Confectionery is a popular type of food enjoyed by both children and adults. The demand for confectionery products is always high, especially during the year-end season. Many domestic businesses are recognizing this potential and intensifying their efforts to export confectionery to international markets. However, customs procedures often pose significant challenges and uncertainties for these businesses. The following article will provide detailed and comprehensive information on customs procedures for exporting confectionery, serving as a business reference.
Vietnam’s Exporting Confectionery Potential in 2024
In August 2023, the export of confectionery and cereal products from Vietnam saw significant growth, according to General Department of Vietnam Customs data. This category ranked among the top four with the most impressive growth rates.
In August 2023, the export value of this group exceeded 130 million USD, representing a 55% increase compared to the previous month. In the first eight months of the year, the exports of confectionery and cereal products reached over 682 million USD, marking a slight increase of 4.3% compared to last year.
The export value of confectionery and cereals of all kinds in August 2023 increased by 55% compared to the previous month
Major markets such as the US, Japan, South Korea, Cambodia and China are the main importers from Vietnam.
The US, Japan, South Korea, Cambodia and China are the five main markets consuming confectionery and cereal products from Vietnam
In the first 6 months of 2024, the situation of confectionery exports also continuously showed positive signs. It is predicted that the last 6 months of the year will be a more “explosive” period for businesses in this field.
Requirements in the Exporting Confectionery Sector
To ensure full compliance with legal requirements and regulations, confectionery exporters must thoroughly understand the export and import processes as per Decree No. 69/2018/ND-CP, specifically:
Goods Exported and Imported by License
Exporters and importers of confectionery must obtain licenses from the relevant ministries or agencies. This applies to goods specified as requiring export or import licenses.
Goods Exported and Imported under Conditions
Traders must meet the conditions set forth by law for goods that have specific export or import requirements.
Goods Listed in the Export and Import List
Traders must comply with the provisions of Article 65 of the Law on Foreign Trade Management, which includes being subject to inspection by the competent authorities.
Goods Not Covered by Clauses 1, 2, or 3
Traders only need to complete export and import procedures with customs authorities for goods that do not require licenses or special conditions.
HS Code and Export Duties for Exporting Confectionery Customs Procedures
HS Code
Each type of confectionery will have a different HS Code. Therefore, businesses need to refer to Government Decree No. 125/2017/ND-CP, effective from January 1, 2018, to accurately determine the HS Code for their confectionery products. Specifically:
Subheading 17.04
Consists of sugar confectionery (including white chocolate), which does not contain cocoa.
List of products in group 17.04 of Decree No. 125/2017/ND-CP of the Government
Subheading 18.06
Includes chocolate and other food preparations containing cocoa.
Subheading 19.05
Including bread, pastry, cakes, biscuits and other bakers’ wares, whether containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products.
Subheading 20.07
Consists of jams, fruit jellies, marmalades, fruit or nut purees and fruit or nut pastes, obtained by cooking, whether containing added sugar or other sweetening matter.
Export Duties
According to regulations, both taxes, including value added tax (VAT) and export tax, are completely exempted.
Thanks to the 0% export tax, it has helped increase the attractiveness of the confectionery industry. And helped businesses promote export activities effectively.
Required Documentation for Exporting Confectionery Customs Procedures
Confectionery is not a prohibited or restricted export goods, so the enterprise carries out normal commercial export procedures without applying for an export license.
The export customs dossier will be based on Clause 5, Article 1 of Circular 39/2018/TT-BTC (amending Article 16 of Circular 38/2015/TT-BTC). The Enterprise needs to attach the following documents:
- Commercial Invoice;
- Packing List;
- Other relevant documents.
In addition, below are some documents required by the importer:
- Bill of Lading;
- Certificate of Origin;
- Health Certificate;
- Other relevant documents.
Customs Procedures for Exporting Confectionery
The process of customs clearance for import and export of confectionery is relatively complicated, you need to pay attention to the following steps to ensure the process goes smoothly:
Search for export customers
For confectionery products, the export subjects are usually distributors in the importing country, supermarkets, wholesalers, etc.
Negotiating terms of sale
There are many terms in sale, but below are the terms that you need to pay special attention to: Product name, packaging specifications (Package), Payment method (LC, TTR, DP, DA..), selling price of confectionery under which Incoterms (FOB price, CIF price, CFR price, EXW price,..), minimum order (MOQ), delivery time (Delivery time), documents required by the seller (Shipping Documents): Invoice, Packing List, CO, CFS,..
Apply for a license in Vietnam
The enterprise can now start applying for a license for the relevant documents in Vietnam as required by the importer at the competent authority. Each importer will have different requirements, the enterprise needs to clarify this step with the importer to avoid unnecessary problems later.
Signing the contract
After agreeing on the terms, the enterprise proceeds to sign the confectionery export sales contract.
Carry out customs procedures in Vietnam
Based on the terms you have signed, the enterprise proceeds to carry out or hire a unit to carry out customs procedures for the exporter in Vietnam, transport the confectionery container from the warehouse to the port, book shipping costs, make a certificate of origin C/O, etc. Below are some common C/O forms:
- Exporting confectionery to China: Making CO form E.
- Exporting confectionery to ASEAN countries: Making CO form D.
- Exporting confectionery to Korea: Making CO form AK.
- Exporting confectionery to Japan: Making CO form AJ, VJ.
Carry out customs procedures abroad
Enterprises begin to carry out or hire a unit to carry out customs procedures for the importer abroad, transporting confectionery from the port of import to the warehouse.
Considerations for Shipping Confectionery from Vietnam to International Destinations
When transporting small quantities, it’s best to ship by sea using LCL (Less than Container Load). For larger quantities, it’s better to choose FCL (Full Container Load) shipping by sea.
Confectionery is usually packed in cartons, with or without pallets. These items are generally lightweight but take up a lot of space. So, when using FCL shipping, it’s recommended to use a 40ft container to keep costs down.
SSR Logistics – Reliable Service Providers for Exporting Confectionery Customs Procedures
Export customs procedures for confectionery are mandatory, requiring strict compliance with import-export regulations. This procedure is relatively complex, time-consuming, and demands significant expertise. Recognizing this, SSR Logistics was established with a mission to be a trusted partner in helping businesses with efficient and cost-effective customs clearance procedures for exporting confectionery.
Why Choose SSR Logistics?
- Experienced team of professionals;
- Streamlined processes;
- 24/7 dedicated support;
- Competitive Pricing.
SSR Logistics provides Customs Clearance Services for Exporting Confectionery
SSR Logistics’s service for Exporting Confectionery Customs Procedures includes:
- Free consultation on export procedures;
- Support in preparing complete and accurate export procedures;
- Submit documents and monitor the progress of export procedures;
- Providing solutions and advice in case of any arising issues;
- Offering import and export cargo transportation services.
With SSR Logistics, you can be assured of smooth Exporting Confectionery Customs Procedures. We are committed to providing you with professional, reliable, and efficient services, helping you save time and costs.
Through this article, SSR Logistics hopes that customers have gained an overall understanding of Exporting Confectionery Customs Procedures. To explore more diverse knowledge in the field of logistics, please visit our Logistics Knowledge section.
SSR looks forward to becoming your reliable logistics partner, providing optimal solutions for your import and export business. If you have questions about our services, please contact us for specific advice.
With our experienced team, extensive network and flexible shipping & customs solutions, SSR Logistics is confident to deliver excellent services to our clients.
Businesses that need customs and import-export, please contact SSR Logistics via Hotline (+84) 911 988 484 or leave your information here for specific advice.
With a modern warehouse system and experienced transportation staff, SSR Logistics provides a variety of additional services such as: customs clearance, warehouse leasing, domestic transportation, international transportation by sea and air, and international express delivery.
