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VCCI proposes relaxing rice export rules

Tu Hoang
Thursday,  Jul 13,2017,20:46 (GMT+7)
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VCCI proposes relaxing rice export rules

Tu Hoang

HANOI - The Vietnam Chamber of Commerce and Industry (VCCI) has proposed relaxing some regulations contained in a draft decree which will replace Decree 109/2010/ND-CP on rice export activities.

The Ministry of Industry and Trade has passed the draft decree around for comment.

Dau Anh Tuan, head of the Legal Department at VCCI, said unreasonable regulations in Decree No. 109 should be scrapped, especially the stringent requirements for rice export operations. The removal of those barriers would bring great economic and social benefits.

The draft decree has simplified the rice trade and export registration process, Tuan said. The amendments to Decree No. 109 are expected to help boost the rice export sector in the coming time.

Clause 4.1.a of the draft decree requires rice exporters to have warehouses and milling facilities meeting the standards set by the Ministry of Agriculture and Rural Development, and secure food safety certification as required by the law on food safety. 

VCCI suggested the Ministry of Industry and Trade eliminate the requirement for rice exporters to have milling facilities. VCCI also suggested doing away with the regulation in Clause 4 which forces traders to have material farming zones or associate with others in production.

According to Clause 6 of the draft decree, the documents required to apply for a rice export certificate must comprise a completed form on rice warehouses certified by the Ministry of Industry and Trade and a scanned copy of the food safety certificate issued for warehouses. Tuan said this complicated procedure should be simplified.

VCCI also proposed eliminating a regulation in Clause 6.5 which stipulates that a rice export certificate will be valid for five years from the date of issuance.

Clause 12 of the draft decree requires rice exporters to store a volume of rice equivalent to at least 5% of all their rice exports in the previous six months. VCCI said the proportion should be reduced for those enterprises having farms or associating with others to grow rice, and new market entrants.

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