Quy Nhon Port has converted the export method from ships to containers for wood pellets exported to Europe and Japan. Photo: DNCC

“Capital” of the wood industry faces difficulties

At a recent meeting between the Binh Dinh Customs Department and businesses from the Binh Dinh Wood and Forest Products Association, Mr. Le Minh Thien, Chairman of the Association, noted that Binh Dinh has long been known as the "capital" of the wood industry, especially for outdoor wood products.

In 2024, wood businesses continue to face numerous challenges and difficulties in terms of orders and export markets due to geopolitical conflicts, soaring shipping costs on the Asia-Europe and Asia-America routes from June to August 2024, and the significant impact of inflation, high interest rates, and tight monetary policies on major markets like the US, EU, and UK. Additionally, new EU regulations such as EUDR have posed further challenges.

Domestic business environments also present numerous obstacles, threatening the growth of the wood industry in the last months of 2024 and making it more difficult for the Association to achieve its export target of over US$1 billion for the wood industry in 2024.

However, businesses have identified and firmly committed to a group of solutions to realize this goal based on a strategy of diversifying markets and customers with a focus on self-reliance, cost-saving, and increased investment in innovation and technological improvements. They are also being creative in finding and selecting customers and orders that suit their capabilities and production conditions.

In the first nine months of 2024, Binh Dinh's wood industry achieved a 25% year-on-year growth in export turnover, reaching US$796.47 million, accounting for approximately 61% of the province's total export turnover.

According to Mr. Thien, this result demonstrates the significant support from the Binh Dinh Customs Department in general and the Quy Nhon Port Customs Branch in particular.

Over the years, with a high sense of responsibility, the officials of the Binh Dinh Customs Department have always accompanied wood businesses during difficult times and when encountering obstacles in implementing new regulations. They have promptly resolved import-export procedures in a timely manner, from granting empty containers to customs clearance and timely loading goods onto export vessels.

"Due to the specific characteristics of Quy Nhon Port, ships often arrive at the port on weekends, requiring after-hours work and within a short period of time. Therefore, the Binh Dinh Customs Department and the Quy Nhon Port Customs Branch have created conditions for overtime work, which has been supported and appreciated by the business community and the Association," said Mr. Le Minh Thien.

Do not let problems affect businesses

Frequently carrying out import-export procedures for wood products via Quy Nhon Port, a representative from Gia Han Interior and Exterior Co., Ltd. (Binh Dinh) shared that the company processes approximately over 50 containers of wood materials and products each month. The current customs procedures are relatively simple, especially for exports, with a declaration rate classified as "Green" - exempt from inspection - exceeding 95%.

Not only in the above case, but according to businesses, the Binh Dinh Customs Department has made significant progress in administrative reforms, helping businesses to quickly and conveniently clear goods, reducing costs, and facilitating timely production and exports.

To achieve the above results, Binh Dinh Customs Department has always identified administrative reform as a top priority to facilitate trade, nurture state revenue, and lay the foundation for implementing digital customs and smart customs. Therefore, the unit pays special attention to implementation, ensuring that no obstacles or difficulties affect business operations.

For wood businesses, over the years, the Binh Dinh Customs Department and the Binh Dinh Wood and Forest Products Association have signed and effectively implemented a Cooperation Agreement. The Association has always been a bridge of information between member enterprises and the customs authorities, such as appointing representatives from both agencies to promptly grasp information, exchanging official letters, proposing solutions to address arising issues, and facilitating the import-export activities of wood businesses in compliance with the provisions of customs law.

For example, requesting the General Department of Customs and the Forest Protection Department to promptly resolve issues such as not applying HS code 4407 to the group of laminated wood panels and exported tabletops, cabinets, and kitchen shelves;

Cooperating with the Quy Nhon Port Customs Branch to advise Idemitsu members on the process of resolving the case of determining the customs code and export tax rate for black wood pellets; proposing to the Ministry of Finance and the General Department of Customs to adjust the export tax rate for black wood pellets from 10% to 5%.

According to enterprises, the Binh Dinh Customs Department has applied information technology in procedures, promoting administrative reforms in customs operations, creating a favorable, transparent, and open business environment, reducing costs, and creating maximum conditions for the business community in the province, including wood enterprises and supporting businesses.

In addition, to provide more frequent support, the Binh Dinh Customs Department has signed a memorandum of understanding and granted certificates of "Enterprise as a member of the Pilot Program to Support and Encourage Enterprises to Voluntarily Comply with Customs Law" with many practical benefits for wood businesses. Recently, on September 2, 2024, the unit signed a cooperation regulation with the Binh Dinh Wood and Forest Products Association to implement the task of developing the Customs-Enterprise partnership, aiming to jointly perform the functions of each party well.

To ensure the goal of achieving an export turnover of over US$1 billion for Binh Dinh's wood industry in 2024, wood businesses hope to continue receiving the attention and support of the customs authorities to create the most favorable conditions for the wood business community in production and exporting goods.