ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

Thứ Hai, 30 tháng 5, 2016

THE METHOD TO IDENTIFY THE CUSTOMS VALUE OF IMPORTED AND EXPORTED PRODUCTS

Customs valuation matters with particular reference in transfer pricing that attract attention in Vietnam recently.  There are acceptable methods of reducing customs duty liabilities.  In order to clarify for the method to identify the customs value of imported and exported products, the Ministry of Finance has issued the Circular 29/2014/TT-BTC guidinging identical imported products; license fees, and licensing fees relating to imported products; the activities to simplify process after importing; explaining “like a condition of product sale transaction” at Point b, Section 1.2.5.1 Article 14 on license fees, licensing fees in Circular 205/2010/TT-BTC.

The ministry also abolished regulations on method to identify customs value in case of illegal dossiers or conflicts of documents at section 2.2 Article 10 Circular 205.
The new Circular takes effect on April 12th 2014.
For further information or legal advice, please contact our customs lawyers in Vietnam at ANT Lawyers.

Thứ Năm, 26 tháng 5, 2016

COSMETICS WORKSHOP, EVENT ORGANIZING REGISTRATION SERVICES

In addition to the cosmetics advertising on mass media such as television, radio, electronic portals (Internet, Website), books, newspapers, magazines, flyers, posters, underwater objects or other means of advertising, the cosmetics business can make or sponsor, authorize other entities to carry out workshop activities to introduce cosmetic products.


The cosmetic businesses are only allowed to advertise, organize seminars and events to introduce the cosmetic products when having the Receipt of advertising, seminar, cosmetic introduction events registration dossiers as prescribed by law.
Cosmetic advertising content must be consistent with the documents proving the safety and efficacy of the cosmetics and must comply with published guidelines of ASEAN cosmetic product features.
1. Services that ANT Lawyers provide for customers:
+ Consultation on the announcement of cosmetics, import cosmetics, cosmetics advertising.
+ Consulting on the registration and documentation of organizing conferences, workshops to introduce and advertise cosmetics as requested by customers.
+ On behalf of customer to fill in the cosmetics advertising registration where business operates or where enterprise organizes conference, workshop to advertise cosmetics.
+ On behalf of customer to contact, work and receive information from the competent State agencies related to the implementation process.
+ Amend and supplement the dossier as prescribed by the competent State agencies upon requested.
+ Inform customers about the validity result from the competent State agencies.
2. Registration dossier includes:
+ Trader registrated to advertise cosmetics, orgasnize seminar, event to introduce cosmetic products.
+ A copy of the business registration.
+ A copy of the cosmetic product announcement card that has been granted.
+ POA of organizations and individuals that announce the cosmetic products for the one who organizing cosmetic seminar, introduction event (in case of the event organization or individual register for advertising, organizing the seminar, cosmetic introduction event which  are the one who held, published cosmetic products).
+ Document disclosures for the features, the use of the product in the case of the advertising contents, the contents presented at the seminar, cosmetic introduction event mentioned features, the use of the product beyond the content stated in the cosmetic product announcement card.
+ 02 advertising scripts (script must clearly describe the pictures, lyrics, music intends to advertise) or 02 advertising forms intend to release (applicable to the advertising registration dosssier) or documents intend to display, release at the seminar, cosmetic introduction event (applicable to workshop registration dossier).
3. Ways to file registration of cosmetic advertising, organizing seminar, event introduced cosmetic products:
a) Cosmetic registration dossier may be compiled for one or more products, can advertised on one or more means of mass media.
Cosmetics advertisement, advertising script can be made ​​for one or more different products.
b) The event, workshop organizing registration dossier may be compiled for one or more products to be held in one or more locations in the province, city
The procedure time: 10 working days from the time when the customer provides valid records and documents as required.
Please contact us at ant@antlawyers.vn or call us at + 84 835202779.

OVERVIEW ON COSMETICS REGULATIONS IN VIETNAM

Cosmetics are areas of highly regulated in Vietnam as they apply on human and could create health concern.  Hence, cosmetics imported into Vietnam have to be applied special procedures to ensure safety.  Cosmetics regulations in Vietnam would lay out provisions that importers and manufacturers to follow.

To carry out the Combination Convention in the cosmetic management which has been signed by countries are member of the Association of Southeast Asian Nations on September 2nd, 2003 (commonly called ASEAN Cosmetic Convention), the Ministry of Health of Vietnam issued Circular 06/2011/TT-BYT on Cosmetic Management.
The Circular dated January 25th, 2011 regulating the management of cosmetic products manufactured in the country, as well as cosmetics imported for circular in Vietnam. Besides, the cosmetic regulations is also provided in related provisions.
Product Registration in Vietnam 1
Product Registration and Cosmetics Proclamation in Vietnam
According to the Vietnam cosmetic regulations, cosmetic product must be construed as a substance or a preparation which is used for touch with outside parts of human body (skin, hair system, finger nails, toenails, lip, and outside reproduction organ) or teeth and mouth mucous membrane with main purpose in order to cleanse, aromatize, change the outward characteristics, form, adjust body’s smell, safeguard body, or maintain the human body in good condition. In addition to the products being grouped as cosmetic products such as: creams, emulsion, lotions, gels and oils for skin (group 1); tinted bases (group 2); toilet soaps, deodorant soaps (group 3); … some products are not classified as cosmetic.
Under Vietnam law, a cosmetic product made in Vietnam or imported into Vietnam must go through procedure of proclamation before being is sold on the market. In particular, organizations or individuals circulating the cosmetic products on the market have to be responsible for obtaining permissions through cosmetic product proclamation from authority agencies as well as responsible for safety, effectiveness, and quality of product.
For exporting cosmetic, the exporter needs to obtain the Certificate of Free Sale (CFS) as regulated. CFS is issued when such domestic cosmetic is issued the cosmetic product proclamation receipt number by competent state management agency. For importing cosmetic, enterprises are only allowed to import the cosmetic into Vietnam when presenting to the Customs agency the valid receipt number of cosmetic product proclamation report which has been issued by the Medicine Management Department – the Health Ministry. However, Vietnam law also provide import of cosmetic in some special situations which are not obligated to implement the cosmetic product proclamation as the following:
– Organization or individual who imports cosmetic in order to study and experiment;
– The organizations, individuals who receive cosmetic as gifts;
– The organizations, individuals who import cosmetic for displaying at fair, gallery and other temporary import for re-export situations.
For manufacturing cosmetic, the cosmetic regulations require the organizations which manufacture the cosmetic must deploy to apply and satisfy principles, the “cosmetic good manufacturing practice” standard of the Asian Southeast Association Nations (CGMP-ASEAN).
Besides, compliance with the other requirements such as labeling, safety of ingredients, cosmetic advertising is also required.
For advise or service request, please contact us via email ant@antlawers.vn, or call +84 8 3520 2779 (HCMC Office), +84 4 39388751 (Hanoi Office).  To learn more about us, please visit www.antlawyers.vn 

FOOD AND FOOD SUPPLEMENTS REGISTRATION IN VIETNAM

Proclamation of quality specifications of imported food and food supplements
To ensure imported food and food supplements are safe to eat, as well as to protect consumer through the control of imported food and food supplements quality, the Vietnam Food Registration Agency requests the imported food and food supplements to be complied with the proclamation standard procedures.
Food and Food supplements registration in Vietnam
Food and Food supplements registration in Vietnam
ANT Lawyers is capable to carry out proclamation of quality  specifications procedures in Vietnam for clients being manufacturers, importers and distributors.
ANT Lawyers services include:
  • Provide consulting advice relating to proclamation of quality specifications of products.
  • Act as authorized representatives to draft documents, filing of statement with the competent State agencies.
  • Provide consulting advice to overcome the problems arising in the course of registration;
  • Act as authorized representatives to draft documents, filing of application at the competent State agencies.
  • Authorized representatives to draft documents, filing for certificate extension at the competent State agencies.
A number of documents to be provided:
  • Products specifications;
  • Product label;
  • Samples;
  • Copy of the business registration certificate;
  • Certificates of Good Manufacturing Practice (GMP), Hazard Analysis and System Critical Control Point (HACCP);
  • Certificate of Free Sale or Health Certificate;
  • Power of attorney;
Please contact ANT Lawyers for more specific advice to ensure compliance with the laws of Vietnam by inquiries through email ant@antlawyers.vn or call our partners directly at  + 84 912 817 823.

Q&A ON COSMETICS REGULATIONS IN VIETNAM

There have been a number of questions arisen after the Webinar on Cosmetic Regulations in Vietnam on May 27th, 2015 and we would like to address those questions as following:

1. Has Vietnam fully implemented the ASEAN Harmonized Cosmetic Directive (ACD)? Yes. Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries
2. Does Vietnam vary from the Regulation in any way(s)? Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries
3. Does Vietnam require notification numbers on cosmetic packages?
No. The following contents must be presented on the label:
– The product’s name and function,
– The usage instruction,
– The full formula ingredients:
– The country where the product was made;
– The name and the address of organizations or individuals who are responsible for placing products on market (written fully in Vietnamese according to the business registration certificate or the investment license);
– Weight or volume,
– The manufacture lot number;
– The manufacture day or the expiry must be clearly presented (i.e.: day/month/year). The “expiry” or “the best using before date” can be exerted, if necessary, can add the instructed condition needs obey to make sure of the product’s stability.
– Warning about safety for usage;
4. Prior to exporting cosmetics to Vietnam, do we need to get a license or certificate for importing? If necessary, what are the requirements to obtain it? The party placing the products on the market need to do the product proclamation procedures.
5. As Vietnam is part of the ASEAN, electronic notification is therefore part of the cosmetics’ registration process. Nevertheless, a Free Sale Certificate can be still requested by the Vietnamese authorities. What is the reason of being for such a document? Mutual recognition has no more meaning in this kind of registration process.In the other hand, a Free Sale Certificate is a document provided to a responsible person (the person who place the product on the market), however some Vietnamese officials are expecting a Free Sale Certificate to be issued by the “made in” country’s authorities… what can be impossible in some cases, when the responsible person has no address in that typical country!
For the first problem, the competent agencies have not yet implemented the procedure of electronic notification.
For second problem, as per Chapter 1, Article 2, Clause 19: Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export domestics trader stated in CFS to confirms that the cosmetic is freely produced and sold in the export country. The export domestic trader may be manufacturers or other traders not manufacturer.
This CFS is mandatory.
For the procedure of proclamation, the organization, individual that is responsible for placing imported cosmetic product into Vietnam shall be organization, individual who registered for business in competent agency of Vietnam. They must present CFS to competent agency.
6. Can you tell us if this document is really mandatory and if so what should be its format for products manufactured abroad? Same as above
7. What activities will be taken during the post-market surveillance in Vietnam? By whom? Would they inspect some documents of the product? If yes, what documents?
Authority will be checking and inspecting the compliance of laws on the cosmetic production and the trading:
– The compliance of principles and standards of “cosmetic good manufacturing practice” of the Asian Southeast Association Nations (CGMP-ASEAN) or equivalence which are admitted by the ASEAN Cosmetic Association;
– The label writing;
– The Product Information File (PIF) regulated by the ASEAN;
– The cosmetic advertising.
Authority
– The Cosmetic Quality Checking Central agency is the Drug Administration department – the Ministry of Health;
– The local cosmetic quality-checking agency is the Health department of cities and provinces.
For documents of the product inspected:
As above mentioned, one of inspecting and checking contents is about Product Information File. The Product Information File involves of the following 04 parts:
– Part 1: Administrative documents and a summary of product;
– Part 2: Material quality;
– Part 3: Product quality;
– Part 4: Safety and efficiency.
Part 1 of the Product Information File must immediately be presented when required; others, if inefficiently, must be presented within 15-60 days since the consideration day in regard to the Functional agency’s request.
8. Will there be changes to the regulations in the coming months and what will these regulations be? As Vietnam is developing regulations to implement the ASEAN’s treaty, there could be changes that further align the Vietnam regulations with ASEAN’s regulations.
9. If so, are these strict regulations to discourage importation? There are no law that discourage of importation. The importer just has to follow the regulations at importation.
10. Free Sale Certificates have to be obtained from the country of manufacturer in Vietnamese regulations. The EU defines the ‘manufacturer’ as the Responsible Person who puts the product on to the open market, this means if the Responsible Person company is from the United Kingdom, the Free Sale Certificate should be issued by the United Kingdom’s health body. Why is there such a difference between the two regulations?
Obtaining country of origin FSC can be costly and time consuming; where as a UK Free Sale Certificate is free and quick. According to Vietnam regulations, “Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export trader.”
Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:
a) Name of issuing authority;
b) Reference number of CFS;
c) Date of issuance;
d) Name of issued product, good;
đ) Type or group of issued product, good;
e) Name and address of manufacturer;
g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;
h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.
11. What are the health bodies Vietnam’s authorities will accept for country of origin Free Sale Certificates in China and Thailand? (we don’t understand the question, please clarify)
Some countries Free Sale Certificates will not allow artwork names to be used, only a production name, can we use a Product Technical File to prove that the product is the same? Vietnam regulations do not have regulations or instructions on artwork names on CFS.
Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:
a) Name of issuing authority;
b) Reference number of CFS;
c) Date of issuance;
d) Name of issued product, good;
đ) Type or group of issued product, good;
e) Name and address of manufacturer;
g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;
h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.
12. If a product has an artwork name change, however, the product itself remains the same from when it was first registered (ingredients), can the previous Free Sale Certificate be used to register the product’s name change again? Vietnam regulations do not have regulations or instructions on artwork names on CFS.
Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:
a) Name of issuing authority;
b) Reference number of CFS;
c) Date of issuance;
d) Name of issued product, good;
đ) Type or group of issued product, good;
e) Name and address of manufacturer;
g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;
h) Full name, signature, position of person who issue the CFS and stamp of issuing authority.
13. If a product is manufactured in Vietnam, the business wishing to sell the product in Vietnam buys the product, however due to logistics it has to be exported out to the UK, then sent back to Vietnam to sell, do we need to provide documents such as a Vietnam country of origin Free Sale Certificate? In our opinion, in this case CFS will be issued by country of export: UK. According to Vietnam regulations, CFS is a certified document issued in the export country (not country of manufacturer) to the export trader to confirm the product is allowed to be sold in such country.
14. Could you please precise if the banned/restricted/admitted ingredients in the Official Letter 6577/QLD are the same as the one published in the ASEAN Cosmetic directive? The content of ingredients provided in Official Letter 6577/QLD is based on recently updated regulations of ASEAN Cosmetic Committee.
15. How are hair dyes classified in Vietnam? Hair dyes are classified into hair care products according to Annex No. 01 of Circular 06/2011/TT-BYT
16. How long does it take to receive the registration certificate for cosmetics in Vietnam? Within 03 working days since receiving the regular dossier and fee as provided.
17. What are the specificities for cosmetic product regulation in Vietnam in comparison to ASEAN Cosmetic Directive? No specificities for cosmetic product regulation in Vietnam in comparison to ACD. Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries.
18. Are there claims allowed in other ASEAN countries that are not allowed in Vietnam? Vietnam authorities regularly issue official letters giving instructions and guidance to Department of Health of Cities and Provinces in Vietnam on the application of the decision of the ASEAN’s cosmetics committee. We are of opinion that Vietnam regulations are built toward complying with regulations in other ASEAN countries.
19. Is Free Sale Certificate required? Yes, CFS is required for application of product proclamation in Vietnam.
20. If our company wants to send some samples to customers in Vietnam, do we have to apply for a proclamation or is there an exemption? There are cases which cosmetics sample imported into Vietnam are exempted from proclamation which are categorized under following purposes: research, gift, and display at fair/exhibition. However other procedures might be applicable depending on the specific cases.
21. What about safety data based on alternatives to animal testing? Are they recognised by the Vietnam authorities or do we need to do it the regular way?
22. I wanted to clarify a question and answer that was raised during the Vietnam Cosmetics Regulation webinar. It is in regards to Free Sale Certificates (FSC) and where they should come from.
Currently we are obtaining country of origin FSC for our products where they were manufactured. As an example, if a product was made in Poland, we would obtain a Polish FSC, for our franchise business to register in Vietnam to sell.
During the webinar there was discussion of the FSC coming from the ‘export trader’ or the responsible person. As Marks and Spencer is the responsible person in the United Kingdom, and the products are shipped from the United Kingdom to our franchise business under a different name ‘Central Retail Group’ in Vietnam, would a United Kingdom FSC be accepted by the Vietnamese authorities?
Country of origin FSC from Poland, China and Thailand can be quite expensive and take a long time to obtain, however, a United Kingdom FSC is free of charge and easier to obtain.
According to Vietnam regulations, “Certificate of free sale (CFS) is a certificate issued by an authority agency in the export country for the export trader.”
Besides, Vietnam also provides that CFS must be made on white paper, A4 size, in English and include minimum information as following:
a) Name of issuing authority;
b) Reference number of CFS;
c) Date of issuance;
d) Name of issued product, good;
đ) Type or group of issued product, good;
e) Name and address of manufacturer;
g) CFS must define clearly that product, good are manufactured and free to sell in market of exported state;
h) Full name, signature, position of person who issue the CFS and stamp of authority.

TOP 10 CHALLENGES OF DOING BUSINESS IN VIETNAM

Expanding gross domestic product (GDP), modern infrastructure and a dramatic increase in foreign direct investment (FDI) are signs that Vietnam has transformed into an attractive investment destination, but there are still barriers to doing business which are best navigated with local help on board.

Since 1988, there have been 13,544 foreign investment projects with a total registered capital of US$213 billion in Vietnam, building a large overseas investment sector which occupies about 17% of GDP and 43.4% of industrial product value. Overseas firms are attracted by Vietnam’s 87 million-strong population which supports a large and young workforce and that has also seen an increase in disposable income in recent years.
Strong economic growth rates have been a common feature of the Vietnamese economy since the 1990s, and even though the high levels slumped slightly during the global financial crisis, the country has rapidly returned to pre-crisis growth trends and is expected to continue on this path. Infrastructure, tourism development, and related real estate and retail sector development in urban areas are all attracting large amounts of FDI, and overseas firms are increasingly attracted by the country’s move from a centralized to a market-orientated economy.
However, The World Bank and International Finance Corporation (IFC) rank Vietnam in 99th place in the world for ease of doing business, which means it is essential to seek local help of law firms and lawyers in Vietnam when expanding into the country.
Starting a Business
There are 10 procedures to undertake when starting a business in Vietnam, making it among the most complex start-up environments in the world. What’s more, many tasks facing new corporate entities may be unfamiliar to overseas companies, making the task far more rigorous. Registration of the seal-sample at the State Agency, for example, or publicly announcing the formation in a local newspaper are procedures most companies generally don’t have to complete.
Dealing with Construction Permits
It takes 110 days and 11 procedures to get permits for construction in Vietnam, once again requiring interaction with several official departments. Inspections must be carried out by the Department of Construction and the municipality, and certificates should be obtained from the Firefighters Prevention Department, the Department of Construction and the Department of Natural Resources and Environment.
Getting Electricity
Getting electrical connection is among the most rigorous tasks facing startups in Vietnam, taking 115 days to complete and costing a significant percentage of income per capita. Inspections by the local power corporation are required before completing processes with the Traffic and Transport Department and the Firefighters Prevention Department.
Registering Property
Registering property in Vietnam takes 57 days to complete, which is far higher than the OECD norm but around average for East Asia and Pacific. Contracts between the transferor and the transferee are signed before taxation is paid and registration for the right to use land is complete.
Getting Credit
Vietnam is home to quite a stable credit environment, and obtaining capital is a relatively smooth process for businesses. However, the lack of a private credit bureau can make the process a little trickier for overseas firms.
Protecting Investors
Investor protection is an area in which Vietnam needs to improve. It is ranked in 169th place by the World Bank and IFC, with a weak director liability index and shareholder suits index.
There are massive 32 corporate tax payments to be made each year which takes an average of 872 company hours to complete. Compared to the OECD norm of 176 and the East Asia and Pacific average of 209, taxation is one of the most burdensome processes of doing business in Vietnam.
Given its strong manufacturing base and reliance on interconnectivity, trading across borders is a cheap endeavour. However, that isn’t to say the process is not complicated, and the stream of documentation required for both importing and exporting highlights that cross-border trade can be difficult at the best of times.
Enforcing Contracts and Resolving Insolvency
Enforcing contracts takes 400 days to complete and 34 procedures. Resolving insolvency is a far more laborious process, taking five years on average to complete and with a low recovery rate.
Culture
The Vietnamese believe in the teachings of the early Chinese philosopher Confucius which emphasize the importance of relationships, responsibility and obligation. Vietnam is also a collectivist country and community concerns will almost always come before business or individual needs.
ANT Lawyers
We have the local knowledge to help you navigate these minefields. Whether you want to set up in Vietnam or just want to streamline your Vietnamese operations, we could assist.