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Temporary imports for re-export: Foreign partners not jumping ship
Vietnamese enterprises affirm that they won’t lose out in deals of importing frozen meat for re-export. They say that the containers have got stuck at Vietnam’s ports because the import countries set strict control over the imports, not because the owners of the commodities have fled for their lives.
According to the enterprises, on April 9, the Chinese customs agencies in the area bordering Vietnam’s Mong Cai town in Quang Ninh province began strictly examining frozen import meats coming through Vietnam. As a result, over 2,000 containers of frozen meat which had just docked at Hai Phong port got stuck. Local newspapers reported about the deadlock, saying that the deadlock had caused big losses for Vietnamese enterprises.
However, enterprises have affirmed that they have not lost money because the real owners of the containers of frozen meat are foreigners, and that Vietnam is just a transit place where the commodities are staying before going to China. They say the temporary import is just a kind of service for foreign importers.
Nguyen Doan Phong, Head of the Import-Export Division under Hai Phong-based Son Tung Company Ltd, said that the company has 150-200 containers of imports for re-exports under service contracts signed with Chinese partners.
By the end of May 9, there had been 1,500 containers left at Hai Phong port. Everyday, more than 100 containers leave Hai Phong port for Mong Cai town, from where they will be carried to China.
The enterprises say that frozen food products always have high value; therefore, the owners of the commodities will not give up their commodities. Meanwhile, storage and electricity fees just cost $80-90 per day.
In the last few days, Chinese customs agencies have been slow in completing formalities for customs clearance, which has resulted in the deadlock at Vietnam’s ports. However, enterprises affirm that it takes 20 days only at maximum to clear the imports.
Phong related that in 2006, when Chinese agencies restricted imports, a lot of frozen meat containers also got stuck at Hai Phong port for 75-90 days, and no Chinese partner gave up its imports.
Regarding the food quarantine, Thanh, the Director of Veterinary Agency in Zone 2 under the Veterinary Department of the Ministry of Agriculture and Rural Development, said that the temporary imports for re-export all have to be reported to the Veterinary Department. If the commodities dock at Hai Phong port, the importers have to declare at Hai Phong port. The port’s staff will refer to the instructions, check the original quarantine certificates granted by export countries (the imports are not examined because they are just imported temporarily and will be re-exported later).
Phong affirmed that Vietnam has been keeping very strict control over frozen meat, and that the Veterinary Department will surely not grant licences for temporary import of products if it finds out that the imports come from pandemic-stricken areas.
Ngo Bac Ha, General Director of the Hai Phong Port, said that Hai Phong port has a high enough capability to receive frozen food imported temporarily for re-export.
vietnamnet, tp
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