Law on Foreign Trade Management to be amended to facilitate trade

Law on Foreign Trade Management to be amended to facilitate trade

The Ministry of Industry and Trade has proposed new policies when amending the Law on Foreign Trade Management, aiming to facilitate trade and strengthen the implementation of international commitments to which Việt Nam is a member.

Some provisions of the Law on Foreign Trade Management have revealed limitations and inadequacies, failing to keep pace with the requirements of reality and international commitments to which Việt Nam is a member.

Under a draft law amending and supplementing several articles of the Law on Foreign Trade Management, which has been released for public comment, the ministry said that after reviewing and evaluating the implementation of the law it found that export and import activities of businesses were becoming increasingly diverse and complex, linked to global production and supply chains and the demands of deeper international economic integration.

In this context, some provisions of the law have revealed limitations and inadequacies, failing to keep pace with practical requirements and international commitments to which Việt Nam is a party, according to the ministry.

Specifically, current legal regulations lack an appropriate mechanism to allow businesses to re-import goods they produced that were previously exported for repair, warranty or other legitimate purposes, particularly in cases where the goods are prohibited from import. This creates difficulties for companies in organising production and operations and reduces the flexibility of international trade activities.

In addition, regulations on issuing Certificates of Origin and approval documents allowing traders to self-certify the origin of exported goods lack uniform criteria between competent central and local authorities. This may cause disruptions in the issuance of Certificates of Origin, affecting export progress and the credibility of Việt Nam’s origin certification system with free trade agreement partners.

Implementing international commitments, especially under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, requires Việt Nam to gradually improve the self-certification mechanism for imported goods. However, the current law lacks comprehensive regulations on the delegation of authority, management responsibilities and mechanisms for importers eligible to self-certify the origin of imported goods, creating difficulties in implementing signed commitments.

Some provisions of the law also lack internal consistency, particularly the relationship between regulations on certificates of origin in Articles 32 and 34, causing confusion in practical application and implementation.

Furthermore, the authority to issue Certificates of Free Circulation is still limited to State agencies. This is inconsistent with the requirements of administrative procedure reform, trade facilitation and the practices of some importing countries, resulting in additional costs and time for businesses.

Based on these practical requirements, the ministry said amendments to the law were necessary to remove difficulties and obstacles for businesses, ensure the uniformity and consistency of the legal system and meet the demands of international economic integration while improving the effectiveness and efficiency of State management in foreign trade.

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