Allied Development Company exporter in Vietnam plans to ship the Vietnam Jasmine Rice to China Resources Ng Fung International Distribution Company Limited importer from Hong Kong.. Name
INTRODUCTION
Overview about Vietnamese Jasmine rice
1.1 Definition about rice and rice production:
Rice, (Oryza sativa), edible starchy cereal grain and the grass plant (family Poaceae) by which it is produced Roughly one-half of the world population, including virtually all of East and Southeast Asia, is wholly dependent upon rice as a staple food; 95 percent of the world’s rice crop is eaten by humans
Rice production has long played a vital role in national food security and political stability of Vietnam Rice has also a noticeable effect on social security as it is absolutely indispensable to the daily life of the 91 million Vietnamese and an essential source of income for more than 60 million people living in agricultural and rural areas Besides, rice is considered as one of the main crops in Vietnam, making up more than 90% of total cereal production Rice production in 2015 accounted for 45.22 million tons, which increased by 30%, compared with the figure for 2000 The continuous increase in the rice production over the past two decades has helped Vietnam not only ensure food security in the country but also become one of the largest rice exporters in the world However, rice export market share of Vietnam in recent years has experienced a decrease, as Vietnam’s rice exports have faced severe competition from Thailand, India and other emerging markets such as Cambodia, decreasing market share of rice Vietnam’s export in the key markets A reduction in rice export may have a significant effect on Vietnam's economy, as rice is one of the main export products of Vietnam, accounting for 1.74% of Vietnam’s export value in 2015 and contributing a significant part to the national income
1.2 Exported rice to Hong Kong:
In 2023, Hong Kong has continued to be a significant market for Vietnamese rice exports By the end of March 2023, Vietnam had exported more than 16,000 tonnes of rice to Hong Kong, maintaining levels similar to previous years This stability indicates a consistent demand and market presence in Hong Kong for Vietnamese rice
The rice imports from Vietnam constitute about 24% of Hong Kong's total rice imports This is a testament to the strong trade relationship between Vietnam and Hong Kong and highlights the competitive position of Vietnamese rice in this market
Additionally, there have been efforts to promote high-quality Vietnamese rice in Hong Kong, such as business conferences aimed at tightening relations between rice businesses of the two regions and showcasing the diverse varieties and quality of Vietnamese rice
Overall, the rice trade between Vietnam and Hong Kong has remained robust, with Vietnamese rice holding a significant share in the Hong Kong market This ongoing trade relationship underscores the strategic importance of Hong Kong as a market for Vietnam's agricultural exports.
Overview of sales contract
A sales contract, also known as a sales contract or sales contract, is a legally binding document that sets out the terms for a sale between two parties: the seller who offers goods or services and the buyer who wants to purchase them This contract serves as a formal transaction record, protects both parties' interests, and ensures that the sale runs smoothly
Figure 1 Hong Kong's rice imports distribution by country (2018-2022)
Sales contracts should be used in significant business transactions In the retail environment, however, there is less need for sales contracts Suppose a transaction takes place on the spot, such as in a retail store In that case, a sales contract is usually not necessary unless the item being purchased is of significant value, or is to be delivered at a later date
International trade agreements and distribution agreements play a crucial role in international transactions involving various nations The parties to these contracts—typically the buyer/importer and the seller/exporter—describe their relationship in great detail After identifying the involved parties, they provide comprehensive details on the products or services that are being exchanged This covers information on the transaction's quality, quantity, and other essential elements
These contracts also govern financial matters like the agreed-upon price in a particular currency and the terms of payment They also contain widely accepted Incoterms (2020), which outline the obligations, dangers, and expenses related to the delivery and transit of the items
Additionally, these contracts govern crucial components like risk transfer and ownership In other words, they decide when the buyer becomes the owner and when the seller becomes liable These contracts contain provisions on audit procedures, conformity with legislation, and unforeseeable occurrences like force majeure to guarantee adherence to rules and regulations relevant to international commerce
In essence, Incoterms 2020 acts as a common language within international trade agreements, fostering clarity and minimizing potential disputes between buyer and seller By clearly
Figure 2 General elements of a sales contract defining which party (buyer or seller) is responsible for critical tasks such as transportation, insurance, documentation, and customs clearance at various stages of the international shipment, Incoterms® 2020 helps to avoid ambiguity and potential disagreements Additionally, Incoterms® 2020 specifies the point at which the risk of loss or damage to the goods transfers from seller to buyer This critical information is instrumental for both parties, allowing them to determine their insurance needs and potential liabilities Furthermore, Incoterms® 2020 indirectly dictates the allocation of costs associated with the shipment This transparency allows both buyer and seller to anticipate their financial obligations upfront (costs related to transportation, insurance, etc.) and incorporate them into their respective pricing strategies
Lastly, they specify the steps to be taken in the event of a conflict and develop a framework for settling disagreements Additionally, they could have confidentiality provisions to safeguard private information disclosed throughout the transaction
2.3 Incoterms® 2020 Terms for Sea Transport
Table 1 Incoterms® 2020 Terms for Sea Transport
The seller delivers goods alongside the ship at the named port of shipment
- Deliver goods alongside the ship at the named port of shipment
- Clear goods for import or transit
- Pay import duty or carry out import customs formalities
Suitable for buyers; Buyer arranges shipping
Seller delivers goods on board vessel at named port of shipment
- Deliver goods on board the vessel at the named port of shipment
- Clear goods for import or transit
- Pay import duty or carry out import customs formalities
Suitable for buyers; Buyer arranges shipping
The seller delivers goods by boarding the vessel or by procuring the goods delivered
- Arrange and bear the costs of transporting goods to the named port of destination
- Clear goods for import or transit
- Pay import duty or carry out import customs formalities
The seller delivers goods by boarding the vessel or by procuring the goods delivered and takes out insurance covering the buyer's risk
- Arrange and bear the costs of transporting goods to the named port of destination
- Take out insurance covering buyer's risk
- Clear goods for import or transit
- Pay import duty or carry out import customs formalities
Seller arranges shipping and insurance
The first advantage of adopting CIF is that the seller controls the shipment, insurance, and delivery This reduces the risks involved with shipping and insurance Sellers have greater control over logistics, resulting in easier, safer transactions Furthermore, by taking on the insurance duty, the seller may choose a reliable insurance provider and negotiate reasonable insurance conditions This enables merchants to better monitor and control transportation risks, ensuring rice is safe during transit Furthermore, by selling CIF, we may enhance earnings from shipping and insurance expenses while maintaining the same amount of risk as when selling
Under CIF (Cost, Insurance, and Freight) Incoterms, the seller retains full responsibility for the cargo and incurs all costs until it arrives at the designated destination port This arrangement provides the seller with greater control over carrier and insurance selection, but also incurs higher responsibilities compared to CFR (Cost and Freight) Incoterms CIF Incoterms are commonly utilized for shipments of Vietnamese Jasmine rice products from sellers to buyers in Hong Kong, offering a favorable balance of responsibility and flexibility.
EXPORT PROCESS
Overview about export company
Allied Development Company, headquartered at 101 Phan Dinh Phung Street in the bustling Ninh Kieu district of Can Tho city, Vietnam, is a multifaceted enterprise deeply entrenched in the realm of international trade Renowned for its prowess in export operations, the company has carved a niche for itself in the global market, catering to discerning clients in Hong Kong and various other regions
The export process at Allied Development Company is characterized by a meticulous and systematic approach, aimed at ensuring the seamless delivery of high-quality products to our valued customers From the initial stages of sourcing raw materials to the final stages of shipment, every aspect of the process is carefully orchestrated to meet the highest standards of efficiency and reliability
At the heart of our export operations lies a diverse range of products meticulously curated to cater to the demands of international markets From agricultural commodities such as rice, coffee, and spices to manufactured goods including textiles, garments, and electronics, Allied Development Company boasts an extensive portfolio designed to satisfy the diverse needs of our clientele
Central to our success in exporting to Hong Kong and beyond is our unwavering commitment to quality assurance and customer satisfaction Rigorous quality control measures are implemented at every stage of the export process, ensuring that only products of the highest caliber reach our discerning customers
Moreover, Allied Development Company prides itself on its extensive network of logistics partners and shipping agents, facilitating the swift and efficient transportation of goods to destinations around the globe Whether by air, sea, or land, we spare no effort in ensuring timely delivery and seamless logistics management
In essence, Allied Development Company stands as a beacon of excellence in the realm of international trade, leveraging its strategic location, industry expertise, and unwavering commitment to quality to forge enduring partnerships and deliver unparalleled value to customers in Hong Kong and beyond.
Export process
2.1 Finding the shipment and signing the contract
Allied Development Company (exporter in Vietnam) plans to ship the Vietnam Jasmine Rice to China Resources Ng Fung International Distribution Company Limited (importer from Hong Kong)
According to the diagram of the export process, after receiving the order from the customer including the type of product, volume, and weight Allied will provide information on the suitable container and shipping time to the customer and we also check the price and available shipping time If the customer agrees to all the terms, we will book the shipping line and send it to the customer
Name Allied Development Company China Resources Ng Fung International
Address 101 Phan Dinh Phung St, Ninh
Kieu district, Can Tho city, Viet Nam
4/F, Yuen Fat Building, 89 Yen Chow Street West, West Kowloon, Hongkong
Allied Development Company signed a commercial contract with China Resources Ng Fung International Distribution Company Limited Allied Development Company will request WanHai Logistics at Ho Chi Minh City for exporting service with HS code: 0396A05247 WanHai forwarder will receive a request from Allied Development Company and conduct a signing contract for Vietnam Jasmine rice Accordingly, WanHai will be authorized, on behalf of Allied Development Company, to complete the necessary procedures to ship the goods to the importer
The necessary activity after the contract is taking information about the shipment, the necessary documentation, and checking the documentation of cooperating companies
There are many ways to get documentation, namely by email or directly brought to WanHai However, the final way was accepted by request in the contract, having the time to check the documents If the information on the shipment is not matched WanHai staff will announce to exporting companies and wait for the change and edit that information
In this step, the list of documents depends on the sales trade contracts, documents that WanHai requires, and how many copies the checking staff have to pay attention to ensure accuracy before conducting all formalities in port
In this situation, Allied Development Company decided to send documents by email
2.2 Sending and confirming information about the consignment for the third-party logistics company a) List of documents
● Application for licensing to export Vietnamese Jasmine rice
● Photo or drawing describing the aquatic species for export and showing trade name, scientific name
●A description of the biological characteristics of perishable-to-temperature products requested for an export permit
● Certificate of origin (Catch Certificate)
● Plan on inspection and supervision of rice products from export, transport, preservation, storage processing to consumption (01 original)
● Health certificate from quarantine agency in the exporting country
● Quarantine permit for exported rice products
● Quarantine registration form b) Sales contract
● Date of signing: Mar, 8th, 2016
● Name of goods: Vietnam Jasmine rice product
● Exporting company (Seller company): Allied Development Company
● Address: 101 Phan Dinh Phung St, Ninh Kieu district, Can Tho city, Viet Nam
● Importing company (Buyer company): China Resources Ng Fung International Distribution Company Limited
● Address: 4/F, Yuen Fat Building, 89 Yen Chow Street West, West Kowloon, Hongkong
● Payment: TT - Telegraphic Transfer Remittance means the importer will pay money to the exporter before shipping To the account 011.1.37.002042.4 in Vietcombank Can Tho The swift code is BFTVVNVX011 and the beneficiary is Hoang Quoc Lap (im-ex sales manager)
● International trade term: CIF HongKong, Incoterms 2020
● Total Quantity: 50,000kg (25kgs/bag), origin: Vietnam
● Total price: US$24,750 (50 MTS, US$495/MT)
● Packaging specification: suitable export standard
● Time for delivering: As requested in the contract
2.3 Checking preparation process in advance of export process
After signing the contract with the customer, the sales employee sends the file or prints the documents to OPS to check information In some special cases, the documents are sent by the customer without giving a soft copy Then, sales or OPS employees create a customer's jobfile for the consignment
Then, the customer will check whether the documents are correct or not If they are correct, we will make the shipment, if not, the customer will ask for corrections to avoid future unwanted troubles that may affect the export process In that case, OPS will contact sales employees to ask the customer to give additional information until all the documents are fulfilled Searching for account code, for new customers, technical information about consignment is required, the purpose of this is to give full details of the consignment For local customers, we need to check if the account code is still valid or not After all of that, we will make the shipment
Step 1: Negotiating and signing a sales contract
The first stage of exporting goods is also the most critical stage which determines the company’s profitability After negotiating with the client some terms and conditions such as a commodity, packing and marking, price, delivery, and payment terms, the company must sign a foreign trade contract for the shipment
Negotiating and signing a sales contract marks the pivotal initial step in the export process, laying the foundation for the successful shipment of goods and the company's profitability This phase involves intensive discussions between the exporting company and the client to establish mutually agreeable terms and conditions Key elements negotiated typically include the specific commodity being exported, packaging and marking requirements, pricing structure, delivery schedules, and payment terms
Once negotiations are concluded, and both parties are satisfied with the terms, the next crucial step is to formalize the agreement by signing a foreign trade contract This contract serves as a legally binding document that outlines the rights and obligations of both the exporter and the importer It delineates the agreed-upon terms, ensuring clarity and minimizing the risk of misunderstandings or disputes during the course of the transaction
Step 2: Preparing products i Booking Note
A Bill of Lading (B/L) is an essential document that confirms a booking with a carrier for the transportation of goods It includes crucial details such as the vessel's name, trip number, loading and discharge ports, and other pertinent information related to the shipment, serving as proof of the contract between the shipper and the carrier.
The bill of lading is a crucial document in the shipping process, issued by the carrier once the goods are loaded onto the vessel or received and awaiting loading It serves as a receipt for the goods, evidence of the contract of carriage, and a document of title to the goods The bill of lading contains vital information such as the vessel's name, trip number, loading and discharge ports, bill of lading number and date, and details of the quantity and weight of the goods being shipped It is essential that the quantity and weight stated on the bill of lading match those specified in the packing list and invoice to ensure accuracy and compliance with contractual obligations
By meticulously adhering to these steps and documentation requirements, Allied Development Company ensures the smooth execution of the export process, from negotiation to shipment, thereby upholding its commitment to delivering excellence and maintaining the highest standards of professionalism and integrity in international trade
A document under which the owner of goods must declare in detail the number of such goods to the controlling force when importing and exporting goods into our country (also known as customs declaration) is issued Or it can be understood, when you have a certain shipment that needs to be exported or imported, you have to go through customs procedures, in which the customs declaration is indispensable and required, if not all import and export related activities are stopped Customs clearance is a critical phase in the import and export process, involving the formalities and procedures required by customs authorities to facilitate the movement of goods across international borders This stage ensures compliance with regulatory requirements and tariffs, as well as the collection of duties and taxes where applicable
Customs Declaration: When importing or exporting goods, the owner or authorized agent must submit a customs declaration detailing the nature, quantity, and value of the goods being transported This declaration, also known as a customs declaration, is a mandatory document that enables customs authorities to assess and verify the goods for compliance with regulations and taxation
Including some characteristics of Vietnamese Jasmine rice products, as follows:
- Temperature: Maintain between 10°C and 30°C during transport Rice is susceptible to spoilage at extreme temperatures This range helps to ensure the quality of the rice is maintained
- Humidity: Maintain humidity below 60% during transport High humidity can lead to mold growth and spoilage of the rice
- Ventilation: Ensure adequate ventilation throughout the container to prevent moisture buildup and condensation
- Pests: Apply appropriate pest control measures to prevent infestation This may involve fumigation or the use of insect repellents
- Phytosanitary Certificate: Issued by the Vietnamese plant protection organization to ensure the rice is free from pests and diseases
CONCLUSION
Vietnam signing a free trade agreement has proved their willingness to open to international trade and investment Thanks to the strategic location, favorable prices and pleasing environment, Vietnam has the opportunity to thrive as a promising export and import hub among Asian countries Amidst the developing era of import and export, forwarders play an essential role in providing logistics service to ensure a smooth supply chain To provide excellent service, forwarders must have insightful knowledge, clear understanding of the legal system in import and export countries and trading regulations
The project enabled our team to analyze import-export procedures for frozen seafood, examining INCOTERMs, document preparation, and information significance Through research on both sides of the equation, we identified strengths and weaknesses, leading to recommendations for enhanced logistics services The project broadened our understanding of trading procedures and highlighted areas for improvement in frozen product exports and imports.
APPENDIX
No: 5032703 Date and place: MAR 08TH, 2016, VIETNAM BETWEEN: CHINA RESOURCES NG FUNG INTERNATIONAL DISTRIBUTION COMPANY LIMITED
Address: 4/F, YUEN FAT BUILDING, 89 YEN CHOW STREET WEST, WEST KOWLOON, HONGKONG
Represented by Mr Li Ru Ge
Address: 101 PHAN DINH PHUNG ST., NINH KIEU DIST.,
Represented by Mr Hoang Quoc Lap
1/ DEFINITION: a "B/L" means Bill of Lading; b "Dollars", "US Dollars", *USD", "US$", "S", "Cents" where used shall refer to the currency of the United States of America c "ETA" means expected time & date of arrival d Cost, Insurance, and Freight (CIF) is one of the 11 Incoterms® rules set by the International Chamber of Commerce It's an international shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer's order while the cargo is in transit e "Loading Port" or „ Port of loading" means the one (1) safe berth point at VietNam f "Price" shall mean the price for invoicing purposes expressed in US Dollars with any calculated price rounded up or down to the nearest cent g “kg” means Kilogram (s) as defined in "International System of Units". h “Laytime” means time allowed to load the cargo on the vessel i “Working Day” means a day upon which business is regularly trọnsacted and unless expressly stated, the term" day" shall be deemed to mean calendar day k "Weather Working Day” means any period of 24 consecutive hours during which weather permits ship-loading operations
WWSHINC" Weather Working Day Sunday and Holiday included (not included Major Vietnamese holidays) means day of 24 consecutive hours including Sunday and Holiday on which work in loading coal on board a vessel may be carried out without loss of time due to the weather
In this Agreement, unless the context otherwise requires:
(a) Recitals, headings and underlining are for convenience only and do not affect the interpretation of this Agreement;
(b) Words importing the singular include the plural and vice-versa;
(c) Words Importing a gender include any gender:
(d) An expression Importing a natural person includes any corporation or other body corporate, partnership, association, public authority, two or more persons having a joint or common Interest, or any other legal or commercial entity or undertaking;
(e) A reference to a Party to a document includes that Party's successors and permitted assigns; (f) Reference to any statute or statutory provision Includes a reference to that statute or statutory provision as from timè to time amended, extended or re-enacted and shall include all by-laws, Instruments, orders rules and regulation made there under;
(g) All schedule, attachments and annexure hereto form part of this Agreement;
(h) Any reference to a date or time is a reference to that date or time in Viet Nam
The above parties hereby agreed that Seller shall sell and Buyer shall buy the following commodity (using CIF, Incoterms 2020) with the following terms and conditions:
* Milling degree: well milled, double polished and sortexed
5/ QUANTITY: 50.200 MT (10% more or less at Buyer option)
6/ PACKING: in new, pp bags with PE inner liner containing 25 kgs net weight each bag 7/ DELIVERY/SHIPMENT:
Delivery as per CIF, Incoterms 2020
Time of delivery: No later than Mar 8th 2016;
Port of delivery: Ho Chi Minh, Vietnam
Port of discharge: Main ports in Hong Kong
Seller should without delay inform Buyer by fax when the goods are ready for delivery Within
48 hours prior to vessel’s arrival, Buyer should inform Seller of details of ship number, ETA and loading conditions Within 24 hours after the loading of goods on board, Seller should inform Buyer of B/L date and number
Partial shipment and stale B/L are not accepted
8/ PRICE: USD24,750 MT CIF Hong Kong port
9/ PAYMENT: By T/T (Telegraphic transfer to account 0111370020424 in Joint stock commercial bank for foreign trade of Vietnam, Can Tho branch (Vietcombank Can Tho), and beneficiary is Mr Hoang Quoc Lap)
Buyer shall open an irrevocable Letter of Credit at sight T/T in favor of Vietcombank requiring the following documents for negotiation:
- Full set of commercial invoice
- Full set Clean on Board Bill of Lading
- Certificate of weight and quality issued by independent surveyor
- Certificate of vessel's Hatch cleanliness
10/ PRE-SHIPMENT SURVEY: Buyer shall have right to pre-shipment survey of cargo 11/ INSURANCE: To be conferred by the Seller
Quantity is to be determined at the unloading port by CHINA RESOURCES NG FUNG INTERNATIONAL DISTRIBUTION COMPANY LIMITED
Inspection cost shall be at CHINA RESOURCES NG FUNG INTERNATIONAL DISTRIBUTION COMPANY LIMITED’s account
C/Q issued at the unloading port shall be final and binding to both parties
Any controversy or claim arising out of or relating to this agreement shall be settled amicably by the parties, If the parties ace unable to settle amicably, then it shall be settled under the VIAC Rules by one arbitrator appointed In accordance with the said rules, The proceedings shall take place in VietNamese shall be conducted in VietNam The decision of the Tribunal of arbitration shall be final and binding
Any disputes or controversies related to this contract or its breach shall be subject to arbitration in Vietnam by Legal Solution This arbitration process serves as the final and binding method for resolving such matters, after attempts at amicable resolution between the parties have proven unsuccessful.
15/ LOADING TERMS a- At the load port, the cargo is to be loaded at the rate of 1,000 metric tons per weather working days of 24 consecutive hours, Sunday and holiday excepted unless used If the Notice of Readiness is presented before 12 hrs noon laytime to commence at 13 hrs the same day If the Notice of Readiness is given after 12 hrs noon but before the close of office (17:00 hours) the laytime commences from 8:00 AM on the next working day Dunnage to be for Buyer/Shipowner's account b- Shore tally and on board vessel tally at the Seller's account and destination shore tally at Buyer/Shipowner's account c- At load port, tax for cargo is to Seller's account d- Dammurage/Despatch as per Seller party e- All other terms as per Gencon Charter party
16/ APPLICABLE: This contract shall be governed by and construed according to the laws of The Republic of Vietnam
17/ FORCE MAJEURE: The Force Majeure (Exemption) Clause of The International
Chamber of Commerce (ICC Publication No.412) is hereby incorporated in this contract
18/ SURVEY: The supervision and survey of the Vietnamese Jasmine Rice at mills/stores quality, weight, quantity, number of bags, conditions of boxes and packing will be done by Allied company in Vietnam, the cost thereof being to Hoang Quoc Lap's account
19/ OTHERS: The Trade Terms used herein shall be interpreted in accordance with 2016 including its amendments
This sales contract was done in Jakarta 8 Mar 2016 in 04 (four) English originals, 02 (two) for each side
FOR AND ON BEHALF OF FOR AND ON BEHALF OF
LI RU GE HOANG QUOC LAP
CUSTOM DECLARATON FORM Sub - department Customs Sub-department of Ho Chi Minh city
Shipper information Allied Development Company
Address: 101 Phan Dinh Phung St, Ninh Kieu district, Can Tho city, Viet Nam
Address: 2-1, Shbaira, 1-Chome, Minato-ku, Tokyo 105-8005 Japan
China Resources Ng Fung International Distribution Company Limited
Address: 4/F, Yuen Fat Building, 89 Yen Chow Street West, West Kowloon, Hongkong
Container No WHLU2792090 20DS86 WHL9226830
WHLU2792090 20DS86 WHL9226824 Type of means Sea transport
Description of goods Vietnam Jasmine Rice 5% Broken
Country of origin Socialist Republic of Vietnam
Supporting documents - Certificate of origin (Catch Certificate)
- Health certificate from quarantine agency in the exporting country
- Quarantine permit for exported rice products
FOR AND ON BEHALF OF
THE CUSTOMS CONTROL AND SUPERVISION DEPARTMENT
SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness -
No 107/2018/ND-CP Hanoi, August 15, 2018
ON RICE EXPORT BUSINESS Pursuant to the Law on Organizing the Government dated June 19, 2015;
Pursuant to the Law on Investment dated November 26, 2014;
Pursuant to the Law on Enterprises dated November 26, 2014;
Pursuant to the Law on Foreign Trade Management dated June 12, 2017;
Pursuant to the Law on Commerce dated June 14, 2005;
Pursuant to the Law on Prices dated June 20, 2012;
The Government promulgates the Decree on Rice Export Business
1 This Decree provides for the commercial export of paddies and rice of all categories (below collectively referred to as “rice”)
2 This Decree does not govern the import, temporary import for re-export, temporary export for re-import, merchanting trade and transit of rice and subcontract production of rice for foreign parties and non-commercial export, donation and giving as gift of rice
This Decree applies to traders prescribed in Commercial Law; agencies and organizations in charge of rice export management and other relevant organizations and individuals
Article 3 Rights to rice export business
2 Traders being foreign-invested enterprises shall obtain the Certificate and conduct rice export business in accordance with this Decree, other relevant laws of Vietnam and commitments of the Socialist Republic of Vietnam under international treaties to which Vietnam is a signatory
RICE EXPORT BUSINESS CONDITIONS AND CERTIFICATE
Article 4 Rice export business conditions
1 A trader that is being incorporated and registers for business under law shall be allowed to conduct rice export business if it satisfies the following conditions: a Have at least 01 rice warehouses that satisfy the national technical standards and regulations promulgated by a competent authority in accordance with the Law on Technical Standards and Regulations b Have at least 01 rice mill or rice processor that satisfies the national technical standards and regulations promulgated by the competent authority in accordance with the Law on National Technical Standards and Regulations
2 The rice warehouse, mill or processor that is mentioned in clause 1 of this Article must be owned by the trader or rent by the trader from other organizations or individuals under a lease agreement of at least 05 years
The trader who obtains the Certificate shall not lease or sublet the rice warehouse, mill and processor that are declared in its application form in order to prevent another trader from using the aforesaid properties to apply for another Certificate
While carrying out the export procedures, the trader who exports organic rice, parboiled rice and rice with micronutrients without a Certificate shall only submit the original or a certified true copy of the confirming document issued by the competent authority or of the rice assessment certificate issued by the assessment organization as prescribed in the regulations on rice export products that satisfy the criteria and measures provided by the Ministry of Agriculture and Rural Development and the Ministry of Health in accordance with point dd, clause 2, clause 3, Article 22 hereof
Article 5 Inspection of the rice export business conditions