Exporting Green Tea

Detailed and Professional Procedures for Exporting Green Tea from Vietnam

1. Overview of Green Tea Exports

Green tea is one of Vietnam’s key agricultural export products, favored in international markets for its quality and distinctive flavor. Exporting green tea not only enhances the value of Vietnamese tea brands but also significantly contributes to the national economy. However, for green tea to be successfully exported, businesses must strictly adhere to relevant legal regulations and processes.

2. Legal Requirements for Exporting Green Tea

2.1. Product Requirements:

• Quality Standards: According to Decree No. 15/2018/ND-CP on food safety, exported green tea must meet safety standards, including limits on pesticide residues. Businesses should ensure that the green tea complies with the standards of the importing country.
• Packaging and Preservation Standards: Green tea must be packaged according to international standards, using materials that preserve the quality of the tea during international transport. Compliance with Circular No. 21/2019/TT-BNNPTNT on food safety inspection for imports and exports under the Ministry of Agriculture and Rural Development is mandatory.

2.2. Business Requirements:

• Business Registration Certificate: Companies must have a business registration certificate in the field of agricultural product exports, including green tea.
• Certificate of Food Safety: Issued by the Ministry of Industry and Trade or the Ministry of Agriculture and Rural Development as per Circular No. 38/2018/TT-BNNPTNT.

2.3. Other Legal Requirements:

• Certificate of Origin (C/O): According to Circular No. 05/2018/TT-BCT, a C/O is mandatory for goods to benefit from tariff preferences under free trade agreements (FTAs). The C/O must be issued by the Vietnam Chamber of Commerce and Industry (VCCI) or an authorized agency.
• Phytosanitary Certificate: Per Circular No. 33/2014/TT-BNNPTNT, before export, green tea must undergo phytosanitary inspection to ensure it is free from pests as required by the importing country. This certificate is issued by the Plant Protection Department.

3. Export Process and Procedures for Green Tea

Step 1: Sign the Export Contract

• Businesses must carefully prepare and sign an export contract with foreign partners. The contract should clearly outline specific terms related to pricing, quantity, quality, payment methods, delivery conditions (Incoterms), and insurance.

Step 2: Prepare Goods

• After harvesting, the green tea is processed and packaged according to international standards. Businesses must conduct quality checks on the tea before packaging to ensure it meets the safety standards.

Step 3: Obtain Phytosanitary Certificate

• The company contacts the Plant Protection Department to obtain a phytosanitary certificate for the export consignment. The inspection process includes sampling and necessary preventive measures.

Step 4: Obtain Certificate of Origin (C/O)

• The company submits an application for a C/O at the VCCI or authorized agencies. The application includes the C/O request form, commercial invoice, packing list, and sales contract.

Step 5: Customs Declaration

• The company carries out electronic customs declaration through the VNACCS/VCIS system. The declaration dossier includes the customs declaration form, commercial invoice, packing list, certificate of origin, and phytosanitary certificate.

Step 6: Complete Customs Clearance

• The customs authority will review the documents and may conduct a physical inspection of the consignment if necessary. If all documents are valid and there are no violations, customs clearance will be granted.

Step 7: Transport the Goods

• After customs clearance, the business coordinates with the transport company to load the goods onto the transport vehicle (ship, airplane) and send them to the importing country.

Step 8: Fulfill Tax and Fee Obligations

• The company must pay all required taxes and fees, including export taxes (if any), customs fees, and phytosanitary inspection fees.

Step 9: Payment and Contract Completion

• After the goods are delivered to the partner and meet the contract terms, the company completes the payment procedures and stores the necessary documents for reconciliation and finalization.

4. Taxes and Fees Involved

• Export Tax: Under current regulations, green tea is generally exempt from export tax. However, businesses should check the current export-import tariff schedule for accurate application.
• Customs Fees: These include declaration processing fees, storage fees, and services related to customs procedures.
• Phytosanitary Inspection Fees: These fees are regulated under Circular No. 231/2016/TT-BTC of the Ministry of Finance on fees and charges in the field of plant protection.

5. Important Considerations When Exporting Green Tea

• Product Quality: The quality of green tea must be stable and comply with the technical standards of the importing country. Businesses should thoroughly inspect the product before export.
• Labeling Requirements: According to Decree No. 43/2017/ND-CP, green tea must have complete labeling information, including product name, place of production, ingredients, usage instructions, and expiry date.
• Legal Updates: Businesses should regularly update their knowledge on legal changes related to green tea exports to ensure compliance and avoid legal risks.

6. Conclusion

Exporting green tea is a process that requires careful preparation and strict adherence to legal regulations. By following the correct procedures from production, processing, to transportation and customs clearance, businesses can successfully export green tea, enhance their reputation, and effectively compete in the international market.