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Local authorities have recently detected a number of international trade frauds in which products originating in China were falsely labeled as made-in-Vietnam and exported to other countries to evade the taxes and other technical barriers slapped on Chinese exports.
This new type of fraud will not only cause tax income losses for the countries which import the fake-labeled products, but also negatively impact the reputation of Vietnamese products.
In the latest case, anti-trafficking authorities in the southern province of Dong Nai caught SPC Tianhua Vietnam, a 100-percent Chinese-invested company based in the Nhon Trach Industrial Zone No 3, replacing Chinese labels with Vietnamese ones on chemical products due for export to the US.
The officials found a total of 100 tons of products worth VND4.5 billion (US$214,000) with counterfeit Vietnamese brands.
The products, used to treat water in swimming pools, were made entirely in China by Shijiazhuang Hwg Trade Co Ltd.
Tianhua CEO admitted to Tuoi Tre that all 100 tons of the product is expected to be exported directly to its US partner, BSW Chemical Co Ltd, without undergoing any additional production processes, such as being mixed with other chemicals.
Nguyen Phi Hung, head of the Anti-trafficking Agency of the General Customs Department, said the customs authorities have recently detected many Chinese traders and businesses exporting their products to Vietnam, placing fake Vietnamese-made labels on them, and exporting them again to other countries.
The illegal practice is conducted on various items, from chemicals to construction material, Hung said.
Chinese products of such commodities attract high import tariffs in some countries, he said.
Moreover, Chinese exports are also facing strict technical barriers and have even had anti-dumping tariffs slapped on them.
Affecting Vietnamese exports reputation
The customs agencies have also busted a business in the central city of Da Nang, and one in the southern province of Tay Ninh, for declaring their honey exports to be made-in-Vietnam.
Upon checking the exports, the officials found that hundreds of tons of honey were actually produced in China with the counterfeit Vietnamese origin labels.
Dinh Quyet Tam, chairman of the Vietnam Beekeepers Association, said Chinese honey has been repeatedly disguised as originating in Vietnam for export, seriously hurting the domestic beekeeping industry.
The fraudulent practice stems from the fact that Chinese honey is not favorable in some countries, since there are concerns regarding its quality and safety, Tam said.
Tam added that Chinese honey attracts a 221 percent tax in the US, including import, value-added, and anti-dumping tariffs, while its Vietnamese counterpart is taxed only 16 percent.
Chinese exporters have to pay around US$6,000 in tax for a ton of honey, while the figure for Vietnamese exporters is only $450 a ton, Tam said.
Huynh Thanh Binh, deputy head of the Dong Nai Customs Agency, also said the fake made-in-Vietnam labels help Chinese exports enjoy the preferential taxes granted to Vietnamese products under agreements reached when the country joined the World Trade Organization.
Insiders have expressed concerns that if Vietnam fails to crack down on these frauds, the country will also be subjected to the tightened import policies of its major markets.
A customs official agreed that the frauds can cause adverse impacts on Vietnamese exports.
The customs authorities will therefore closely monitor products prior to exports to curb the issue, he said.
Those suspected of faking Vietnamese-originated labels will be inspected and banned from exporting if any violation is found, he said.
This new type of fraud will not only cause tax income losses for the countries which import the fake-labeled products, but also negatively impact the reputation of Vietnamese products.
In the latest case, anti-trafficking authorities in the southern province of Dong Nai caught SPC Tianhua Vietnam, a 100-percent Chinese-invested company based in the Nhon Trach Industrial Zone No 3, replacing Chinese labels with Vietnamese ones on chemical products due for export to the US.
The officials found a total of 100 tons of products worth VND4.5 billion (US$214,000) with counterfeit Vietnamese brands.
The products, used to treat water in swimming pools, were made entirely in China by Shijiazhuang Hwg Trade Co Ltd.
Tianhua CEO admitted to Tuoi Tre that all 100 tons of the product is expected to be exported directly to its US partner, BSW Chemical Co Ltd, without undergoing any additional production processes, such as being mixed with other chemicals.
Nguyen Phi Hung, head of the Anti-trafficking Agency of the General Customs Department, said the customs authorities have recently detected many Chinese traders and businesses exporting their products to Vietnam, placing fake Vietnamese-made labels on them, and exporting them again to other countries.
The illegal practice is conducted on various items, from chemicals to construction material, Hung said.
Chinese products of such commodities attract high import tariffs in some countries, he said.
Moreover, Chinese exports are also facing strict technical barriers and have even had anti-dumping tariffs slapped on them.
Affecting Vietnamese exports reputation
The customs agencies have also busted a business in the central city of Da Nang, and one in the southern province of Tay Ninh, for declaring their honey exports to be made-in-Vietnam.
Upon checking the exports, the officials found that hundreds of tons of honey were actually produced in China with the counterfeit Vietnamese origin labels.
Dinh Quyet Tam, chairman of the Vietnam Beekeepers Association, said Chinese honey has been repeatedly disguised as originating in Vietnam for export, seriously hurting the domestic beekeeping industry.
The fraudulent practice stems from the fact that Chinese honey is not favorable in some countries, since there are concerns regarding its quality and safety, Tam said.
Tam added that Chinese honey attracts a 221 percent tax in the US, including import, value-added, and anti-dumping tariffs, while its Vietnamese counterpart is taxed only 16 percent.
Chinese exporters have to pay around US$6,000 in tax for a ton of honey, while the figure for Vietnamese exporters is only $450 a ton, Tam said.
Huynh Thanh Binh, deputy head of the Dong Nai Customs Agency, also said the fake made-in-Vietnam labels help Chinese exports enjoy the preferential taxes granted to Vietnamese products under agreements reached when the country joined the World Trade Organization.
Insiders have expressed concerns that if Vietnam fails to crack down on these frauds, the country will also be subjected to the tightened import policies of its major markets.
A customs official agreed that the frauds can cause adverse impacts on Vietnamese exports.
The customs authorities will therefore closely monitor products prior to exports to curb the issue, he said.
Those suspected of faking Vietnamese-originated labels will be inspected and banned from exporting if any violation is found, he said.
