Cinnamon is one of the key exporting products of Vietnamese agriculture. What are the mandatory procedures and documents for exporting cinnamon? How to successfully export this product category to the international market? Let’s find out the relevant information in the following article.
Discovering cinnamon and its potential to export from Vietnam
The scientific name of cinnamon is Cinnamomum cassia Blume, which refers to a tree with narrow and pointed ovate leaves. The flowers of the cinnamon tree are white and often grow in clusters at the ends of the leaves or at the tips of the branches. The bark part of the cinnamon tree has a spicy and aromatic taste, so it is exploited to make oriental medicine, as a cooking spice or as an herb with skin care effects. In addition, the leaves of the cinnamon tree can also be used to distill essential oils, and the stems are used to make handicrafts.
Furthermore, cinnamon is the main ingredient in the production of cosmetics and pharmaceuticals. The gap between demand and supply has brought many new opportunities to manufacturers and exporters of cinnamon products in Vietnam. Along with that, Vietnamese cinnamon is currently very popular with foreign consumers. Therefore, exporting cinnamon is also the new strategy of numerous firms and businesses today.
According to statistics from the World Spices Association, Vietnam is the third largest cinnamon producer in the world, after Indonesia and China. Vietnam anise and cinnamon are substantially consumed in the markets of India, the Middle East, Japan, Korea, the US and European countries, with the export revenue of approximately 400 million USD/year.
Detailed guideline to export cinnamon to international market
Firms expect to import or export cinnamon overseas must ensure the compliance with the following requirements:
Legal policies on cinnamon export
Cinnamon is classified as a plant and is considered as an agricultural product of Vietnam. According to Vietnamese government regulations, this product is allowed to be exported to foreign countries. Therefore, businesses who want to export cinnamon to foreign countries only need to complete export procedures like other products. There are some noteworthy legal policies when exporting this item:
- Circular No. 11/2021/TT-BNNPTNT dated September 20, 2021 replaces Circular 15/2018/TT-BNNPTNT dated October 29, 2018. This Circular regulates the HS code table for exported and imported goods under specialized management of the Ministry of Agriculture and Rural Development.
- Decree No. 125/2017/ND-CP regulates import tariffs and export tariffs of taxable goods.
- Circular No. 39/2018/TT-BTC provides specific instructions on preparing customs procedures in general and export procedures for cinnamon products in particular.
HS Code and export tariff of cinnamon products
According to the import and export tariff of 2023, cinnamon for exporting has HS Code of 09061100 (For cinnamon and cinnamon flowers, which have not been ground or crushed). In the case of grinding or crushing, the HS Code is 09062000. In particular:
- Chapter 09: Group of coffee, tea, Paraguay tea and spices
- Group 0906 – Cinnamon and cinnamon flowers
- 09061100 – Unground and uncrushed cinnamon and cinnamon flowers
- 09062000 – Ground and ground cinnamon and cinnamon flowers
- 09061900 – Group of other types of cinnamon.
- Based on Appendix I, Decree 125/2017/ND-CP, exported cinnamon is not on the list of taxable export items. Therefore, currently exported cinnamon has an export tax rate of 0%.
Mandatory documents for exporting cinnamon
Pursuant to Clause 5, Article 1 of Circular 39/2018/TT-BTC (amending Article 16 of Circular No. 38/2015/TT-BTC) on export documents. For cinnamon products, when exporting, enterprises need to provide documents including:
- Commercial invoice
- Goods packing slip
- Export entrustment contract (In case the enterprise entrusts a third party)
- Certificate of export cinnamon quarantine
- Certificate of individual/organization qualified to export cinnamon according to the provisions of law in case of first-time export.
Classification of cinnamon for exporting
To bring cinnamon products to foreign markets, it should adapt with quality, environmental and health safety standards. There are some types of cinnamon that are considered as meeting standards when being exported to the EU market when they comply with certain requirements below:
- Cinnamon hill: The cinnamon stick must be straight, bent into a trough shape or a number 3 shape, with both ends of the cinnamon stick beveled. The cinnamon stick has no knots and no signs of being crushed or broken. Cinnamon stick color is brown or dark brown. Cinnamon sticks must not have more than 2 dead eyes with a length through the center not greater than 40mm.
- Pine cinnamon: The cinnamon stick must be straight, if not only slightly curved in one direction, it can be rolled into a tube or rolled on both edges. The two ends of the cinnamon stick are beveled or sawed. Cinnamon stick color is brown or dark brown. Cinnamon sticks must not have more than 2 dead eyes with a length through the center not greater than 40mm.
- Broken cinnamon: Consists of broken pieces of cinnamon that are brown or dark brown in color.
- Cinnamon scraps: Includes thin pieces of cinnamon peeled from small cinnamon branches or thin cinnamon sticks.
Responding to queries about whether exported anise & cinnamon needs to register for plant quarantine?
According to Section 11 of Appendix I of Circular 15/2018/TT-BNNPTNT, cinnamon is an object subject to plant quarantine in Vietnam. Therefore, according to Clause 1, Article 31 of the Law on Plant Quarantine Protection 2013, cinnamon exporting companies need to apply for a quarantine certificate for this item. And the process for applying for a certificate is as follows:
Step 1: Enterprises need to prepare documents and records including:
- Certificate of phytosanitary registration for export is specified in Appendix IV, issued together with Circular No. 33/2014/TT-BNNPTNT);
- In case of re-export, it is necessary to prepare the original phytosanitary certificate of the exporting country.
Step 2: Submit documents for plant quarantine registration to the competent authorities. Companies can submit applications at regional plant quarantine departments or at plant quarantine stations at border gates.
Step 3: After receiving the documents, the quarantine agency needs to check and provide feedback to the business.
When exported cinnamon fully meets the quarantine requirements of the importing country, the state agency issues the enterprise a plant quarantine certificate.
After inspection, if found to not meet standards, the plant quarantine authority will notify the owner of the object and refuse to issue circulation papers for this item to businesses.
Summary
Through this article, readers have clearly understood the procedures for exporting cinnamon. We hope that the knowledge that Vietlinh Agrimex shares has helped businesses better understand the process of exporting and importing this product to foreign markets. Any business that needs to import cinnamon from Vietnam, please contact us at hotline: +84345128188 for the best support.
Viet Linh’s cinnamon products
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Cinnamon stick
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Whole Cinnamon
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Split cinnamon
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Broken cinnamon
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Cinnamon powder
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