Problems of energy labeling officially removed

	The Ministry of Industry and Trade removes many procedures to facilitate businesses
	Energy labeling procedures need to be absolutely improved
	Energy labeling: The Ministry of Industry and Trade “promises” to change

Enterprises may use test results of energy efficiency once for each model of product and goods produced domestically as well as imported products with the same model, manufacturer, origin and technical characteristics. Photo: Phan Thu.

Abolishing many regulations causing difficulties for enterprises

The Minister of Industry and Trade, Mr. Tran Tuan Anh has recently issued Circular No. 36/2016/TT-BCT to replace Circular 07/2012/TT-BCT on energy labeling for vehicles and equipment under the management of the Ministry of Industry and Trade for removal of regulations and terms which have caused difficulties for businesses.

Specifically, the new Circular allows enterprises to change modes of certification for vehicles and equipment, creating favourable conditions for enterprises in performing energy labeling procedures through the self-announcement of enterprises about the level of energy efficiency and energy labeling on mass media for imported vehicles and equipment. Accordingly, enterprises are responsible for product quality and energy labeling.

Enterprises may use test results of energy efficiency once for each model of product and goods produced domestically as well as imported products with the same model, manufacturer, origin and technical characteristics (unlimited period of validity).

In addition, the pilot testing of energy labeling needs to be conducted by the independent testing organizations or the laboratories of domestic and foreign manufacturers; not limited to testing on energy labeling in independent testing organizations.

In particular, in Circular 36, the Ministry of Industry and Trade has decided to abolish all of Chapter II of Circular 07 on the conditions and procedures of testing organizations and recognition of results of testing organizations. Instead, the procedures for certification of testing organizations in Vietnam will be implemented in accordance with Decree No. 107/2016/ND-CP.

Specifically, independent testing organizations and the laboratories of domestic and foreign manufacturers do not need to register with the Ministry of Industry and Trade to be recognized and acknowledged. Enterprises which register energy labeling for imported products just need to send records and documents to meet the requirements, enclosing the registration dossiers about energy labeling to the Ministry of Industry and Trade.

Circular 36 also provides additional provisions on electronic energy labeling. Accordingly, enterprises have the right to choose electronic energy labels for vehicles and equipment in accordance with the purpose of the electronic energy label.

Enterprises which register energy labeling have the right to select the form of submitting records online, with public services at the level 4 through the online service portal “online.moit.gov.vn” or send their records to the Ministry of Industry and Trade by mail.

However, the Minister of Industry and Trade has stressed that State authorities should strengthen post-clearance audits after enterprises conduct energy labeling for consumption in the market.

Commitment to reform

The amendment of Circular 07 has shown the determination of the Minister of Industry and Trade, Mr. Tran Tuan Anh with the commitment that "the Ministry of Industry and Trade will take the lead in the reform of administrative procedures". Circular 36 was issued to abolish the regulations and terms which caused difficulties for businesses.

In recent times, Circular 07 has caused difficulties and trouble for businesses. Specifically, enterprises have reflected that they have tested several times for the same product to meet the requirements for certification of energy labeling because the validity of certification of energy labeling lasts only 6 months. Besides, the infrastructure of the energy testing laboratories in Vietnam is still poor and limited.

For example, at present, in Vietnam, there is only one testing laboratory for energy efficiency of electric motors located at the Technical Center of Standardization Metrology and Quality Control 1 (Quatest 1) in Hanoi. Accordingly, enterprises in Central regions and Southern regions have to face up to many problems and costs to transport large size engines and high volume to the headquarters of Quatest 1 to perform the test.

In addition, Circular 07 has specified that vehicles and equipment must have energy labeling, including domestic and imported products to be tested at an independent laboratory to ensure transparency and accuracy. However, this provision has increased costs for manufacturers and importers.

In addition, there have been two other points of Circular 07 which have caused difficulties for businesses, including the provisions on designated testing laboratories abroad. However, to date, there have been only two independent laboratories in Korea and Thailand which have registered.

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Therefore, foreign manufacturers do not have many options in testing products in foreign countries, which has not significantly reduced the pressure for the laboratories in Vietnam; while there have been no regulations on energy labeling exemption for non-commercial imported goods, spare parts for buildings, projects and factories.