EXPORT RESTRICTION: DEFINITION, PURPOSE AND IMPLEMENTATION MEASURES

Export restriction are an important measure in the trade policy of many countries, including Vietnam. This measure is applied to protect national interests, ensure economic security, and promote sustainable development. However, it also poses challenges for trade activities and economic growth. To provide a comprehensive understanding of this issue, this article will clarify the concept, purpose, and the specific measures applied in Vietnam.

What is Export Restriction?

Export restriction is measures imposed by competent state authorities with the following objectives:

Limiting the quantity, volume, or value of exported goods:

The government may set export quotas, which are maximum limits on the quantity, volume, or value of goods allowed to be exported within a specified period.

Restricting export gateways:

The government may designate certain gateways through which specific goods may be exported to enhance management and control of export activities.

Restricting the right of traders to export goods:

The government may impose conditions or standards that traders must meet to be allowed to export goods, such as capital requirements, competence, or experience, ensuring the quality and reputation of exported goods.

These measures are applied to ensure national security, protect resources, the environment, and other socio-economic interests of the country.

Exceptions to Export Restrictions

According to Article 16 of the 2017 Law on Foreign Trade Management, there are two exceptions to export restriction measures:

Export of restricted goods not for commercial purposes:

This applies to cases where restricted goods are exported for non-commercial purposes, such as humanitarian aid, international support, or for other non-profit purposes. These exports are carried out according to the relevant legal provisions, rather than following the usual export restriction measures.

Export of restricted goods from special customs areas:

This applies to goods restricted from special customs areas such as export processing zones, industrial parks, and economic zones. Under Section 8, Chapter II of the 2017 Law on Foreign Trade Management, the export of restricted goods from these areas will follow specific regulations, which may differ from the general export restriction measures applied in other regions of Vietnam.

These exceptions demonstrate Vietnam’s flexible approach to foreign trade management policies to meet special needs and promote economic development in special customs areas. However, the application of these exceptions must adhere to the legal conditions and procedures to ensure effective state management of export activities.

Export Restriction Measures

Under subsections 2, 3, 4, and 5 of Section 2, Chapter II of the 2017 Law on Foreign Trade Management, there are four main measures:

Export quotas:

This measure is applied by competent state authorities to limit the quantity, volume, or value of goods exported from Vietnam’s territory. It is implemented in cases such as international agreements to which Vietnam is a party, to ensure macroeconomic balance, or to manage growth in specific periods, as well as when importing countries impose import quotas on Vietnamese exports.

Export tariff quotas:

This measure is applied to decide the quantity, volume, or value of exported goods at specific tax rates, and is enforced under international agreements to which Vietnam is a party.

Designation of export gateways:

This measure applies to determine the specific export gateways for certain goods. It is implemented to manage and inspect the quality of exported goods, prevent illegal transshipment, combat commercial fraud, and protect the reputation of Vietnamese exports. The Ministry of Industry and Trade leads the coordination with relevant agencies to decide and announce goods, export gateways, and the implementation roadmap.

Designation of export traders:

This applies to cases where goods fall under international agreements to which Vietnam is a party, are state monopoly goods in trade activities, or are subject to emergency control measures in foreign trade management. The government regulates the list of goods and the conditions for designating export traders.

In the context of deeper international economic integration, Vietnam must be flexible and effective in implementing export restriction measures to enhance the competitiveness and global position of Vietnamese goods. We are committed to providing you with services and solutions to help your goods reach global markets with dedication and partnership. With over 13 years of experience in logistics, we are proud to be a trusted and professional provider.

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If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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