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Exporting-Rice-to-Philippines-BL-Final-

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SCHOOL OF Business
ASSIGNMENT COVER SHEET
STUDENT DETAILS
Student name:
Vy Vinh Quang
Student ID number: 21000808
UNIT AND TUTORIAL DETAILS
Unit name:
Unit number:
BL-T123WSB-7
Tutorial group:
BL7
Tutorial day and time:
Lecturer or Tutor name:
3h30-6h45 Friday
Nguyễn Song Ngọc Chung
ASSIGNMENT DETAILS
Assessment 2 : Essay : Problem Questions
Title:
Length:
1500 words
Due date:
Home campus (where you are enrolled):
15/4/2023
Date submitted:
15/4/2023
Vietnam
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Quang
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ARO 00380 08/15
How to export Rice from Vietnam to Philippines?
Introduction
For every household in Vietnam, rice appears to be the most important staple food. It serves as a crucial staple meal as well
as a vital Vietnam export. Approximately 26–28 million tons of rice are produced in Vietnam each year, of which 6–6.5
million tons are exported.5 As a result, Vietnam is one of the top exporters of rice, and the Philippines is one of the two
largest markets for rice in the world. The main export market for rice is Asia. However, there are numerous legal obstacles
and difficulties that exporters must overcome while shipping rice from Vietnam to the Philippines. This essay aims to provide
an overview of the key legal considerations and challenges involved in exporting rice from Vietnam to the Philippines,
including regulatory frameworks, and compliance with sanitary and phytosanitary measures. The goal of this article is to
emphasize the necessity of knowing the legal aspects of rice export transactions in this environment and to offer insightful
advice to rice exporters who are interested in selling rice from Vietnam to the Philippines.
Overview of Rice Export Regulations in Vietnam
Because of having a strong legal framework, exporting activities in Vietnam have several rules and requirements,
Government organizations are also engaged in the exporting process. In addition, The Ministry of Agriculture and Rural
Development (MARD), the Ministry of Industry and Trade (MOIT), and the General Department of Vietnam Customs
(GDVC) are the principal regulatory bodies in charge of regulating rice exports from Vietnam. In general, there are some
important laws and regulatory frameworks for rice exports in Vietnam that have to be followed.
Firstly, the law on Foreign Trade Management.8 This law controls all aspects of Vietnam's international trade, including rice
exports. It outlines the principles, procedures, and requirements for conducting foreign trade, including export licensing and
permit requirements.
Secondly, decree 107/2018/NĐ-CP on rice export business.9 This decree provides detailed regulations on rice export business
activities in Vietnam and covers various aspects, including export licensing and permit requirements, export contracts, quality
control, labeling, and other relevant matters.
And lastly, Circular 13/2018/TT-BNNPTNT on exporting and importing rice.10 This circular, issued by MARD, provides
guidelines on exporting and importing rice in Vietnam. It covers topics such as export quotas, customs procedures, quality
control, and inspection requirements.
The Ministry of Industry and Trade (MOIT) in Vietnam normally requires rice exporters to get an Export Registration
Certificate (ERC) in terms of license and permit requirements. They are able to export rice thanks to this certificate.
Additionally, exporters of rice must register their export agreements with the MOIT and get all necessary authorizations or
permissions from any pertinent authorities.6
In conclusion, to avoid a result in penalties and delays or even suspension from exporting rice activities in Vietnam, exporters
should update their knowledge with the latest changes in laws, secure the required license, and follow all pertinent
requirements.
Overview of Rice Import Regulations in the Philippines
To control rice imports, the Philippines has put in place a structure of laws, rules, and government organizations in charge of
monitoring the import procedure. Generally, the key laws and regulations that control rice import activities in the Philippines
include these factors: the Republic Act 10845 or the "Act Requiring the Philippine Government to Procure Only Philippine
Rice"; Executive Order 135 or the "Implementing Rules and Regulations of Republic Act 11203 or the Rice tariffication
Law" and the Bureau of Plant Industry (BPI) Memorandum Circular 15 or the "Rules and Regulations for the Importation of
Rice".In-depth, The Republic Act 10845, or the "Act Requiring the Philippine Government to Procure Only Philippine Rice”,
requires the Philippine government to prioritize buying rice from domestic suppliers to boost domestic rice production. It also
requires the government to exclusively buy rice from local farmers.
Additionally, Executive Order 135 provides the implementing rules and regulations for the Rice tariffication Law (Republic
Act 11203), which allows the liberalization of rice importation in the Philippines. It sets out the guidelines, requirements, and
procedures for the importation of rice, including tariff rates, licensing, permits, and other relevant matters.
Furthermore, The Rice Tariffication Law's implementation treats exporters from Vietnam as their special cases. They
removed the quantitative restrictions on Vietnam’s rice, which help exporters from Vietnam in importing rice much easier. 11
However, importers still need to comply with the requirements and regulations imposed by the Bureau of Plant Industry
(BPI), such as securing the necessary permits and paying the applicable tariff.
And last but not least, The Bureau of Plant Industry (BPI), whose the government agency, responsible for controlling and
regulating the importing activities of agricultural products in the Philippines. Their jobs are to issue permits and clearances
and conduct inspections and enforce regulations related to rice imports. Vietnamese exporters could only import rice in the
Philippines after getting certified by BPI via their permits and clearances. Moreover, Sanitary and Phytosanitary Import
Clearance (SPSIC), which functions as a permit to import rice into the nation, is issued by the BPI for rice imports. It is
required for each shipment of rice and must be obtained before shipment. In addition to the SPSIC, Vietnamese importers are
also required to acquiesce to many other requirements, such as payment of the tariff rates, labeling, and packaging standards.
Tariff rates for importing rice in the Philippines could vary depending on several factors, and they could also change.
Importers must also comply with other relevant laws and regulations, which relate to customs, taxation, and quality control.
Compliance with Sanitary and Phytosanitary Measures
When shipping rice from Vietnam to the Philippines, commitment to sanitary and phytosanitary (SPS) regulations is
crucial.12 In general, Sanitary and Phytosanitary are “designed to protect human, animal and plant life and health, from risks
arising from additives, contaminants, toxins or disease-causing organisms” according to European Commission. 13 Sanitary
and Phytosanitary are especially crucial to the Philippines market, they would like to ensure the safety and quality of rice for
their country. Both Vietnam14 and the Philippines have their separate Sanitary and Phytosanitary requirements for rice
exports and imports. In Vietnam, the Ministry of Agriculture and Rural Development (MARD), which is the government
agency, has responsibility for implementing SPS measures. These measures include PEST control, chemical residue limits,
and quality standards. Similarly, Philippines also has its own Sanitary and Phytosanitary requirements for importing rice,
which are implemented by the Bureau of Plant Industry (BPI) 3. These requirements may include phytosanitary certificates,
which certify that the exported rice is free from pests and diseases, as well as limits on chemical residues and other quality
standards.
Conclusion
In general, this essay summarized the laws governing rice import and export in Vietnam and the Philippines. The foremost
and substantial aspects covered in the discussion are the legal frameworks governing the trade in rice in both countries, the
licensing and authorization requirements for rice importers in the Philippines, several types of limitations on rice import laws
in the Philippines, and their implications for rice exporters from Vietnam.
Compliance with the various rules and specifications of both nations, such as acquiring permits and approvals, navigating
tariff rates and quotas, and upholding quality standards, may provide difficulties for the export of rice from Vietnam to the
Philippines. The most effective procedures for rice exporters from Vietnam may involve doing comprehensive research on
the laws and specifications of both nations, developing relationships with trustworthy partners, and ensuring that rice
shipments are properly documented and labeled.
Rice exporters ought to strictly abide by the three following suggestions to make sure that they are in compliance with all
applicable laws and regulations, minimize risks, and boost the probability that their export transaction will be
prosperous. The first involves acquiring knowledge and adhering to export laws. This is due to the fact that each country
has its own set of export laws that must be followed. The exporters research and abide by all pertinent export laws in
both the exporters' home country and the countries of destination. Getting the necessary certifications is the second step.
For businesses to export rice, specific certifications regarding quality, safety, and phytosanitary measures are essential.
To ensure they have all the necessary documentation, they must consult with the appropriate authorities in both the
exporting and importing countries. Last but not least, businesses must choose reliable partners to cooperate with. This
happens as a result of the reliable partners that rice exporting companies look for and work with in order to ensure an
efficient export transaction. These partners include shipment forwarders, brokerage companies, and agents.
Reference List
1. TranQuynhTrang. (2022, December 5). Năm 2022 Khi Xuất Khẩu gạo CÓ Cần Xin Giấy phép Hay Không? Luật sư X.
Retrieved April 12, 2023, from https://lsx.vn/xuat-khau-gao-co-can-xin-giay-phep-hay-khong/
2. Govph. Bureau of Plant Industry - Home. (n.d.). Retrieved April 15, 2023, from https://www.buplant.da.gov.ph/
3. Philippines: Philippine Rice Import Regulations and Standards. USDA Foreign Agricultural Service. (2023, April 13).
Retrieved April 12, 2023, from https://www.fas.usda.gov/data/philippines-philippine-rice-import-regulations-andstandards
4. Home - Official Portal of the Department of Agriculture. (2023, April 15). Official Portal of the Department of
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