Export To The United States, Policy Risk Summary Of Vietnam, Thailand And Kampuchea

By way of Southeast Asia, you may not be able to save money!

During the Sino US trade friction between last year and this year, many export enterprises chose to "save the country by curves" and bypass Southeast Asian countries to circumvent the additional tax increase in the United States. But is it really cost-effective to assess risks and costs?

The following comprehensive "borrow road" popular recent control measures for export enterprises reference!

Vietnam?

Vietnam is considered by many to be the biggest beneficiary of Sino US trade friction. At present, Vietnam has signed two heavyweight FTA, namely, the free trade agreement between Vietnam and the European Union (EVFTA) and the trans Pacific Partnership Comprehensive and progress agreement (CPTPP), which will enable Vietnam to enjoy more tariff preferences when exporting to Canada, Japan, Mexico, Peru, France, Germany and other markets, and achieve its huge export advantage.

In the first 11 months of this year, China's exports to Vietnam increased by 22%. On the other hand, Vietnam's exports to the United States increased by 27.9% to 55 billion 600 million US dollars in the first 11 months of this year, of which, electronic products, textiles, mobile phones and parts, and electrical and mechanical equipment increased by more than 40% over the same period last year. The United States has put pressure on Vietnam and has repeatedly urged Vietnam to investigate the export of "washing origin".

This year, Vietnam has repeatedly adjusted its rules in the recognition of import and export origin. The latest rules will take effect on October 21st.

Prior to this, the Vietnamese Federation of industry and Trade issued the "Vietnam made" (origin) standard draft stipulates:

The origin of a commodity must be marked. If a product is produced solely in Vietnam or produced entirely in Vietnam, it will be marked "made in Vietnam".

If the commodity is made in the final processing stage of Vietnam, it is necessary to meet the requirements of the relevant commodity code (HS) conversion regulations and the added value ratio of the domestic territory to more than 30%, so as to label "Vietnam made".

Ou Yingjun, deputy director general of the customs administration and Supervision Bureau of the customs and Excise Department of Vietnam customs, said there were 15 kinds of commodities of origin fraud and forged higher risk. Among them, textiles, clothing, leather shoes and handbags were noteworthy; computers; electronic products and their components; household appliances and their components; aluminum and aluminum products; steel and iron and steel products; wood and wood products.

Vietnam's latest batch of 13 warning products are as follows:

The Ministry of industry and trade of Vietnam has recently informed the provincial and municipal people's committees about the 13 list of early warning commodities that may be exported to the United States, the European Union and Canada, which are subject to trade remedy measures and anti tax avoidance investigations. The Ministry of industry and Commerce divided the warning level into 4 levels. The fourth, third class export commodities need to be closely monitored, and the relevant enterprises' activities must be strictly checked. The commodities listed in the second, first level need attention and continuous tracking.

Plywood was included in the warning grade fourth by Vietnam's Ministry of industry and trade.

The third categories are 7 kinds of products, such as artificial stone, iron cabinet, rubber mattress, electric bicycle, passenger car tire and corrosion resistant steel.

4 kinds of stainless steel rings, hot rolled steel plates, cast steel products and synthetic fibers were included in grade 2.

Corrosion resistant steel and ribbon are 1 levels.

The 13 commodities mentioned above are all kinds of trade remedy measures and anti tax avoidance measures adopted by the US Department of Commerce to China. Since the launch of the US investigation, the amount of China's exports to the United States has dropped significantly, while the export volume of similar commodities to Vietnam has increased sharply. The US Customs and border protection agencies suspect that these goods will be exported to Vietnam to avoid double tariffs, so Vietnam must strengthen the monitoring and inspection of the relevant export enterprises.

In addition, Vietnam customs is developing a new procedure to better identify and punish those companies that violate Chinese products counterfeiting for export to Vietnam.

In October 29th, the Customs General Administration of Vietnam discovered and prevented a commercial false case of importing China's aluminum products from the local enterprises to Vietnam's origin to export to the United States, and seized 1 million 800 thousand tons of aluminum products, valued at about 4 billion 300 million dollars.

The Vietnamese authorities say that there are 10 container bicycles being detained at the Pingyang customs because nearly 100% of these products are imported from abroad, and even the labels are posted abroad. They are shipped to Vietnam for assembly and then exported.

At the same time, the Haiphong port area has also suspended a lot of machinery imported from abroad. These products can only be exported to Vietnam through simple assembly.

Other parts of Vietnam, such as Hu Zhiming and Nai, also detain many imported products such as clothing, shoes, hats, electronic accessories and other products. These products are labeled with Vietnamese domestic brand labels for domestic consumption, and customs authorities take prompt action in the port area.

The Vietnamese authorities said that the customs will continue to intensify the struggle against the false acts of disguised origin.

In December 6th, the head of the US embassy delegation, Karen McClelland (Caryn McClelland) and V Th Th Mai, Deputy Minister of finance of Vietnam, signed the customs mutual aid agreement (CMAA) in Hanoi. The agreement allows the exchange of information, intelligence and documents between the United States and other countries to prevent and investigate customs violations.

The US Customs and border administration said that every agreement was tailored to the competence of customs authorities and national policies.

The agreement may help the US government more conveniently investigate the way Chinese products are exported to Vietnam through Vietnam.

Thailand

The Department of international trade of the Ministry of Commerce of Thailand has dispatched staff members to carry out a surprise inspection of some factories to prevent Chinese products posing as Thailand's products for export to the United States, so as to avoid the United States adopting measures to increase import duties on Thailand commodities, thereby affecting the export of Thailand commodities to the US.

The director of Thailand international trade department, said that the office has set up inspection teams to conduct surprise inspections of major factories to determine the legality of the certificate of origin issued by these factories to the US. If it is found that goods exported to the United States are not genuine Thailand origin commodities, they will notify the US Customs and punish the illegal Thailand factories.

The office hopes to build a good reputation for the export of US goods to Thailand, safeguard the rights and interests of legitimate factories to export to the United States, further promote the trade between the US and the US, and expand the market for exports to the United States, in order to replace the Chinese commodities affected by Sino US trade friction.

In late October, the United States announced the suspension of Thailand's GSP tariff treatment, involving seafood, juice and other Thailand exports to the United States.

Cambodia

The United States is also urging Kampuchea to investigate Chinese enterprises' roundabout ways to export to the United States and avoid customs duties. In June, the United States imposed a fine on several export companies because they exported goods through China's Sihanouk Special Economic Zone in Kampuchea to circumvent the US government's tariffs on Chinese goods.

According to the General Administration of customs, China's exports to Kampuchea increased by 30.7% in the first half of 2019, while Kampuchea's exports to the US in the first quarter of this year increased by 22.4% over the same period last year.

Kampuchea's rules of origin require only 40% of its products from that country. Under the expanded trade agreement of 2016, the universal preferential treatment system (GSP) allows Kampuchea to export tax-free travel items to the United States, such as bags, suitcases and accessories.