Coffee is one of six agricultural products with export value in the “top” of Vietnam. According to the Vietnam Coffee and Cocoa Association (Vicofa), Vietnam’s coffee exporter is the second largest in the world, accounting for 8.3% of the global coffee export market share, second only to Brazil. Currently, there are many Vietnamese enterprises dealing in processing and exporting coffee to foreign markets, mainly exporting coffee beans.
In order to properly determine import policies and procedures, it is necessary to first determine the HS code of the item.
HS Code for coffee beans
Coffee with HS under Chapter 9: COFFEE, CHINESE, PARAGOAY JUST AND SPICESHeading 0901 – Coffee, roasted or not roasted, whether or not decaffeinated; pods and coffee silks; Coffee substitutes contain coffee in some proportion.
Depending on the nature or processing of coffee beans (roasted or fresh), there will be different HS codes.
When exporting coffee, Enterprises need to pay taxes as follows:
According to Appendix I – Export Tariff according to the list of taxable goods of the Government’s Decree 125/2017/ND-CP dated November 16, 2017 – regulations on the export of agricultural products (coffee), then VAT applied to exports is 0%
PROCEDURES FOR EXPORTING COFFEE BEANS
Step 1: Complete the plant quarantine registration procedures:
Requirement: Documents needed to transmit PQS (PLANT POSITIVE REGISTRATION software)Commercial contract, purchase and sale of goods
Bill of Lading (provided after the train runs)
Enter consignment data, then export the application for PLANT PLANTS from PQS software to send to the consignee for signature and stamp.
Then, bring the dossier to the plant quarantine sub-department to register for quarantine so that the sub-department can check the validity of the dossier.
Step 2: Open the customs declaration
Requirements for customs declaration documents:– Sale contract
– Commercial invoice
– Goods packing slip
– Booking
Enter the shipment information into the customs declaration software (ECUS), transmit the declaration and get the threading response.
Step 3: Bring the dossier to the customs office to register (in case the shipment is classified into yellow or red channel)
Step 4: Take a sample of PLANTS, fumigate (if any) and issue a certificate of POTATO PLANTS, Fumigation.
Quarantine agency conducts sampling for PLANT CHECKLIST at warehouses, ports – where consignments are awaiting export.
After taking the PLANTS sample, fumigate the consignment (required: bill of lading)
The time to issue a Phytosanitary Certificate for the consignment is within 24 hours from the beginning of the quarantine.
Time to issue fumigation certificate is from 1-2 days from the time of spraying.
Step 5: Clearance of the shipment, liquidation of the export clearance declaration
NOTE: Certificate of origin of coffee productsCoffee exports use 2 types of CO:
CO under FTA agreement (BUSINESS chooses an FTA suitable to the market of the IMPORTING country to enjoy tax incentives)
CO form ICO
For coffee, there is a separate C/O form that is C/O ICO:
– C/O form ICO is issued by the Vietnam Chamber of Commerce and Industry (VCCI) in accordance with the regulations of the International Coffee Organization (ICO).
– C/O form ICO used for coffee goods of Vietnamese origin exported to other countries. There are types of products: green coffee, green coffee, roasted coffee, instant coffee, and others.
– If a shipment of coffee includes many types of coffee, it must be declared in multiple sets of C/O form ICO corresponding for each type of coffee.
