Hundreds of tons of imported raw cashew nuts stuck in quarantine

Imported cashew nuts at Cai Mep international port (CMIT), Ba Ria-Vung Tau. Photo: T.H

According to the Ho Chi Minh City Customs Department, the above shipment originated from abroad and was brought into a bonded warehouse according to the import declaration dated February 26, 2024, and was registered for plant quarantine on February 25, 2024 and gained a certificate of plant quarantine results on February 26, 2024.

The company registered for plant quarantine at the Plant Quarantine Branch Region 2 for the shipment according to declaration 106285695500/E31, and received feedback on the system "Goods imported from bonded warehouses do not have to go through plant quarantine procedures."

However, according to Clause 10, Article 3 of Customs Law No. 54/2014/QH13 dated June 23, 2014: "Bonded warehouse means a warehouse or yard for storing goods that have been cleared and waiting for their export; goods brought from abroad and stored therein for their re-export out of or their import into Vietnam”.

Customs procedures for goods brought into and out of bonded warehouses in Clause 2, Article 88 of Decree No. 08/2015/ND-CP dated April 20, 2018 of the Government stipulate:

If a shipment is moved from a bonded warehouse to overseas countries or inland areas, or to free trade zones, the freight owner or authorized person of the freight owner is required to submit the customs declaration for commodities moved out of this bonded warehouse to the in-charge Customs Branch. If commodities are imported into Vietnam, customs procedures are the same as those for commodities imported from overseas countries in the equivalent form of importation; the time of actual commodity importation is the time when customs authorities confirm that such commodities have been moved out of the bonded warehouse. Commodities stored at the bonded warehouse which are considered as those required to be re-exported under the decision made by competent regulatory agencies shall not be allowed to re-enter into the Vietnam’s market.

Along with that, according to the regulations in Appendix II, Circular No. 01/2024/TT-BNNPTNT dated February 2, 2024 of the Ministry of Agriculture and Rural Development, " Raw Cashew Under HS Code 08013100; peeled Cashew nuts under HS code 08013200 " are subject to specialized inspection before customs clearance and are under the state management authority of the Ministry of Agriculture and Rural Development (Plant Quarantine).

From the above regulations, the Customs authority believes that when carrying out import procedures for cashew nuts in the form of export production to Vietnam from bonded warehouses, they must go through import customs procedures and be subject to plant quarantine before customs clearance by the Ministry of Agriculture and Rural Development.

According to the Ho Chi Minh City Customs Department, for previous shipments of cashew nuts imported from bonded warehouses, businesses all registered for plant quarantine and gained plant quarantine certificates for import, transit and domestic transportation from the Plant Quarantine Branch Region II. The Customs authority cleared the shipment after receiving a certificate of quarantine results stating "no objects of plant quarantine or objects subject to control in Vietnam have been detected".

Facing with the above problems, on May 17, 2024, the Plant Quarantine Branch Region II sent official dispatch No. 130/KD2-PN to the Processing Management Customs Branch for coordination, stating the following opinions: “Goods subject to plant quarantine can only be cleared after completing all import plant quarantine procedures. The order and procedures for plant quarantine are carried out in accordance with the provisions of Article 33 of this Law.”

The above shipment of the company has completed import plant quarantine procedures at the first border gate (Hiep Phuoc Port), the plant quarantine certificate issued by the exporting country was submitted according to the provisions of Circular 33/20214/TT-BNNPTNT. Plant Quarantine Branch Region II issued the Plant Quarantine Certificate for import, transit and domestic transportation No. 9917/240201/KDTV on March 4, 2024.

The Plant Quarantine Branch Region II also believes that, if the shipment has completed plant quarantine procedures at the border gate, then brought into a bonded warehouse, the implementation of plant quarantine procedures for goods imported from the warehouse is this case does not meet the provisions of Point a, Clause 1, Article 26 of the Law on Plant Protection and Quarantine, regulations for goods subject to imported plant quarantine.

From the above content, the Ho Chi Minh City Customs Department encountered problems, for goods subject to plant quarantine, imported into the inland from a bonded warehouse originating from abroad into a bonded warehouse according to the declaration type C11, quarantined and issued a quarantine certificate of eligibility for import quarantine at the time of bringing from abroad into a bonded warehouse, whether or not to register for plant quarantine procedures when imported to the domestic market according to the type of import for export production (E31).

Ho Chi Minh City Customs Department has reported to the General Department of Customs the above problems.