MOIT cuts 675 business conditions

	MOIT may cut many business conditions
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	A reduction of 2,000 conditions is an appropriate approach

Specialized examination of the MOIT has been mentioned many times by the Customs Newspaper

A historic reform

MOIT is one of 13 ministries and sectors which have been assigned to simplify procedures and business conditions that have harassed and obstructed enterprises’ operations (abide by Resolution No. 19 and Decision No. 2026/QD-TTG). Not being a leader in the implementation, but until now, the MOIT has basically fulfilled the most of the works. A MOIT’s report showed that the Ministry has completed 8 of 10 documents which are required to be reviewed, amended and supplemented under Decision No. 2026/QD-TTg, one of them is waiting for promulgation and the rest one is being reviewed, amended and supplemented and is expected to be issued early.

Besides the implementation of Decision No. 2026/QD-TTg, the MOIT also cuts many conditions and procedures related to specialized examination to remove difficulties and improve competitiveness for enterprises such as the promulgation of Circular No. 37/2015/TT-BTC to remove difficulties for garment enterprises in the examination of formaldehyde content or promulgation of Circular No. 36/2016/TT-BCT on energy labeling. Enterprises complained much about these administrative procedures and the MOIT has responded. According to MOIT, the removal of procedures for formaldehyde content examination for fabric, fiber, semi-finished products and samples has helped enterprises save 1.5 million VND for each examination and shorten the clearance time from 2.4 to 3.8 days.

Moreover, at the beginning of 2017, MOIT issued Decision 5162/QD-BCT on administrative review plan 2017. Accordingly, besides cutting and simplifying procedures, MOIT also promulgated supervision mechanism for commitments and specific implementation roadmap. Regarding this plan, many meetings among departments in the MOIT and between MOIT and other ministries have been held. Even, MOIT has established a special working team to review comprehensively administrative procedures and business conditions for the purpose of making a plan for simplification and minimum.

Minister of Industry and Trade Tran Tuan Anh has confirmed repeatedly at the meetings that “what required to be cut should be cut, what are entangled and infeasible should be removed toward facilitating enterprises, thereby protecting the consumer’s benefits”. Cutting business conditions and removing difficulties for enterprises will be a key task throughout the administrative reform; apparatus and institution development; investment and business environment improvement and for a facilitating government.

With such the spirit, on 21 September 2017, Mr. Tran Tuan Anh has signed a Decision on cutting 675 business conditions - a historic decision of the MOIT.

The Decision is highly appreciated by the Government. In the working session between the Prime Minister’s Working Team and MOIT on the specialized examination for imported and exported goods last weekends, Minister-Chairman of Government’s Office, Mai Tien Dung affirmed that MOIT has many positive changes and significant achievements in cutting business conditions, procedures, costs in specialized examination and renovating the apparatus.

Waiting for results

For above decision, MOIT has cut more conditions than its initial plan (63 conditions), accounting for 55.5% of the total number of 1.2226 business and investment conditions. Mr. Tran Tuan Anh said that the Decision on cutting 675 business conditions was not a final decision, the Ministry will further review on the basis of transparency, publicity, learning, actual situation and law. Accordingly, these conditions mainly focus on fields such as petroleum, gas, explosive pre-substance; chemicals; alcohol; cigarette; food; electricity; temporary import for re-export of frozen food; franchising; logistic; industrial pre-substance; commodity exchange; trade verification; multilevel; e-commerce; and industrial explosive materials (including destruction operations).

Many experts, as well as enterprises, are eager with the determination of MOIT because reducing procedures and conditions means reducing much unnecessary costs. For example, for steel, the reduction of inspection procedures reduces Customs clearance time from 3 to 4 days, and 2 million VND for testing for each shipment. As of 1 October 2017, when steels are inspected after Customs clearance, the clearance times is estimated to be faster.

Recognizing the results of MOIT from the reform of specialized inspection procedures, but in the last weekend’s working session, Mr. Mai Tien Dung also emphasized that MOIT must continue to pay attention to and review the overlapping lists of commodities between the MOIT and other ministries and sectors in the Prime Minister’s direction that is one commodity is only managed by one ministry/sector, other ministries only play role as coordinator; continuously review the list of commodities toward narrowing commodities that are less subject to inspection and reduce the clearance time, enhance recognition of results of exporting countries such as test results and energy efficiency for exported goods

According to Mr. Mai Tien Dung, the existing problem is that one commodity is governed by many documents, one commodity is subject to specialized examination by many ministries, even two agencies in one ministry. In some case, some ministries do not disclose technical regulations, so the examination is implemented by sensibility and visual sensation. "Customs inspects only 6% of consignments, but ministries inspect up to 35% of consignments. Customs inspection time accounts for only 28% of the total clearance time, but specialized inspection time accounts for up to 72%, "said by Mr. Mai Tien Dung.

Not only reviewing the overlap among ministries and sectors in specialized examination, Mr. Mai Tien Dung also requested the MOIT to pay attention to and respond the recommendations of enterprises. Representative of Vietnam Gas Association reflected that the MOIT has announced to abolish the procedure of chemical declaration but until now, the abolishment has not been implemented. At present, every consignments of liquefied gas must implement this procedure and enterprises must visit the Chemical Department (MOIT) twice for confirmation of successful declaration. According to the regulations of MOIT, the procedure for issue of the declaration must take 7 days, but the Customs office required to immediately submit the certificate. "We only have 24 hours to unload, if the unloading is carried out late, we must pay a fine from 6,000 to 9,000 USD per day for a 1,000 ton – ship, if this number multiplied by 7 days, how much will the fine be," the representative questioned.

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It can be seen that the reduction of investment and business conditions, or review of the procedures for specialized examination for exported and imported goods of MOIT has received a large support and is necessary. However, there is a lot of doubt about this MOIT’s historic decision such as: What is the quality of the cut procedures or is the cutting only implemented for unimportant parts, making a minimal impact? These questions are still waiting for the MOIT’s answers not only by the numbers like 675 conditions but also more than that. That is the specific and effective action