Trade minister fields questions about trade fraud
Trade minister fields questions about trade fraud
Poor accountability over origin labels on products from manufacturers and importers has enabled the emergence of origin and trade fraud, as in the Khai Silk and Asanzo cases, Minister of Industry and Trade Tran Tuan Anh said at a National Assembly (NA) question-and-answer (Q&A) session on November 7.
At the session, the minister pointed out the loophole in Decree 43, which stipulates that manufacturers and importers must attach country of origin labels to their products on their own and ensure the information displayed is correct.
As such, firms have taken advantage of the regulation to attempt trade fraud and cheat customers. The Khai Silk and Asanzo cases exemplified this origin fraud, Minister Anh stated.
To close the loophole, in 2018, the ministry reported the issue to the prime minister and proposed introducing a circular stipulating requirements for issuing certificates of origin for products.
“This is a hard task, so the ministry consulted other ministries and departments on the draft circular,” the minister was quoted by the Government news website as saying.
The draft circular guiding the granting of certificates of origin for products sold in the local market has now been completed, he remarked, adding that the ministry is gathering feedback on the draft from residents, organizations, agencies and firms.
NA Deputy Nguyen Tien Sinh noted at the end of the Q&A session on November 6 that a lack of transparency in publicizing the regulations guiding how a product can be labeled “made in Vietnam” has confused local enterprises, such as Asanzo, so they do not know when they are flouting regulations on origins.
In response, Minister Anh highlighted some laws and regulations associated with domestic trade operations, including the Law on Foreign Trade Management, the Law on Standards and Technical Regulations and the Law on Customs, explaining that currently, the ministry is applying a series of regulations and executing policies related to consumption in the local market and import and export activities.
The ministry had earlier introduced Decree 31 guiding the adoption of the Law on Foreign Trade Management as it concerned the origin of goods, he stated. The decree is aimed at guiding how agencies can issue certificates of origin.
Minister Anh also said that the ministry has stepped up efforts to publicize trade fraud practices among enterprises, while urging them to be more vigilant in avoiding these practices.
Besides this, the prime minister has issued an order to enhance the State governance over import, export and investment processes to curb trade fraud. The minister noted that his ministry is struggling to eliminate trade fraud.
Also at the session on November 7, Minister Anh stressed that it is urgent to clamp down on the rampant smuggling of sugar into Vietnam, which is putting the Vietnamese industry at risk.
He stated that he was committed to preventing illegal sugar imports from entering Vietnam.
The ministry intends to collaborate with the Ministry of Agriculture and Rural Development and the Vietnam Sugarcane and Sugar Association to adopt effective measures to protect the local sugar sector, Anh added.
