C/O delays threaten seafood and footwear exports

C/O delays threaten seafood and footwear exports

Delays in issuing certificates of origin are disrupting seafood and footwear exports, driving up costs and putting businesses at risk of missing preferential tariffs under free trade agreements.

Seafood and footwear businesses claim to be delayed in issuing C/O. Photo: baodautu.vn

The Vietnam Leather, Footwear and Handbag Association (Lefaso) and the Vietnam Association of Seafood Exporters and Producers (VASEP) have urged the Ministry of Industry and Trade (MoIT) to address the delays in issuing certificates of origin (C/O), which are directly affecting the progress of documentation, delivery, and export activities of members of these two associations.

According to VASEP, since responsibility for issuing C/Os was transferred from the Agency of Foreign Trade under the Ministry of Industry and Trade to the departments of industry and trade in localities on August 1, there have been delays in processing applications in several areas due to a sharp increase in the number of applications, while the process, personnel, and system have not kept pace.

“In addition, businesses have to re-register or update their trader profiles when transferring to a new C/O issuing authority. The problem is that during the time waiting for the profiles to be approved, which often takes up to 10 days, businesses cannot submit or complete the application for the certificate for export shipments. Meanwhile, businesses’seafood export activities are ongoing, with many orders having short delivery times and deadlines for submitting documents,” VASEP noted in a document submitted to the MoIT on August 14.

Meanwhile, Lefaso’s members have also encountered similar obstacles, impacting export activities to main markets such as the US, South Africa, Chile, and Asian regions China and the Philippines.

“According to feedback from Lefaso member businesses, the delay in issuing C/O is causing exporting businesses to face the risk of increased costs. In markets requiring C/O for customs clearance, delays cause shipments to be held at ports, incurring storage and warehousing costs and the risk of penalties for delays,” Phan Thi Thanh Xuan, vice president and general secretary of the Lefaso, said at the meeting on August 17.

“Lefaso believes that the risks associated with C/O Form B in the US market are serious. Although it is a non-preferential certificate, it is a crucial legal basis for determining product origin. Without C/O Form B when importing into the US, Vietnamese goods risk being suspected of or subject to tariffs as if they originated from China. In that case, businesses may face high trade defence taxes such as anti-dumping duties, countervailing duties, or other additional taxes, directly threatening the stability of export turnover to the US.”

Vasep and Lefaso warn that delays in issuing this certificate can prevent businesses from completing the necessary documents in time for customers to complete import procedures and benefit from preferential tariffs under free trade agreements; it also incurs warehousing and storage costs, delays in payment, and the risk of penalties for late document delivery.

In addition, the two associations say that delays in delivery and document completion also affect brand reputation and orders by disrupting the distribution plans of international brands. This reduces the credibility of the Vietnamese manufacturing industry, causing partners to consider shifting orders to other countries.

“Lefaso proposes allowing an automatic transition mechanism, inheriting the data of registered traders on the electronic origin certification management system to the provincial Departments of Industry and Trade, avoiding the need for businesses to start over,” said Xuan

“During the transition period, the association proposes the application of a “temporary trader profile” mechanism or permit to submit a trader profile at the same time as the application for C/O so that businesses can submit applications for C/O concurrently with the assessment process. Lefaso also proposes to supplement personnel, training, and provide technical support to Departments of Industry and Trade in localities that have many factories, such as Ho Chi Minh City and Dong Nai."

Immediately after receiving feedback from businesses regarding delays in issuing C/O, the Import-Export Department under the MoIT, on August 17, held a meeting with the Department of Customs, the E-commerce and Digital Economy Department, the Departments of Industry and Trade of 34 cities and provinces, regional Import-Export Management Offices, to discuss and resolve difficulties arising in the process of receiving, processing, and issuing C/O at the local level.

The meeting took place amid a rapid increase in the number of applications submitted to local C/O-issuing agencies after Circular No.26/2026/TT-BCT came into effect on August 1, regarding regulations on the authority to issue C/O.

According to the report of Ho Chi Minh City Department of Industry and Trade, in the first week of implementation, some applications did not meet the required components as stipulated in Decree No.31/2018/ND-CP. In some cases, the list of goods lacked signatures and seals, and supporting documents such as invoices and copies of the farmer's citizen identification cards were missing. Some businesses also mistakenly selected the wrong C/O issuing agency due to a recent change in receiving units, resulting in applications being repeatedly circulated or returned.

“The department stated that it will continue to coordinate with the E-commerce and Digital Economy Department to review issues related to both operational and technical aspects,” Hai said.

Nguyen Anh Son, director of the Agency of Foreign Trade, said, “The department will continue to coordinate with the Department of E-commerce and Digital Economy to review emerging issues. It needs to focus on resolving outstanding issues related to pending applications at several agencies, especially at the departments of Industry and Trade in Dong Nai and Ho Chi Minh City."

“The department directed the organisation of additional training courses in the southern region this month. It also plans to organise a working group to visit localities to exchange information, provide guidance, and address requests regarding administrative procedures related to the origin of goods,” he said.

VIR