Instructions on export procedures for wood chips . According to the provisions at Point a, Clause 2, Article 1 of Circular No. 30/2014/TT-BNNPTNT, wood chips, beds, cabinets, tables and chairs, handicrafts are products of trees produced from trunks and branches. Trees should be subject to phytosanitary quarantine.
What are wood chips or wood chips?
In the wood processing industry, wood chips are products that are processed with a very large output each year. Acacia wood is put into the GREEN MECH wood chipper to be chopped into chips with a size of less than 3cm, after going through the wood chip screener, the wood chips look very beautiful and have commercial value. Thus, it can be seen that wood chips are the main products produced from acacia hybrid wood with an age of 4 to 5 years.
Application of wood chips
Wood chips are used in a lot of manufacturing such as:
- Industrial plywood production
- Raw materials for biomass energy production such as firewood D90
- Used to produce wood pellets for export
- Biochar production application
- Wood chips also make biological pads to prevent weeds in agriculture.
Export situation of wood chips
For a long time, the output of woodchips has mostly depended on the Chinese market, a few exported to the markets of countries: Indonesia, Malaysia, Japan, and Korea. Due to the impact of the Covid-19 epidemic, the export of woodchips to China decreased sharply. Therefore, finding alternative markets is essential. In addition, the department also creates favorable conditions to support enterprises to invest in production lines, to shift the direction of deep processing of products instead of exporting raw chips as at present.
Currently, the Government is considering the possibility of increasing the woodchip export tax rate at the current 2% to 5%. The roadmap to increase woodchip export tax has been outlined by the Government before, aiming to limit the export of raw wood materials (wood chips, peeled boards), in order to create a large source of raw materials for the furniture processing industry. furniture, has a higher added value than Vietnam’s woodchip industry.
Regulations and policies on export of wood chips and chipboards
Legal bases for export procedures for wood chips and chipboards
– Circular 01/2012/TT-BNNPTNT : Regulations on legal
forest product records
– Document 07/VBHN-BNNPTNT (2016): Consolidation of legal forest product dossiers and forest product inspection
– Circular 24/2017/TT-BNNPTNT: promulgating HS codes for specialized export goods , imported under the management of the Ministry of Agriculture and Rural Development
Documentary circulars on export of wood chips and wood chips
According to Circular 24/2017/TT-BNNPTNT replacing Circular No. 24/2016/TT-BNNPTNT, there will be a list of HS goods that are natural wood and sawn timber from natural forests banned from export.
Pursuant to Articles 7 and 8 of Circular 04/2015/TT-BNNPTNT dated February 12, 2015 of the Ministry of Agriculture and Rural Development regulating the export of wood and wood products:
Article 7. Prohibition of export
The export of timber and wood-processed products is prohibited in the following cases: Round timber, sawn timber of all kinds from domestic natural forests. Exporting for commercial purposes products made from wood in Group IA regulated by the Government (except for timber which is confiscated in accordance with current regulations of the State and the cases specified in Article 8 of this Circular) ) and Appendix I of CITES exploited from the wild.
Article 8. Export under conditions or under license
Wood and wood-processed products may only be exported when there is a legal forest product dossier according to current regulations of law. When exporting, the trader declares the goods to the customs office about the quantity and type and is responsible for the legal origin of the wood.
When exporting firewood and coal, traders declare their goods to the customs office about the quantity and type and take responsibility for the legal origin of the goods, without having to ask for permission.
Wood and wood products included in the CITES Appendices must have a CITES Permit issued by the CITES Management Authority of Vietnam.
In addition to this list, plantation timber and processed products such as plywood (plywood), wood pellets (wood pellets), wood chips are allowed to be exported. Because now it is easy to plant and buy acacia and eucalyptus wood from forest owners.
Regulations on export tax rates and HS Code of wood chips
The HS code for wood chips is 4401.2200. And this item has an export tax rate of 2%.
However, as mentioned above. Currently, the government is planning to raise the export turnover to 5% to limit the loss of raw materials and promote the development of the national furniture industry in Vietnam.
But, the woodchip industry still has another opportunity when the CPTPP Agreement comes into effect from January 14, 2019, which is also the time when woodchip exporters enjoy preferential tariffs (export tax rates are applied). for CPTPP is 0%).
Vietnam and 10 countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru and Singapore officially signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Accordingly, along with many other products, when exported to countries participating in the CPTPP, tariffs will be eliminated (the tax rate is 0% instead of 2% as before – Zship).
Wood Chipper GREEN MECH
Do enterprises have to prepare documents for forest products when exporting?
According to Official Dispatch No: 2601/GSQL-GQ1 dated October 25, 2017 about the export of forest products. Quoted verbatim as follows: Recently
, the General Department of Customs (Department of Supervision and Management of Customs) received reports of problems from some local customs units regarding the submission/presentation of forest dossiers. products when carrying out export procedures for product shipments being fine-art furniture, high-class furniture, and post-processed wood products.
Based on the opinion of the Forest Protection Department – Ministry of Agriculture and Rural Development in Official Dispatch No. 657/KL-DT dated October 17, 2017 regarding the export of timber and wood-processed products, the Department The Customs management supervision has the following comments:
The Customs Departments of provinces and cities are requested to base themselves on current regulations and opinions of the Forest Protection Department in Official Dispatch No. 657/KL-DT dated October 17, 2017 to carry out export customs procedures for shipments of wood and products processed from wood in accordance with the law.
The Customs Management Supervision Department – General Department of Customs has comments for the units to know and implement./.
(Enclosed with Official Dispatch No. 657/KL-DT dated October 17, 2017 of the Forest Protection Department) – Signed by: Deputy Director Ngo Minh Hai.
Source: Official letter on export forest product dossiers – legal library
In particular, this official letter is used to reply and clarify the main content of the document No. 2355/GSQL-GQ1 dated October 4, 2017 of the GSQL Department on Customs as follows:
Response to Document No. 2355/GSQL-GQ1 dated October 4, 2017 of the Customs Supervision and Administration Department on the export of timber and wood-processed products; The Forest Protection Department has the following comments:
On January 4, 2012, the Ministry of Agriculture and Rural Development issued Circular No. 01/2012/TT-BNNPTNT stipulating legal documents for forest products and checking the origin of forest products. Accordingly, the certification of legal forest products shall comply with the provisions of Article 7 of Circular No. 01/2012/TT; The dossier of forest products after processing shall comply with the provisions of Article 17 of the Circular No. 01/2012/TT-BNNPTNT dated January 4, 2012 of the Ministry of Agriculture and Rural Development.
On February 12, 2015, the Ministry of Agriculture and Rural Development issued Circular No. 04/2015/TT-BNNPTNT guiding the implementation of some contents of Decree No. 187/2013/ND-CP dated November 20 /2013 of the Government detailing the Commercial Law on international goods trading and agency activities, buying, selling, processing and transiting goods with foreign countries in the fields of agriculture and forestry. and seafood.
In Clause 1, Article 8 of Circular No. 04/2015/TT- BNNPTNT stipulates: “Wood and wood products can only be exported when there is a legal forest product dossier according to current regulations of law. When exporting, traders declare goods to the customs office about the quantity and type and take responsibility for the legal timber origin. Circular No. 04/2015/TT-BNNPTNT does not stipulate that enterprises must submit/present forest product dossiers when exporting.
The Forest Protection Department responds to the Customs Management Supervision Department.
Guide to export procedures for wood chips and chipboards
Prepare documents for customs clearance for export of wood chips and chipboards
Customs dossiers of export procedures for export of wood chips, chipboard, request enterprises to read Clause 5, Article 1 of Circular 39/2018/TT-BTC amending Article 16 TT38/2015
In fact, when declaring attached to V5 electronic documents and if the customs authority requires the presentation of documents for inspection, enterprises can attach the following documents:
– Sales Contract (if any)
– List of forest products certified by the local Forest Protection Agency, county level, Sub-department..
– List of forest products (self-made enterprises) according to form No. 01 in Circular 01/ 2012/TT-BNNPTNT
– Commercial Invoice
– Packing List
– Export entrustment contract (if any)
– Contract signed with the forest owner / mining workshop owner on the purchase and sale (in case you are an export trading business). password).
– Bill of Lading
Exported wood chips are not required to quarantine
Specifically, according to the Plant Protection Department, the Law on Plant Protection and Quarantine passed by the National Assembly on November 25, 2013, effective from January 1, 2015, clearly states: Objects on the List of objects are subject to When exporting plant quarantine, they must be quarantined and granted a phytosanitary certificate.
According to the provisions at Point a, Clause 2, Article 1 of Circular No. 30/2014/TT-BNNPTNT, wood chips, beds, cabinets, tables and chairs, handicrafts are products of trees produced from trunks and branches. Trees should be subject to phytosanitary quarantine.
However, through actual research, wood chips and beds, furniture, handicrafts that have gone through production stages such as mincing or impregnation, drying, polishing, painting… have basically been eliminated. The risk of carrying harmful organisms should not be required for plant quarantine when exporting.
Note: The fumigation or quarantine is entirely at the request of the importing party. When doing customs procedures for export of sawdust coal, the customs office will not require businesses to do fumigation or quarantine.
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