Applying new port closing time from Nov. 15, 2006

As an effort to promote trade and commerce as well as diversify terminal services, the Free Trade Port Zone of Cat Lai terminal (FPZ) underwent operational pilot under the Decision No 37/2006/QD-TTg dated January 10, 2006 by the Prime Minister. With a lot of services and preferential conditions, FPZ offers more opportunities and helps drive competitiveness for customers as Vietnam integrates with the world economy. FPZ began to run its business in May 2006.

- After a pilot period of three months, Saigon Newport Company (SNP), in cooperation with Customs Branch, Zone 1 and Customs Department, Customs Specialized Office organized a meeting for the resolution of customers’ queries and arising problems in relation to FPZ formalities and services on August 24, 2006. In the meeting, all questions had all been cleared up except for the three cases (please refer “Brief of FPZ services”), which SNP has, in written document, asked for guidance from the Department of Customs to create favorable conditions for both customers and Customs Offices.
SNP plans to put the official website of FPZ into use in mid-September, 2006. Customers are bound to access all relevant and beneficial information, seek consultancy and guidance about operations at FPZ and are especially able to put ads free of charge at www.freeport.vn

BRIEF OF FPZ SERVICES

1.Services to be rendered at FPZ in accordance with the Decision No 37/2006/QD-TTg by the Prime Minister:

- Trading.
- Goods packing, repacking, arranging, rearranging.
- Containers strengthening, repairing or replacing in the case of transshipment containers, exports and imports, and goods in transit.

2.Services to be approved by the Customs Branch, Zone 1 subsequent to the meeting for the resolution of customers’ queries and arising problems in relation to FPZ formalities and services on August 24, 2006:

- Destination for goods to be transferred to FPZ must appear as “FPZ” in Manifest. In case goods imported into Vietnam are initially stored at Cat Lai terminal, adjustments on Manifest are to be made in order that they can be transferred to FPZ.
- Services for goods temporarily imported and afterward re-exported for trading purposes at FPZ include containers consolidation, replacement… by sea, land or air.
- Transit goods via Vietnam can initially be stored at FPZ and afterward partially stuffed to be transported by land to a third country.
- CFS transit goods via Vietnam by land and air can be stuffed together with inland CFS goods to be exported to a third country.
- For LCL goods, part of which for trading domestically and the rest for exporting to a third country where destination appears as “FPZ” on Manifest and B/L, issuance of another B/L for inland goods is unnecessary while it is required to be stamped “Checked” by FPZ Observation Team.
- Origin for imports at FPZ, part of which for trading domestically and the rest for re-exporting or in new packages exporting to a third country, must be retained.
- Car imports at FPZ can be wiped off, decorated (inland ornaments are to fulfill customs formalities), displayed and advertised.

3.Other services and issues to be considered for implementation by higher authority:

Such services and issues include:
- Processing and assembling of semi-products and spare parts for domestic consumption or export to a third country.
- Handling of goods, crackers and fireworks for instance, banned in Vietnam yet legally imported and consumed in trading partners.
- Requirement for Clearance Sheet by method of payment via bank since FPZ services are free from customs declaration. Temporary solution approved by the Customs Branch, Zone 1 is to make use of Clearance Sheet for goods in transit