Specialized Inspection: MOIT slow due to “process”

Textile business met manydifficulties with inspection regulations about formaldehyde content. Photo: Nguyen Hue.

The ministriesand branchesbeing slowwill make difficulty for businesses

For years, the textile enterprises have “screamed” continuously about inspection regulations for formaldehyde content and aromatic amine in textile products. However, despite enterprises complsintd, authorities have still appliedthe regulations.

In fact, the formaldehyde content inspection had been previously applied in accordance with Circular 32/2009/TT-BCT regulated temporarily on permissible limits for formaldehyde content and aromatic amines which may be released from azo dyes in deoxidization conditions on textile products. However, when applying to this Circular, textile enterprises met many difficulties. Therefore, the amendment of Circular 32 is of interest especially tothe Government and the Prime Minister, the authorities requested MOIT to amend to facilitate enterprises (the requirements are set out in Resolution 19/2016/NQ CP and Decision 2026 / QD-TTg). But, things have still changed slowly.

Mr.Truong Van Cam, the General Secretary of Vietnam Textile - Garment Association (Vitas) said that, since the introduction of Circular 37 (replaced Circular 32) whichtook effect from the beginning of 2016, the enterprise problems arestill unresolved. “We saw that Resolution 19 stated clearly Circular 32 amending in the direction: Small items imported to be production materials, test samples were exempted from inspection, but Circular 37 did not show this, therefore the commodities were still exempted from inspection” Mr. Cam said. Or the record inspection prescribed in Circular 37 also cannot detect toxic elements affecting consumers, but the record inspection must also take at least 2 days. This takes companies longer time and more expensive cost. “I do not know the cost regulations, but each unit obtained a different level, a unit collected 1 million vnd, other collected 2 million vnd” Mr. Cam complained.

On these issues, Vitas had written comments to the Ministry of Industry and Trade, even a draft circular amending and supplementing Circular 37, the Vitas latest draft also had MOIT written a reply.

Also related to the issue of specialized inspection, Mr. Nguyen Tuong, the Deputy General Secretary of Vietnam Logistics Association said that 28% of current cargo clearance is byCustoms authorities, 72% is of other sectors. If the ministries and branches are not fast, it will cause difficulties for businesses. For example, for used machinery imports, if the Ministry of Science and Technology wants to license, they must consult with the Ministry of Industry and Trade. However, to obtain comment of the Ministry of Industry and Trade, they must have comment of the Department of Science and Technology, the Department of Heavy Industry. “These things take very long time. I think that for the specialized inspection issue, if the MOIT reduces administrative procedures, and accelerates internal working of the Ministry, it will be very good”, Mr. Tuong stated.

Errors due to… process

As one of 13 ministries which has to reform the specialized inspection procedures, the ministry is not a unit having the largest number of amended procedures, the amending progress of the MOIT is still very slow. The progress has no small effect on the daily export activities of companies. Circular 37 is only one of many documents that the MOIT is having to amend. Not only the textile enterprises but also many companies of energy, chemicals, steel... are very annoyed for specialized inspection procedures when such procedures are “denounced” to cause difficulties, incur costs, and hinder the development of enterprises.

When “questioning” Mr. Tran QuocKhanh, the Deputy Minister of Industry and Trade about the issue, reporters received the brief answer: “Some documents are not subject to the jurisdiction of the Ministry of Industry and Trade, they are regulated on other laws and decrees. These documents need time to amend; the MOIT amended to facilitate much more for enterprises at border gates. Evidence is that the Ministry of Industry and Trade issued a document to abrogate Circular 37, reviewed the Circular 40/2011/TT-BCT about the chemical declaration regulations to simplify chemical procedures...”. According to Mr. Khanh, the Prime Minister or the Ministry of Industry and Trade have not enough authority to change a provision of the Government. The amendment must follow the process, and he “expects the people and businesses to wait longer”

With this answer, it can be understood that the delay of the Ministry of Industry and Trade is due to process! Therefore, many documents, specialized inspection procedures of the Ministry of Industry and Trade have not been modified because they involve other ministries (!?).Such as Circular 48/2011/TT-BCT, the Ministry Industry and Trade said that the basis for building a circular which amends and supplements Circular 48 is Decree 132/2008/ND-CP detailing some articles of the Law on Technical Standards and Regulations and Decree 127/2007/ND-CP detailing the implementation of some articles of the Law on Technical Standards and Regulations. Currently, two Decrees are in the process of amending and supplementing. Therefore, the Ministry of Industry and Trade has not enough legal basis to build a circular amending and supplementing Circular 48. They will amend and supplement Circular 48 when a new decree amending and supplementing Decree 132 and Decree 127 is issued. There are many documents and policies of the Ministry of Industry and Trade which are explained later in accordance with the progress as the above example.

Being “impatient” with the delay, in late August, the General Director of CustomsDepartment Nguyen Van Can had a meeting with the Ministry of Industry and Trade about the National Single Window structure and specialized inspection. The meeting contents were informed in advance, but when discussing specialized inspection issues, the MOIT was “quiet”, in spite of participation of many expertise departments and bureaus. Mr. Nguyen Cam Tu, the Deputy Minister of Industry and Trade only informed that for this issue, the MOIT would revise the legal documents for specialized inspection to amend and supplement to suit with current requirements.

The need forintegration, reform, and the progress of creating favorable conditions for businesses was notmentioned much atthis time. If the Government only directs, ministries only promise, the “reform train” in accordance with the message of the Government and the Prime Minister will be very difficult to accomplish. Meanwhile, it is the companies that suffer losses! Therefore, the business community is looking forward to reform from the Ministry of Industry and Trade, as Mr. Khanh expressed “the MOIT do not just talk”