Hanoi, (VNA) – A plan has been designed to strengthen management and prevention of trade defence evasion and origin frauds, aiming to fulfill international trade commitments and export/import development.

Efforts to prevent trade remedies evasion, origin fraud hinh anh 1Illustrative image (Source: VietnamPlus)

Prime Minister Nguyen Xuan Phuc has signed Decision 824/QD-TTg on issuing the plan to “Strengthen management and prevention of trade defence evasion and origin frauds.”

The plan aims to improve the effectiveness of international economic integration, particularly with free trade agreements Vietnam has signed, ensuring the effective implementation of the commitments within the framework of the World Trade Organisation (WTO), and free trade agreements.

The plan is also designed to prevent trade defence evasion and origin frauds and preclude other countries from rerouting export goods via Vietnam. The move aims to effectively tap international commitments, promote export-import sustainability and protect Vietnams rights in international trade.

Under the plan, the Government will tighten management and supervision of export-import and foreign investment activities, as well as improve the effectiveness of implementing regulations on trade remedies, origin and customs and trade remedies.

The Government will also review, amend and supplement legal documents on the prevention of trade defence invasion and origin frauds while strictly punishing trade safeguard evasion and origin frauds.

According to the Ministry of Trade and Industry, Vietnam is in the process of extensive integration into the regional and global economies. The country needs a favourable environment for investment and production to lure more investment, improve domestic production and encourage exports.

Dealing with trade defence evasion and origin frauds has become more urgent amid increasing trade protectionism worldwide and the US-China trade conflict.

“To address the situation, the Prime Minister signed the Decision No. 824/QD-TTg on issuing a plan to ‘Strengthen management and prevention of trade remedies evasion and origin fraud’” said the Ministry of Trade and Industry.

Under the plan, authorities are required to tighten their management of export-import and foreign investment activities. Early warnings are needed to prevent trade defence evasion while strengthening control of granting C/O to export goods in order to avoid origin frauds.

State management will also be strengthened to monitor foreign investment activities, including changes of ownership, mergers and acquisitions and management of foreign investment projects in vulnerable business domains.

The plan also noted diversifying export markets is among focuses to avoid dependence on certain markets, while increasing resources and capability to detect and tackle trade safeguard evasion and origin frauds.

Previously, the Ministry of Industry and Trade issued a comprehensive programme in response to trade protection measures to develop several Vietnamese industries.

Accordingly, the Trade Remedies Authority of Vietnam (TRAV) is responsible for building a system for reporting import products involved in trade protection probes and connecting it to the single-window customs system.

The TRAV, Industry Department, Import-export Department and relevant goods associations will monitor import affairs and assess their impact on domestic production to begin investigations and apply protection measures if necessary. 

These agencies will run projects on improving trade protection capacity and step up the application of an early warning system for excessive imports, dumping and trade defence evasion. 

The number of investigations into trade remedies evasion on Vietnamese exported products has increased in recent years.

By the end of May this year, Vietnamese exported products had to face 83 cases of anti-dumping, 30 cases of safeguard, 19 cases of anti-dumping duty evasion and 14 cases of anti-subsidy.

Besides, authorities have detected many products imported from other countries or made in foreign countries under outsourcing contracts and labelled "made in Viet Nam" are available in the domestic market or exported, actions have undermined the reputation of Vietnamese exports and deceived local consumers.-VNA