Export Procedures for Tobacco by Ipologistics

Export Procedures for Tobacco –  particularly for tobacco leaves, plays a crucial role in Vietnam’s economy, generating significant export value and creating numerous jobs. However, to successfully export this product, businesses must be aware of legal regulations, procedural steps, and relevant HS codes. This article delves into the detailed aspects of the tobacco export procedures conducted by Ipologistics.

1. Legal Basis Related to Tobacco Export

1.1. Vietnam’s Commercial Law

• Commercial Law (Law No. 36/2005/QH11) regulates trade activities and the export of goods, including tobacco. According to Article 25, businesses must have an export license issued by the competent authority.

1.2. Regulations from the Ministry of Health

• Decree No. 67/2013/ND-CP regulates the production and trading of tobacco.
• Circular No. 12/2015/TT-BYT governs the quality management of tobacco and tobacco products. Businesses need to have a product quality certificate and ensure that products meet health standards.

1.3. Regulations from the Ministry of Industry and Trade

• Circular No. 06/2016/TT-BCT outlines administrative procedures in the tobacco export and import activities, requiring businesses to register their export activities with the Ministry of Industry and Trade.

1.4. HS Code (Harmonized System)

The HS codes for tobacco are as follows:

• Tobacco leaves:
  • HS Code: 2401.10.00
• Processed tobacco:
  • HS Code: 2402.10.00
• Cigars:
  • HS Code: 2402.20.00
• Cigarettes:
  • HS Code: 2402.90.00

Using the correct HS code is crucial for a smooth customs clearance process.

2. Export Process for Tobacco

The export process for tobacco consists of the following detailed steps:

2.1. Preparing Export Documents

Businesses need to prepare the necessary documents:

• Business license: A copy of the legally registered business license.
• Export license: Issued by the competent authority. To obtain this license, businesses must demonstrate the legality of the product and comply with quality standards.
• Export contract: Clearly stating the terms and conditions between the exporter and importer.
• Quality certificates: Including product quality certification from authorized agencies, proving that the product meets food safety standards.
• Customs declaration: Complete the information as required.

2.2. Registering for Export

The registration process involves the following:

1. Submit the application: Submit the export registration application to the Department of Industry and Trade or the Export-Import Department. The application includes:
   • Export license
   • Product quality certificate
   • Export contract
2. Application review: The competent authority will review the application. If the documents are complete and valid, the business will receive the export license.

2.3. Performing Customs Procedures

After obtaining the export license, businesses need to carry out customs procedures as follows:

1. Register customs declaration:
   • Fill out the customs declaration form according to the model provided by the General Department of Customs.
   • Provide necessary documents such as export license, export contract, and quality certificates.
2. Goods inspection:
   • Customs authorities will inspect the goods to ensure they match the declared information.
   • If the goods do not meet requirements, the business must take corrective actions before the goods can be cleared.
3. Pay export taxes:
   • Businesses must pay export taxes according to state regulations. The export tax rate for tobacco is usually determined based on the value of the goods and the type of tobacco exported.
4. Customs clearance:
   • After completing all procedures and paying taxes, the goods will be cleared for export.

2.4. Shipping Goods

Once the customs procedures are completed, businesses will proceed with shipping the goods to the export destination. The process includes:

• Choosing the transportation method: Businesses can choose sea, air, or road transport, depending on customer requirements and product characteristics.
• Packaging goods: Ensure that goods are properly packaged to avoid damage during transportation.
• Delivering goods: Coordinate with partners to deliver goods on time and at the designated location.

2.5. Receiving Goods

In the goods receiving phase, businesses need to take the following steps:

1. Check documents: Ensure that all documents related to the goods are prepared.
2. Inspect goods: Before delivery, inspect the goods to ensure there are no errors or damages.
3. Sign delivery record: After inspection, both parties will sign a delivery record to confirm the receipt of goods.

3. Important Notes for Export Procedures for Tobacco

3.1. Compliance with Legal Regulations

Businesses must strictly adhere to legal regulations related to tobacco exports to avoid legal risks. Violations may result in penalties or confiscation of goods.

3.2. Ensure Product Quality

Product quality is crucial for customer retention. Businesses should conduct regular quality inspections to ensure products meet international standards.

3.3. Monitor and Update Information

Businesses need to keep track of changes in legal regulations related to tobacco exports and update information regularly. This helps businesses to be proactive and avoid being reactive when changes occur.

4. Conclusion

Exporting tobacco leaves and products is a complex process requiring deep knowledge of legal regulations and procedural steps. Ipologistics has established a professional and efficient export process, from document preparation, export registration, to customs procedures and goods delivery.

To achieve success in the export sector, companies must continually improve processes, enhance product quality, and ensure full compliance with legal regulations. This will enable companies to expand their export markets and enhance brand value in the international market.