The Vietnam Pepper Association (VPA) has just sent an official dispatch to the Ministry of Health, the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade and the General Department of Vietnam Customs about the removal of black pepper (HS code 0904.11. 20) from the list of conditional exports and not subject to risk management.
Previously, on July 12, 2021, VPA issued Official Letter No. 31/CV-VPA to the General Department of Customs about some pepper exporting enterprises reflecting on the classification of inspection declarations for exported black pepper products. export.
VPA recognizes the complaints of member businesses and is known that, since July 10, 2020, the proportion of golden stream declarations has increased from 8% to 60% and mainly focuses on black pepper products.
This has increased cost pressure for businesses and potential risks of Covid-19 exposure during travel to process customs declarations.
On July 21, 2021, the General Department of Customs responded to the Association’s complaint according to Official Letter No. 173/QLRR-P3.
Accordingly, pepper products are currently on the list of conditional exports, and the customs authority must conduct inspection according to specialized management documents.
In case it is determined that the exporter of pepper is a medicinal material not used for medicinal purposes according to Article 2 of the Circular No. 03/2021 of the Ministry of Health, the customs authority shall carry out customs clearance on the system, ensuring convenience. for Business.
Meanwhile, according to Circular No. 37/2018 of the Ministry of Agriculture and Rural Development dated December 25, 2018 promulgating the list of national key agricultural products, pepper is one of 13 key commodities with in the list.
People clean black pepper after drying
Specifically, according to the General Department of Vietnam Customs, in 2020, Vietnam will export 285,000 tons of pepper to more than 110 countries around the world, with a total export turnover of 660 million USD.
In the first 6 months of 2021, Vietnam exported 154,000 tons, export turnover reached 497 million USD, compared to the same period last year, the export volume decreased by 7.5% but the turnover increased by 39.8%.
According to VPA’s statistics, the percentage of exported black pepper products (HS code 0904.11.20) accounts for 80% of Vietnam’s total pepper exports (the remaining items include: ground black pepper, black pepper, and black pepper). white pepper, ground white pepper, pickled pepper, etc.), exported by enterprises in the form of pepper.
Circular No. 03/2021 dated March 4, 2021 on the elimination of a number of items listed in Appendix 1 promulgated together with Circular No. 48/2018/TT-BYT, including pepper (HS code 0904.11) .20).
Also in Article 2 of Circular No. 03/2021/TT-BYT stipulates: “In case the exported or imported goods specified in the Appendix issued together with this Circular are used for the purpose of making medicines and raw materials, If making drugs, they must comply with the provisions of legal documents on pharmacy.
However, VPA said that black pepper for export is currently a common agricultural export commodity, mainly used as a seasoning in food processing in the import market.
Although pepper is used as a medicine, the import markets set very strict standards for medicinal products while so far no Vietnamese enterprises have met them.
Black pepper is used as a medicine, currently only used in Vietnam through traditional medicine.
In addition, Vietnamese pepper exporters do not have a pharmaceutical business function, but only register for import and export business of agricultural products.
From the above information, the Vietnam Pepper Association respectfully requested the Ministry of Health to consider removing black pepper (HS code 0904.11.20) from the list of conditional export and not subject to management. risks in the division of customs inspection, in order to create favorable conditions for export enterprises.
In case the enterprise’s request is not considered, the VPA proposes the Ministry of Health to provide specific guidance on documentation procedures in certifying that the enterprise’s exported pepper is not for the purpose of making medicines and raw materials for food production. drugs for enterprises to submit to the customs office as instructed.