'Ruffled' selling rice to the state reserve, scrambling to export abroad

'Ruffled' selling rice to the state reserve, scrambling to export abroad

On April 14, Mr. Au Anh Tuan, Director of the Department of Customs Supervision and Control, said that through checking enterprises registering for export declarations from 12 o'clock on April 12, there were 39 enterprises registering export declarations . rice exports , the quota amount reached 400,000 tons according to the Decision of the Ministry of Industry and Trade.

Also from the review of the number of enterprises registering for export declarations, the General Department of Customs noticed quite unusual signs.

 

400 thousand tons of rice exported in April has expired.

 

Specifically, in the list of registered export declarations, enterprises that have won the national reserve bid for rice under bidding of the General Department of State Reserve have appeared. However, according to the report of the General Department of Reserve, these enterprises did not come to sign contracts or refuse to sign contracts to supply national reserve rice. When the customs system applied for registration of export declarations, these enterprises registered export declarations up to thousands of tons of rice again.

Accordingly, the Customs office has listed 4 businesses on the list of successful bidders to supply national reserve rice in 2020. For example, the Northern Food Corporation won 4,500 tons, up to the present time. The company has not signed a contract yet, but this enterprise has registered to export 8 declarations with the amount of 7,200 tons. Or Phat Tai Co., Ltd. won a tender of 17,940 tons, this enterprise also registered 5 export declarations, total volume of more than 13,000 tons.

Two other enterprises, Vinh Tuong Joint Stock Company and Thuan Ninh Import and Export Joint Stock Company, are also on the winning list but have not signed a contract with the National Reserve Department of the region, but these two businesses have also registered their declarations. exported over 10,000 tons.

As such, these businesses have not implemented the regulations to provide rice for national reserves. Customs authorities believe that this phenomenon raises the risk of not ensuring national food security and ensuring national reserves.

However, in reality, there is currently no sanctions forcing businesses to sign contracts for the amount of winning rice when bidding for national reserve rice to be exported.

'Ruffled' selling rice to the state reserve, scrambling to export abroad
Notice of cancellation of winning results of the State Reserve Department in Ho Chi Minh City

Enterprises quickly accounted for a quarter of the rice exported

The granting of a quota of 400 thousand tons of rice according to the plan proposed by the Ministry of Industry and Trade has led to the situation that those enterprises which register the first declaration will occupy all the quotas of the enterprise registering the following declaration.

 

Specifically, in the Decision on rice export quota on 10/4, the Ministry of Industry and Trade stated that traders who register for a first customs declaration will be deducted from the previous export quota.

This has led to a case where one enterprise is "faster" than registering to export rice by dozens of other enterprises combined.

Actual statistics of the Customs show that, in a very short time, enterprises have registered more than 100 declarations with the quantity of nearly 100,000 tons. It was Intimex Group Joint Stock Company registering 102 declarations with a volume of 96,234 tons, accounting for ¼ of the amount of rice exported. As such, the remaining businesses will no longer have quotas to register declarations.

“This is inadequate, not effective management, causing chaos in import and export activities in just a few days, causing reactions of exporters, leading to the situation that enterprises are affected by the contract has been signed before but the rice export declaration cannot be registered, ”commented the director of the Customs Management Supervision Department.

Given the current situation, according to the General Department of Customs, the Ministry of Industry and Trade needs to review the rice export management regulations. Instead of allocating the total monthly quota, the quota can be auctioned as the road product Ministry of Industry and Trade is currently implementing.

However, it is only an immediate solution in the context of serious epidemics. Scientists and rice businesses said that in the long term it is necessary to return the rice exports to normal when the disease is over.

According to agricultural expert, Professor Vo Tong Xuan, there is a great demand for rice in the international market, especially from the Philippines. “If Vietnam decides quickly to continue exporting rice, Vietnam can take advantage of this opportunity. If used too long, we will lose the opportunity because the Philippines is quite anxious now. They only have a few months to run out of rice, ”he said.

As for Dr. Nguyen Duc Thanh, Vietnam Agriculture Policy Alliance, Vietnam proposed to impose export tax on rice during this period so that enterprises can take initiative in exporting and the state has more revenue.

The representative of the General Department of Customs recommended: The auction on the principle that enterprises participating in the auction meet export conditions prescribed in Decree 107, in addition, enterprises must perform contracts to supply rice for reserve. The country and the business must sign a contract with a supermarket regarding a commitment to ensure a circulation of at least 5% of total exports of the enterprise in the previous 6 months, to ensure supply to the market when Government and ministries, branches require. These objects are allowed to participate in the quota auction and thus the enterprise will be more active, when the quota is available, the enterprise will sign a contract and register the export declaration.

Source: https://vietnamnet.vn/vn/kinh-doanh/thi-truong/xu-ba-n-ga-o-cho-du-tru-nha-nuo-c-tranh-nhau-xua-t-di-nuo-c-ngoa-i-633530.html

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