20 May 2019
VIETNAM: Crackdown on the Re-Export of Foreign Products as Domestic Items Mandated
New measures have been introduced to combat the increased prevalence of overseas-manufactured items being re-exported as domestically-produced. The move has been instigated by the National Steering Committee for the Prevention of Smuggling, Trade Fraud and Fake Goods, a body reporting to the Ministry of Industry and Trade (MOIT), which has also put in place stringent checks at the country’s entry points to detect the illegal import of foreign goods intended for re-export.
The move comes amid recent reports of a surge in the import of overseas-produced consumer and fashion items, which are then said to have been re-labelled “Made in Vietnam” before being sold or exported. This is being seen as a bid to benefit from the preferential tariffs accorded by Vietnam’s Free Trade Agreements, as well as an attempt to circumvent any trade penalties imposed on Chinese products by the US.
While the extent of such alleged malpractices has yet to be assessed, the Vietnamese authorities are taking a tough stand in order to counter any potential revenue or reputational loss. Previously, in November last year, the government had already introduced more stringent procedures for the verification of the origin of exported goods.