Is a trader required to have a rice warehouse to conduct rice export business? Do the rice exporters in Vietnam maintain circulation reserve?
Vietnam: Is a trader required to have a rice warehouse to conduct rice export business?
Pursuant to the provisions of Clause 1, Article 4 of Decree 107/2018/ND-CP on rice export business conditions:
A trader that is being incorporated and registers for business under law shall be allowed to conduct rice export business if it satisfies the following conditions:
(1) Have at least 01 rice warehouse that satisfies the national technical standards and regulations promulgated by a competent authority in accordance with the Law on Technical Standards and Regulations.
(2) Have at least 01 rice mill or rice processer that satisfies the national technical standards and regulations promulgated by the competent authority in accordance with the Law on National Technical Standards and Regulations.
Therefore, a trader must have at least 01 rice warehouse that satisfies the national technical standards and regulations to conduct rice export business.
Note: The rice warehouse, mill or processor must be owned by the trader or rent by the trader from other organizations or individuals under a lease agreement of at least 05 years
The trader who obtains the Certificate shall not lease or sublet the rice warehouse, mill and processor that are declared in its application form in order to prevent another trader from using the aforesaid properties to apply for another Certificate.
>>> Application form for issuance of Certificate of eligibility for rice export business>>> Here.
Is a trader required to have a rice warehouse to conduct rice export business? Do the rice exporters in Vietnam maintain circulation reserve? (Image from the Internet)
Do the rice exporters in Vietnam maintain circulation reserve?
Pursuant to the provisions of Article 12 of Decree 107/2018/ND-CP on the circulation reserves:
The rice exporters shall maintain regularly a minimum circulation reserve equivalent to 5% of their rice exports of the previous 06 months.
Thus, the rice exporters shall maintain regularly a minimum circulation reserve equivalent to 5% of their rice exports of the previous 06 months.
The trader that exports organic rice, parboiled rice and rice with micronutrients is not required to satisfy the business conditions, and is entitled to export the aforesaid types of rice without a certificate, but shall make a report in accordance with regulations.
Vietnam: When must the rice exporters send a monthly report?
Pursuant to the provisions of Clause 2 Article 24 of Decree 107/2018/ND-CP on responsibilities of the traders:
Responsibilities of the traders
1. Promptly send a written report to the Ministry of Industry and Trade, Departments of Industry and Trade in the provinces where the rice warehouses, mills and processors declared to obtain the Certificate are located when they fail to satisfy the business conditions or when there are changes about the aforesaid rice warehouses, mills and processors.
2. Send a report about the signing and implementation of rice export contracts to the Ministry of Industry and Trade every 20th of each month.
3. Send a report about the actual stored rice volume of traders based on each category to the Ministry of Industry and Trade every Thursday in order for this Ministry to make an aggregate report for administration.
4. Send quarterly, annual and irregular reports to the Ministry of Industry and Trade, Ministry of Finance, Ministry of Agriculture and Rural Development, People’s Committees and Departments of Industry and Trade in provinces where the head offices, rice warehouses, mills and processors or raw materials area are located. The periodic reports shall be made by using form No. 04 in Appendix hereto.
5. Implement the state policies' regulations on building the raw materials area; impose the reporting regime by sending a report on the building process of raw materials area to the Ministry of Industry and Trade and relevant agencies as prescribed by laws.
6. If a trader sends untrue reports or does not follow the reporting regime specified in this Article, it shall not receive the incentive policies specified in clause 2, Article 16 hereof, unless the aforesaid trader stops violating and rectifies its actions.
7. According to the regulations in this Decree, the Ministry of Industry and Trade shall provide specific provisions on high technology application, with the aim to make it easier for traders in imposing the reporting regime specified in this Article.
Thus, the traders must send a report about the signing and implementation of rice export contracts to the Ministry of Industry and Trade every 20th of each month.
Therefore, rice exporters shall send a report about the signing and implementation of rice export contracts to the Ministry of Industry and Trade every 20th of each month.
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