DETAILED GUIDE ON CUSTOMS PROCEDURES AND LEGAL REQUIREMENTS FOR EXPORTING COCOA BEANS
I. LEGAL REQUIREMENTS AND EXPORT REGULATIONS
- Check the List of Goods:
- Cocoa beans are not included in the list of prohibited or restricted goods for export according to Decree 69/2018/ND-CP and related legal documents. Businesses should regularly update the latest regulations from the Ministry of Industry and Trade and other relevant agencies to ensure full compliance with current regulations.
- Quality Standards:
- Cocoa beans must meet quality standards according to Vietnam Standards (TCVN) and international standards such as ISO 2451:2017 (Standard for raw cocoa) or Codex Alimentarius (International food standards). These standards ensure that the product meets the necessary quality for export to international markets.
- Export License:
- Although cocoa beans do not require an export license, some markets may require different licenses or certificates depending on bilateral or multilateral trade agreements. Businesses need to check the requirements of the import market to prepare the appropriate documents.
II. LEGAL DOCUMENTATION AND REQUIRED CERTIFICATES
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Business Registration Certificate:
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The business registration certificate of the company, where the business line must include the activity of exporting agricultural products or cocoa beans.
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Foreign Trade Contract:
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The foreign trade contract needs details on quantity, quality, unit price, delivery conditions (Incoterms), payment method, insurance, and rights, and obligations of the parties. This helps avoid disputes and ensure transparency in the transaction.
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Commercial Invoice:
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The commercial invoice must clearly show information about the seller, buyer, quantity, unit price, total value, HS code of the product, and delivery conditions. This invoice is the basis for calculating customs duties and fees.
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Packing List:
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The packing list details information about the number of cartons, net weight, gross weight, dimensions, type of goods, and packaging method (bag, carton, pallet).
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Bill of Lading/Airway Bill:
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The bill of lading issued by the shipping company or airline confirms that the consignment has been received for transport. The type of bill of lading depends on the mode of transport (sea or air).
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Certificate of Origin (C/O):
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The certificate of origin issued by the Vietnam Chamber of Commerce and Industry (VCCI) or other competent authority, confirms the origin of the cocoa beans.
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Phytosanitary Certificate:
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Issued by the Plant Protection Department, confirming that the cocoa beans are free from pests, diseases, and meet the phytosanitary requirements of the importing country.
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Certificate of Quality:
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Issued by reputable inspection organizations or independent laboratories, confirming the product meets the committed quality standards in the contract.
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Food Safety Certificate (If Required):
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Some markets require this certificate to ensure the product does not contain harmful substances, harmful bacteria, or other dangerous factors for consumer health.
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III. CUSTOMS PROCEDURES
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Electronic Customs Declaration (VNACCS/VCIS):
- VNACCS/VCIS System: Businesses use the VNACCS/VCIS electronic customs clearance system to perform customs declarations.
- Prepare Declaration Documents:
- Export Customs Declaration Form: Fill in all mandatory information such as the company’s tax code, HS code of the goods, quantity, unit price, FOB/CIF value, and other relevant information.
- Related Documents: Foreign trade contract, commercial invoice, packing list, bill of lading, certificate of origin, phytosanitary certificate, and other required documents.
- Declaration Process:
- Register Customs Declaration Form: Businesses declare the customs declaration form information through the VNACCS system. After filling in all the information, the system will check and confirm the validity.
- Declaration Channel Classification: The system classifies the declaration into inspection levels:
- Green Channel (Exempt from Physical Inspection): Goods are cleared immediately without physical inspection.
- Yellow Channel (Document Inspection): Customs inspects the documents before deciding on clearance.
- Red Channel (Physical Inspection of Goods): Customs inspects the actual goods at the port.
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Physical Inspection of Goods (If Required):
- Prepare Goods for Inspection: If the declaration is classified as red channel, businesses prepare goods ready for physical inspection. Goods must be properly packed and ready for customs inspection at the warehouse or port.
- Inspection Process: Customs open the container or parcel to inspect the actual goods compared to the customs declaration. If discrepancies are found, businesses may be subject to administrative penalties or forced re-export of goods.
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Pay Export Taxes and Fees:
- Determine Tax Obligations: Based on the HS code of the cocoa beans and delivery conditions (FOB, CIF), businesses determine the amount of tax payable (if any). Currently, cocoa beans typically do not incur export tax but may have to pay other fees and charges.
- Pay Taxes and Fees: Taxes and related fees must be paid through the bank system linked with the customs system. After paying taxes, the system updates, and businesses can continue the customs clearance process.
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Goods Clearance:
- Granting Clearance Permission: After completing the inspection and paying taxes, customs grants clearance for the consignment. Businesses receive back the customs declaration with clearance along with related documents from customs.
- Goods Release: Businesses deliver the goods to the port or airport to complete the delivery procedures with the shipping company or airline, including arranging domestic transportation to the export port, completing port procedures, and sending the goods.
IV. SUPERVISION AND INTERNATIONAL TRANSPORTATION
- Choose Mode of Transportation:
- Sea Transportation: The most common method due to low cost and large cargo capacity. Businesses select reputable shipping lines to ensure delivery time and meet the preservation conditions of the goods.
- Air Transportation: Suitable for high-value orders or requiring fast delivery, the cost is significantly higher than sea transportation.
- Monitor the Transportation Process:
- Track Route: Track the route of the consignment through the transportation management system (TMS) or tracking service of the shipping company/airline to promptly capture the status of the consignment and handle issues when they arise.
- Check Preservation Conditions: Cocoa beans need to be preserved under suitable temperature and humidity conditions to avoid damage during transportation. Use temperature/humidity monitoring devices to control the quality of the goods.
V. COMPLETION OF POST-EXPORT PROCEDURES
- Delivery and Payment Confirmation:
- Delivery Confirmation: After the goods reach the destination, coordinate with the import partner to confirm the consignment has been delivered as per the contract. Related documents such as the original bill of lading, phytosanitary certificate, and certificate of origin need to be exchanged.
- International Payment: Payment according to methods such as L/C (Letter of Credit), T/T (Telegraphic Transfer), or D/P (Documents Against Payment). Ensure payment is made on time and according to the terms agreed in the contract.
- Document Storage and Reporting:
- Document Storage: Store all documents related to the export consignment for at least 5 years according to the Customs Law regulations to serve future inspections or audits.
- Export Reporting: Periodic export reporting to the authorities, including information on quantity, value, and export markets. The report helps state management agencies track and evaluate the export situation of Vietnam’s agricultural products.
VI. SPECIAL REQUIREMENTS FROM IMPORT MARKETS
- Compliance with Import Market Regulations:
- Check Technical Standards: Each importing country has its own requirements for quality standards and phytosanitary. The EU market requires strict checks on pesticide residue levels and other food safety indicators.
- Import License: Import partners in countries such as China or the USA may require an import license from the state management agency before the goods are cleared in the importing country.
- Special Certifications:
- UTZ, Fair Trade, Rainforest Alliance Certifications: Certifications related to sustainable production and social responsibility. The EU and North American markets often require these certifications to ensure the product meets quality standards and environmental and human rights standards.
VII. RISKS AND PREVENTIVE MEASURES
- Legal Risks:
- Contract Disputes: Ambiguity in contract terms can lead to disputes with the import partner. Businesses need to be cautious in drafting contracts and have preventive measures such as using L/C or international trade insurance.
- Customs Regulations Violations: Errors in customs declarations or violations of export regulations can lead to penalties, clearance delays, or confiscation of goods.
- Transportation Risks:
- Goods Damage: Cocoa beans are susceptible to damage due to improper storage conditions or weather impacts during transportation. Using specialized packaging and selecting reputable transport companies are effective preventive measures.
- Delivery Delays: Choosing a transport company that does not ensure delivery time or issues arising during transportation such as port congestion, complex entry procedures can lead to delivery delays.
VIII. CONCLUSION
Exporting cocoa beans requires careful preparation in terms of legal requirements and customs procedures, as well as close coordination among stakeholders, from producers, exporters, customs authorities to import partners. Businesses need to continuously update new regulations, strictly comply with international standards, and use risk management measures to ensure a smooth, efficient export process that achieves the highest economic benefits.
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