After the Ministry of Industry and Trade issued Circular 20/2011/TT-BCT on additional regulations on car import procedures, many businesses have complained that “this is really a big technical barrier and seems to be against World Trade Organization (WTO) principles”.
Under the circular, car importers have to show papers stating that they are authorized importers or distributors of genuine car makers and the papers must be certified by Vietnam’s diplomatic agencies abroad when they import cars of less than nine seats. In addition, they have to own certificate of maintenance establishment which is licensed by the Ministry of Transportation.
Who will protect interests of consumers?
According to Deputy Minister of Industry and Trade Nguyen Thanh Bien, the circular does not mean trade barriers to imported cars or quota limit and it also does not impinge on WTO principles. In fact, the circular is aimed to clean the market up, increase the service quality, protect interests of consumers and enhance traffic safety.
In addition, tracing the origin of imports is not the requirement of only Vietnam. Vietnamese exports, in fact, have suffered from serious requirements by many big countries in the world. For example, to possibly export furniture abroad, Vietnamese firms have to get certificate from producers. Mr Tran Dinh Long, Chairman of Hoa Phat Group, said apart from the certificate from producer, Vietnamese enterprises have to prove whether the exploitation source of timber is legal or not. Agreeing with the circular, Mr Le Van Sang, Director of the Thanh Hoa Seafood Im-Ex Company added, currently the EU is applying the regulation of tracing the source over seafood products. Phan Duc Hieu, Vice Head of the Central Institute of Economic Research’s Department on Business Environment, the additional regulations of procedures for car imports is minimum, which should have been followed strictly over the past time. For example, many Toyota cars were recalled due to faulty gas pedals recently but importers insisted that they were not responsible in warranty and maintenance. In fact, Vietnamese importers have no conditions for repair and maintenance. Vo Tri Thanh, Deputy Head of the Central Institute of Economic Research, also emphasized in such cases, where are interests of customers and who will take responsibility if there is any accident owing to the fault. For that reason, the newly-issued circular will help to clean the market up and businesses who want to follow the field have to obey the state regulations.
Representative of the Protection Association of Consumers said that car importers considered the circular a technical barrier is completely wrong because the matter has been mentioned in Article 21 of the Law on Consumers Protection. Domestically, the regulations have been applied for years. Domestically-made vehicles have to meet the requirement of warranty and maintenance while car imports have not had any guarantee.
Not against WTO principles
A number of car importers believed that the additional regulations in the Ministry’s Circular 20 are supposed to benefit domestic makers and the members of Vietnam Automobile Manufacturers' Association (VAMA). However, Bui Huy Son, representative of the Asia-Pacific Bureau under the ministry, explained that in the past, foreign investors were not allowed to distribute products. However, since Vietnam joined the WTO they have been permitted to import and distribute at the domestic market. Thus, enterprises should not deduce that the rights of import and distribution resulted from the Ministry’s circular. In fact, Son said, the regulation is attributed to our commitments as joining the WTO.
Besides, the number of enterprises attending the market is more and more crowded while the market capacity is limited. Thus, the adjustment is very necessary. According to Doctor Ho Tat Thang, Vice Chairman of the Vietnam Association of Consumers Protection, it is time Vietnam should have importers who provide all services of high-qualified distribution, maintenance in order to ensure benefits of not only direct customers but also the society, including the traffic safety. Moreover, the screened market will help increase the quality of products and services.
The Circular 20 will officially come into force on June 26, 2011. Deputy Minister Bien said the ministry has been working with the Ministry of Foreign Affairs to instruct outbound authorized agencies to support enterprises. The additional regulations are simple and corresponding to the Law on Trade. The state does not encourage enterprises to trade hand-carried goods or imports without warranty.
Vietnamese
