Think
before importing non-compliant M&E from China
Product certification compliance should not be taken for granted
when purchasing machinery and equipment (M&E) from China, say leading
manufacturing industry experts.
They say importing M&E from any
foreign country is always challenging, but caution that certification is a
critically important step that is routinely neglected by local importers.
When
acquiring M&E from the US or EU it’s the manufacturers responsibility to
ensure compliance. However, China is different and this is where local
importers regularly get it all wrong.
What makes
things worse is the fact that the overwhelming majority of Chinese
manufacturers are either unaware of, or unable to comply with US and EU
product certification standards.
In many
industries, as few as 5% of Chinese suppliers can provide previous test
reports that shows some kind of indication that the supplier is able to
comply with standards such as CE, RoHS and FCC.
In addition,
it is not the responsibility of the Vietnam government to enforce
compliance. It would simply be too hard for government authorities of
any country to enforce compliance on Chinese imports.
This puts
the weight of responsibility squarely on the importing local company’s
shoulders.
Sourcing
certification compliant suppliers in China
Price
matters when importing from China, otherwise local companies probably
wouldn’t bother. However, it’s pointless, say the experts, to negotiate a
price with a supplier that is unable to manufacture certification compliant
products.
The first
question a local company should ask a Chinese suppler is whether or not their
products are industry compliant. The second question should be whether or not
the supplier can provide a previous test report that proves compliance with
industry standards.
In addition,
the local importer must send at least one sample from their order to a
laboratory for testing prior to accepting delivery of the shipment of M&E
and most definitely prior to payment.
There are
several international labs with a local presence in China such as SGS, TUV
and Bureau Veritas to name only a few.
Local
importers should also be aware it is not possible to sidestep the whole
manufacturing process and buy certification compliant products straight from
a Chinese supplier’s warehouse.
Certification
compliant products are simply not mass produced and stored for future buyers
in China. Although there are wholesalers in China that offer buyers
‘ready-made’ products from a warehouse, these products are in almost all
cases manufactured for the Chinese domestic market and are not US or EU
industry compliant.
Bad things
happen when importing non-compliant products
The Ninh
Binh Fertilizer Plant is a prime example of what can go wrong. The company
has suffered losses of US$121 million (VND2,700 billion), resulting from
importing non-compliant M&E from China.
Thai Nguyen
Iron and Steel Joint Stock Corporation hired a Chinese contractor to install
equipment in its production facilities at a cost of US$363,123 (VND8.100
billion). It turned out the M&E was defective and as a result the plant
was forced to shut down.
The
instances where local importers have been damaged as a result of importing
defective noncompliant M&E from China are endless in number and infinite
in variety.
Dr Pham Si
Thanh from the Vietnam Institute for Economic Research and Policy (VERP) has
affirmed the cost to local businesses of importing noncompliant M&E is
exorbitant.
Substantially
all imported M&E from China is not industry certified compliant with
either US or EU standards, says Dr Thanh. If a local importer acquires
M&E from China and the product is defective they stand to lose all of
their investment with little recourse against the supplier.
Whereas if
they purchased the M&E from the US or EU they would have adequate legal
and other remedies for redress, says Dr Thanh, noting that’s why these
companies shouldn’t neglect product certification when importing from China.
According to
statistics from the General Department of Vietnam Customs, in the seven
months leading up to August, China continued to be the largest provider of
M&E to Vietnamese companies with an import value of US$5.81 billion.
Last year,
local companies imported machines valued at US$9 billion from China.
VOV
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Thứ Sáu, 7 tháng 10, 2016
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