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Harvesting pepper – PHOTO: NGUYEN TRI
This is one of many contents in the proposal which is about to be submitted to the Vietnam Pepper Association to the Ministry of Industry and Trade after a meeting on the afternoon of March 27 between the ministry and 13 enterprises with 58 pepper containers stuck in Nepal.
“The Ministry of Industry and Trade needs to consider bilateral negotiations at the ministerial level with the Minister of Trade and Supplies of Nepal, asking them to allow re-export, with detailed instructions for re-export of cargo containers, as simple as possible. Most of the procedures for re-export and non-collection of fees, ”this association recommends.
Meanwhile, at the meeting with enterprises, the representative of the Ministry of Industry and Trade requested the units to update all damage estimates to enterprises, a detailed table of each enterprise, the number of containers, the amount of cargo lines, shipping lines … to have the best support plan.
Also according to this agency, because Vietnam and Nepal trade only one way from Vietnam to export, there can be no response.
“The Ministry will continue to support the work to accelerate the process of bringing goods quickly, reducing damage to businesses,” said the representative of the Ministry of Industry and Trade.
According to the Vietnam Pepper Association, the cost of storing containers and storing 58 containers at the port for nearly 3 months is about more than USD 1 million (accounting for more than 30% of the value of the shipment).
Specifically, fees for container storage, warehousing at non-interest ports and overdue interest rates at banks: USD 3 million x 4 months x 0.41% = USD 42,900.
Quality of degraded, damaged, wasted goods: about 10% of the value of a shipment equivalent to USD 300,000. Customs, train service fee to pull out cargo containers: about 1,200 USD / container, equivalent to 69,600 USD …
However, the damage continues to increase each day as the shipping line now applies a charge for container storage and storage of USD 120 / day for a 20-foot container and USD 160 / day for a 40-foot container. Therefore, with these 58 containers, each day businesses have to pay about 8,000 USD for container storage and yards.
Earlier, 13 businesses had petitioned to the Prime Minister for 58 containers trapped in Nepal related to regulations ban import pepper.
Specifically, on April 6, 2020, the Nepalese Government abruptly banned the import of 5 items, including pepper. The ban takes effect from March 29, 2020 (does not apply to L / C opened before March 29, 2020). Vietnamese businesses claim that they are not at fault because all shipments are exported before the ban.
According to the Vietnam Pepper Association, businesses now have worked with shipping lines to reduce container and storage rates, but shipping lines only agreed to reduce by 30-40%. This reduction is too low compared to the damage that businesses are suffering.
According to Tuoi Tre Newspaper