Removing obstacles for cinnamon essential oil exporting enterprises

The General Department of Customs has sent an urgent document to Lao Cai Customs Department and provincial and municipal customs departments to direct customs branches to guide businesses to clearly declare the export purpose of cinnamon essential oil.

The General Department of Customs requests local Customs Departments to guide businesses in declaring according to export purposes.

Local customs departments guide businesses to declare according to export purposes.

In response to complaints from businesses facing difficulties due to regulations on the import and export of medicinal herbs by the Ministry of Health, the General Department of Customs has issued a document to remove obstacles and at the same time recommended that the Ministry of Health clarify the management policy for dual-use essential oil exports.

Specifically, in the urgent document No. 1584/TCHQ-GSQL sent to Lao Cai Customs Department, and at the same time sent to provincial and municipal customs departments, the General Department of Customs requested these units to instruct enterprises to clearly declare the export purpose for cinnamon essential oil when exporting.

The General Department of Customs stated: The Ministry of Health issued Official Dispatch No. 1757/BYT-QLD dated April 7, 2024 and No. 1371/BYT-QLD dated March 22, 2024 requesting to remove difficulties and obstacles for businesses.

Accordingly, the Ministry of Health guides: “The purpose of exporting cinnamon essential oil products depends on the needs of the enterprise and is determined by the enterprise itself. Currently, the export of cinnamon essential oil products for food, beverage, and spice purposes is under the management authority of the Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development. The Ministry of Health only manages the export and import of medicinal herbs; extracts from medicinal herbs; essential oils for medicinal purposes, food additives, and cosmetics….”.

Based on the opinion of the Ministry of Health, the General Department of Customs requests the Lao Cai Customs Department to direct customs branches to guide enterprises to clearly declare the export purpose of cinnamon essential oil when exporting, specifically: in case enterprises declare cinnamon essential oil for export as medicinal materials, it shall comply with the provisions of pharmaceutical law.

In case an enterprise declares cinnamon essential oil for export as food, food additives, cosmetics or other purposes, it must compare the provisions of food safety law and related fields to determine the corresponding management policy and handle procedures according to regulations.

In case of problems or difficulties beyond authority, report to the General Department of Customs for timely guidance and direction.

Regarding this issue, the General Department of Customs sent a document to the Ministry of Health requesting clarification of the management policy for dual-use essential oil exports (which can be used as raw materials for medicine or for other purposes).

According to the General Department of Customs, the item "cinnamon essential oil" is an item on the list of medicinal herbs issued with Circular No. 48/2018/TT-BYT dated December 28, 2018 of the Ministry of Health (not yet abolished in Circular No. 03/2021/TT-BYT dated March 4, 2021 of the Ministry of Health).

Article 2 of Circular No. 03/2021/TT-BYT stipulates: In case the exported and imported goods specified in the Appendix issued with this Circular are used for the purpose of making medicines and pharmaceutical ingredients, the provisions of legal documents on pharmaceuticals shall apply (this principle is not specified in Circular 48/2018/TT-BYT).

Thus, based on the above regulations, the items in the list issued with Circular No. 48/2018/TT-BYT are managed according to pharmaceutical law, the items in the list issued with Circular No. 03/2021/TT-BYT are managed according to purpose (pharmaceuticals or other related fields, specifically the items in Circular No. 03/2021/TT-BYT if declared for medicinal purposes are still managed according to pharmaceutical law).

In order for the Customs authorities and enterprises to implement in a unified manner, the General Department of Customs requests the Ministry of Health to provide unified guidance on the above issue, ensuring proper implementation of legal regulations.

In the immediate future, to promptly remove obstacles for businesses and facilitate export activities of cinnamon essential oil, the General Department of Customs has issued a document guiding the customs departments of provinces and cities to implement.

Recently, the press has reported difficulties in exporting some medicinal herbs, affecting the production and business activities of many enterprises.

Cinnamon essential oil exporting businesses are facing difficulties due to regulations on medicinal business of the Ministry of Health, leading to hundreds of tons of essential oil being in stock.

In addition to the reasons of market difficulties and price reduction, there are also reasons due to difficulties in implementing some regulations of the Ministry of Health in Circular No. 48/2018/TT-BYT dated December 28, 2018 and Circular No. 03/2021/TT-BYT dated March 4, 2021.

On April 10, Prime Minister Pham Minh Chinh signed Official Dispatch 35/CD-TTg sent to the Minister of Health and the Minister of Finance on removing difficulties for medicinal herb export activities.

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