Difficulty rescue lot of pepper more than 3 million USD

On August 20, talking to a reporter of Nguoi Lao Dong Newspaper, representative of Vietnam Pepper Association (VPA) said that up to now, Vietnamese pepper containers exported to Nepal have been stuck for more than 4 months. Previously, VPA reported that there were 58 containers of 13 enterprises (DN) in the case, but up to now, there are 62 containers of 15 enterprises, worth more than 3 million USD of shipment.

There are many problems

VPA representative said 46 containers were stuck in Nepal and 16 containers were stuck in India (transit country). With the help of the Ambassador of Vietnam to India and the Vietnam Trade Office in India (concurrently Nepal), the Nepal Customs side has issued a certificate of eligibility for cargo release (NOC) for 46 containers stuck here. . The problem arises that 46 containers that want to be re-exported to Vietnam must be transshipped through India. Customs clearance agents hired by Vietnamese enterprises have submitted procedures to the border customs of Raxaul (India), but up to now more than 3 weeks, Raxaul Customs has not yet approved to pull goods out.

As for the 16 containers of pepper trapped in India, Vietnamese businesses and customs agents have filed for re-export for a long time but have not yet been allowed to re-export. Most worrying is that some of Vietnam’s pepper containers are checked by the Indian Trade Fraud Prevention Agency (DRI), making the process of bringing goods back to Vietnam prolonged.

Harvesting pepper in Gia Lai province Photo: HOANG THANH

Facing the above situation, representatives of 15 pepper companies stuck when exporting to Nepal wanted the Vietnamese Embassy in India and the Vietnam Trade Office in India to work with the authorities to be flexible, creating conditions for Vietnamese enterprises to bring goods back home soon. In particular, these consignments were stuck because Nepal issued a sudden import ban, without going through any import declaration steps. Therefore, the container is still intact with the full lead seal from the shipping company, so it is not necessary to go through DRI to avoid prolonging time and causing additional losses for businesses.

According to the VPA, in the above case, Vietnamese enterprises were not at fault, but the risk occurred because Nepal issued a sudden ban on 5 items, including pepper. “On March 25, Nepal issued a document banning the import of pepper, effective from April 6, causing Vietnamese enterprises to bring their goods to the ship before the time on the train. According to research, cassava, Tea from some countries exporting to Nepal is also stuck like Vietnam due to the sudden ban “- VPA representative informed.

Every day lost 90 million

According to Ms. Phung Thu Huyen, Director of Nam International Co., Ltd (Ho Chi Minh City), businesses have suffered very heavy losses and are most worried about never knowing when new products will arrive in Vietnam.

“Goods are trapped, capital is buried there, businesses do not have cash flow but still have to pay interest on bank loans. Shipping companies have temporarily charged the amount of 14,000 USD / container (over 300 million VND) for storage. , the cost of hiring a customs agent is 2,000 USD / container. It is expected that the authorities help India to create conditions for businesses to deliver goods early, 1 day later, costs will arise again ” – Ms. Huyen expressed.

Ms. Tran Phuoc Hau, Deputy General Director of Tran Chau Import Export Trading Services Joint Stock Company (Ho Chi Minh City), said that the company had 22 containers stuck with a daily storage fee of 170 USD / container. Every day when you open your eyes, the company loses about 90 million dong. “Currently the shipping company has agreed to reduce this fee by 50%, but the time of the jam does not know when, so the damage cannot be fully calculated. The best case is that the goods are brought back to Vietnam soon, the enterprise will also lose 50% value of the shipment, but it is better than losing it anyway “- shared Ms. Hau.

According to Ms. Hau, due to the Covid-19 epidemic, the world demand for pepper has decreased dramatically with the export volume decreasing by 30%.

The representative of the Asia-Africa Market Department (Ministry of Industry and Trade) said on August 20 that after many efforts to support enterprises of the Ministry of Industry and Trade of Vietnam, the Vietnamese Embassy in India and the Vietnam Trade Office in India. The Nepal customs have issued a certificate of eligibility for release of goods (NOC) for Vietnamese pepper containers stuck in Nepal to be re-exported. However, to be able to return to Vietnam, the consignment must transit India and the pepper containers are currently stuck with customs procedures in India.

Representatives of the Asia – Africa Market Department are still coordinating with Vietnamese authorities, including the Vietnamese Embassy in India, to work with Indian authorities to support businesses in this matter. The Ministry of Industry and Trade also recommends that businesses in business activities need to thoroughly understand information about the host country, import and export procedures, as well as payment methods to limit risks. At the same time, the Ministry of Industry and Trade will support businesses when they need this information.

Also related to pepper products, recently, the Ministry of Industry and Trade has also warned about India’s ability to tighten standards for imported pepper. In order to minimize risks in doing business with the Indian market, the Ministry of Industry and Trade recommends that businesses understand information, control the quality of pepper for export and take measures to respond in case India offers them. the sudden policy measure was detrimental to Vietnam’s pepper exports to India.