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Building a warning system to avoid the risk of origin fraud
Participating in Free Trade Agreements (FTAs) gives Vietnam a high advantage in tariff preferences, but origin fraud is becoming increasingly.


Along with the process of globalization and integration, participating in signing many new free trade agreements (FTAs) and enjoying preferential tax and trade tension in the US-China, the situation of trade fraud and fraud origin to enjoy incentives also appears more. This is a warning of the Minister of Industry and Trade Tran Tuan Anh at the meeting to implement the project "Strengthening state management on combating the avoidance of measures to prevent trade and origin fraud" on July 9, 2019.

According to the Department of Trade Protection (Ministry of Industry and Trade), the cases of anti-evasion trade defense measures against Vietnam's exports are becoming increasingly. The investigated products are mainly iron and steel, fiber, electronics, furniture and etc. Most of the cases come to the conclusion that there are evasive behaviors and then apply trade defense measures. Some other export products are also at risk of being investigated to avoid trade defenses.

Mr. Le Trieu Dung, Director of the Trade Protection Department, said that in the past time, the Ministry of Industry and Trade has coordinated with ministries and branches to prevent and avoid trade defense. In particular, the Ministry of Industry and Trade regularly builds a warning system for goods at risk of being investigated and sent to the Ministry of Finance and the General Department of Customs.

When there is information about fraud origin, the Ministry frequently requires tightening the issuance of Certificate of Origin (C / O) and coordinating inspection for some items, such as automobile tires, solar energy batteries and direct the General Department of Market Management to strictly handle violations.

According to Mr. Le Trieu Dung, the United States and the EU are markets that easily generate trade fraud cases. Although the Ministry's units have made efforts to warn, the risk of avoiding trade defense has increased. Evasive behaviors are very common and diverse in international trade with different sizes, such as enterprises moving the entire scale or transferring a part of production to Vietnam.

The Director General of the Market Management Department Tran Huu Linh said that there is a widespread phenomenon of "made in Vietnam" on the market but goods are not produced in Vietnam. The main items are vegetables, fruits, textiles, shoes, children's toys. The main cause of this situation is due to the trend of Vietnamese people prefer Vietnamese goods, especially sanctions handling is not serious.

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