Are you looking to learn about exporting charcoal from Vietnam to the international market? Are you looking to know what the export tax on charcoal is at this time? What form of certificate of origin (C/O) is required? What are the procedures for exporting charcoal? What is the process for exporting charcoal?
1. Conditions for exporting charcoal
According to Article 4 of Circular No. 15/2013/TT-BCT regulating coal export, only enterprises are allowed to export coal. Coal exporting businesses must be businesses that meet the requirements for trading coal. According to the regulations in Circular No. 14/2013/TT-BCT issued on July 15, 2013, by the Ministry of Industry and Trade, which stipulates the conditions for trading coal.
In addition, charcoal is permitted for export when it meets the following conditions:
- Charcoal must be processed and meet quality standards. Or equivalent to the quality standards stipulated in Appendix I attached to Circular No. 15/2013/TT-BCT.
- Charcoal must have a legal origin as stipulated in Circular No. 14/2013/TT-BCT of the Ministry of Industry and Trade on the conditions for trading coal.
- Other regulations and conditions (if any) under the Government's management regarding import and export activities may vary depending on the period.
2. Charcoal export policy
Charcoal exports are not included in the list of prohibited export items. Therefore, businesses can export charcoal to many foreign partners. However, when exporting, businesses need to pay attention to the following policies and regulations:
- Document No. 07/VBHN-BNNPTNT dated April 25, 2016, is a consolidation of Circular No. 01/2012/TT-BNNPTNT and Circular No. 40/2015/TT-BNNPTNTThis document regulates the documentation of legal forest products and the verification of their origin.
- Circular No. 24/2017/TT-BNNPTNTRegulations on HS Code tables for export goods under the management of the Ministry of Agriculture and Rural Development.
- Circular No. 04/2015/TT-BNNPTNT issued on February 12, 2015: To specify some contents in Decree No. 187/2013/ND-CP on international trade activities for goods in the fields of agriculture, forestry, and fisheries.
3. HS code and export tax on charcoal
The HS Code and export taxes for charcoal products under group 4402 are as follows:
| HS Code | Product description | Export tax | Export tax under CPTPP | Export tax under EVFTA | Export tax under UKVFTA |
| 4402 | Charcoal (including charcoal burned from fruit peels or seeds), whether or not it has been solidified into blocks | ||||
| 44021000 | – Of bamboo | 10 | 10 | 10 | 10 |
| 440220 | – Of the fruit or seed peel: | ||||
| 44022010 | – – Coconut shell charcoal | 0 | 0 | 0 | |
| 44022090 | – – Other types | 10 | 10 | 10 | 10 |
| 44029000 | – Other types | KBTC (ND 57/2019/ND-CP) | |||
| 4402.90.90.10 | – – – Wood charcoal (Ash content ≤ 3%; Fixed carbon content (C) – is elemental carbon, odorless, smokeless when ignited ≥ 70%; Heat ≥ 7000 Kcal/kg; Sulfur content ≤ 0.2%) | 5 | 5 | 5 | 5 |
| 4402.90.90.20 | – – – Coal made from sawdust | 10 | 10 | 10 | 10 |
| 4402.90.90.90 | – – – Other types | 10 | 10 | 10 | 10 |
When exporting charcoal, the exporter must pay:
- No VAT is payable (According to current regulations, VAT on exported goods is 0%)
- Export tax:
Charcoal is a taxable export item; when exporting charcoal, the exporter is subject to the tax rate as shown in the table above. It should be noted that goods exported to the EU, UK, or CPTTP countries, or chemical exports, may be eligible for special preferential tariff rates under the agreement
4. Customs records for charcoal export
Customs documents for charcoal export include documents such as:
- Commercial contract;
- Commercial invoice;
- Packing slip;
- Coal export trust contract (if applicable);
- The list of forest products bears the certification mark of the local forest protection agency, at the county level, or sub-department;
- The list of forest products prepared by self-employed enterprises is based on form No. 01 as stipulated in Circular No. 01/2012/TT-BNNPTNT.
5. Documents proving the legality of charcoal exports
When processing charcoal export procedures, in addition to the documents required by Customs. Exporting businesses need to present additional documents, including:
- Sample analysis form to confirm compliance with standards and quality of the exported coal batch. This analysis form was issued by a laboratory that meets VILAS standards.
- Documents proving the legality of exported charcoal.
So what documents are needed to prove the legality of exported charcoal? According to Article 5 of Circular No. 15/2013/TT-BCT, the documentation proving the legality of exported charcoal includes:
- For charcoal mining businessesThis includes mining licenses and extraction permits issued by competent state agencies that are still valid.
- For charcoal processing businessesThis includes a certificate of investment for a coal processing facility. And there must be a contract to purchase legally sourced coal for processing.
- For commercial enterprises engaged in the export and import of charcoal: A contract for the sale of goods accompanied by a copy of the value-added tax invoice. Or valid documents for purchasing coal confiscated or distributed by competent state agencies.