Alexander C Feldman President & CEO US-ASEAN Business Council 1101 17th Street, NW Suite 411 Washington, DC 20036 Tel 202-416-6713 Fax 202-289-0519 afeldman@usasean.org June 29, 2015 His Excellency Vu Huy Hoang Minister Ministry of Industry and Trade 54 Hai Ba Trung Street Hanoi, Vietnam Dear Minister Hoang, We are writing to seek clarification and discuss potential improvements to the “same serial number rule” on re-importation of products that had been temporarily exported. We would like to discuss possibilities of expanding the rule to allow business and consumers to have full ability to replace equipment for damaged products. We were advised to contact the Ministry of Industry and Trade to discuss these interests and recommendations during a recent meeting with the General Department of Vietnam Customs. Article 29 of the Commercial Law of 2006 (No. 36/2005/QH11) and Article 13 of the Implementing Decree (No. 187/2013/ND-CP) allow for the re-importation of used consumer items that had been temporarily exported for repair, stating that the re-imported items must be the “same goods.” Our understanding is that this rule has been enforced through requiring that the re-imported product have the same serial number as the good that was originally exported for repair. We would like to request that MOIT consider classifying an identical replacement device (with a different serial number) as effectively the same good, per the language of Commercial Law Article 29. For example, if a damaged or faulty unit is temporarily exported for repairs, could a business import a properly refurbished unit to replace the damaged original unit? Our understanding is that MOIT’s current interpretation of Article 29 would not allow this action. Fulfilling warranties by replacing damaged products with identical quality-certified refurbished products is an industry standard best-practice and is allowed by other import regimes, including those of Vietnam’s ASEAN partners. The system allows for faster fulfillment of customer needs and reduces expenses by companies trying to fulfill their warranty obligations. Restricting re-importation strictly to the original item harms Vietnamese consumers, who would have to wait for the defective product to be repaired, after the defective product is turned in to the manufacturer (or its appointed agent). If a defective products is not reparable, the rule greatly increases the costs of replacement. Additionally, we are concerned that this rule may interfere with the Vietnam People's Armed Forces’ ability to quickly replace faulty equipment. Defense equipment manufacturers follow a practice of quickly repairing equipment by maintain a rotating pool of refurbished components. In some situations, the “same serial number rule” may prevent these components from being replaced. Alexander C Feldman President & CEO US-ASEAN Business Council 1101 17th Street, NW Suite 411 Washington, DC 20036 Tel 202-416-6713 Fax 202-289-0519 afeldman@usasean.org We are confident that rules can be designed that ensure these re-imports do not conflict with MOIT’s efforts to prevent the dumping of electronic waste. Refurbished replacement devices meet standard quality control rules and are backed by the same warranties as the device that was originally purchased. If necessary, companies may be able provide guarantees to Vietnam Customs that the refurbished product will only be used as a replacement and will not be resold or left as waste. Thank you for taking the time to review our questions and recommendations. We welcome any opportunity to discuss this issue with the relevant offices at the Ministry so that we may seek a solution that can better serve the interests of consumers and businesses in Vietnam. Vu Tu Thanh, the Council’s Deputy Regional Managing Director and Vietnam Representative, will be happy to work with your staff to facilitate further discussion of the issue. He may be contacted by email at tvu@usasean.org or by phone at 4-3930-6404. Sincerely, Alexander C. Feldman President & CEO US-ASEAN Business Council cc: H.E. Pham Quang Vinh, Ambassador of Vietnam to the United States The Honorable Ted Osius, U.S. Ambassador to Vietnam