MoIT still cold to VBF proposal

Pham Sy Chung, head of the ministry’s (MoIT) Planning Department, told the recent Vietnam Business Forum (VBF) that the MoIT could not amend its Notice 197/TB-BCT in a manner quite satisfying importers.

The notice, which took effect on June 1, 2011, was said by the Manufacturing and Distribution Working Group to be imposing unexpected new World Trade Organization-inconsistent non-tariff barriers on imports of mobile phones, cosmetics and alcohol.

Under the notice, importers must have a letter of authorisation notarised, legalised, and consularised from the source declaring that the importer is authorised by the authentic manufacturer or trader.

“It is impractical to comply with and there seems to be no basis for the inconvenience except to slow down imports,” said the group’s representative Fred Burke.
 
He said mobile phones, alcohol and cosmetics could only be imported through one of three international sea ports for the entire country. They had no more imported by air freight, train or truck entry.

“Again, unreasonable paperwork and inadequate notice make this impossible for companies whose supply chains have been worked out months in advance to comply with,” he said.

In fact, such a proposal had been tabled since early May this year, when the notice was issued.

Chung said that the notice the MoIT was “open” to the group’s recommendations. But he made no promise when and how the notice would be revised, but generally said: “We will continue simplifying administrative procedures.”

He said Vietnam was now home to too many types of low-quality goods including mobile phones, alcohol and cosmetics, which had blighted the prestige of many local and foreign firms trading in these products. This had also deprived the country of big tax collection opportunities.

“The notice is aimed to protect the trade marks of genuine products of the type, and protect consumers’ health. I affirm that the notice is in line with Vietnam’s World Trade Organization commitments and other related international documents inked by it,” Chung said.

He said almost these products were currently imported via bordergates in Haiphong city, Danang and Ho Chi Minh City.