Products circulated freely have an important meaning for establishing purchase contracts in domestic as well as foreign. Therefore, parties should consider the ability to be circulated of products before signing agreements to aim to avoid disputes later. Because when disputes occur, it will cause huge damages to assets and enterprises’ prestige.
For exported products, CFI (Certificate of Free Sales) is a type of documents issued by competent agencies for exporters, certifying that those products are manufactured and circulated freely in exported countries. CFS includes certificates having similar contents or speciality or full contents of CFS. Disputes will occur when importers paid part of money but exporters do not provide a valid CFS, do not prove that products ensure the quality and are circulated in the market of the country of exporters.
For products manufactured in domestic, not all products are allowed to circulate freely in the market. In the market, there are two groups of products such as: Group 1 includes products that do not have the ability to lose the safety in the conditions of delivery, storage, protection, appropriate use, not be harmful to people, animals, plants, assets, environment; Group 2 includes products that have the ability to lose the safety in the conditions of delivery, storage, protection, appropriate use, be harmful to people, animals, plants, assets, environment.
Therefore, before putting products out the market, manufacturers have to meet the conditions of protecting the quality of products. At the same time, they must comply with requirements of the management of the product quality in the production by choosing standard certificates, standard announcements for products in Group 1, if they are products in Group 2, they have to comply with technical standards related to the process of manufacturing, certifying standards according to corresponding technical standards, at the same time, they have to apply management systems properly. From that, it can be seen that announcements of the quality, standards are the prerequisite conditions so that products can be circulated in the market.
The circulation of products has an important meaning in trading activities. Before trading, parties should concern about the ability of products to be circulated or write this article in agreements to avoid risks later. At the same time, for products manufactured in domestic, parties need to ensure that those products are not in lists of products banned to circulate or having documents proving the suitability for standards published, corresponding technical standards. For international trade activities, concerning about CFS can help buyers limit risks on the quality, ensuring the process of the circulation.
The contents of consulting on registration of product circulation license of Vietlaw Solutions Firm:
At the moment, most enterprises of Vietnam are facing difficulties in the export of products out to international markets. The reason is that enterprises do not prove that their products are acknowledged and are allowed to circulate in their own country. Some import countries regulate that products manufactured in Vietnam, if circulating in those countries, they need a CFS issued by competent authorities of Vietnam. Therefore, when no having a CFS, Vietnamese enterprises will miss many opportunities to trade although products have full conditions to compete with other enterprises.
Therefore, we provide enterprises services of consulting, supporting in performing procedures for granting a CFS at competent authorities, aiming to shorten the time to help enterprises have the best conditions to put products out international markets.
Consulting on the authority granting CFS of the Ministry of Health: The Ministry of Health has authority to grant a CFS for functional foods, fortified with micronutrients, food supplements, food additives, drinking water, drinking water, mineral water nature; cigarettes; chemicals, insecticidal and germicidal preparations for domestic and medical use; Drugs, cosmetics; Medical equipment.
The Ministry of Agriculture and Rural Development manages CFSs for products such as: Plant varieties, livestock breeds; agricultural products, forest products, aquatic products, salt; livestock, poultry and livestock; Agricultural, forestry and aquatic products; fertilizer; feed and raw materials for the production of animal feed; Products in farming, harvesting, processing, preserving and transporting agricultural, forestry, fishery and salt… are regulated specifically in the Circular No. 63/2010/ TT-BNNPTNT.
Consulting on the authority granting a CFS of the Ministry of Industry and Trade: the Ministry of Industry and Trade has the authority to grant a CFS for products such as: Chemicals and industrial explosives; Machines and equipment with strict requirements on labor safety within the scope of its state management; Consumer industrial products, food industry and other processing industries according to the provisions of law; Other products and goods not under the management of ministries and agencies.
We believe that our clients get much profit from the profound knowledge of our senior lawyers in the field of registration of product circulation license. Depending on specific cases, we put out the most practical solutions for clients. If not clear, clients don’t hesitate to contact us to be supported.
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