New regulations on customs, payment, packaging, technical standards, and traceability are emerging rapidly in many export markets. The "admission ticket" is therefore no longer about price or tariffs, but about the ability to keep pace with the new "rules of the game." One step behind, enterprises can miss the entire supply chain.

Two new regulations on customs and foreign exchange in Argentina are altering how Vietnamese enterprises approach this market. As the latest note from the Vietnam Trade Office in Argentina points out, without timely updates on the new regulations, enterprises can easily fall into a passive position, from contract negotiation to customs clearance of goods.

New "rules of the game" tighten rapidly

Notably, the Argentine Customs Management and Control Agency (ARCA) and the National Single Window for Foreign Trade (VUCEA) have implemented a mandatory advance ruling mechanism on the origin of goods. Under this mechanism, importers can request customs to verify the tariff code and legality of the origin of goods before the shipment is transported.

To restrict risks during the customs clearance process, the Vietnam Trade Office in Argentina recommends that Vietnamese enterprises incorporate this content into contract negotiation clauses. In addition, enterprises should suggest that partners finalize the advance ruling procedures on the VUCEA system before the cargo is loaded onto the vessel.

According to the Trade Office, coordination right from the start will help shorten customs clearance times, while creating a clearer legal basis for the entire transaction process.

Alongside customs reform, Argentina is also accelerating the easing of foreign exchange controls. Within this year, this country continues to speed up the roadmap to dismantle the historical foreign exchange control mechanism, helping enterprises access foreign currency more conveniently.

This explains why many Argentine importers are proactively seeking supply sources for agricultural products, consumer goods, and supporting industries from Asia, including Vietnam.

Not only Argentina, but multiple markets are also continuously updating new regulations. Recently, the German Federal Parliament passed the Act to Implement the New Packaging Regulation (VerpackDG), tightening packaging requirements toward increasing recycling and promoting a circular economy.

Facing the new regulations, the Vietnam Trade Office in the Federal Republic of Germany recommends that enterprises soon review their EPR (extended producer responsibility) obligations, proactively adjust packaging designs according to PPWR, and increase recycling capacity to cut compliance costs in the long term.

The trend of tightening compliance requirements is not only taking place in markets outside the region. Right in Southeast Asia, typically Indonesia, according to Mr. Le Tran Nhat Phuong, Deputy General Director of Bee Logistics, import-export enterprises face not only the pressure of container shortages, vessel space shortages, or rolled-over shipments during peak seasons, but also must satisfy the increasingly stringent technical requirements of the importing market.

In Indonesia, customs tightly controls HS codes, SNI compliance certification, Halal standards, along with the entire accompanying documentation system. According to Mr. Phuong, for air cargo transported to Jakarta, just a minor error on documents can cause customs clearance times to stretch from 7 to 14 days.

“The consequence is that warehouse storage costs begin to accrue after the first 24 hours, at around 0.17 USD/kg/day. This is a figure that can deplete the profit margin of urgent shipments,” Mr. Phuong said.

In reality, this is just one of multiple risks that Vietnamese enterprises can encounter when penetrating the Southeast Asian market. Not a few enterprises still underestimate administrative barriers and the complexity of regulations in regional markets.

Take the “legal delay trap” for instance. In Indonesia, the registration process with the National Agency of Drug and Food Control (BPOM), Halal certification, and specialized approval procedures can stretch from 6 to 18 months. Without preparing early, the time to bring products to the market can be delayed by an additional 12 to 18 months.

One step behind means sliding out of the market

Not only extending timelines, these procedures also significantly drive up operational costs in the Indonesian market. According to Mr. Danny Hidajat, Director of We Link Co., Ltd, to complete the process, enterprises may have to pay multiple management and registration fees through local partners, ranging from BPOM licenses and Halal to distribution management and opening modern retail channels.

Specifically, registration costs for BPOM licenses and Halal fluctuate from 1,500 to 3,000 USD for each SKU (stock keeping unit), excluding regulatory body fees. Enterprises also have to spend 4,000 to 6,000 USD per month for distribution management, accompanied by a 5% commission on net revenue. The negotiation cost alone to open an account in a modern supermarket system can reach up to approximately 5,000 USD.

These cost items reflect a reality that compliance costs are becoming a significant part of export costs. Trade barriers are therefore also shifting from tariffs to compliance capacity. Confronting that reality, merely updating regulations is not enough. Enterprises must also clearly understand the requirements of each market and participate more deeply in the supply chain if they wish to maintain a competitive edge.

In a recent discussion with agricultural exporting enterprises in Ho Chi Minh City, Mr. Peter Johnson, an international expert on agricultural value chains, argued that to achieve that, Vietnamese enterprises need to construct direct links with buyers and retail systems in the importing market. According to him, this is the way to understand market requirements better, instead of relying completely on intermediaries.

“Direct approach to buyers will help enterprises understand market requirements better. This also serves as a basis to identify bottlenecks in the supply chain and proactively adapt to new requirements,” Mr. Peter Johnson said.

According to him, these bottlenecks still exist across many stages of the Vietnamese agricultural supply chain. Those are high logistics costs, unsuitable packaging, large post-harvest losses, and restricted capacity to satisfy international standards.

“Vietnamese enterprises need to construct direct links with buyers and retail systems in the importing market. This is the way to understand market requirements better, instead of relying completely on intermediaries.” - Mr. Peter Johnson, international expert on agricultural value chains.

Such limitations are exposed even more clearly when markets continuously alter import requirements. Looking from Argentina and Germany to Indonesia, the common ground lies not in geographical distance but in the changing speed of the rules of the game. If previously enterprises primarily monitored tariffs and exchange rates, now they must simultaneously update regulations on digital customs, foreign exchange, packaging, traceability, technical standards, and payments.

That reality demonstrates that trade barriers are shifting from border gates right to the negotiation table. No longer fixed regulations, compliance requirements now alter continuously, forcing enterprises to closely follow each adjustment if they do not want to be passive in the supply chain.

According to experts, it is necessary to build an early warning mechanism soon regarding policy changes in key export markets, while stepping up information sharing among Trade Offices, associations, and logistics enterprises. In the new competition, the capacity to update policies has become a part of competitive power. When the "admission ticket" depends on the speed of adaptation, one step behind can mean missing the entire supply chain and sliding out of the market.

Source: Vnbusiness