LEGAL NEWSLETTER NO.10 - 9/2020: HALAL CERTIFICATE – THINGS TO KNOW ABOUT THE STANDARDS AND CONDITIO

PART 1: RESEARCH & EXCHANGE

Halal Certificate – Things to know about the standards and conditions to be recognized “Halal”)

The Islamic legal system is closely related to Islam, including religious statutes embodied in the Qur'an. Islamic law is the commandments of Allah, passed down to the world by the merchant Mohammed. That is why Islamic law is not only moral minimums, but also the principles of life advised by Allah that Muslims must strictly comply with.

* In the scope of this article, the writer's point of view does not depend on and related to beliefs or religions, and it is not antithetical and makes a distinction between beliefs and religions.

One of the Islamic specialties is the Ramandan and the food must be prepared under a special process. The strict food processing regulations in Islamic law are not only safety and hygiene norms but also the judgment of Allah. To standardize and measure the compliance of businesses in the food production and processing sectors, Islamic countries are using Halal Certification as a solid legal frame to control raw materials and food processing.

Currently, the concept of Halal, Halal certificate and related standards of Islamic law are still quite new to Vietnamese people and production establishments. However, Halal regulations have been widely applied many years ago and have been steadily strengthened and built in recent years. Regardless of the angle of belief and religion, the study and application of Halal under legal and economic perspective also brings certain benefits.

1. WHAT IS A HALAL CERTIFICATE ?

"Halal" is an Arabic word meaning "allowed or legal," which covers all areas and aspects of Muslim life[1]. Under the Muslim’s Qur'an, "Halal" is the opposite of "Haram", meaning "forbidden, illegal, not allowed" [2].  Of which, Haram is the highest level of judgment for an act, in order of Fard (Required), Mustahabb (recommended), Mubah (Neutral), Makruh (reprimand), and Haram (Prohibited).

For the industry of food processing and serving service, Halal is considered the highest standard and is widely applied. It relates to Muslim Ramandan and is also the criterion of whether food is prepared with ingredients and processes in accordance with Islamic law (Halal Standards). Thus, in the simplest sense, Halal Certification is proof of compliance with Islamic law and Halal standards for food manufacturers and processors[3]. Currently, in Vietnam, the Halal certification process is based on standards such as: ISO / IEC 17065, ISO / IEC 17021-1, FDA 12, MS 1500: 2019, UAE.S 2055-1: 2015, HAS 23000: 1 …

After being certified Halal, producers and food processors will be allowed to put the Halal certification on their product packaging. A Halal certification mark identifies an establishment that meets the Halal standard with strictly tested products and processes. The whole Halal seal has a circle, dark green color on a white background, in the middle is the word "HALAL" in Latin and Arabic, the size is flexible according to the size of the product packaging.

2. REGULATIONS ON THE ESTABLISHMENT, ORGANIZATION AND OPERATION OF HALAL TESTING AGENCY AND REGULATIONS ON BASIC CONDITIONS OF HALAL STANDARDS

2.1. Regulations on the establishment, organization and operation of Halal testing agencies :

- Rules of laws of Islamic countries

Each Muslim country will have its own rules for the establishment, organization and operation of Halal Examination Agency (HEA). Below are the laws of some Islamic countries regarding the regime of the establishment and operating conditions of the HEA.

Malaysia:

Malaysia is one of the countries with the strictest and most complete regulations on Halal Certification. Unlike some other Muslim countries in the world, Halal Certification in Malaysia is approved and issued by a competent state agency such as JAKIM (Malaysia Islamic Development Department) which is competent and responsible for activities related to Islam in general and Halal Certification in particular in Malaysia, HDC (Halal Industrial Development Group), DOC (Chemical Department) ...

The regulations on Halal Examination Agency is in many relevant Malaysian legal documents such as the Law on Trade Definition 2011, the Law on Definition of Trade and Food 1993, the Food Law 1983, the Customs Law 1967, the Law on  animals 1953 (revised in 2006) ... and Halal standards and regulations such as MS 1500: 2019, EN 2200-1: 2008 Consumption of Muslim products...

Republic of Indonesia:

The regulations on the establishment conditions and standards for the Halal Testing Agency are specified in Articles 12 to 16 of the Halal Product Law, passed by the President of the Republic of Indonesia (Law No. 33/2014). Specifically:

Article 12: The Government and/or the public can establish LPH. (2) LPH as intended in paragraph (1) has the same opportunity in assisting BPJPH to examine and/or testing the halalness of a Product

Article 13 : (1) To establish LPH as intended in Article 12, the following requirements must be fulfilled:

a. having its own office and equipment;

b. having accreditation from BPJPH;

c. having a minimum of 3 (three) Halal Auditor; and PRESIDENT REPUBLIC OF INDONESIA

d. having a laboratory or cooperation agreement with other institutions which own a laboratory.

In addition, Law No. 33/2014 also stipulates the conditions, functions and duties of Halal assessors.

Thus, it can be seen that the Halal Examination Agency established under the Law of the Republic of Indonesia can be a public agency or a private organization and the law also stipulates certain requirements so that this agency can licensed to operate.

Pakistan:

The regulations on Halal Examination Agency in Pakistan are contained in Act No. VIII of 2016 on the establishment of the Pakistan Halal Authority to promote trade and commerce. Specifically, the establishment and operation regime of Halal Examination Agency is shown in Article 3 of the Act.

“(1) The Government may, by notification in the official Gazette, establish the Pakistan Halal Authority for carrying out the purposes of this Act.[4]

(2) The Authority shall be a body corporate having perpetual succession and a common seal, with powers, subject to the provisions of this Act, to acquire and hold property, both movable and immovable, and shall by the said name sue and be sued.

(3) The headquarters of the Authority shall be at Islamabad and it may, with the prior approval of the Government, set up offices at other places as, when and where required.

 Thus, like Malaysia, the Halal Examination Agency in Pakistan is an established body, operated by the Government.

- Regulations of Vietnamese Laws on Halal Examination Agency in Vietnam

In Vietnam, the Halal Examination Agency is not a government agency. It’s a kind of private organization recognized its function and competence of testing and issued Halal certificate in Vietnam by Halal organizations in the world such as JAKIM (Malaysia), GCC Accredittation Center (GAC), ESMA (UAE), MUIS (Singapore), CICOT (Thailand), KFDA (Korea)…

Currently, the Halal Examination Agency is established and operates in Vietnam as an economic organization (enterprise). Some of the most reputable and longtime Halal Examination Agency in the field of Halal consulting and granting Halal certification are as follows:

- Halal Certification Agency Company Limited: It is a limited liability company with two or more members, with enterprise code of 0102418678, and the main business lines of 7490: Professional activities, science and technology not elsewhere classified ( Details: Halal Conformity Assessment and Certification Services; Training, Management, Standardization, Productivity and Quality; Standards Conformity Assessment, Regulation Conformity Assessment, Product Technical Regulations; Service of assessment of management systems, assessment and certification of conformity).

- Vietnam Halal Center Company Limited: It is a single member limited liability company with enterprise code of 0315763661, main business line is 7020: Management consulting activities (Details: Halal certification consultancy, consulting activities management consulting (except financial, accounting, legal consulting).

- Viet Nam Halal Inspection And Certification Company Limited: It is limited liability company with two or more members, business code is 0316149831 and main business line is 7020: Management consultancy.

According to the provisions of Appendix 4 of Law on Investment 2014 regarding the list of sectors and trades subject to conditional business investment, the service of certification and announcement of regulation conformity (section 78) is the conditional business line. Thus, in order to legally conduct the business in Vietnam, Halal Examination Agencies need to meet the conditions of obtaining sub-license.

As an organization operating in the field of testing and certification, but due to the specifics of applicable laws, Halal Examination Agencies comply not only with the management of business and investment registration agencies but also must comply with Government Commission for Religious Affairs regulations. According to Decision No. 32/2018/QD-TTg defining the functions, tasks, powers and organizational structure of the Government Committee for Religious Affairs under the Ministry of Home Affairs, the Government Committee for Religious Affairs has the rights and responsibilities: “Organizing the implementation of policies, laws, strategies, plans, programs, schemes, projects on beliefs, religions or related to beliefs, religions after being issued or approved by competent authorities.” Thus, the Government Committee for Religious Affairs is the agency that has the competence and responsibility to approve the projects and programs of activities of the Halal Examination Agencies. In addition, in order to increase the reputation in the market as well as for the Halal Certificate to be recognized in Muslim countries, the Halal Examination Agencies must be recognized by Halal organizations around the world. 

2.2. Basic conditions of Halal standards:

Regulations on Halal food standards are stipulated in the legal documents of Islamic countries. In general, legal documents in different Muslim countries have similar content, as these regulations are based on the most basic principles of Islamic doctrine, for example the Standards Halal Food of the UEA No. 2055-1: 2015, Halal Malaysia Standard MS 1500: 2019.

As mentioned in section 1, "Haram" materials, additives and chemicals will be considered not complying with Halal Standard[5]:

• Pigs (pork), dogs and other products derived from pigs (pork) and dogs.
• Animals with claws and fangs such as lions, tigers, bears, snakes, monkeys...
• Birds of prey have claws like eagles, vultures…
• Pests such as rats, centipedes, scorpions…
• Animals forbidden to be killed in Islam: ants, bees, woodpeckers.
• Animals considered dirty, such as lice, flies, maggots…
• Amphibians (frogs, frogs, toads ...), animals that can both live on land and live underwater (snakes, crocodiles ...)
• Mules and donkeys.
• All toxic substances and dangerous aquatic species.
• All animals for which the slaughter process does not comply with Islamic law.
• Animal dies of suffocation, is hit in the head, has been dropped, has been attacked by other animals.
• Blood.
• Human body part or part of the human body, placenta.
• All liquid and solid wastes from humans and animals: urine, feces, vomit, pus ...
• Toxic substances, dangerous plants, except toxins or hazards can be eliminated during processing.
• Alcoholic beverages (beer, wine and spirits)
• All drinks are intoxicating and hazardous.
• All food additives are derived from the substances listed above.
• Any toxic chemicals, dangerous or natural minerals.

Also, there are some "suspicious" (Mashbooh) substances, additives or ingredients. That means it is difficult to determine whether the ingredient is "Haram" or contains Haram element. The problem is not simple that the certain additives and chemicals such as yeast, emulsifier, gelatine, etc. may originate from animals or plants, and determining whether the animal or plant that made up this substance is "Halal" or not. For animals, it is possible that the slaughter process has not followed Islamic rituals or contains “Haram”. This matter requires Halal Examination Agencies to strictly monitor the slaughter process and test the quality of raw materials, additives and chemicals.

2.3. Conditions of the process of slaughtering animals, producting and processing of food:

From the Muslim point of view, the slaughter of animals should comply with the Qur’an with long-standing rituals. Accordingly, the animal must be slaughtered in the most humane and quickest way to avoid prolonged pain. They also need to be prayed and turned towards the Muslims of prayer for liberation and follow the light of Allah. [6].

Before being killed, the animal must be alive and show signs of survival. The slaughterer needs to faint the animal so that it doesn't feel pain. However, causing fainting by painful methods such as beatings, electric shock ... is a prohibited behavior. Slaughter must be performed by completely alert people, without any restriction on cognitive and behavioral capacities. The slaughtering equipment must be sharp, to ensure the fast slaughter process, causing less bleeding and prolonged pain for the animal. Sharpening a knife in front of an animal is inhumane and prohibited, the slaughter process must not take place in the presence of their own and other animals[7].

In addition to the religious regulations of the Muslim people, the Halal food production and processing process must also strictly ensure the regulations on food safety and hygiene, to protect the health of consumers.

Accordingly, food manufacturers and processors need to ensure the separation between Halal and non-Halal raw materials and be kept clean from "dirty" substances during processing. Halal food handlers and utensils will not be processed or used to prepare non-Halal food and vice versa. To do this, a color-coding system needs to be promulgated and used consistently on instruments to avoid confusion. [8].

Besides, Halal standards also strictly regulate personal hygiene and health monitoring for people directly involved in food production and processing. These people must have periodic health checks, health records are always kept and monitored. Food manufacturers and processors must regularly organize training courses on food safety and hygiene for people directly involved in the processing and production[9]. It is imperative to wash hands and disinfect before entering the production area, to avoid impurities sticking to food and causing poisoning, also to avoid food being "contaminated" according to beliefs[10].

Besides, food manufacturers and processors must strictly follow the process of packaging and distributing products, ensuring that the production environment is always clean and hygienic.

3. PRACTICE APPLICATION OF REGULATIONS ON HALAL CERTIFICATION IN VIETNAM

3.1. Halal certification process in Vietnam

Currently, Vietnamese law does not have specific guidance on the Halal certification process. The laws of the Islamic countries also do not have uniform testing and verification procedures for Halal Certification. Therefore, depending on each export market, the Halal Testing Agency will apply according to the separate process of the Islamic countries for checking, testing, and issuing Halal Certification.

Accordingly, there are 3 Halal Certification programs that are commonly applied in Vietnam such as: JAKIM program (valid for export to all Muslim countries, except Indonesia and GCC[11]), GCC program (GCC countries only), MUI Program (Valid for export to all Muslim countries except Malaysia and GCC). The Halal evaluation process under each program has certain similarities, as follows:

Step 1: Apply to the accredited certification body.

Step 2: Review and verify at the production site.

Step 3: Receive the result of the Certificate or notice of refusal to issue the certificate.

Thus, Halal food producers must target a specific consumer market before proceeding with the process of evaluation, testing, and Halal certification.

3.2. Practical application of Halal certification regulations in Vietnam

Currently, Vietnamese law does not have specific regulations on the issuance, re-issuance, and revocation of Halal Certificates and mechanisms for handling violations in this field. This can be basically explained as follows:

- There are many legal documents in the Vietnamese legal system that regulate the standards of packaging, ingredients, origin, and production conditions for products to be circulated in the market, and the application of sanctions is also based on the law regulations of Vietnam. Some legal documents in effect include: Law on Food Safety 2010, Law on Quality of products and goods 2007, Decree 15/2018/ND-CP guiding the Law on Food Safety, Decree No. 115/2018/ND-CP on administrative sanctions for food safety violations, Circular 38/2018/TT-BNNPTNT providing for the appraisal and certification of agricultural food producers and traders, forestry and fisheries eligible for food safety are under the management of the Ministry of Agriculture and Rural Development, Circular 23/2018/TT-BYT regulating the recall and handling of unsafe food Under the jurisdiction of the Ministry of Health, Joint Circular 20/2013/TTLT-BYT-BCT-BNNPTNT regulating the conditions and order of procedures for designating food testing establishments to serve state management by Ministry of Health - Ministry of Industry and Trade - Ministry of Agriculture and Rural Development issued, Official Letter 5845/BCT-KHCN in 2013 guiding the implementation of the Law on Food Safety promulgated by the Ministry of Industry and Trade... The above legal documents have practical application in the domestic market, consistent with business and commercial practices as well as consumers' consumption habits.

- The standards applied in the current Vietnamese legal regulations are also consistent with WHO (World Health Organization) guidelines on safety and hygiene in food production. Specifically, the five keys to safer food mannual by WHO include: (i) Keep clean; (ii) Separate raw and cooked; (iii) Cook thoroughly; (iv) Keep food at safe temperature; and (v) Use safe water and safe materials[12]. Besides, WHO also promulgates the Food Safety and Nutrition Food Law Guidelines, including definitions, conditions, and applicable standards, including common and mandatory standards, for managing the food safety and macrobiotic.

- Some specific Halal regulations are difficult to apply forcefully in Vietnam, stemming from differences in beliefs and disagreements about ethical views. For example, according to Muslim countries, the killing of pork and dogs is considered a violation of the teachings of Allah, also an offense. Meanwhile, this behavior is not considered an ethical violation for Vietnamese people, so it is impossible to establish legal regulations to limit and prohibit this behavior, and similar acts. On the other hand, it is impossible to impose the beliefs of a religion on the majority of the people, including those of Catholics, Buddhists, and Cao Dai Catholics ... even "atheists".

- The application of Halal standards is voluntary, depending on the needs of business and the consumer market of products. In essence, Halal certification is a "passport" for products to be imported and circulated in the Muslim country market, so the regulations on standards and sanctions for Halal products are usually regulated by the importing countries.

Thus, it can be seen that the application of Halal standards is not a mandatory condition for products for domestic consumption. Also, Halal standards are not considered popular in the entire Vietnamese community, and they are only significant in terms of dignity and legality for Muslim people. Therefore, in practice, food businesses must first comply with the Vietnamese law on food safety and hygiene and be granted a certificate of eligibility for food hygiene and safety products by the law[13]. After that, if there is a need to serve Muslim customers, export to Muslim markets, then Halal standards and assessment procedures will be applied.

4. THE BENEFITS OF HALAL REGULATIONS IN PRODUCTION AND PROCESSING OF FOOD:

4.1. Food safety and hygenic:

The spirit of the Halal food laws is embodied in the Qur'an with the words of Allah. Accordingly, good and clean food brings people lightness, peace of mind, and health benefits. “[To-day this mercy is for] those who follow the ummi Prophet, whom they find mentioned in the Torah and the Gospel with them. He enjoins upon them what is good and forbids them what is evil. He makes the clean things lawful to them and prohibits all corrupt things, and removes from them their burdens and the shackles that were upon them. So those who believe in him and assist him, and succour him and follow the Light which has been sent down with him, it is they who shall prosper." (Surah Al-Aa'raf: 7:157).

The spirit of Halal standards is also considered consistent with the food safety and hygiene standards of many countries around the world. That means it prohibits the use of harmful substances, chemicals, and additives to humans. Halal food standards have removed harmful food additives, addictive substances, dangerous aquatic species, human organs, placenta ... from food processing. Therefore, the Halal standard can eliminate the risks of food poisoning, protect the health and lives of consumers.

Besides, the Halal food processing process also meets the basic standards of food safety and hygiene in the law regulations of many countries in the world. Halal food production regulations bring practical benefits to food manufacturers and consumers and apply not only to Islamic countries.

4.2. Economic, commercial, export - import benefits:

As one of the most popular religions in the world, Islam has an extremely large number of followers, constantly increasing and distributed in most countries and territories around the world. In Vietnam, although Islam does not as develop as Christianity and Buddhism, the number of Muslims is still increasing constantly and is about to reach 100,000. Besides, the number of Muslims immigrating to Vietnam is also on the rise.

Therefore, the demand for Halal food and foodstuff is very interested in Muslim countries and also in countries and territories where Muslims live, including Vietnam. Capturing the tastes and practices of Muslims, adopting Halal quality standards, and developing an export strategy specific to Muslim countries is also an option to break the economic and geographic boundaries, and create favorable conditions for international cooperation, and boosting import and export.

Besides, the market economy is developing more and more, boundaries between countries are being gradually blurred by the integration of culture and economy. The Halal Certificate will act as a key to help Vietnamese food exporters enter the markets of Muslim countries and territories. Halal certification is recognized by all Muslim countries, so it is valid worldwide, boosting product consumption in these markets.

5. RECOMMENDATIONS FOR IMPROVING THE REGULATIONS ON HALAL CERTIFICATION:

Nowadays, the demand for Halal certified products is increasing, as well as the flourishing and development of Islam and Muslim countries. In Vietnam, Halal Examination Agencies operates with a legal type of business, licensed by the Government Committee for Religious Affairs. However, the process of issuing and reissuing the license as well as the conditions that need to be met in terms of facilities, certificates of testing, testing Halal products, reporting mechanism... are not specified. Certainly, when the demand for Halal products is increasing in the domestic market, the current lax regulatory regime will create certain legal "loopholes".

[1] Clause 3.3, Article 3, Malaysian Halal Standard MS 1500: 2019; Clause 3.2, Article 3 of the Halal Food Standards of the UAE.S 2055-1:2015.

[2] Point 3.3.1, Clause 3.3, Article 3, Malaysian Halal Standard MS 1500: 2019

[3] Clause 3.4, Article 3, Halal Food Standards of the United Arab Emirates.S 2055-1: 2015.

[4] Clause c, Article 2 of Act No. VIII of 2016 on definitions.

[5] Clause 3.4, Article 3, Point 4.5.1, Clause 4.5, Article 4, Malaysian Halal Standard MS 1500: 2019; Appendix 1, Halal Food Standards of the UAE No. 2055-1: 2015.

[6] Clause 3.5, Article 3, Malaysian Halal Standard MS 1500: 2019

[7] Appendix 1, Halal Food Standards of the UEA 2055-1: 2015.

[8] Clause 4.2, 4.3, 4.4, Article 4, Malaysian Halal Standard 1500: 2019

[9] Article 5, HAS 23000: 1 Halal Certification Standard

[10] Clause 4.4, Article 4, Malaysian Halal 1500: 2019 Standard

[11] Including: Dubai-UAE, Kuwait, Oman, Qatar, Saudi Arabia, Bahrain, Yemen

[12] According to the five keys to safer food mannual by WHO.

[13] Chapter V - Law on Food Safety 2010.

PART 2: LAW & PRACTICE

1. Is the address on the enterprise registration certificate compulsory to be shown in the VAT invoice?

2. Are the people entitled to receive state pension during the term of his/her prison

sentence?

3. Reimbursement of tuition fees of pedagogical students after graduation?

PART 3: KNOW THE RULES

Periods of solving criminal cases (part 1 – before the prosecution stage)

Link for download: Newsletter No. 10 - 2020

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