Highlights of the Law on Foreign Trade Management 2017 of Vietnam

1. According to the Law on Foreign Trade Management 2017 of Vietnam, the prohibition of import will be imposed if one of the following conditions is satisfied:

- Products to be imported related to national defense and security have not obtained the permission of the competent authority for import;

- Products damage the health and safety of customers;

- Products affect the social order and safety, social morality and good customs and habits;

- Products damage the environment and biodiversity, pose a high risk of obtaining pests, threaten the food security, production and export of Vietnam and infringe intellectual property rights;

- The prohibition of import is imposed according to international treaties to which the Socialist Republic of Vietnam is a signatory.

Moreover, this Law also stipulates that the prohibition of export will be imposed if one of the following conditions is satisfied:

- Products to be exported related to national defense and security have not obtained the permission of the competent authority for export;

- The prohibition aims to protect relics, antiques and national precious objects in accordance with the law on cultural heritage;

- The prohibition of export is imposed according to international treaties to which the Socialist Republic of Vietnam is a signatory.

2. Suspension of export or import

1. Suspension of export is a measure imposed by the competence authority to prohibit delivering products from domestic market to customs-controlled areas or out of Vietnam territory for a certain period of time.

2. Suspension of import is a measure imposed by the competent authority to prohibit delivering products from customs-controlled areas to domestic markets or from other countries to Vietnam for a certain period of time.

3. 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.

4. Export quota and import quota

1. Export quota is a restriction imposed by the competent authority on the quantity, volume and value of Vietnamese exports.

2. Import quota is a restriction imposed by the competent authority on the quantity, volume and value of imports of Vietnam.

5. Imposition of export tariff-rate quota and import tariff-rate quota

1. The imposition of export tariff-rate quota and import tariff-rate quota shall comply with international treaties to which the Socialist Republic of Vietnam is a signatory.

2. The import tariff-rate quota shall not be imposed on the quantity, volume and value of products used for the production and processing of exports.

3. The imposition of tariff-rate quotas shall ensure the transparency of the quantity, volume and value of products and the transparency and objectiveness of measures for allocation of export tariff-rate and import tariff-rate quotas.

6. Imposition of appointment of border checkpoints for export and import

1. The appointment of border checkpoints for export and import aims to manage and inspect the quality of exports and imports, fight against the illegal transshipment and commercial frauds and protect the prestige of Vietnamese exports.  The appointment of border checkpoints for export and import shall be conformable with infrastructures and facilities of each border checkpoint and ensure national defense and security.

2. The appointment of border checkpoints for export and import shall be transparent and equal and facilitate export and import activities.

3. Traders may exercise their discretion to choose the border checkpoints for export or import from appointed border checkpoints.

7. Imposition of certification of origins of products

The certification of origins of products will be imposed if:

1. An exporter or importer wishes to be entitled to the tariff preference according to international treaties to which the Socialist Republic of Vietnam is a signatory;

2. The export or import in which origins of products shall be certified as prescribed by law; or

3. The certificate of origin is issued by the competent authority at the request of the trader or the trader self-certifies its origins of products in the cases which are not mentioned in Clauses 1 and 2 of this Article.

8. Verification of origins of products

1. The Ministry of Industry and Trade shall inspect and provide instruction on issuance of certificates of origin and self-certification of origins of products carried out by traders.

2. The Ministry of Finance shall direct the customs authority to verify origins of imports and exports when going through the customs procedures in accordance with regulations of law on customs.

9. Anti-dumping measures

1. Anti-dumping measure imposed on imports of Vietnam (hereinafter referred to as “anti-dumping measure”) is a measure imposed on products that are dumped when being imported to Vietnam, which causes material injury or threaten to cause material injury to domestic industry or retard the establishment of the domestic industry.

2. A product that is determined as dumped if the price of this product imported to Vietnam is less than the comparable price of its like products sold in the exporting country or third country under the common commercial conditions or the price that is self-calculated by the investigating authority.

The Law on Foreign Trade Management 2017 of Vietnam comes into force from January 01, 2018.

Source: Legal bulletin of Se San Hydropower Development Company

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