Common items containing precursor substances – need appropriate management solutions

Customs officials of Bac Phong Sinh Customs Branch (Quang Ninh Customs Department) inspected imported goods. Photo: Q.HÙNG

In the process of implementing customs procedures for imported goods, local customs authorities have encountered problems with import policies. In particular, problems related to the import of goods declared as "Paint" (containing 42% Toluene) and "Liquid finishing agents used in the dyeing industry” (containing 40% Acetic acid), are substances that are on the List of narcotic substances and precursor substances according to Decree 73/2018/ND-CP dated May 15, 2018, and also in the List of industrial precursors under Decree 113/2017/ND-CP dated October 9, 2017 (as amended and supplemented in Decree 17/2020/ND-CP dated February 5, 2020).

According to Appendix I in the List of chemicals used in conditional production and trading in the industrial sector issued together with Decree 113/2017/ND-CP, Toluene and Acetic acid belong to industrial precursors group 2.

When exporting or importing, they require an export or import permit of industrial precursor chemicals which is granted by the Ministry of Industry and Trade in accordance with the provisions of Article 12 of this Decree. However, in Clause 1, Article 8 of Decree 17/2020/ND-CP stipulated that items "paints, printing inks, adhesives, cleaning products used in the household sector" and a number of other groups of products such as pharmaceuticals, food, cosmetics, fertilizers, animal feed are not subjected to the application of Decree 113/2017/ND-CP.

Meanwhile, Toluene and Acetic acid are both precursors that are in the IVB List - the precursors are solvents, catalysts used in the process of drug production, issued together with Decree 73/2018/ND-CP (amended and supplemented in Clause 8, Article 1 of Decree 60/2020/ND-CP dated May 29, 2020). Toluene, acetic acid and other precursors in the IVB list are under the management of the Ministry of Industry and Trade.

Facing the above problems, the General Department of Vietnam Customs suggested the Ministry of Industry and Trade clarify a number of contents in order to have a basis for implementation.

In particular, the General Department of Vietnam Customs proposed to clarify the issue: does "Paint" (containing 42% Toluene) and "Liquid finishing agents used in the dyeing industry” (containing 40% Acetic acid) have to apply for an export and import license of industrial precursor chemicals issued by the Vietnam Chemicals Agency - Ministry of Industry and Trade when implementing customs procedures?

At the same time, the Ministry of Industry and Trade also needs to clarify: the case that the Ministry of Industry and Trade does not license the item "Paint", "Liquid finishing agents used in the dyeing industry" or similar items, such as animal feed, veterinary drugs, pharmaceuticals, fertilizers that contain high levels of industrial precursors and precursor substances such as solvents, catalysts used in the process of drug production, the Customs authorities would not request enterprises present a license as prescribed in Article 12 of Decree 113/ND-CP when carrying out import procedures.

The reason is that those items are common imported goods, but ingredients containing precursors which are sensitive, in the opinion of the General Department of Vietnam Customs, these are high-risk items, potentially causing fraud, content in these products can be used for drug production and preparation, so it needs to have a mechanism to strictly manage the intended use of this product group after being imported into domestic circulation.

The General Department of Vietnam Customs requested the Ministry of Industry and Trade to consider to chair and coordinate with relevant ministries (Police, Health, Agriculture and Rural Development) to have a plan for controlling the import for proper use purposes of these products after clearance, apply a commodity management policy in line with the actual situation and ensure effectiveness in drug control in order to meet the provisions of Decree 58/2003 / ND-CP, Decree 73/2018/ND-CP and related guiding documents.