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Some obstacles in customs procedures of the charcoal export

Tue, 26 Sep 2017 14:44:42 PM GMT + 7    Print    Email Share:

Thang Long Joint Stock Company is currently trading in charcoal (charcoal for BBQ) to Australia,  Middle East and Europe markets. The exported charcoal products are charcoal that is heated by households from the garden logs, such as: Labels, Eucalyptus, Grapefruit, and Rambutan to be collected and processed at the request of importers. FOB price of common products range from $ 450- $ 650 / ton, depending on the type of coal, packaging and packaging specifications ..., be higher than the average FOB price of the charcoal in domestic. In Asian countries such as Thailand, Indonesia, currently only ranges from $ 350 to $ 500 per ton.

In the process of export of charcoal and carry out customs procedures, when being requested by the customs office on inspection and consultation of enterprise’s prices, Thang Long Joint Stock Company always coordinate, execute fulfillment of requirements. However, the export of goods often have to consult the price, which takes a lot of time, increase costs of the company and customs office, although the company has been an exporter of charcoal products for many years.

According to Thang Long Capital Corporation, difficulties in the export procedures of the Company related to the implementation of Decision No. 1114 / QD-TCHQ dated April 10, 2014 of the General Department of Customs. The company quoted the reference price of charcoal in Decision No. 1114 / QD-TCHQ and stated some practical points as follows:

- The charcoal items listed in items 73 to 80 (in the list of commodities and reference prices of Decision No. 1114 / QD-TCHQ) actually split into two kinds of coal as charcoal and white coal, in which:

+ Charcoal (also known as black coal) includes the commodity names in items 73, 74, 75, 79 and 80 in the list of commodity codes and reference prices of Decision No. 1114 / QD-TCHQ, produced from plants of Eucalyptus, White Eucalyptus, Acacia, Logan, Litchis… plants

+ White coal is the commodity names in Sections 76, 77 and 78 in the list of commodities and reference prices of Decision No. 1114 / QD-TCHQ, which can also be produced from Eucalyptus, white Eucalyptus, Acacia, Logan, Litchis ... plans but the technical production is different in comparison to the white coal production

- Regarding the reference price of the Decision: Thang Long Joint Stock Company stated that it is necessary to discriminate on the price of charcoal with lower production cost, equivalent to 50% the price of white coal, so  the price of charcoal in the market is only 40-50% compared with the price of white coal. White coal is mainly supplied to the two markets as Japan and South Korea, meanwhile, the demand for charcoal is huge and popular. Vietnam's charcoal quality is in line with the world market's demands, although prices are higher than other ASEAN countries but are still acceptable at FOB prices of $ 400- $ 650 / ton (depending on the packing specification).

Thus, Thang Long Joint Stock Company said that in fact, charcoal products are different from white coal and necessary adjustment to overcome the above mentioned problems. Thang Long Joint Stock Company recommended the Ministry of Finance and the General Department of Customs to consider and revise the list of commodity codes in the Decision No. 1114 / QD-TCHQ,as well as rearrange item codes 73, 74 75, 79, 80 that belong to the category of Charcoal and adjust the reference price for reasonable charcoal item with the actual selling price of USD 400 - 650 per tonne (FOB price).

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