What is an Energy label on a commodity?

My company is going to produce and sell LED lights. I see on household electrical appliances, besides conventional goods labels, there are also “Energy labels”. If my company produces and sells LED lights, is it necessary to apply Energy labels? I'm looking forward to your response. Thank you!

FDVN’s opinions:

Thank you for concerning FDVN’s legal services. Regarding your consulting requests, after studying the relevant legal documents, FDVN Law Firm would like to give you the following advice:

[1] What is an energy label?

According to the provisions of Clause 1 Article 15 of Decree 21/2011/ND-CP:

“a/ Comparative label, which provides information on energy consumption rate, type of energy, energy yield and other information to enable consumers to compare with products of the same type in the market for recognition and selection of energy-efficient devices and equipment;

b/ Certification label, which certifies that the device or equipment has the highest energy yield compared with other devices or equipment of the same type.”

Energy labeling means the paste, add, print, engraving energy labels on the products, packaging, or display electronic energy labels on products (According to  Clause 1 Article 3 of Circular 36/2016/TT-BCT)

[2] Are Energy labels required when manufacturing and trading LED lights?

According to the provisions of Clause 1 Article 14 of Decree 21/2011/ND-CP on Energy labeling: “ Devices and equipment on the list of devices and equipment subject to energy labeling shall be labeled before their market sale.”

Besides, pursuant to Clause 1 Article 1 of Decision 04/2017/QD-TTg, the equipment and appliances to which the mandatory energy labeling is applied include:

“1. The regulated household appliances include: straight fluorescent tubes, compact fluorescent bulbs, magnetic and electronic ballasts for fluorescent lights, air conditioners, refrigerators, household washing machines, electric cookers, electric fans, video cameras, LED light bulbs, electric kettles with a water reservoir (hereinafter referred to as electric kettles).”    

Based on the above regulations and the information you provide, LED lights are household appliances in the group of devices on which Energy labels must be applied in accordance with the law.

Pursuant to Article 2 of this Decision, the Roadmap to energy labeling is specified as follows:

 - Energy labels are non-mandatory for: LED light bulbs, electric kettles until December 31, 2019 inclusive;

- From January 1, 2020, energy labels are mandatory for: LED light bulbs, electric kettles.

 [3]. Energy Labeling Process

According to the provisions of Circular 36/2016/TT-BCT on energy labeling for means and equipment using energy under management of the ministry of industry and trade. The energy labeling process is as follows:

Step 1. Testing energy efficiency

Based on the applicable Vietnamese standards corresponding to goods, enterprises shall determine whether or not goods are subject to performance testing. If so, the organization should contact the Energy Efficiency Laboratory for testing.

Step 2. Registration of energy labeling

 - Before putting means and equipment into the market, the enterprise that produces or imports such means and equipment shall make an application for registration of energy labeling and send it to the Ministry of Industry and Trade.

-  An application for registration of energy labeling includes:

a) A declaration of energy labeling for means and equipment using energy, which clearly state that the enterprise applies for registration of either comparative label or endorsement label using the form in Appendix 1;

b) The test results provided by a testing laboratory for product model;

c) A document establishing the eligibility of the foreign laboratory (in case of testing of energy labeling conducted by a foreign testing laboratory);

d) Expected energy label model.

- The applicant for registration of energy labeling may either submit the application online on the website of the Ministry of Industry and Trade or submit the application directly or by post to the Ministry of Industry and Trade. Where the above-mentioned documents prescribed in Clause hereof are in foreign languages, they must be translated into Vietnamese and notarized.

Step 3. Energy labeling

The applicant may self-conduct the energy labeling in accordance with the declaration of energy labeling for the registered product.

Above is FDVN Law Firm's opinion for your consulting requests based on studying the relevant legal provisions. Hopefully, FDVN's advice would be helpful to you.

Hoang Tran Ngoc Anh - FDVN Law Firm

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