What are export restrictions and import restrictions? Are there exceptions to the application of export restrictions or import restrictions?
What are the export restrictions and import restrictions?
Pursuant to Article 15 of the 2017 Law on Foreign Trade Management of Vietnam, the export and import restrictions are prescribed as follows:
The export restriction and import restriction
1. Export restriction is a measure imposed by the competent authority aiming to limit the quantity, volume and value of exports, border checkpoints for export and the right to export products of traders.
2. Import restriction is a measure imposed by the competent authority aiming to limit the quantity, volume and value of imports, border checkpoints for import and the right to import products of traders.
Thus, export restriction is a measure imposed by the competent authority aiming to limit the quantity, volume and value of exports, border checkpoints for export and the right to export products of traders.
Import restriction is a measure imposed by the competent authority aiming to limit the quantity, volume and value of imports, border checkpoints for import and the right to import products of traders.
The application of these two measures can only be implemented by state authorities.
At the same time, in the process of implementing these two measures, relevant parties must ensure compliance with international treaties to which Vietnam is a signatory, especially agreements on non-discrimination and free trade under the General Agreement on Tariffs and Trade - GATT 1994.
What are export restrictions and import restrictions? Are there exceptions to the application of export restrictions or import restrictions? (Image from the Internet)
Are there exceptions to the application of export restrictions or import restrictions?
Pursuant to Article 16 of the 2017 Law on Foreign Trade Management of Vietnam stipulating the exceptions to the application of export and import restriction as follows:
Exception to the export and import restriction
1. The export and import of restricted products prescribed in this Section for non-commercial purposes shall comply with the relevant regulations of law,
2. The export and import of restricted products prescribed in this Section related to customs-controlled areas shall comply with regulations in Section 8 of this Chapter.
Thus, when goods are restricted from export or import but are not imported or exported for non-commercial purposes, they shall comply with relevant legal provisions.
As for the case where the goods are restricted from export or import but are regulated in the scope of management in a separate customs area, these goods shall be applied according to the regulations in the separate customs area.
Are export and import restrictions approved by the WTO?
Pursuant to Article XI of the General Agreement on Tariffs and Trade - GATT 1994 has the following provisions:
General Elimination of Quantitative Restrictions
1. No prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licences or other measures, shall be instituted or maintained by any contracting party on the importation of any product of the territory of any other contracting party or on the exportation or sale for export of any product destined for the territory of any other contracting party.
2. The provisions of paragraph 1 of this Article shall not extend to the following:
(a) Export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party;
(b) Import and export prohibitions or restrictions necessary to the application of standards or regulations for the classification, grading or marketing of commodities in international trade;
(c) Import restrictions on any agricultural or fisheries product, imported in any form, necessary to the enforcement of governmental measures which operate:
(i) to restrict the quantities of the like domestic product permitted to be marketed or produced, or, if there is no substantial domestic production of the like product, of a domestic product for which the imported product can be directly substituted; or
(ii) to remove a temporary surplus of the like domestic product, or, if there is no substantial domestic production of the like product, of a domestic product for which the imported product can be directly substituted, by making the surplus available to certain groups of domestic consumers free of charge or at prices below the current market level; or
(iii) to restrict the quantities permitted to be produced of any animal product the production of which is directly dependent, wholly or mainly, on the imported commodity, if the domestic production of that commodity is relatively negligible.
Any contracting party applying restrictions on the importation of any product pursuant to subparagraph (c) of this paragraph shall give public notice of the total quantity or value of the product permitted to be imported during a specified future period and of any change in such quantity or value. Moreover, any restrictions applied under (i) above shall not be such as will reduce the total of imports relative to the total of domestic production, as compared with the proportion which might reasonably be expected to rule between the two in the absence of restrictions. In determining this proportion, the contracting party shall pay due regard to the proportion prevailing during a previous representative period and to any special factors which may have affected or may be affecting the trade in the product concerned.
Thus, in general, all quantitative restrictions that hinder free trade must be eliminated, but the WTO still allows the application of export and import restrictions in some certain cases.
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