WOOD PELLET EXPORT PROCEDURES AT SMART LINK

Vietnam’s wood pellet products are attracting strong interest from major markets such as South Korea, Japan, and the EU due to the current challenges in fuel supply, as well as environmental, climate, and human health concerns. What procedures are required for wood pellet export? Let’s explore this with Smart Link Logistics in the article below!

What Are Wood Pellets Used For?

Wood pellets are made from materials like sawdust, wood shavings, corn stalks, wood scraps, leftover wood, peanut shells, and rice husks. These materials are selected, dried, and compressed under high pressure to create small and hard pellets that can replace traditional fuels. Wood pellets have low moisture and ash content but produce high heat, making them particularly safe for human health.

Wood pellets are widely used for various purposes and are highly favored. Below are some common applications of wood pellets:

Fuel: In industry, wood pellets are used on a large scale to increase thermal efficiency and reduce pollution. Additionally, they are used on a medium and small scale for cooking, heating, and boiling water.
Animal Bedding: Wood pellets are used as bedding for livestock due to their excellent moisture absorption, odor elimination, softness, and easy cleaning.
Agricultural Use: After burning, wood pellets produce a variety of minerals, which can be used as fertilizer to nourish plants.
Environmental Impact Reduction: Wood pellets help minimize negative environmental impacts by avoiding the use of waste materials for bioenergy combustion.

Wood Pellets Exported to International Markets

Export Potential of Wood Pellets

According to reports by Forest Trends and the Research Group of the Vietnam Timber and Forest Products Association, the total export volume of wood pellets in 2022 reached 4.88 million tons, an increase of 39.35% compared to 2021. Export turnover in 2022 exceeded $787 million, up more than 90% from 2021. The export price of wood pellets increased continuously in 2022, reaching a record $189 per ton.

In the first three months of 2023, the export turnover of wood pellets reached $212 million, a 31% increase compared to the same period last year. Wood pellet exports continue to grow steadily amid fuel scarcity and the trend toward reducing greenhouse gas emissions. However, Vietnamese businesses must pay attention to quality regulations, control input materials, and ensure product quality to meet the strict standards of South Korea, Japan, and the EU.

Necessary Documents for Wood Pellet Export

The process and procedures for exporting wood pellets follow standard regulations, but a phytosanitary certificate and a fumigation certificate are required.

Phytosanitary Certificate: This is a mandatory document for agricultural and forestry products when exporting. Businesses must bring wood pellet samples to the quarantine agency for verification. The agency will then provide a draft certificate for businesses to send to importers for review. Upon meeting the standards, businesses will pay the fee and receive the official certificate.
Fumigation Certificate: After the quarantine and disinfection check, fumigation will be conducted to ensure product safety and eliminate bacteria and pests. Bromide is a commonly used chemical in this process.

Legal Basis

Circular 01/2012/TT-BNNPTNT: Regulations on legal timber documentation.
Circular 40/2015/TT-BNNPTNT: Amendments and additions to Circular 01/2012/TT-BNNPTNT.
Document 07/VBHN-BNNPTNT/2016: Consolidated documentation on legal timber documentation and inspection.
Circular 24/2017/TT-BNNPTNT: Issuing the HS Code list for exported and imported goods under the management of the Ministry of Agriculture and Rural Development.

HS Code and Export Tax for Wood Pellets

The HS Code for wood pellets is 44013100. According to the 2022 import-export tax schedule, the export tax for wood pellets is 0%, meaning businesses are not required to pay tax when exporting this product.

Customs Documentation for Wood Pellet Export

According to Circular 39/2018/TT-BTC, the customs documents for wood pellets include:

Customs declaration form.
Bill of lading.
Export license.
Commercial invoice.
Sales contract.
Packing list.
Phytosanitary certificate.
Fumigation certificate.

The above information outlines the necessary procedures for wood pellet export that Smart Link Logistics wants to share. We hope this article helps businesses better understand the process and documents needed to successfully export wood pellets. If you need support with legal matters or customs procedures in import and export, contact Smart Link Logistics for prompt and effective consultation and assistance. We are proud to have over 14 years of experience in the logistics field and will accompany you throughout your journey.

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If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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