Updated on : Thứ Tư, 28/11/2018 - 10:45 SA
More opportunities for rice exporters

VGP – The Ministry of Industry and Trade issued Circular 30/2018/TT-BCT (“Circular 30”) detailing some articles of Decree 107/2018/NĐ-CP (“Decree 107”) dated 15 August, 2018 by the Government on rice export, superseding Circular 44/2010/TT-BCT dated 31 December, 2010 (“Circular 44”).

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Question: What are the new regulations as stipulated in Circular 30 on rice export?

Answer:                                          

Mechanism for alternating lead traders

While Circular 44 previously prescribes that the Ministry of Industry and Trade appoints a lead trader to negotiate concentrated contracts, Circular 30 will, as it becomes effective, allow rice exporters to function as alternating leads.

The mechanism of alternating leads will apply when there are two or more traders appointed as leads in a market with concentrated contracts but competent authorities or importers require that only one trader is allowed to sign contracts in each bid for rice import under concentrated contracts.

The traders will take turns to join the bids, and they must report to the Ministry of Industry and Trade and the Vietnam Food Association on their bidding capabilities no later than 1 day after the import countries have notified them of the rice import. If the trader declines the bid, it must also report the reason to other lead traders so the next alternating lead has time to report its bidding capability to the Vietnam Food Association no later than one day after the preceding lead has notified its decision to decline the bid.  

Assigning quotas to alternating lead traders

Lead traders in the alternating mechanism can export 20% of the rice amount in concentrated contracts.

Depending on whether lead traders sign concentrated contracts or not, they will be assigned a different quota to export rice. Specifically:  

- Lead traders which sign concentrated contracts can export 2/3 of the 20% rice amount in concentrated contracts; and

- Lead traders which do not sign concentrated contracts are assigned 1/3 of the 20% rice amount in concentrated contracts.

Transparent environment for rice exporters

Pursuant to Circular 30, traders which do not have certificates of eligibility for rice export will not be assigned rice export quotas. As compared to Circular 44, Circular 33 specifies the time limit for entrusted traders to notify in writing of their decision to return the quotas to other lead traders and the Vietnam Food Association if they cannot implement part or all of the assigned quotas within 3 days from the date of the decision on assigning quotas by the Viet Nam Food Association. The Viet Nam Food Association will then re-assign the returned rice export quotas to other rice exporters or lead traders which have signed contracts.

Tightening state management by a reporting regime

Besides the quarterly, annual and ad hoc reporting regime as required by the Ministry of Industry and Trade, traders must report on the status of signing and implementing rice export contracts on the 20th day of every month and report, on Thursday weekly, on the actual in stock amounts of paddy and rice of each category.

Circular 30 came into effect as from November 15, 2018./.

Thuy
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