A decree on State management and inspection on quality and food safety is developed to facilitate businesses, protect legal rights and interests of business organisations, individuals and consumers, and improve efficiency of State management on quality and food safety inspection for imported goods.

A Hai Phong Customs officer inspects imported goods: Photo: Nguyen Le

New regulations do not raise costs but reduce the number of goods subject to inspection

According to the Ministry of Finance, the new policies will have positive and comprehensive impacts.

For quality inspection, it is necessary to develop specific regulations on inspection order and procedures for imported goods under each inspection method (tightened inspection, normal inspection and reduced inspection).

To develop specific regulations on goods required for conformity announcement, procedures for application for conformity and the granting of conformity codes.

Regarding inspection for imported vehicles, components and spare parts in group 2 according to the provisions of the Law on Product and Goods Quality: Inheriting regulations and good practices that have been applied for goods in the field managed by the Ministry of Transport; the inspection agency for goods in group 2 managed by the Ministry of Transport is the Vietnam Register; the entire order and procedures remain the prevailing regulations and are carried out through the National Single Window Portal; the inspection methods for vehicles specified in the draft decree and prevailing regulations are the same, including: tightened inspection and random inspection.

In addition, the Decree concretises the role of the Customs agency in the quality inspection assigned by the Prime Minister’s Decision 38; expanding entities exempt from quality inspection; maximise the modern information technology system based on fully and substantively applying risk management principles in quality inspection for imported goods, said the Ministry of Finance.

The Ministry of Finance said the amendment and supplementation of regulations on quality inspection do not raise any costs, but reduce the number of shipments subject to inspection, reducing commercial costs by cutting inventory and capital requirements that allows firms to operate more efficiently. This will promote growth, especially for manufacturers and distributors, boost exports and increase output and bring more valuable opportunities to the economy.

Based on the rate of specialised inspection data in 2019 provided by the General Department of Customs and the USAID Trade Facilitation Programme’s calculation based on data in the World Bank's Doing Business Report, US$399 million will be saved annually when the new policies are enforced.

Import firms save time thanks to the unique focal point of inspection

The unification of the focal point of inspection for customs procedures is an global trend, contributing to better integration, increasing the prestige of the Government, improving the administrative reform index, helping upgrade Vietnam rank on the world's prestigious rankings of competitiveness and the business climate.

The Government saves money from cutting administrative procedures, cutting resources, reducing payroll, and reducing costs and time for customs clearance of goods.

For import firms, the reform of the quality inspection will save time for procedures because all procedures are processed by the focal agency; integrate procedures in customs procedures; maximise computerisation for inspection process; help solve problems arising quickly for agreeing on the final responsible agency before customs clearance; save costs when the number of shipments exempted or reduced from inspection is expanded; create a more competitive and fairer business climate, as imports are controlled closely, transparently and objectively.

For consumers, in the long term, the price of goods may be reduced because firms do not spend much for quality inspection and the faster clearance will help firms distribute goods quickly.

According to the decree, the customs agency will be the focal point in charge of quality inspection. That requires the customs agency to improve the capacity of officials and civil servants.

For ministries, agencies and sectors still responsible for quality inspection, they only transfer the inspection function at the border gate to the Customs agency. Accordingly, it is required to strengthen connection, share information with Customs agency, support professional training for customs officers, and reorganise resources to perform the task of quality inspection for imported goods in the process of production and circulation in the domestic market. Ministries and agencies must strengthen post-inspection work.

The reform of the quality inspection model does not change the role of the existing conformity assessment organisation. However, the new model requires the synchronous application of information technology between agencies and organisations involved in the State inspection of quality.

The new inspection model brings many benefits in administrative procedures such as cutting and simplifying procedures in the inspection application. An application for quality inspection includes the following three documents: An application form issued together with the decree, commercial invoice (photocopy); photo of goods labels or complete designs of goods labels in the e-form for imported goods that must be labelled according to the provisions of law on goods labelling.

Compared to Decree 74/2018 and Decree 154/2018, the draft decree has cut six of 10 documents that must be submitted for quality inspection.