On November 12, 2018, the National Assembly of Vietnam passed Resolution No. 72/2018/QH14 on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect on January 14, 2019. According to this resolution, if a party imposes or maintains prohibitions or restrictions on the importation of used goods, these measures will not apply to refurbished goods. However, this provision does not apply to refurbished goods that Vietnamese law prohibits or restricts from being imported until three years after the effective date of the CPTPP.
In compliance with this commitment, on November 2, 2023, the Government issued Decree No. 77/2023/NĐ-CP ("Decree 77"), providing specific regulations on the management of the importation of refurbished goods under the CPTPP. According to Decree 77, the importation of refurbished goods under the CPTPP, and of the same category as used goods prohibited from importation into Vietnam, is permitted. The following are some of the key points outlined in Decree 77.
1. Conditions for Classifying Goods as Refurbished
According to Decree 77, refurbished goods must simultaneously meet the following conditions:
- Belong to the list of goods specified in Appendices I to V of Decree 77, including various types of machinery, equipment, tools, and vehicles under the management of specialized ministries, namely the Ministry of Industry and Trade, the Ministry of Information and Communications, the Ministry of Health, the Ministry of Transport, and the Ministry of Agriculture and Rural Development.
- Be entirely or partially composed of recovered materials.
- Have a service life similar to the service life of the same type of goods when unused.
- Perform all functions as the same type of goods when unused, with unchanged or similar quality and performance efficiency.
- Have a warranty policy similar to the warranty policy applicable to the same type of goods when unused.
2. Conditions for Refurbished Goods Allowed for Import into Vietnam
- Possess an import permit as stipulated by regulations;
- Comply with the rules of origin for goods according to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);
- Meet relevant regulations for newly imported goods of the same category.
- Especially, when introducing refurbished goods to the market, the original label or additional label of the refurbished goods must display the phrase "Refurbished Goods" in Vietnamese in a position and size that is visible and readable by the naked eye. This regulation aims to identify imported goods as refurbished, prevent consumer misunderstandings, and facilitate inspection, traceability, and prevention of fraudulent commercial activities.
3. Refurbished goods may only be imported into Vietnam upon obtaining a license to import refurbished goods
a. Implementing Entity: Importers of refurbished goods.
b. Licensing Authority: The specialized management ministry for each type of imported refurbished goods.
c. Types of licenses for the importation of refurbished goods:
Accordingly, the license for the import of refurbished goods includes 02 types:
|
No |
Criteria |
Batch-based Import License | Time-limited Import License | Notes |
|---|---|---|---|---|
|
1 |
Service life | Per registered batch | Minimum 12 months, determined by the licensing agency, except for cases where refurbished goods are suspended in the refurbishment code or businesses with revoked refurbishment codes | |
|
2 |
Quantity of imported goods | According to the registered batch | No limit on the quantity of refurbished goods imported under the license's validity period |
|
|
3 |
Applicable cases |
For refurbished goods meeting the legal conditions: - Within the first 3 importations into Vietnam; + For refurbished goods with suspended refurbishment codes, reissued, or refurbished goods of businesses with revoked refurbishment codes and reissued: Within the first 10 importations into Vietnam after the suspension/ reissuance;
|
+ For refurbished goods meeting legal conditions: From the 4th importation onwards. + For refurbished goods with suspended refurbishment codes, reissued, or refurbished goods of businesses with revoked refurbishment codes and reissued: From the 11th importation onwards.
|
How to determine the number of importations: + The number of importations is calculated for both cases of goods imported by the same trader or different importers. + The count is only applicable to refurbished goods with the same name, type, and category, and under the same business with an issued refurbishment code. |
Decree 77 takes effect on January 1, 2024.
[1] https://trungtamwto.vn/upload/files/noi-dung-hiep-dinh/2.-National-Treatment-and-Market-Access-for-Goods.pdf
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