6 STEPS TO AVOID SUPPLY CHAIN LEGAL LIABILITIES IN EXPORT

In today’s increasingly regulated global trade environment, legal risks in export are no longer a distant concern for Vietnamese businesses. A single mislabeled product or an invalid certificate can lead to an entire shipment being rejected, investigated for fraud, or even losing access to international markets altogether. From the recent case of Chinese goods disguised as “Made in Korea” to the painful lessons of Khaisilk and Asanzo, one truth remains clear: compliance with rules of origin is not just a formality — it is a legal shield essential for survival in export.

SUPPLY CHAIN LEGAL LIABILITIES: THE UNTOLD LEGAL RISKS EXPORTERS MUST NOT IGNORE

In today’s increasingly regulated global market, supply chain legal liabilities are no longer a distant concern for Vietnamese exporters.A single mislabeled product or invalid certificate of origin (CO) could result in shipment rejection, fraud investigation, or even complete market exclusion.

📌 In March 2025, South Korean customs uncovered over ₩29.5 billion worth of Chinese products falsely labeled as “Made in Korea” and exported to the US.These included battery materials, cameras, and electronics — all relabeled without undergoing substantial transformation.

This incident reflects how supply chain legal liabilities can cascade – where a single gap in origin compliance exposes exporters to customs audits, retroactive duties, and trade bans.

3 WAYS EXPORTERS GET LEGALLY TRAPPED IN ORIGIN FRAUD

1. Signing Export Documents for “Friendly” Partners

You help a supplier by exporting on their behalf — without checking the actual source of the goods?👉 Under Vietnam’s Customs Law and Decree 31/2018/NĐ-CP, you become the legally responsible party on paper and in court.

2. Using Borrowed or Invalid Certificates of Origin (COs)

Outsourcing CO services to shady intermediaries or using another company’s CO?📌 This counts as trade fraud, punishable under Decree 128/2020/NĐ-CP, and could escalate into criminal prosecution if serious harm is caused.

3. Mislabeling “Made in Vietnam”

Products that only undergo minor processing in Vietnam but are labeled “Made in Vietnam” violate Decree 111/2021/NĐ-CP, which treats false origin labeling as counterfeit production.

6 STEPS TO AVOID SUPPLY CHAIN LEGAL LIABILITIES

1. Confirm the Real Origin of the Goods: Are they fully made in Vietnam or just partially assembled? Do they meet rules of origin under FTA guidelines?

2. Verify the CO Application Process: Who issued the CO? Is your supporting documentation legitimate and aligned with Decree 31/2018/NĐ-CP?

3. Examine the Logistics & Processing Chain: Any step that exists just to “tick the box” without real transformation? You’re at risk.

4. Label According to the Law: Not sure if it qualifies as “Made in Vietnam”? Don’t label it that way.

5. Prepare for Customs or Buyer Audits: Keep full records: bills of material, production logs, invoices — stored for at least 5 years.

6. Conduct Regular Legal Audits Across the Supply Chain: Especially crucial when exporting to high-risk markets like the US, EU, and Japan.

Global markets now demand full transparency — from raw material to export packaging.If your business wants long-term access to international markets, especially in high-risk sectors like electronics or textiles, compliance must be non-negotiable.

Supply chain legal liabilities aren’t caused by bad intent — they’re caused by weak oversight.

Source: tuoitre.vn