China delays time of clearance, Ministry of Industry and Trade immediately speaks up

illustration image. Source: Internet

Recently, the Consulate General of Vietnam in Guangxi (China) said the Guangxi provincial government decided to extend the time of closing border markets and continue suspending goods exchange activities of border residents. Initially, it will be extented to the end of February 2020.

Regarding the government of Yunnan Province, currently, there is no official information but facing the complex developments of the acute pneumonia epidemic caused by corona virus (2019-nCoV), it is likely the government of Yunnan will make the same decision.

The Ministry of Industry and Trade assessed that although there were great efforts given to convert exports to the form of paying full tax in recent years, up to now, exports in the form of exchanging residents at border markets is still the main export method for some agricultural products of Vietnam, including dragon fruit and watermelon.

Therefore, extending the closing time of the border markets and to continue suspending the goods exchange of border residents of the Guangxi and Yunnan governments provinces is estimated to cause a significant impact on the exports of these agricultural products.

The decisions of Guangxi and Yunnan only affected goods brought to the border for export in the form of exchanging residents. Shipments of agricultural products exported via the form of paying full tax, including dragon fruits, are still allowed to carry out normal clearance procedures, although progress is slower due to strict measures of preventing and controlling diseases.

Dealing with the current situation, the Ministry of Industry and Trade suggested that for agricultural products that rely heavily on exports in the form of exchange of residents (such as dragon fruit and watermelon), businesses and people should have measures to regulate output and at least not use measures to increase output at this time.

With areas that have not been planted yet, it is recommended to consider switching to other agricultural products that are easier to consume.

With output already or about to be harvested, it should be continued restricting the transport of goods to the border except for cases of export under the form of paying full tax; proactively contact goods owners to negotiate to convert to export under the form of paying full tax and take the initiative in taking measures to be ready for converting into export under the form of paying full tax such as changing the packaging, goods labels, and traceability stamps.

The Ministry of Industry and Trade will direct the Granting License Division of the Ministry in localities to prioritise granting the Certificate of Origin (C/O) for shipment of goods ready for exporting underthe form of paying full tax.

For logistics enterprises, especially those that have cold storage, it is recommended to continue supporting agricultural enterprises by prioritising the preservation of agricultural products that are facing difficulties in exporting to China. Besides that, within their capabilities, reducing the cost of storage, warehousing, reducing transportation costs and loading goods to support farmers.

The Ministry of Industry and Trade also suggested distribution businesses, trade centres and supermarkets to continue supporting farmers to consume agricultural products that are getting difficulties such as dragon fruit and watermelon.