Official dispatch 8297/BCT-XNK year 2021

To:  People's Committees of provinces and centrally-run cities

On December 18, 2021, the Government Office issued Document No. 9249/VPCP-KTTH notifying the direction of Deputy Prime Minister Le Van Thanh on the situation of agricultural product congestion at border gates in Lang Son province. Implementing the direction of the Deputy Prime Minister, the Ministry of Industry and Trade would like to discuss with the Committee and propose the following contents:

I. IMPORT-EXPORT AND CUSTOMS CLEARANCE OF GOODS THROUGH NORTHERN BORDER GATES

Since 2020, the export of goods, especially agricultural products and fresh fruits through the northern border gates, has faced many difficulties, mainly due to the impact of the Covid-19 pandemic. In this situation, the Ministry of Industry and Trade, together with ministries, branches and border provinces, has actively taken action, synchronously and promptly implemented many solutions to remove difficulties and congestion caused by the Covid-19 pandemic, thereby basically ensuring trading activities, especially agricultural exports, through the northern border gates in the past 2 years. According to calculations from statistics of the General Department of Customs, in the first 11 months of 2021, the export of agricultural products to China through the northern border gates reached 1.69 billion USD, an increase of 18.3% compared to the first 11 months of 2020; Of which, agricultural exports through border gates in Lang Son province reached 478.2 million USD, up 32.5% over the same period; through Mong Cai border gate (Quang Ninh) reached 379.1 million USD, up 62% over the same period.

However, entering December 2021, due to the complicated developments of the epidemic, China has strengthened management measures, causing customs clearance capacity at border gates to decrease sharply and not meet the increasing demand for goods exchange from both sides. Although the Ministry of Industry and Trade has issued many documents recommending^[1]  However, because Vietnam is in the harvest season for some agricultural products for export, the amount of agricultural products brought to the northern border area is still very large, leading to congestion and backlog of goods and vehicles at many border gates, especially those in Lang Son province.

In the context of the complicated and unpredictable developments of the Covid-19 epidemic, on December 11, 2021, China issued Official Dispatch No. 14/2021 to ministries, branches and localities on strengthening Covid-19 epidemic prevention and control at border gates. This Official Dispatch sets out 09 requirements that need to be strictly implemented, including: (i) perfecting the Covid-19 epidemic prevention and control mechanism at border gates; (ii) perfecting the Covid-19 epidemic warning and monitoring system; (iii) strengthening epidemic prevention and control in border areas; (iv) separating Covid-19 epidemic prevention and control staff; (v) strictly managing the travel schedules of officials and civil servants; (vi) increasing the level of Covid-19 epidemic prevention and control for imported frozen foods; (vii) improving the capacity to respond and allocate resources in Covid-19 epidemic prevention and control; (viii) doing a good job of ensuring social security; (ix) Strengthen inspection and supervision of organizations implementing Covid-19 epidemic prevention and control.

The content of the dispatch shows that China continues to adhere to the “Zero Covid” policy, including strict management of people and goods entering the country. Drivers specializing in delivering import and export goods and epidemic prevention staff working at Chinese border gates and seaports who have contact with goods are identified as high-risk subjects and must be quarantined for 21 days before leaving the border gate area or seaport to return to their hometowns for Tet. Therefore, it is possible that customs clearance of goods (especially frozen goods) through border gates will not take place as usual every year because specialized drivers and border gate functional force staff will ask for leave early to quarantine and return to their hometowns for Tet.

The above factors will put great pressure on customs clearance capacity at northern border gates, especially in Lang Son province in the coming time.

II. RECOMMENDATIONS

In the above situation, implementing the direction of the Deputy Prime Minister, the Ministry of Industry and Trade respectfully requests the Committee to coordinate in implementing the following contents:

1. For People's Committees of provinces and centrally-run cities

1.1. The Committee is requested to direct local authorities to implement solutions following the direction of the Prime Minister in Directive No. 26/CT-TTg dated September 21, 2021 on promoting production, circulation, consumption and export of agricultural products in the context of preventing and fighting the Covid-19 pandemic; Document No. 9249/VPCP-KTTH dated December 18, 2021 of the Government Office on the situation of agricultural product congestion at border gates in Lang Son province; and guiding, directing and recommending documents of the Ministry of Industry and Trade and relevant ministries and branches in recent times, especially Document No. 2926/BCT-XNK dated May 25, 2021 of the Ministry of Industry and Trade on exporting agricultural products across the border.

1.2. We request that the Committee strengthen recommendations to industry associations, farmers, production, processing and export establishments of agricultural products and fresh fruits in the area on the following contents:

– Regularly update customs clearance at northern border gates, paying special attention to the Chinese Lunar New Year holiday schedule to proactively plan production and export of goods, avoiding congestion and other adverse impacts.

– Immediately discuss with Chinese partners to (i) deliver goods through main border gates, international border gates in other provinces (for example Cao Bang) to reduce congestion in Lang Son; or (ii) switch to using other modes of transport, for example by sea, which seafood exporting enterprises are currently doing very well.

– Continue to quickly and strongly shift export activities to the Chinese market in the form of official channels as the Ministry of Industry and Trade has repeatedly recommended (buying and selling according to contracts, with clear transaction and delivery conditions, delivery at international border gates, main border gates, etc.).

– Speed ​​up the implementation to meet the Chinese regulations on registering agricultural export enterprises as instructed by the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade; at the same time, continue to implement regulations on traceability, growing area codes, packaging facilities, labeling, etc. as well as other relevant requirements to improve product quality, meet regulations and standards agreed with foreign partners.

1.3. We request that the Committee promote activities to connect supply and demand, expand the domestic agricultural product consumption market to reduce pressure on the export market:

– Directing functional departments and agencies to regulate agricultural production according to market demand; based on production capacity to develop the processing industry to increase the value of deeply processed agricultural products, diversify agricultural products, and at the same time focus on developing the system of warehouses and preservation of agricultural products.

– Expand domestic agricultural product consumption markets through trade promotion activities, connecting supply and demand; increase the application of e-commerce in agricultural product consumption.

- Direct and urge departments and branches to urgently implement Decision No. 194/QD-TTg dated February 9, 2021 of the Prime Minister approving the Project "Innovation in agricultural product consumption and business methods for the period 2021-2025 with a vision to 2030".

Experience from Bac Giang, Hai Duong and Son La provinces shows that the attention and active participation of local authorities at all levels, especially before the harvest, is one of the most important factors helping the province's agricultural products to be consumed smoothly and conveniently in the context of complicated epidemic developments.

2. For People's Committees of Northern border provinces

The Committee is requested to direct local authorities to closely coordinate with relevant ministries, branches and localities to implement the following solutions:

– Discuss and negotiate with local authorities and Chinese management agencies to implement solutions to increase customs clearance time at border gates; improve the working efficiency of functional forces of both countries at border gates (such as customs, quarantine, transportation service enterprises, cargo handling, etc.) to facilitate customs clearance and export of goods, especially agricultural products exported from Vietnam.

– Continue to update and regularly report on developments in goods delivery and customs clearance at border gates and related issues; promptly discuss and report to the Ministry of Industry and Trade and relevant ministries and branches on arising issues for joint handling.

In the immediate future, to strengthen the work of grasping the situation and coordinating management, we request that the Steering Committee direct the Department of Industry and Trade to coordinate with local authorities to provide and post information  before 12:00 every day  on the province's electronic information portal on the situation of import and export, transportation, and customs clearance of goods through border gates; activities of logistics service providers, and circulation of goods through the province.

The Ministry of Industry and Trade respectfully thanks the Committee for its cooperation./.