Introduction
Vietnam has introduced new regulations governing the import of refurbished goods to ensure product quality, consumer safety, and compliance with international trade agreements. Decree No. 66/2024/ND-CP, effective from June 17, 2024, establishes stricter control over the importation of refurbished electronics, medical devices, and machinery, aligning with standards under the EU-Vietnam Free Trade Agreement (EVFTA) and UK-Vietnam Free Trade Agreement (UKVFTA).
This article outlines key provisions of the decree, its impact on importers, and compliance requirements for businesses looking to import refurbished products into Vietnam.
1. What Are Refurbished Goods?
Refurbished goods refer to used products that have been restored, repaired, or reconditioned to meet specific quality and performance standards. These items often include:
- Electronic devices (smartphones, laptops, tablets)
- Medical equipment (imaging devices, diagnostic tools)
- Industrial machinery (engines, generators, automated systems)
Refurbished goods offer cost savings and sustainability benefits; however, they must meet stringent safety and performance requirements before being allowed into the Vietnamese market.
2. Key Provisions of Decree No. 66/2024/ND-CP
The new decree outlines detailed regulations for the importation of refurbished goods, focusing on:
2.1. Pre-Import Certification Requirements
All refurbished goods must:
- Pass safety and quality inspections conducted by certified testing agencies.
- Have a Certificate of Conformity (COC) ensuring they meet Vietnamese standards.
- Provide detailed technical specifications and proof of refurbishment processes.
For certain product categories, additional documentation may be required:
- Medical equipment: Must be approved by the Ministry of Health.
- Electronic devices: Subject to inspections by the Ministry of Information and Communications.
- Industrial machinery: Requires environmental impact assessments from the Ministry of Industry and Trade.
2.2. Restricted and Prohibited Items
The decree introduces a list of prohibited refurbished goods, including:
- Home appliances (refrigerators, air conditioners) due to environmental concerns.
- Used batteries and hazardous materials that pose safety risks.
- Software-driven equipment without updated security features.
Certain refurbished goods may still be imported under special conditions, such as government-approved research projects or foreign direct investment (FDI) enterprises.
2.3. Customs Clearance and Compliance
Importers must:
- Declare the refurbished status of goods during customs clearance.
- Submit import documentation, including commercial invoices, bills of lading, and conformity certificates.
- Pay applicable import duties and VAT based on the product category.
Vietnam’s National Single Window (NSW) System will facilitate electronic documentation submission, streamlining import procedures.
3. Impact on Businesses and Importers
3.1. Challenges for Importers
- Stricter compliance means higher costs for certification and testing.
- Longer processing times for approvals, especially for specialized equipment.
- Supply chain adjustments required to meet Vietnam’s import regulations.
3.2. Opportunities for Businesses
- Companies that comply with quality standards can establish a competitive edge in Vietnam’s growing market.
- Increased demand for certified refurbished electronics and machinery offers business expansion potential.
- Sustainability-focused businesses can benefit from Vietnam’s circular economy policies promoting the reuse of refurbished goods.
4. How to Ensure Compliance?
To avoid shipment rejections and penalties, businesses should:
- Work with certified suppliers who provide legally recognized refurbishment processes.
- Conduct pre-shipment testing to meet Vietnamese safety and quality requirements.
- Consult with import-export experts to navigate regulatory complexities.
- Monitor updates from government agencies to stay compliant with evolving laws.
Conclusion
The implementation of Decree No. 66/2024/ND-CP reinforces Vietnam’s commitment to consumer protection, environmental sustainability, and fair trade practices. Importers must ensure compliance with the new regulations by obtaining proper certifications, adhering to safety standards, and following customs procedures.
For businesses in the electronics, medical, and industrial sectors, understanding and adapting to these regulations will be critical for continued market success in Vietnam.
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