Customs enhances the inspection of origin and label from Khaisilk case

Relating to determination of origin, point 1 of Article 27 of Customs Law stipulates the determination of the origin of exported goods as follow: the Custom determine the origin of exported goods based on examination of contents declared by Customs declarants and documents in Customs files and results of the physical inspection of goods. If Customs is doubtful about the origin of exported goods, it shall request Customs declarants to provide documents related to the origin of exported goods and inspect and verify the origin of goods at export production establishments. While waiting for the availability of the inspection and verification results, exported goods shall be cleared in accordance with Article 37 of this Law.

Regarding goods labeling, Clause 1 of Article 9 of Decree 43/2017/ND-CP of the Government specifies that organization or individual in charge of labeling, including supplementary label, shall ensure that the labeling is truthful, clear, precise and exactly reflects the nature of goods.

For labeling for goods manufactured for domestic consumption, Clause 2 of Article 9 of Decree 43/2017/ND-CP regulates that For goods manufactured for domestic circulation, the manufacturer shall be responsible for labeling. If that manufacturer authorizes the labeling to another organization and individual, he/she still must be responsible for their goods.

According to clause 3 of Article 9 of Decree 43/2017/ND-CP, if goods are not eligible for export and are returned for domestic circulation, organizations and individuals in charge of goods consumption shall be liable for labeling in line with the provisions of this Decree.

Regarding supplementary label, clause 4 of Article 8 of Decree 43/2017/ND-CP stipulates, “the content of the supplementary label shall include Vietnamese translation from mandatory information on the original label and additional information according to the nature of the goods as prescribed in this Decree. The organization and individual in charge of labeling shall take responsibility for the accuracy and truthfulness of the mentioned contents. The content on the supplementary label and additional contents shall cause misunderstanding to the content of the original label and correctly reflect the nature and origin of the goods.

Decree 43/2017/ND-CP also stipulates that mandatory contents shown on the label contain: name of goods, the name of address of organization and individual in charge of goods and origin of goods.

If goods are goods, which are processed under processing contract for foreign traders, the goods label and origin is one of the mandatory provisions of the processing contract.