VCCI proposes rice export decree be modified

Illustrative image (Source: vietnammoi)

Chamber expresses concerns over rice export decree and planned amendments.

The Vietnam Chamber of Commerce and Industry (VCCI) has proposed the Ministry of Industry and Trade (MoIT) remove unreasonable business conditions relating to a decree on rice exports.

It said that the abolition of regulations on rice exporters and draft amendments to Decree No.109 on expanding the freedom of business in rice exports shows that MoIT has listened to the business community and made an appropriate policy response. The amendments, including removing barriers in the rice business, expanding markets, and diversifying distribution channels, are the basis for the rice sector to develop and compete.

However, the draft still contains many limitations and inappropriate articles so needs to be revised.

Specifically, regarding the conditions on warehouses and rice husking facilities, the draft uses the phrase “specialized warehouse”, which can be understood differently by different people.

Therefore, VCCI proposed that MoIT modify the draft so it only requires that enterprises have the right to use specialized warehouses, through ownership or leases.

VCCI also recommends that MoIT remove the compulsory conditions on raw material areas and linked production in the draft as such conditions will limit export opportunities for enterprises and restrict markets.

Mr. Dau Tuan Anh, Chief Legal Officer at VCCI, pointed out that administrative procedures are too complex. Enterprises must complete three procedures, including those with Departments of Industry and Trade endorsing storage, those with Departments of Agriculture to obtain certificates of eligibility for food safety, and those with MoIT to obtain certificates of eligibility to export rice.

He added that MoIT’s draft decree replaces the mechanism for registration of rice export contracts into rice export contract notices that are implemented via the ministry’s electronic information portal. However, the draft also requires contracts be announced in order to secure customs clearance.

It isn’t necessary for an enterprise to announce information when they export rice, because when carrying out customs procedures for exports they must submit customs declarations. “Therefore, we propose the agency that manages rice exports receive information from the customs department instead of requiring enterprises to carry out notification procedures,” he said.