CIRCULAR

ON ELABORATION OF A NUMBER OF ARTICLES OF THE GOVERNMENT'S DECREE NO. 107/2018/ND-CP DATED AUGUST 15, 2018 ON RICE EXPORT

Pursuant to the Government’s Decree No. 98/2017/ND-CP dated August 18, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government's Decree No.107/2018/ND-CP dated August 15, 2018 on rice export (hereinafter referred to as “Decree No.107/2018/ND-CP”);

At the request of the Director of the Import-Export Department;

The Minister of Industry and Trade promulgates a Circular elaborating a number of articles of the Government's Decree No. 107/2018/ND-CP dated August 15, 2018 on rice export.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular provides regulations on:

1. The export of rice under centralized contracts and the conclusion and performance of centralized contracts.

2. Reporting by rice exporters.

Article 2. Regulated entities

This Circular applies to rice exporters and relevant authorities, organizations and individuals.

Chapter II

EXPORT OF RICE UNDER CENTRALIZED CONTRACTS, CONCLUSION AND PERFORMANCE OF CENTRALIZED CONTRACTS

Article 3. Designating leading exporters in rice transactions

1. Qualified rice exporters shall be selected and designated to play the leading role in the rice transactions conducted under centralized contracts in conformity with criteria set forth in Clause 2 Article 19 of the Decree No. 107/2018/ND-CP.

2. Where there are two exporters or more designated to play the leading role in rice transactions for a market under a centralized contract, the rotation mechanism prescribed in Article 4 hereof shall apply.

Article 4. Rotation mechanism for leading role

1. The rotation mechanism for leading role applies in case there are two rice exporters or more designated to play the leading role for an export market under a centralized contract but only one exporter is allowed to bid to supply rice and conclude the centralized contract after winning the bidding as requested by a regulatory authority or authorized importer of the importing country.

2. Procedures of the rotation mechanism for leading role:

a) Within 01 day from the receipt of the notification of rice import from the importing country, the leading exporter in his/her turn shall submit reports to the Ministry of Industry and Trade and the Vietnam Food Administration on his/her capacity to win the bidding.

If the leading exporter refuses to participate in the bidding in his/her turn, he/she must provide written reasons for such refusal to the Ministry of Industry and Trade, and inform the Vietnam Food Administration and other leading exporter(s) of such refusal.

b) Within 01 day from the receipt of the written notification of refusal to participate in the bidding from the leading exporter in turn, the other leading exporter in his/her turn shall reach an agreement with the Vietnam Food Association on his/her participation in the bidding.

In this case, the exporter who conducts transactions or participates in the bidding instead of the leading exporter in his/her turn as regulated shall not lose his/her turn and is allowed to participate in the following bidding according to his/her official turn.

c) If all of designated leading exporters refuse to participate in the bidding, the Vietnam Food Association shall submit a report which specifies reasons for refusal to participate in the bidding by leading exporters and proposes other exporters qualified to participate in the bidding to the Ministry of Industry and Trade.

d) The exporter participating in the bidding may request the Ministry of Industry and Trade to assist the completion of relevant procedures, if necessary.

3. Allocation of rice export quotas to leading exporters according to rotation mechanism:

Leading exporters following the rotation mechanism are allowed to directly export 20% of the rice quantity specified in the signed centralized contract, in which, the leading exporter that is a party of the centralized contract is allowed to supply 2/3 of that 20% of the rice quantity specified in the centralized contract, and the remains are supplied by other leading exporters.

Article 5. Responsibilities of leading exporters under rotation mechanism

1. Leading exporters that enter into centralized contracts under the rotation mechanism shall:

a) Discharge responsibilities mentioned in Clause 4 Article 19 of the Decree No. 107/2018/ND-CP .

b) Supply 2/3 of the rice quantity which the in-charge exporters as designated fail to supply.

2. Leading exporters that do not enter into centralized contracts under the rotation mechanism shall:

a) Cooperate with leading exporters that directly enter into centralized contracts and the Vietnam Food Administration in formulating rice export or bidding plans.

b) Cooperate with leading exporters that directly enter into centralized contracts in monitoring market developments and issues concerning the bidding; discuss with the Vietnam Food Administration about rice export or bidding plans.

c) Prepare rice products for exporting under centralized contracts; perform the signed centralized contracts together with leading exporters that directly enter into those centralized contracts.

d) Supply 1/3 of the rice quantity which the in-charge exporters as designated fail to supply.

Article 6. Entities to be allocated entrusted export quotas

1. The quantity of rice to be exported under the signed centralized contracts shall be allocated to rice exporters for carrying out the entrusted export in conformity with regulations and criteria set forth in Clause 6 and Clause 7 Article 19 of the Decree No. 107/2018/ND-CP .

2. The Vietnam Food Administration shall not allocate entrusted export quotas to rice exporters who fail to obtain the certificate of eligibility to export rice from competent authorities as regulated in the Decree No. 107/2018/ND-CP .

Article 7. Procedures for allocation of entrusted export quotas

1. Upon the receipt of the report from the leading exporter on negotiation, bidding or conclusion of a centralized contract, the Vietnam Food Administration shall request rice exporters in writing to register their entrusted export quotas.

2. Within 07 business days from the receipt of written request from the Vietnam Food Administration, rice exporters shall submit an application for registration of entrusted export quotas to the Vietnam Food Administration either by hand or by email. The application documentation includes:

a) The application form for registration of entrusted export quota, which specifies the quantity and type of rice to be exported under entrustment.

b) The report on rice export for the last 06 months and on unhusked and husked rice inventories (sorted by type) of the exporter, which specifies the quantity of rice bought for reserve purpose at the direction of regulatory authorities (if any).

c) The report on the establishment of rice material zones and purchase of unhusked and husked rice from these zones (if any).

An application which is submitted after the deadline prescribed in Clause 2 of this Article, according to the date displayed on the stamp of the receiving post office or the date of receiving email, shall be rejected.

3. Based on received application documentation, the balancing of rice sources and domestic farming status, the Vietnam Food Administration shall formulate a plan for allocation of export quotas in conformity with regulations in Article 6 hereof, and inform rice exporters of their allocated rice quotas.

The Vietnam Food Administration shall monitor and expedite the performance of the signed centralized contracts, including the conclusion and performance of entrusted export contracts, and submit reports thereof to the Ministry of Industry and Trade.

Article 8. Refusal to accept allocated export quota

1. If a rice exporter is unable to partially or entirely supply the rice quantity as allocated, he/she must hand over the rice quantity which he/she cannot supply to leading exporters and the Vietnam Food Administration within 03 days from the date on which he/she receives the decision on allocation of entrusted export quota from the Vietnam Food Administration. Over the said time limit, it’s determined that he/she fails to fulfill the task.

2. Upon the aggregation of the rice quantity which rice exporters fail to supply as reported, the Vietnam Food Administration shall allocate unrealized entrusted export quotas to other rice exporters or leading exporters concluding centralized contracts. If the rice quotas are allocated to leading exporters under the rotation mechanism, 2/3 of the rice quantity shall be allocated to the leading exporter that directly enters into the centralized contract and the remains shall be allocated to other leading exporters.

Chapter III

REPORTING BY RICE EXPORTERS

Article 9. Reports on rice export contracts and unhusked and husked rice inventories

1. On the 20^th of every month, each exporter shall submit a report to the Ministry of Industry and Trade on the conclusion and performance of rice export contracts made according to the report form stated in the Appendix I enclosed herewith.

2. On Thursday weekly, each exporter shall submit a report to the Ministry of Industry and Trade on his/her actual husked and unhusked rice inventories sorted by type for data consolidation. Report form is provided in the Appendix II enclosed herewith.

3. Report files shall be electronically sent to the Ministry of Industry and Trade (via the Import-Export Department) via email: phongnlts@moit.gov.vn. In case of failure to send electronic files because of technical errors, reports may be sent to the Ministry of Industry and Trade (via the Import-Export Department) via fax number: 024.22205520. 

Article 10. Quarterly, annual and ad hoc reports

1. Rice exporters shall prepare quarterly and annual reports according to Form No. 04 provided in the Appendix enclosed with the Decree No. 107/2018/ND-CP

Quarterly reports shall be submitted to the Ministry of Industry and Trade by the 20^th of the first month of the following quarter. Annual reports shall be submitted to the Ministry of Industry and Trade by January 20 of the following year.

2. Rice exporters are required to submit ad hoc reports under regulations in Clause 4 Article 24 of the Decree No. 107/2018/ND-CP at the request of the Ministry of Industry and Trade on the export market, the rice production, husked and unhusked rice prices, their business operations and other requested contents for serving the purposes of rice export management.

Chapter IV

IMPLEMENTATION

Article 11. Effect

1. This Circular shall come into force as from November 15, 2018.

2. The Circular No. 44/2010/TT-BCT dated December 31, 2010 is abrogated by this Circular.

3. Rice export contracts which are concluded by the exporters who are designated to play the leading role in rice transactions before the date of entry into force of this Circular shall be performed until their expiry dates.

4. Rice export contracts and concentrated contracts of which the rice quantity has been allocated to rice exporters before the date of entry into force of this Circular shall remain valid.

5. Difficulties that arise during the implementation of this Circular must be promptly reported to the Ministry of Industry and Trade for consideration./,