DECISION

APPROVING SCHEME FOR IMPROVEMENT OF STATE MANAGEMENT OF PREVENTION OF EVASION OF TRADE REMEDIES AND ORIGIN FRAUD

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Foreign Trade Management dated June 12, 2017;

Pursuant to the Resolution No. 06/NQ-TW dated November 05, 2016 of the fourth conference of the Central Committee of the Communist Party of Vietnam (12^th tenure) on effective international economic integration and maintenance of socio-political stability as Vietnam enters into new generation free trade agreements;

Pursuant to the Decree No. 10/2018/ND-CP dated January 15, 2018 on guidelines for the Law on Foreign Trade Management on trade remedies;

Pursuant to the Prime Minister’s Directive No. 25/CT-TTg dated August 31, 2018 on a number of tasks and solutions for manufacture development and export promotion;

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Pursuant to the Government’s Resolution No. 01/NQ-CP dated January 01, 2019 on main tasks and solutions for plan for socio-economic development and budget estimate of 2019;

Pursuant to the Prime Minister’s Decision No. 2471/QD-TTg dated December 28, 2011 approving the goods import and export strategy for the 2011-2020 period, with orientations toward 2030;

At the request of the Minister of Industry and Trade,

HEREBY DECIDES:

Article 1. The scheme for improvement of state management of prevention of evasion of trade remedies and origin fraud (hereinafter referred to as “the scheme”), with the following main contents, is approved.

I. SCHEME OBJECTIVES

1. To improve international economic integration, especially participation in new generation free trade agreements, ensuring proper and effective fulfillment of Vietnam’s WTO commitments and implementation of concluded free trade agreements (“FTAs”).

2. To prevent acts of evasion of trade remedies, especially goods origin fraud, in a comprehensive, consistent and timely manner, ensuring effective implementation of international commitments and sustainable import-export development.

3. To protect Vietnam’s rights and interests regarding international trade.

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II. MAIN TASKS AND SOLUTIONS OF THE SCHEME

1. Improving state management of import, export and foreign investment, including:

a) Further monitoring import and export with large trade partners to warn about the risks of lawsuits related to trade remedies or evasion of trade remedies, enabling enterprises, especially small and medium enterprises, to proactively avoid and respond to trade remedy lawsuits, aiming toward sustainable export;

b) Issuing early warnings about risks of investigation into evasion of trade remedies or goods origin fraud via monitoring of import and export (including temporary import, re-export, transshipment and transit) of the goods to which trade remedies are being applied by important economic partners so as to provide timely recommendations;

c) Strengthening prevention of goods origin fraud via improvement of issuance and inspection of the certificate of origin (C/O); increase of inspection and counteraction for acts of goods origin fraud throughout the country; finalization of rules of origin to fulfill the commitments stated in new generation FTAs effectively; increase of multilateral negotiation and negotiation of FTAs to finalize specific rules of origin, forming explicit legal bases for issuance of C/O;

d) Improving state management via finalization of regulations on consideration and resolution for foreign investment registration (including mergers and acquisitions) and management of projects on foreign investment in manufacturing and trading of the goods with risk of origin fraud or investigation into evasion of trade remedies;

dd) Diversifying export markets, preventing heavy dependence on one specific market to minimize the negative impacts of the imposition of measures against evasion of trade remedies;

e) Increasing resources and capabilities for monitoring, warning about and responding to evasion of trade remedies and origin fraud.

2. Improving awareness and efficiency of implementation of regulations on trade remedies, origin, customs and prevention of evasion of trade remedies, including:

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b) Increasing dissemination of policies and regulations on rules of origin and prevention of evasion of trade remedies of Vietnam and other countries to assist enterprises in improving their awareness and compliance, responding to investigation from other countries and proactively applying trade remedies to protect domestic manufacture in accordance with the law;

c) Expanding and promoting international cooperation in exchanging information and collaborating on inspection and verification;

d) Providing technical assistance and improving capabilities relating to trade remedies, origin fraud and illegal transshipment for international organizations and partners.

3. Reviewing, formulating and amending legislative documents on prevention of evasion of trade remedies and origin fraud.

4. Preventing and strictly handling acts of evasion of trade remedies and origin fraud.

III. SCHEME FUNDING

1. The scheme is funded by the state budget and other legal funding sources.

2. Management and use of the state funding for the scheme’s tasks shall be carried out according to regulations on the state budget and other relevant regulations.

Article 2. Implementing organization

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a) Monitor, compile and regularly update the list of goods subject to investigation, antidumping tax and countervailing duty from countries that frequently apply trade remedies and goods with risk of origin fraud (hereinafter referred to as “the list”);

b) Send the list to the Vietnam Chamber of Commerce and Industry (VCCI) to tighten control on C/O issuance for the goods included in the list;

c) Send the list to the Ministry of Planning and Investment and People’s Committees of provinces and central-affiliated cities for reference upon consideration and resolution of foreign investment registration, including mergers and acquisitions;

d) Send the list, information on signs of origin fraud and results of verification and investigation into origin fraud to the Ministry of Finance quarterly or ad hoc to monitor export and import and take measures to increase inspection of the goods included in the list;

dd) Send the list to relevant unions of business associations to inform the members of such unions and to cooperate in monitoring any abnormality in manufacturing and business operations;

e) Send the list to other relevant ministries and regulatory bodies for their timely cooperation and resolution;

g) Send the list to the Ministry of Information and Communications to promptly cooperate, formulate and implement dissemination plans;

h) Take charge and cooperate with relevant authorities in organizing inspection and verification upon receipt of information on signs of origin fraud, and hand documents over to public security authorities for cases that show signs of crime as prescribed by lawsoft;

i) Boost international cooperation and tightly cooperate with foreign investigating authorities in investigation into evasion of trade remedies and origin fraud;

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l) Proactively finalize regulations on rules of origin and C/O issuance to prevent goods origin fraud, effectively fulfilling the commitments stated in FTAs;

m) Improve management of entrustment of import and export, temporary import, re-export and transshipment of the goods with risks of origin fraud and evasion of trade remedies;

n) Increase dissemination of policies and regulations on origin and prevention of evasion of trade remedies, especially the regulations in FTAs to which Vietnam is a signatory; and regulations of Vietnam’s potential export markets and markets with high export turnover;

o) Improve capabilities of the officials tasked with C/O issuance, inspection and supervision of origin and trade remedies;

p) Cooperate with other relevant ministries and regulatory bodies in finalizing regulations on handling of acts of evasion of trade remedies and origin fraud;

q) Take charge and cooperate with other relevant ministries and regulatory bodies in increasing market research, search and expansion by negotiating FTAs; utilizing advantages of concluded FTAs to encourage export and prevent dependence on a single market; boosting trade promotion programs; and increasing research on regulations on trade remedies and technical barriers of import markets to inform and support enterprises;

r) Take charge in cooperating with other relevant ministries and regulatory bodies in forming investigating databases for partners who regularly investigate into and/or apply measures against evasion of trade remedies to Vietnam’s exported goods.

2. VCCI shall:

a) Organize monitoring of real-time figures of C/O issuance, especially for the goods to which antidumping and countervailing measures are being applied by large trade partners; and pay attention to enterprises with abnormal increase of C/O applications;

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c) Monitor and submit proposals to the Ministry of Industry and Trade to finalize rules of origin;

d) Cooperate with specialized ministries and managing authorities for specific cases.

3. The Ministry of Planning and Investment and People’s Committees of provinces and central-affiliated cities shall:

a) Monitor fluctuations of foreign investment (including change of ownership, mergers and acquisitions) in manufacturing and trading of the goods included in the list compiled by the Ministry of Industry and Trade over the past 5 years or at the request of the Ministry of Industry and Trade;

b) Research and submit proposals to finalize regulations on consideration and resolution for investment registration (including mergers and acquisitions) of foreign investors, especially investment in manufacturing and trading of the goods with risk of evasion of trade remedies or origin fraud, ensuring compliance with product structure, production, quality, environmental standards and manufacturing procedures as registered;

c) Further disseminate and provide guidelines on consideration and resolution for investment registration of foreign investors to local authorities while strictly monitor projects on foreign investment in manufacturing and trading of the goods with risk of origin fraud or evasion of trade remedies;

d) Direct Governmental agencies and units under their management to monitor change of ownership of enterprises that manufacture and/or trade the goods to which antidumping and countervailing measures are being applied;

dd) Increase training and refresher courses for in-charge officials and improve their capabilities;

e) Research and propose measures to increase local responsibilities for assessment and management of foreign investment projects and prevention of evasion of trade remedies and origin fraud;

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4. The Ministry of Finance shall:

a) Direct the General Department of Vietnam Customs to organize the monitoring of figures of import and export of the goods included in the list so as to submit monthly reports to the Ministry of Industry and Trade; pay attention especially to abnormal fluctuations of export-import turnover;

b) Cooperate with other ministries and regulatory bodies in inspecting and determining origin of exported and imported goods upon suspicion of origin fraud or illegal transshipment;

c) Increase cooperation with customs authorities of other countries and regional and international organizations to exchange information, verify origin frauds and illegal transshipment, and prevent evasion of trade remedies;

d) Enhance customs official’s capabilities for inspection and determination of origin of exported and imported goods;

dd) Cooperate with specialized ministries and managing authorities for specific cases;

e) Allocate annual funding and budget provision to the Ministry of Industry and Trade according to applicable regulations for the purpose of handling trade remedy cases and cases where actions are taken against evasion of trade remedies (including use of legal consultation services) concerning Vietnam’s exported goods.

5. The Ministry of Public Security shall:

a) Tightly cooperate with the Ministry of Industry and Trade and Ministry of Finance in inspecting and verifying signs of origin fraud and strictly handling violations in accordance with the law;

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c) Cooperate with specialized ministries and managing authorities for specific cases.

6. Business associations shall:

a) Regularly inform member enterprises to prevent these enterprises from assisting acts of origin fraud and evasion of trade remedies;

b) Cooperate in closely monitoring the market so as to promptly inform managing authorities upon signs of abnormality;

c) Cooperate with the Ministry of Industry and Trade and VCCI in organizing training in rules of origin and trade remedy regulations for member enterprises to strictly comply with regulations on C/O and trade remedies.

7. Other ministries, regulatory bodies and People’s Committees of provinces and central-affiliated cities shall cooperate with the Ministry of Industry and Trade in organizing the implementation of the scheme.

8. The plan for implementation of a number of tasks is provided for in the Appendix enclosed with this Decision.

Article 3. Implementing provisions

This Decision takes effect from the date on which it is signed.

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THE PRIME MINISTER




Nguyen Xuan Phuc

APPENDIX

PLAN FOR IMPLEMENTATION OF A NUMBER OF TASKS OF THE SCHEME FOR IMPROVEMENT OF STATE MANAGEMENT OF PREVENTION OF EVASION OF TRADE REMEDIES AND ORIGIN FRAUD

(Enclosed with the Prime Minister’s Decision No. 824/QD-TTg dated July 04, 2019)

No.

Task name

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Cooperating unit

Implementing schedule

1

Monitoring, compiling and regularly updating the list of goods subject to investigation, antidumping tax and countervailing duty from countries that frequently apply trade remedies and goods with risk of origin fraud (hereinafter referred to as “the list”). Sending the list to relevant units

Ministry of Industry and Trade

- Ministry of Finance;

- Ministry of Planning and Investment;

- Vietnam Chamber of Commerce and Industry (VCCI);

- Relevant People’s Committees of provinces and central-affiliated cities.

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2

Taking charge and cooperating with relevant authorities in organizing inspection and verification upon receipt of information on signs of origin fraud. Exchanging information and handing documents over to public security authorities for cases that show signs of crime as prescribed by law

Ministry of Industry and Trade

- Ministry of Finance;

- Ministry of Public Security

- Ministry of Justice;

- VCCI.

Regularly

3

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Ministry of Industry and Trade

Ministry of Finance:

Regularly

4

Finalizing rules of origin and regulations on issuance of certificate of origin (C/O) to prevent goods origin fraud, effectively fulfilling commitments stated in free trade agreements (“FTAs”)

Ministry of Industry and Trade

Ministry of Finance

2021

5

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Ministry of Industry and Trade

Ministry of Finance

2021

6

Increasing dissemination of policies and regulations on origin and prevention of evasion of trade remedies, especially the regulations in FTAs to which Vietnam is a signatory; and regulations of Vietnam’s potential export markets and markets with high export turnover

Ministry of Industry and Trade

- Ministry of Finance;

- Relevant People’s Committees of provinces and central-affiliated cities;

- VCCI.

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7

Improving capabilities of the officials tasked with C/O issuance, inspection and supervision of origin and trade remedies

Ministry of Industry and Trade

- Ministry of Finance;

- Ministry of Planning and Investment;

- VCCI.

Regularly

8

Taking charge and cooperating with relevant ministries and regulatory bodies in increasing market research, search and expansion by negotiating FTAs; utilizing advantages of concluded FTAs to encourage export and prevent dependence on a single market; boosting trade promotion programs; and increasing research on regulations on trade remedies and technical barriers of import markets to inform and support enterprises

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- Ministry of Foreign Affairs;

- Ministry of Finance;

- Ministry of Justice;

- Ministry of Agriculture and Rural Development.

Regularly

9

Taking charge in cooperating with relevant ministries and regulatory bodies in forming investigating databases for partners who regularly investigate and/or apply measures against evasion of trade remedies to Vietnam’s exported goods

Ministry of Industry and Trade

- Ministry of Finance

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Regularly

10

Organizing the monitoring of real-time figures of C/O issuance, especially for the goods to which antidumping and countervailing measures are being applied by large trade partners; paying attention to enterprises with abnormal increase of C/O applications

VCCI

- Ministry of Industry and Trade;

- Ministry of Finance.

Regularly

11

Increasing physical inspection to verify C/O, especially for enterprises with abnormal increase of C/O applications

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- Ministry of Industry and Trade;

- Ministry of Finance.

Periodically or upon suspicion

12

Monitoring and submitting proposals to the Ministry of Industry and Trade to finalize regulations on rules of origin

VCCI

- Ministry of Industry and Trade

Regularly

13

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VCCI

- Ministry of Industry and Trade

- Ministry of Finance

- Ministry of Agriculture and Rural Development

- Ministry of Natural Resources and Environment

Regularly

14

Monitoring fluctuations of foreign investment (including change of ownership, mergers and acquisitions) in manufacturing and trading of the goods included in the list compiled by the Ministry of Industry and Trade over the past 5 years or at the request of the Ministry of Industry and Trade

Ministry of Planning and Investment

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- Ministry of Finance.

Regularly

15

Researching and submitting proposals to finalize regulations on consideration and resolution for investment registration of foreign investors, especially investment in manufacturing and trading of the goods with risk of evasion of trade remedies or origin fraud, ensuring compliance with product structure, production, quality, environmental standards and manufacturing procedures as registered

Ministry of Planning and Investment

- Ministry of Industry and Trade;

- Ministry of Finance.

2022

16

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Ministry of Planning and Investment

Relevant People’s Committees of provinces and central-affiliated cities

Regularly

17

Monitoring change of ownership of enterprises that manufacture and/or trade the goods to which trade remedies are being applied

Ministry of Planning and Investment

- Ministry of Industry and Trade

- Ministry of Finance;

- Relevant People’s Committees of provinces and central-affiliated cities

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18

Directing Governmental agencies and units under their management to monitor change of ownership of enterprises that manufacture and/or trade the goods to which antidumping and countervailing measures are being applied

Ministry of Planning and Investment

- Ministry of Industry and Trade

- Ministry of Finance

- Ministry of Agriculture and Rural Development

Regularly

19

Increasing training and refresher courses for in-charge officials and improving their capabilities

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Ministry of Finance

Regularly

20

Researching and proposing measures to increase local responsibilities for assessment and management of foreign investment projects, and prevention of evasion of trade remedies and origin fraud

Ministry of Planning and Investment

- Ministry of Industry and Trade

- Ministry of Finance;

- Relevant People’s Committees of provinces and central-affiliated cities

Regularly

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Cooperating with specialized ministries and managing authorities for specific cases

Ministry of Planning and Investment

- Ministry of Industry and Trade

- Ministry of Finance

- Ministry of Agriculture and Rural Development

- Ministry of Natural Resources and Environment

Regularly

22

Monitoring figures of import and export of the goods included in the list so as to submit monthly reports to the Ministry of Industry and Trade, and paying attention especially to abnormal fluctuations of export-import turnover

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Ministry of Industry and Trade

Regularly

23

Cooperating with other ministries and regulatory bodies in inspecting and determining origin of exported and imported goods upon suspicion of origin fraud or illegal transshipment

Ministry of Finance

Ministry of Industry and Trade, Ministry of Public Security, VCCI

Regularly

24

Increasing cooperation with customs authorities of other countries and regional and international organizations to exchange information, verify origin frauds and illegal transshipment, and prevent evasion of trade remedies

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Ministry of Industry and Trade

Regularly

25

Enhancing customs official’s capabilities for inspection and determination of origin of exported and imported goods

Ministry of Finance

Ministry of Industry and Trade

Regularly

26

Cooperating with specialized ministries and managing authorities for specific cases

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- Ministry of Industry and Trade

- Ministry of Planning and Investment

- Ministry of Agriculture and Rural Development

- Ministry of Natural Resources and Environment

Ad hoc

27

Allocating annual funding and budget provision to the Ministry of Industry and Trade according to applicable regulations for the purpose of handling trade remedy cases and cases where actions are taken against evasion of trade remedies (including use of legal consultation services) concerning Vietnam’s exported goods

Ministry of Finance

Ministry of Industry and Trade

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28

Directing local public security forces to increase monitoring so as to detect and handle acts of origin fraud, and increase monitoring foreign direct and indirect investment in localities

Ministry of Public Security

- Ministry of Industry and Trade;

- Ministry of Finance;

- Ministry of Planning and Investment;

- VCCI;

- Relevant People’s Committees of provinces and central-affiliated cities.

Regularly

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Monitoring acts of frauds concerning origin and regions of cultivation of agro-forestry-fishery products; participating in investigation, cooperating in providing information and handling trade disputes related to agro-forestry-fishery products

Ministry of Agriculture and Rural Development

- Ministry of Industry and Trade

- Ministry of Foreign Affairs

- Ministry of Finance

Regularly

30

Informing enterprises of prohibition against assisting origin fraud and evasion of trade remedies

Ministry of Information and Communications

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- VCCI

Regularly