ILMA Compoundings – March 2019 - 13

First, the decree identifies the import licensure process
and creates some objective criteria for the related licensing
decisions. Subjectivity might still enter the process, but
to a lesser degree than previously experienced. This alone
creates a more predictable outcome for both parties to the
import transaction, lending to a more stable export market
for the supplier. This better avoids subjectivity on the part
of individual officials who might selectively grant licenses to
some, but not all, concerning the same chemicals.
In addition, the requirements apply to all jurisdictions
within Vietnam. This makes general predictability of an
importer's ability to obtain licenses more reliable, whether
the destination is Ho Chi Minh City, Hanoi, Can Tho or less
populated cities, so long as access to the regulatory portal is
reasonably reliable. This has been a significant issue prior to
the decree, because the import licensing process was locally
determined. Cities and regions in the country would tend
to apply different standards in allowing chemical product
imports, even if the decisions were not politically influenced
by favoritism.
A WORK IN PROGRESS
Nevertheless, export supplier expectations should allow
for surprises, as implementation of the system is far from
flawless. Staff responsible for processing the licensure for
even listed chemicals are still susceptible to error. The
newness of the process has required a progressive ramp-up
of staffing, allowing very limited time or resources for
training. The nature of the evaluation process is not always

intuitive, making it more difficult to add suitable candidates
in numbers sufficient to handle the growing volume of
transactions and products.
Products with ingredients that are unlisted, but similarly
classified, can sometimes stress the evaluation timeliness.
Approval of these substances can require multiple levels of
authority, and command of the chemical details can vary
among reviewers. The complexity of evaluating these new,
but similarly classified, chemical substances can also tax the
knowledge and experience of the reviewer. These scenarios
can result in more lengthy review timelines and, occasionally,
inaccurate results.
Both of the situations mentioned above often create the
need for interaction by the exporting supplier. Keep in mind
that the reviewing authority is not always amenable to this
type of assistance, and language and cultural barriers are
strong. But the effort can generate positive outcomes.
These complications will subside with time under
this system, but the system is not nearly complete, and
frustrations to importers and export suppliers will likely
continue. Vietnamese authorities have already made clear
their intent to implement a full REACH-like regulatory
structure and are rapidly working on additional requirements
and features toward that objective.
Eggenschwiler, an ILMA consultant, is an international
trade attorney and director of global trade for the Redstone
Group, LLC. He can be reached at 614-923-7472 or
jeggenschwiler@redstonegrp.com.

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ILMA Compoundings – March 2019

Table of Contents for the Digital Edition of ILMA Compoundings – March 2019
