The Consultancy Council for Warning and Preventing Trade Fraud in Certificates of Origin (C/O) under the Vietnam Chamber of Commerce and Industry (VCCI) has recently made a debut in Hanoi. On this occasion, Ms Tran Thi Thu Huong, Director of Commercial Paper Verification Centre, VCCI, has given an exclusive talk with the Vietnam Business Forum on the business supporting activities of the council in the upcoming time.
What will the council do to support businesses with its warning and prevention of trade frauds in C/O?
The functions of the council are to advise and support ministries and the business community with measures and methods to prevent, deter and restrain trade fraud in C/O (including providing information and data and alerting industries and markets in need of high attention too trade fraud prevention), directly organise or guide the implementation of activities to raise awareness, skills and measures of preventing trade frauds in C/O.
It is known that members of the council are C/O experts with profound profession, skills and experience in trade fraud prevention from the VCCI, ministries and agencies. Could you provide specific information?
The president of the council is a C/O specialist from the VCCI.
Other members include specialists from various authorities. The Import and Export Department under the Ministry of Industry and Trade will monitor and manage activities related to the origin of goods and provide timely information about exporting companies, industries and markets signs of trade frauds in C/O for the council. The information may be sourced from foreign agencies and organisations.
The Vietnam Competition Authority under the Ministry of Industry and Trade is responsible for updating information, development and results of antidumping investigation, trade remedies, anti-subsidy and safeguard measures (hereinafter referred to as trade remedies) of importing countries to products exported by countries lying near Vietnam and having similar production levels, methods and competitive advantages to Vietnam.
The Foreign Investment Agency under the Ministry of Planning and Investment is liable to reporting early warnings of antidumping tax evasion risks to competent investment and business licensing authorities
The Monitoring and Management Department under the General Department of Customs is answerable to strengthening oversights and checks at border gates, and timely prevent shipments of goods with signs of evading dumping duties.
The Anti-smuggling Investigation Department under the General Department of Customs is accountable for coordinating with other agencies to investigate trade frauds or signs of trade frauds in C/O.
The Security - Monetary - Financial - Investment Agency (A84) and the National Economic Crime Investigation Police (C46) under the Ministry of Public Security will embark investigations in businesses of committing trade frauds when the council provides information. The council will meet monthly. In case of necessity, the president shall convene the members to extraordinary meetings.
The operating fund for the council will be taken from the State Budget granted to the "Supporting enterprises to exploit tariff preferences and prevent trade frauds in C/O" project and the council will continue its operation after this project ends in late 2011.
What industry is found to have the most trade frauds in C/O?
Trade frauds are found in commodities or industries with connection to impositions of anti-dumping tax. However, there is no official statistics because this depends on sources from many ministries, agencies, departments and branches and countries with goods or industries with risk of being imposed anti-dumping duties.
But, according to the statistics from the VCCI, trade frauds were found most in 2006, 2007 and 2008. Trade frauds were detected most in apparel exports to the EU market. Companies counterfeited C/O, modified documents, changed quantity and value on declared papers. The VCCI coordinated with relevant agencies to introduce a slew of measures in an attempt to put an end to the case. Until now, this phenomenon has been greatly reduced. Customs authorities in many countries also highly appreciate the cooperation of the VCCI and Vietnamese ministries in handling the case.
How will the council advise foreign investors when they want to invest in Vietnam?
Through business licensing authorities, we will advise and warn companies with hopes that they will adjust investment form as well as prepare equipment to manufacture products meeting specific origin requirements. These will help them avoid producing illegal products.
Reported by Mai Ngoc
Vietnamese
