A recommendation on the EPA certification for Phu Tho ESTEC Company

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Name of recommendations: A recommendation on the EPA certification for Phu Tho ESTEC Company

Status: Responded

Recommended by units: Phu Tho ESTEC Company (the Tu Da industrial cluster- Phu Ninh Branch - Phu Tho Province)

Official letter: 1229/PTM - VP, dated: 2018-06-05

Recommended contents:

The Phu Tho ESTEC Company is planning to develop a Tu Da Industrial Cluster- Phu Ninh - Phu Tho Province into industrial zone according to information of the web page of the People’s Committee of Phu Tho Province. This information is also included in the promotional materials of Phu Tho Province. Phu Tho ESTEC Company is based on the information of the plan and through the introduction of the Phu Tho People's Committee, which has decided to move the plant from Thuy Van - Viet Tri - Phu Tho Industrial Zone to Tu Da - Phu Ninh - Phu Tho from June 2016. However, the Tu Da Industrial Zone has not yet been transformed into an industrial .

After relocating the plant to the Tu da Industrial Cluster, the Phu Tho ESTEC Company has applied for EPE certification, but the location of the plant is not the Industrial area, but is the industrial cluster. Therefore, the Phu Tho ESTEC Company has not been granted the EPE business certificate..

As a supplier to supply goods for Samsung, EPE certification is essential. Due to the export business, the EPE business certification will help enterprises to be enjoyed tax-free benefits and simplify import-export procedures. The Phu Tho ESTEC customers are Samsung Group that is urging Phu Tho ESTEC Company to complete the procedure to convert into EPE business. In the worst case without receiving EPE certification, ESTEC may lose the right to continue providing Samsung products in the future.

The Phu Tho ESTEC Company is proposing Phu Tho People's Committee to support and create conditions for the Phu Tho ESTEC Company to be granted EPE business certificate, as well as for many enterprises that be not located in other industrial zones and export processing zones are facing difficulties in certifying EPE in the same case.

Responded by units: The People's Committee of Phu Tho Province

Official letter: 3637/UBND - KTTH, dated: 0008-08-18

Responded contents:

At the Decision No. 2193 / QD-UBND dated September 10, 2015 of the People's Committee of the Phu Tho Province which has planned Phu Ninh Industrial Park with an area of 93 hectares, including the area of 33.09 hectares of business investment projects in industrial production infrastructure and service of the Tu Da - An Dao Commune in 3 communes: Tu Da, An Dao and Binh Bo. However, when implementing the plan to build the 1/2000 scale of the Phu Ninh Industrial Park, it was found that the proposed site was not suitable; As a result, the provincial People's Committee has adjusted the planning area of the industrial zone from Tu Da, An Dao, Binh Bo, and Phu Ninh districts to new planning positions in Vinh Phu Commune, Phu Ninh District with a scale of 99.54 ha.

2. On recommendation: “The Phu Tho ESTEC Company proposed the Phu Tho People's Committee to support and create conditions for the Phu Tho ESTEC Company to be granted EPE business certificate, as well as for many enterprises that be not located in other industrial zones and export processing zones are facing difficulties in certifying EPE in the same case”..

The response is as follows:

The conversion of the Phu Tho ESTEC Co., Ltd. in the Tu Da Industrial Cluster, Phu Ninh District into an processing enterprise has been responded by the Ministry of Planning and Investment and Ministry of Finance in documents No. 4732 / BKHDT- QLKKT dated June 12, 2017 that not be approved, the Document No. 8118 / BKHDT-DTNN dated October 4, 2017 of the Ministry of Planning and Investment; the Document No. 129 / BTC-TCDN dated January 5, 2018 of the Ministry of Finance because it does not meet the conditions for conversion into export processing enterprises according to regulations. At the same time, under Clause 10, Article 2 of the Decree No. 82/2018 / ND-CP dated May 22, 2018 (with effect from July 10, 2008)" has stipulated: Processing enterprise is  an enterprise established and has been operating in an export processing zone or an enterprise specializing in the manufacture of products for export activities in industrial zones and economic zones". Therefore, the company does not meet the conditions for transformation into processing enterprises. Exportation under the provisions of this Decree.

The above is the response of the Chairman of the People's Committee of Phu Tho Province on the recommendations of Estec Phu Tho Co., Ltd.

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