Joint Circular No. 02/TTLB-NN-TM on the management of rice exports in 1995

JOINT CIRCULAR

JOINT CIRCULAR NO. 02 TTLB/NN-TM OF THE MINISTRIES OF TRADE AND AGRICULTURE AND RURAL DEVELOPMENT DATED FEBRUARY 6, 1995 ON THE MANAGEMENT OF RICE EXPORTS IN 1995

Pursuant to Decision No. 752/TTg dated December 10, 1994 of the Prime Minister on "Commodity Policy and Management of Import and Export Operations in 1995", the Ministry of Trade and the Ministry of Agriculture and Rural Development hereby jointly issue guidelines for rice exports in 1995 as follows:

1 - The volume of rice exports in 1995 is approximately 2 million tons; initially allocate about 1.6 million tons. When the production and consumption situation becomes clearer, the Government will provide guidance on additional volumes later. This volume does not include specialty rice varieties (such as glutinous rice, fragrant rice...) parboiled rice, steamed rice, unhulled rice.

Prohibit rice exports through informal channels.

The Ministry of Trade shall implement two rounds of allocation of export volumes to enterprises. The first round at the beginning of 1995 with a volume of approximately 1.6 million tons. The second supplementary round in the third and fourth quarters of 1995 with a volume of approximately 400 thousand tons, following the Government's opinion. The Ministry of Trade shall assign the rice export tasks (by written document) to each enterprise.

Rice exports prior to this document shall be managed according to the provisions of Decision No. 78/TTg dated February 28, 1994.

2 - The Ministry of Agriculture and Rural Development shall be responsible, together with the State Planning Commission, for balancing supply and demand for food grains nationwide and the quantity required for export in the year; ensuring coordination and circulation of rice to maintain stability in the domestic market. The Ministry of Trade shall be responsible for managing rice exports according to the overall plan and balance of the Ministry of Agriculture and Rural Development.

The Ministry of Trade shall be responsible for sending to the Ministry of Agriculture and Rural Development the documents allocating rice export volumes to each enterprise.

In case of natural disasters leading to crop failures, the Ministry of Agriculture and Rural Development and the Ministry of Trade shall coordinate measures to reconcile the implementation of foreign trade contracts with the need to ensure domestic requirements.

3 - In 1994, more than 50 enterprises exported rice, among which 15 enterprises achieved an export volume of 40,000 tons or more. The volume of rice exported by these 15 enterprises accounted for over 82% of the total national rice exports. Based on this reality, the Ministry of Trade and the Ministry of Agriculture and Rural Development have agreed:

3.1 - Enterprises exporting rice:

a - Enterprises that served as main exporters of rice and achieved an export volume of 40,000 tons or more in 1994 shall continue to serve as main exporters in 1995 (referred to as main enterprises) (see Appendix 01).

b - Enterprises that did not serve as main exporters but continuously exported rice in both 1993 and 1994, achieving an export volume of 40,000 tons or more in 1994, shall be included in the list of main exporters in 1995 (see Appendix 02).

3.2 - Allocation of export targets:

Applying the management mechanism from previous years: main enterprises shall undertake 70% of the planned target, while the remaining 30% shall be allocated to non-main enterprises that have registered for export commodities, have buyers and markets, and do not compete with the buyers and markets of main enterprises. If a main enterprise has already exported 70% and still has customers under favorable trading conditions, while other enterprises have not yet exported their 30%, then the main enterprise may continue to export within the 30% quota and vice versa.

For main enterprises: The Ministry of Trade shall allocate the export volume of rice right from the beginning of the year equivalent to approximately 70% of the volume achieved by the enterprise itself in 1994 (see Appendix 03).

For other enterprises: When signing foreign trade contracts, there must be a clause stating "this contract is only valid upon approval by the Ministry of Trade." The volume signed for each contract shall not exceed 30,000 tons. After signing the contract, the enterprise shall report (in writing) to the Ministry of Trade. If the trading conditions stipulated are met, the enterprise shall proceed with the export.

4 - From September 1 to September 15, 1995, enterprises that have not exported the allocated volume of rice shall report to reallocate the remaining volume to other enterprises capable of fulfilling it.

5 - Representatives of the Ministry of Agriculture and Rural Development, the Ministry of Trade, the State Planning Commission, and the Government Price Control Board shall convene once every quarter at the end of the last month of each quarter to address issues related to food grain balance and rice exports. The Department of Planning of the Ministry of Agriculture and Rural Development and the Department of Foreign Trade of the Ministry of Trade shall be responsible for preparing the agenda.

6 - The Ministry of Trade shall take the lead in monitoring price trends and markets, consulting with the Ministry of Agriculture and Rural Development, the Government Price Control Board, and the Vietnam Rice Association to announce appropriate export prices for rice in line with global and domestic market conditions.

7 - Enterprises shall register foreign trade contracts with the Permit Office in their region to compile the export capacity for each month at each port and inform the enterprises to arrange ships to receive rice, avoiding situations where ships are sought out, creating opportunities for private traders to hoard goods, causing artificial shortages and price hikes.

Enterprises shall apply for export permits for each shipment at the Permit Office of the Ministry of Trade, using a unified permit form issued by the Ministry of Trade. Enterprises shall bring along foreign trade contracts or Letters of Credit, ship arrival notices, and certificates of goods availability from recognized inspection organizations to obtain the export permit for each shipment. Rice exports through a border gate shall require the permit from the Permit Office at that border gate.

The export permit for each shipment has a maximum validity period of 30 days and can be extended once for up to 15 days, including the time taken by the enterprise to complete customs procedures.