Conditions and licenses required for rice export business

Do you need a license to export rice? Types of licenses and conditions for international rice export business. Register HS code for rice and export rice tariff.

Conditions for rice export business 

Pursuant to Article 4 of Decree 107/2018/ND-CP, the conditions for exporting rice abroad are as follows:

1. Traders must register their business and be granted a business license according to regulations;
2. Meet the conditions:
   • There must be at least one warehouse specialized for storing rice and paddy that meets national technical standards on rice and paddy warehouses according to the Law on Technical Standards and Regulations;
   • There must be at least one rice milling, grinding or processing facility that meets national technical standards on rice milling, grinding or processing facilities according to the Law on Technical Standards and Regulations.
3. Have certificate of eligibility for rice export business;
4. There are warehouses, milling, grinding and processing facilities for paddy and rice that ensure meeting the business conditions according to Article 2 above. At the same time, these warehouses can be owned by the trader or leased by the trader under a lease contract with a minimum lease term of 5 years (*).

Note:

(*) Traders with a certificate of eligibility for rice export business are not allowed to sublease the warehouse or facility that has been declared in their application for a certificate to another trader for the purpose of applying for a certificate.

In case of exporting only organic rice, micronutrient-fortified rice, and parboiled rice:

1. No need to meet the above conditions;
2. No need to maintain minimum circulating reserves (equivalent to 5% of the amount of rice exported in the previous 6 months);
3. Periodically report on the status of signing and implementing rice export contracts to the Ministry of Industry and Trade on the 20th of each month;
4. When carrying out customs procedures, it is only necessary to present to the customs authority the original or a certified copy of one of the following documents:
   • Confirmation and certification documents from competent authorities;
   • Rice export inspection certificate issued by inspection organization.

Do I need a license to export rice?

As fdiinvietnam.com mentioned, rice export business is a conditional industry, so for all business activities to be legal and run smoothly, traders, organizations, and enterprises need to carry out mandatory procedures including:

1. Apply for a business registration certificate (business/household establishment);
2. Apply for a certificate of eligibility for rice export business (sub-license);
3. Apply for export phytosanitary certificate;
4. Register barcode number;
5. Trademark registration (if any);
6. Product testing, product quality declaration;
7. Carry out customs procedures for exported rice (rice export businesses must have a foreign rice export contract).

>> Detailed instructions: Procedures for registering rice export business.

Below, Online Accounting will guide you through the procedure for applying for a business registration certificate according to the enterprise and business household model, specifically:

➧ Application form for establishing a rice export company

➧ Profile for establishing a rice export business

Note:

1) Receiving agency and processing time:

• Enterprises submit registration documents to establish rice trading establishments to the Department of Planning and Investment where their headquarters are located;
• Business households submit their application to the district-level business registration office or the Department of Planning and Investment where the business household opens its store;
• The competent authority will issue a business registration certificate within 3-5 working days, if the application is valid.

2) Register full industry codes: To avoid wasting time in the process of applying for a sub-license (certificate of eligibility to export rice), you need to register full industry codes related to your business activities, look up rice business codes in the article: Look up information on Vietnam business industry codes.

—————-

To save time and optimize costs when performing the procedures yourself, you can consider using the establishment service at Online Accounting:

>> Rice business establishment service – Service fee from 250,000 VND;

>> Rice business establishment service – Full package only 1,500,000 VND.

CALL NOW

Register HS code and tariff schedule for foreign rice exports 

1. Register HS code for rice export

In addition to the above legal documents, to export rice abroad you also need to register the HS code – the code for classifying import and export goods. 

According to regulations, the HS code of exported rice belongs to chapter 10 – cereals (group 1006), details of each type are as follows: 

In addition, you can also look up the HS code of import and export goods by yourself by accessing the General Department of Customs >> Select “Look up Tariff – HS Code”.

Then enter the search code string according to the HS code (minimum 4 digits) or enter keywords to search in the product description >> Enter the verification code and select “Search”.

2. Tariff schedule of foreign exported rice

➧ Value Added Tax (VAT) on exported rice is 0%. Rice exporting businesses are refunded input VAT on exported rice according to regulations (according to Official Dispatch 13091/BTC-TCT).

➧ Export tax rate according to the list of taxable items in group 10.06 (rice) is 0% (based on Decree 26/2023/ND-CP).

Current rice export situation in Vietnam

Rice is considered an essential commodity, consumed by more than 50% of the world’s population every day and is also an important commodity in ensuring food security in many countries.

Currently, Vietnam is one of the three largest rice exporting countries in the world, accounting for 15% of total global rice exports. According to the report of the Import-Export Department (Ministry of Industry and Trade), in 2023, Vietnam has:

• Exporting 8.13 million tons of rice, worth 4.67 billion USD, up 14.4% in volume and 35.3% in value compared to 2022;
• Average export price reached 575 USD/ton, up 18.26% compared to 2022.

Although many experts predict that the world situation will have many difficulties, by the end of the first quarter of 2024, Vietnam’s rice exports have reached:

• Over 2.18 million tons, worth 1.43 billion USD, up 17.6% in volume, up 45.5% in turnover over the same period in 2023;
• Average export price reached 653.9 USD/ton.

It can be seen that the rice export business is still constantly developing and is also an opportunity for many Vietnamese enterprises to increase profits. Let’s learn about the conditions for rice export business and the types of licenses required for this industry in the article below with Online Accounting.

Questions related to rice export business license

1. What are the conditions for rice export business?

In Article 4 of Decree 107/2018/ND-CP, the conditions for foreign rice export business include:

• Established, registered business;
• Meet the conditions for rice milling, processing and storage facilities according to the Law on Standards and Technical Regulations;
• Have certificate of eligibility for rice export business;
• Warehouses, milling, grinding and processing facilities for rice must comply with regulations…

>> See details: Conditions for exporting rice business.

2. What does an international rice export license include?

Enterprises and organizations need to complete 7 procedures for registering rice export business as follows:

1. Business registration certificate;
2. Certificate of eligibility for rice export business;
3. Export phytosanitary certificate;
4. Product testing, product quality declaration;
5. Certificate of right to use codes and barcodes;
6. Certificate of trademark registration (if any);
7. Carry out customs procedures for exported rice.

>> See more: Procedures for registering rice export business.

3. What HS code is registered for foreign rice export business?

According to regulations, the HS code of exported rice belongs to chapter 10 – cereals (group 1006), details of each type can be found here.

>> HS code of paddy rice.

4. What taxes do rice export businesses need to pay?

International rice export business tariff schedule includes:

• Value added tax: 0%;
• Export tax according to the list of taxable items: 0%.

5. Do I need to register a business to open a rice dealership?

To do rice business at home or open a rice shop in general, you must register your business in one of two ways:

• Establishing individual business households to buy and sell rice;
• Establish a rice trading business.

>> See more: Do I need to register a business household to open a rice agency?

Call us at  0978 578 866 (North)  –  033 9962 333 (Central)  –  033 9962 333 (South)  for support.