Prevent foreign enterprises from taking advantage of "Made in Vietnam" origin
The lack of regulations on determining "products of Vietnam" or "made in Vietnam" has caused some domestic enterprises to take advantage of "colluding" with foreign enterprises to commit origin fraud.
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There is no regulation on how much % of foreign components a brand's product can use that cannot be labeled "Made in Vietnam". |
According to the Ministry of Industry and Trade, the Draft Circular was released for comments to serve the labeling and marketing of goods circulating in the Vietnamese market.
So when are goods considered Vietnamese goods? Article 7 of the Draft Circular stipulates that when goods are of pure origin or are produced entirely in Vietnam according to regulations (plants and products from plants grown and harvested in Vietnam; live animals born and raised in Vietnam...).
Next are goods that are not purely of origin or not entirely produced in Vietnam but go through the final processing and manufacturing stages in Vietnam, fundamentally changing the nature of the goods according to regulations (meeting the criteria for converting commodity codes, value-added content, etc.).
The draft Circular also clearly stipulates two cases where it is not allowed to show that the goods are Vietnamese:First,are goods imported into Vietnam and circulated on the Vietnamese market.MondayGoods temporarily imported into Vietnam for re-export, goods in transit, and goods in transit in Vietnam are not allowed to be shown as Vietnamese goods on the product label and/or on any documents or items containing information related to those goods.
The draft Circular also provides 7 specific cases for goods that are not considered Vietnamese goods if they only go through one or a combination of stages. Typically: The work of preserving goods during transportation and storage (ventilation, spreading, drying, cooling, soaking in salt, fumigating or adding other additives, removing damaged parts and similar work); work such as dusting, screening, selecting, classifying (including stacking), cleaning, painting, dividing into parts; changing packaging and dismantling or assembling shipments...