Circular 37 causes difficulties for textile and garment enterprises

Circular 37, which is about to be implemented, does not solve the problems of businesses, and in some aspects is even more troublesome.

Circular No. 37 of the Ministry of Industry and Trade on testing the content of Formaldehyde and Aromatic Amines in textile products will take effect from December 15. According to a representative of the Vietnam Textile and Apparel Association, the Circular has 7-8 unclear contents, which will cause difficulties for enterprises importing and exporting textile products in the coming time.

After 6 years of implementation, Circular 32 of the Ministry of Industry and Trade regulating the permissible limits for the content of Formaldehyde and aromatic amines that can be released from azo dyes under deodorizing conditions on textile products has shown inadequacies and problems in the inspection process.

Under the direction of the Government, the Ministry of Industry and Trade has issued Circular No. 37 to replace Circular No. 32, which temporarily regulates the permissible limits for formaldehyde content in textile products. According to experts, the new Circular does not resolve the problems of enterprises, and in some aspects is even more troublesome than the old Circular.

Dr. Nguyen Dinh Cung, Director of the Central Institute for Economic Management, said that Circular 37 is not consistent with the requirements of Resolution 19 of the Government on improving the business environment. improve competitiveness

Circular 37 stipulates the form of reduced inspection, applied to imported textile products of the same item, product code provided by the same manufacturer, after 3 consecutive quality inspections, all shipments meet the requirements. However, the Circular does not clearly stipulate how businesses will be reduced, how many times, for how long? General regulations can lead to a situation where customs officers apply arbitrarily, "granting" to businesses.

Circular 37 also allows some cases to have their records inspected, but lists some cases that were previously not subject to inspection, such as imported fabrics for processing and manufacturing export goods.

Mr. Pham Thanh Binh, former Director of the Customs Supervision and Management Department, General Department of Customs, analyzed: Circular 37 has a very unclear content, which is the scope of inspection. According to Article 1 of the Circular, the subject of inspection is only imported products for domestic consumption and if it is correct, it will reduce by 50-60%. But the entire circular does not show that. The entire circular shows that it is a full inspection. So it does not reduce, it even increases.

Production at Hoang Thi Loan Textile Joint Stock Company (Photo: Thu Huyen)

“Circular 37 is overly restrictive, with many unclear contents and many different interpretations. There are 7-8 unclear contents, so it is not possible to assess whether this circular will make things easier or more difficult for businesses. But in terms of the entire circular, I think this circular will cause more difficulties than before,” Mr. Binh pointed out.

According to Dr. Nguyen Dinh Cung, Director of the Central Institute for Economic Management, Circular 37 is not consistent with the requirements of Resolution 19 of the Government on improving the business environment and enhancing competitiveness. While Resolution 19 clearly states that 5 types of goods are exempt from inspection, Circular 37 does not stipulate exemption from inspection; inspection results are notified by post or directly to the importing organization or individual or provided directly to the customs electronic data processing system, which will increase the number of documents, time and costs of customs clearance procedures.

“The Ministry of Industry and Trade needs to review and amend it in accordance with the requirements of Resolution 19 and Decision 2026 of the Prime Minister as well as overcome the difficulties of enterprises, creating more favorable conditions for them in business activities as the spirit of administrative procedure reform in the past time. Circular 32 has been implemented for more than 6 years with the difficulties of enterprises, if we do not pay attention to this, it is unacceptable. When serving enterprises, the obstacles that belong to state management must be removed to create favorable conditions for them,” said Dr. Nguyen Dinh Cung.

According to the plan, on December 15, the Ministry of Industry and Trade will implement Circular 37. However, in reality, many businesses are still hesitant before the circular is applied./.

According to VOV