Lao Cai border gate customs maximum facilitation to agricultural exports

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Operations at Lao Cai international border gate customs branch. Photo: T.Binh

Maximum facilitation to agricultural products

Annually, import and export activities in many border gates adjacent to China in Mong Cai (Quang Ninh), Tan Thanh, Huu Nghi (Lang Son) and Ta Lung (Cao Bang) slow down, with sometimes no declarations during the China’s national day at the beginning of October. But at Lao Cai border gate, imports and exports are normal.

Lao Cai border gate (including the Kim Thanh international border gate Road No. II which was put into operation in 2013) is located at the downtown of this province as Lao Cai city, meanwhile other border gates in Lang Son, Cao Bang and Quang Ninh have a quite long distance.

On the morning of a day in October, we were present at the Kim Thanh international border gate Road No. II - main import and export area in Lao Cai, to see trading between the two countries. From early morning, containers were on a track and moved in succession to carry goods between the two countries

Talking with deputy manager of Lao Cai international border gate customs branch Tran Anh Tu, we received more interesting information on the exports of Vietnam’s agricultural products to China. The Kim Thanh international border gate Road No. II is now considered the most important area of agricultural imports and exports between Vietnam and China.

Tu said because of this speciality, the local government and agencies of Lao Cai province and Yunnan province (China) have signed cooperation agreements to facilitate agricultural imports and exports.

“At the Kim Thanh international border gate Road II, the local governments of the two sides agree to arrange one separate channel for agricultural products. A long with that, joint policies on administrative procedure reform, facilitation to import and export of the Customs sector and Lao Cai province are developed ensures the rapid clearance, especially for agricultural products to maintain the quality requirements” Tu said

Tu said agricultural products procedures implemented at the unit to export to China are diversified and numerous. There are key commodity groups including dragon fruits, dried cassava and cassava starch; green banana; pepper and cardamom; fresh flowers and other vegetables such as watermelon, jackfruit, rambutan, lychee and longan.

Kim Thanh international border gate Road II is now one of the areas with Vietnam’s largest dragon fruit exports to China. On peak days, there are about 300 containers of dragon fruit exported to China.

Even during peak periods for dragon fruits like October when the number of vehicles from the southern provinces carrying dragon fruits to the border gate is likely to hit to 400-500, the customs branch and competent forces at the border gate handle them quickly and do not to cause prolonged congestion.

However, the leader of the branch said thatto avoid congestion of dragon fruits at the peak period, enterprises and authorities need reasonable management, because every day at the international road border gate No. II Kim Thanh, China only accepts a maximum of 300 dragon fruit vehicles.

Prosperity

Deputy Manager Tran Anh Tu said the import-export turnover of the unit in the first months of the year decreased compared to the same period in 2018 due to the decline in a number of large items such as machinery, equipment and fertiliser. However, export turnover for agricultural product groups still had impressive growth, especially, such as dried cassava and cassava starch and green bananas.

Specifically, Lao Cai International Border Gate Customs Department from the beginning of the year to October 14, 2019 has handled procedures for more than 475,000 tonnes of dragon fruits, worth US$310 million, up by 15 percent in volume and 15.4 percent in value over the same period in 2018.

Export turnover of dried cassava and cassava starch was more than 1.36 million tonnes, worth more than $26.4 million, up 58 percent in volume and 97.8 percent in turnover. In addition, green bananas reached nearly 5,200 tonnes, worth nearly $2.4 million, up 91 percent in volume and 42.5 percent in value. Pepper and cardamom reached nearly 27,600 tonnes, worth nearly 67 million, up 21 percent in volume and 3 percent in value. Fresh flowers and other vegetables reached more than 59,000 tons, worth more than $30 million, up 60 percent in volume and 11.2 percent in turnover.

“With the facilitation of the Customs authority and competent forces, on peak days, the unit can clear up to 1,500 vehicles carrying imported and exported agricultural products of all kinds, meanwhile, the unit is handling procedures for about 700 to 800 vehicles every day on average," Tu said.

Another remarkable point is the prosperity of agricultural exports at Lao Cai International Border Gate Customs Branch in the context of the country's agricultural exports in the first months of 2019 slowing down.

As announced by the General Department of Customs, by the end of September, the country’s export turnover of agricultural products (including vegetables, cashews, pepper, tea, coffee, rice, cassava and cassava products, rubber) was only $12.54 billion, a year-on-year decline of 7.9 percent, equivalent $1.07 billion.

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On the occasion of China's National Day holiday 2019 (from September 28 to October 7) Lao Cai International Border Gate Customs Department still handled procedures for 532 declarations, total turnover reached nearly $42.4 million. In which, export turnover is over $16.35 million, import turnover is over $26 million.