’s inland.

9. Relations of exchange of goods and services between the non-tariff zone and the tariff one (excluding the export-processing zone) in the Hon La Economic Zone and Vietnam’s inland shall comply with regulations on relations of exchange between foreign countries and Vietnam as well as current provisions of law, including those of tax, customs and commercial laws. Relations of exchange of goods and services between the non-tariff zone and the export-processing zone in the Hon La Economic Zone shall comply with regulations on relations of exchange among foreign countries.

10. Investors engaged in producing and trading in goods or providing services in the tariff zone in the Hon La Economic Zone and Vietnam’s inland may only import from the non-tariff zone goods and services not banned or restricted by Vietnam from import and may only sell into the non-tariff zone goods and services not banned by Vietnam from export.

11. Foreign investors shall be entitled to business investment in international telecommunications services reserved for Hon La Economic Zone with total expense decided by investors, in accordance with the process of international integration committed by Vietnam.

By N.Y