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Official export – Sustainable and effective direction

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Official export - Sustainable and effective direction

Two popular forms of import and export in our country today are: unofficial import and export and official export. These are two forms recognized by our state as legal border trading activities. Although informal and official export are both supported and facilitated by our state, each form has its own advantages and disadvantages.

What is official import and export quota?

Non-quota import and export is always a form of import and export with a lower tax rate than official import and export taxes, easy procedures and only need a small-quota declaration and border-crossing fees to be able to export goods. invoices, payment documents, foreign trade contracts like through official channels. However, small quota import and export is often unstable, the value of each transaction is small…

Official import and export is a form of cross-border transportation of goods through border gates in large quantities. Officially imported and exported goods must be carefully censored for quality, food safety and hygiene… by specialized authorities. At the same time, businesses must complete all administrative procedures as well as pay taxes in full before customs clearance. In official import and export, there must be a full and legally binding purchase and sale contract between the buyer and the seller in accordance with international regulations and practices. Therefore, this form is often used in international trade with large sales contracts.

Inadequacies in the current import and export situation in Vietnam

For all kinds of garments, leather shoes, the main export markets are the US and EU. For agricultural products, the Chinese market still accounts for a large proportion (57%). The agricultural products exported to China are mainly fishmeal, agricultural products, tapioca starch, sedge, etc., which are often exported by small traders through small quotas.

Exporting through unofficial channels has long been inherently more risky than official channels, but because of easy procedures and low taxes, it is still the first choice of small traders. However, from the beginning of 2020 until now and after the COVID-19 epidemic, small-scale export has revealed many inadequacies, significantly affecting the business plans and efficiency of enterprises.

For the export of agricultural products, the most affected from the beginning of 2020 to now in agricultural products is tapioca starch. This is also a commodity that is mainly exported to China through unofficial channels. At the most, the amount of cassava starch backlog is up to 26,000 tons. At Thanh Hoa Foodstuff Import-Export Joint Stock Company, the output of exported cassava starch accounts for 90% of the unit’s total export output. A representative of the company’s leadership said: “Since mid-April, the land border crossings with China have reopened. However, the capacity to clear goods is still limited due to the short clearance time, leading to congestion at the border gates. Due to small-scale export, there is no commitment to the partner on the terms of contract execution, so the costs of storing the vehicle at the warehouse, the unit must bear it. Moreover, during the epidemic, the company had a shortage of working capital, making it difficult to maintain production.”

Although they were more or less affected by the epidemic, the situation was soon stabilized for companies carrying out official exports. Director of Tu Thanh Co., Ltd (Northwest Ga Industrial Park), Ms. Dong Thi Tuyet Anh said: “The company is currently exporting items such as pineapples, melons, sweet corn, etc. to the US and EU markets. , Japan and many other difficult markets. From the beginning of the year until now, each month, the unit still exports from 40-50 containers to other countries and was only affected for a short time when Thanh Hoa province was in the area infected with COVID-19 disease.

For many years, Vietnamese agricultural products in general and export products of Thanh Hoa province in particular have faced many risks because of small-scale exports, typically to the Chinese market. That is why when the Chinese market stopped importing, domestic agricultural products fell into a state of “good season – depreciated”, product backlog, farmers lost revenue, businesses suffered losses. However, not all enterprises can meet the standards and compete on prices for export by official sugar.

Director of Thanh Hoa Fruits and Vegetables Import-Export Joint Stock Company, Mr. Doan Ngoc Lan, shared: We know that official export will be more stable and sustainable. However, the costs of intra-provincial logistics and transportation of goods to the northern border gates are currently quite high compared to the South. If you add the costs and procedures to qualify for official export, the items that are not unique to the province will be very difficult to compete in price compared to other localities.

Besides, to get official export contracts, agricultural products must meet clean production standards such as VietGAP or higher than GlobalGAP. To meet these standards, farmers need to go through cooperatives and affiliated enterprises in production, apply high technology, and strictly comply with regulations on quality and origin of goods. This is currently a limitation of major agricultural products in our country

Official export is a sustainable and effective way

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