Introduction To Cat Lai Free Port Zone Of SNP

SNP’s Cat Lai Terminal is a dedicated container terminal, which had been planned and built at Cat Lai Ward, District 2, Hochiminh City. It is the biggest container terminal in Vietnam with the total area of 60 ha, 20.000 m2 warehouses, 450.000 m2 CYs, 973 m berth length equipped with 12 quayside cranes including 10 German-made Kranbaun Eberswalder Gantry Cranes.

In 2006, Cat Lai is expected to handle more than 1.3 millions teus equivalent to 16 millions tons of goods, increasing by 20% compared to that of 2005, accounting for around 55% to 60% of HCMC’s market share in terms of imported/exported containers and nearly 90% of HCMC’s throughput of international transshipment goods.

With the important location of Cat Lai Terminal, SNP, the owner is the first port operator in Vietnam who was given the permission to construct and operate the pilot “free port zone” by the Prime Minister. The free port zone with a lot of services and preferential conditions will operate in accordance with its own specific regulations, which were issued in accordance with the Decision No. 37/2006/QD-Ttg dated 10 February 2006.

1. Facilities of Free Port Zone:
• The Free Port Zone is constructed on the surface of 8,536m2 in Cat Lai Phase 1, isolated from the surrounding areas by the three-meter-high fence.
• It has the exhibition area of 80 m2, warehouses of 1,480 m2, container yard area of 6,959 m2.
• It is furnished with modern equipment and management technology so that it can be able to serve shipping lines and customers around the clock.

2. Goods passing via the Free Port Zone
All types of goods shall be permitted to pass via the Free Port Zone, except for narcotics, radioactive substances, arms and ammunition, and other forbidden goods under the provisions of the international treaties to which Vietnam is a signatory.

3. Services to be rendered in the Free Port Zone:
• Handling/ stevedoring services and maritime aid services.
• Goods trading, packing, repacking, arranging, rearranging; strengthening, repairing or replacing containers in the case of transshipment containers, exports and imports, and goods in transit.

4. Customs procedures for goods passing via the Free Port Zone
• It is not required to carry out the import procedures for goods transferred to the Free Port Zone from abroad, but the goods owner or representative must provide the Customs agency with a manifest.
• Exports and imports passing via the Free Port Zone must comply with all customs procedures as stipulated.
• The customs procedures for goods packed in transshipment containers shall be in compliance with the provisions of law on the container transshipment service at Vietnamese seaports.
• Goods in transit via the Free Port Zone must comply with the customs procedures in accordance with the provisions of law.

5. Taxes for goods passing via the Free Port Zone
• Goods transferred from abroad to the Free Port Zone are not subject to import duties, value added tax, and special sales tax.
• Goods transferred from Vietnam to the Free Port Zone, comprising consumer goods, stationery and office equipment serving the operations in the Free Port Zone shall not be subject to export duties and export procedures, but sale invoices are required to be produced as provided for by the Ministry of Finance.

6. Time for grand freeing:
• SNP’s Free Port Zone in Cat Lai terminal is planned to put into operation in Mid April 2006