Preventing Trade Fraud through C/O

The Ministry of Planning and Investment (MPI) requests local governments to direct local authorities to report results of investigating businesses with the operating objectives listed by the MPI, paying special attention to the following commodities: footwear, garments, marine products and candles. Also, to clarify which businesses actually operate in Vietnam, which only conduct import and then re-export without manufacturing, and which only carry out the simple manufacturing process for items from China. The simple stage of processing may include: labelling, dividing, repackaging, combined shipmen, change of packaging/sizes/lots… In case of necessity, the authorised unit can request to inspect the businesses that are not manufacturing in Vietnam.

 

MPI also demands local governments to direct the authorised issuers of investment certificates and business registration to provide information in time for cases of suspected enterprises and projects which actually do not either operate or are undertaken in Vietnam.

 

Through investigation of the authorities, it is known of the existing types of business: transportation of goods from third countries to Vietnam, then label “made in Vietnam” or perform simple processing in Vietnam to obtain the C/O of Vietnam and then continue to export to another country. This action aims to escape anti-dumping duty, countervailing duties, protection measures applied by importing countries to goods of the original exporting countries.