Minister officially put an end to 675 business conditions

By An Nhien - Sep 22, 2017 | 02:45 PM GMT+7

TheLEADER675 investment and business conditions are officially cut under the final decision on the eradication and simplification of investment and business conditions in the field of the state management of the Ministry of Industry and Trade (MoIT) in the 2017-2018 period signed and promulgated by Minister Tran Tuan Anh.

Minister officially put an end to 675 business conditions
MoIT conducted the largest sub-licenses eradication. (Photo: Vietnamnet)

After two weeks of overhauling, MoIT decided to eradicate an unprecedented number of 675 investment and business conditions in the fields of its management. This figure accounts for 55.5 per cent of the total conditions of 27 business areas and higher than the expected 612 conditions. After the eradication, the number of remaining conditions is 541 instead of the expected 752 conditions.

According to the report of the task force on public administration reform, all agencies under MoIT submitted their overhauling result of 1,216 sub-licenses of 27 areas, not involving the 28th area which is automobile manufacture and import, to the ministry. They also proposed measures to eliminate and simplify the investment and business conditions for the sustainable development of enterprises, people in particular and the whole community at large.

Earlier in October 2016, MoIT also implemented a significant eradication of administrative procedures, with 15 administrative procedures being cut and 108 procedures being simplified. The figures accounted for 27.8 per cent of the total number of 443 administrative procedures of MoIT.

Minister of Industry and Trade Tran Tuan Anh affirmed that in the upcoming time, the ministry will continue listening to enterprises to solve the problems arising in a timely manner. MoIT will continue overhaul to shorten the list of goods which are under specialized inspections, including in the pre-clearance and post clearance, promoting the use of post-inspection and the principles of risk management. It also continues socializing the units involved in suitable conformity assessment, eliminating and simplifying administrative procedures which are under MoIT’s management as well as focusing on establishing and completing the national standards and technical regulations system.

Since 2015, MoIT has eradicated and simplified many legal documents in order to create favorable conditions for enterprises. On September 08, 2016, it decided to reduce the number of goods subject to pre-customs clearance by announcing the list of the imported manifest which must be inspected for quality assurance, technical regulations and food safety before the customs clearance under MoIT management. Specifically, 420 goods codes, reaching up to 58.3 per cent of the total amount of tariff codes, were eliminated. Currently, there are only two types of products including explosive pre-substances and food, subject to pre-customs clearance in accordance with the food safety law.

The Ministry of Industry and Trade has also eliminated monopolies and socialized the inspection, especially in the fields of industrial explosive materials and energy saving labeling. It has appointed 11 eligible units to implement the state inspection of imported food safety in the form of socialization.

MoIT also applied the principles of risk management in order to reduce the frequency of inspection, especially in the field of food safety.

Only dossier inspection are applied for the shipments having the same type and origin passing 5 successive inspections on food safety requirements. Steel enterprises were also facilitated by only applying dossier inspection.

In order to continue simplifying administrative procedures, MoIT is building a circular on the amendment of some regulations on food safety inspection under its management. Accordingly, only dossier inspection will be applied for products having the same type and origin and passing three successive inspections instead of five.

In the upcoming time, MoIT, the Ministry of Health and the Ministry of Agriculture and Rural Development will make a list of goods exempted from inspection or immediately apply the form of dossier inspection.

According to the task force, garment companies can save up to VND1.5 million (roughly US$66.11) per sampling inspection and up to 2.4 to 3.8 days in the clearance period.

Besides, food companies can reduce the time of clearance from 12 days to only 2 days thanks to the reduced inspection applied for 2,325 shipments that met the requirements in 2016 and first half of 2017. Steel enterprises can save up to three to four days of clearance as well as VND2 million (roughly US$88.14) in the sample inspection of a shipment. These figures are expected to decrease from October 1, when only post-customs clearance is applied.

The Ministry of Industry and Trade has officially applied the national one-stop-shop mechanism to 5 administrative procedures including issuing the Preferential Certificate of Origin, automatic import licensing for large displacement motorcycles, import licensing for ozone layer-depleting substances, import and export licensing for industrial explosive materials and issuing the Kimberly Process certificate for rough diamonds traders.