EXPORT PROCEDURES FOR CHARCOAL

Charcoal or wood charcoal is a distinctive black product of carbon, lightweight, and is often manufactured from wood through the process of wood drying (removing other components of wood such as water, ash, resin, etc.). Charcoal has a porous structure with many hollow spaces, hence its excellent absorption capability.

Vietnam is one of the leading exporters of charcoal in the world. According to the statistics from the General Department of Vietnam Customs, in 2022, Vietnam exported 1.5 million tons of charcoal, valued at 100 million USD. The main export markets for Vietnamese charcoal are Japan, South Korea, China, Taiwan, …

Export Conditions for Charcoal

According to the regulations of Vietnamese law, the export of charcoal must meet the following conditions:

• Processed and Quality Standards: Charcoal must undergo processing and meet quality standards. The quality standards for exported charcoal are specified in Circular No. 14/2013/TT-BCT of the Ministry of Industry and Trade. Accordingly, exported charcoal must have an ash content of not more than 20%, a fly ash content of not more than 10%, a moisture content of not more than 15%, and a sulfur content of not more than 0.3%.
• Legal Origin: Charcoal must have a legal origin. The legal origin of charcoal is defined in Circular No. 14/2013/TT-BCT. Accordingly, exported charcoal must be sourced from forests authorized for exploitation, with forest exploitation permits and forest use permits.
• General Export Conditions: In addition, enterprises exporting charcoal must meet general conditions for exporting goods as stipulated by Vietnamese law.

Legal Basis for Charcoal Export:

• Trade Law of 2005
• Decree No. 69/2018/NĐ-CP regulating business conditions for gas, liquefied petroleum gas, gasoline, oil, mazut, and other types of fuels
• Circular No. 14/2013/TT-BCT specifying business conditions for charcoal.

HS Code and Export Tax for Charcoal

HS code

• 44.02 Wood charcoal (including shell or nut charcoal), whether or not agglomerated
• 4402.10.00 – Of bamboo
• 4402.20  – Of shell or nut:
• 4402.20.10 – – Of coconut shell
• 4402.20.90 – – Other
• 4402.90.00 – Other

Export Tax on Charcoal

The export tax rates for charcoal are as follows: 10% for bamboo charcoal and 5% for other types. VAT: 10%

Customs Procedures for Charcoal Export

The customs documentation for charcoal export includes:

1. Customs declaration form
2. Commercial invoice
3. Certificate of eligibility for charcoal export
4. Packing list
5. Bill of lading or other transport documents
6. Charcoal export license (if applicable)

Customs Declaration

After completing the document verification, access the electronic customs declaration software to input data and proceed with the customs declaration form.

Opening the Customs Declaration Form

After completing the customs declaration form, the customs system will report the result of the form classification. If there is a classified form, print it out and take the imported document set to the customs office to open the declaration form. Depending on the classification (green, yellow, red), follow the steps to open the declaration form.

Completing the Customs Clearance Process and Proceeding with the Export

After customs approval of the declaration form, submit the supervised declaration form to the shipping company to complete the charcoal export procedures.