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Fertilizer management under the new decree: Difficulties come from importing to trading

Fertilizer management under the new decree: Difficulties come from importing to trading
Author: Thanh Nguyen - Bui Diep
Publish date: Thursday. November 9th, 2017

Decree 108/2017 / ND-CP (Decree 108) on fertilizer management has been promulgated in replacement of Decree No. 202/2013 / ND-CP on fertilizer management. It is difficult for enterprises both in the process of import and production and trading.

The new regulation on fertilizer management considered by many enterprises does not motivate companies to compete and develop. Picture: ST.

Cumbersome regulations

Up to the present time, the number of fertilizer products allowed for circulation in Vietnam is 14,174 products, both inorganic and organic fertilizers. In particular, organic fertilizer accounted for 53%. The factory has 706 factories. However, nowadays, the fertilizer products are still being sent by Ministry of Industry and Trade to Ministry of Agriculture and Rural Development. Therefore, the quantity of fertilizer continues to increase.

With the amount of fertilizer and factory as above, the amount of inorganic fertilizer is 26.5 million tons and organic fertilizer about 2.5 million tons. Every year, Vietnam imports about 4 million tons of fertilizer. Thus, the total fertilizer production is about 33 million tons, more than 3 times more than the demand for agricultural production (from 10-11 million tons annually).

According to Mr. Hoang Trung - Director of Department of Plant Protection (MARD): One of the new points of Decree 108 is in the regulation of fertilizer quality management. Specifically, the state inspection for the imported fertilizer was entrusted to MARD for management instead of the former Customs. 100% of imported fertilizer must be inspected by the state, but the fertilizer is allowed to be put in the storage of enterprises. Customs offices shall complete the procedures prescribed by law after obtaining state inspection results. Enterprises are allowed to use state examination results to make regulation.

That the imported fertilizer is subject to quality control is natural. However, how the management is worth discussing

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said that the new point in managing the quality of the imported fertilizer in Decree 108 is a factor that makes many businesses face with difficulties. Mr. Loc stated in Article 30.1: All imported fertilizer must be the inspection of state quality unless the imported fertilizer for testing, specialized, gift, sample, exhibition, scientific research; Article 27.3 states: Organizations and individuals importing fertilizer outside the papers and documents in accordance with the regulations on import of goods shall also have to submit to the customs office to notify the result of state inspection of the imported fertilizer quality in the case Clause 1, Article 30, Decree 108; Article 31 also requires the inspection to last for at least 11 days, of which one day to check the validity of the file and the remaining 10 days from the time of sampling to the return of results.

Many companies in the fertilizer industry say that the above regulation on specialized testing in fertilizer import is too complicated, too cumbersome with too many tests and too long test time. The whole regulation makes enterprises prepare a lot of papers, documents, waiting, ... make difficulties, "Loc emphasized.

Is it convenient for the manager?

In order to import fertilizer, enterprises must meet many conditions, but according to Decree 108, it is not easy to participate in fertilizer production or trading. Regarding production conditions, a series of equipment provided so that not all units can meet. Even advertising and conferences with national circulation products must also apply for permission from 63 provinces and cities. The certificate of eligibility for production is limited 5 years instead of indefinite like before. Some companies have expressed the idea of starting a business in the fertilizer industry, but with the regulations, it is sure that businesses will run out of their hope from the starting

Not only expressed urgent at the quality management of fertilizer import, around the content of Decree 108, according to Mr. Vu Tien Loc, regulations on fertilizer dealers also have to review. "Article 19, Decree 108 stipulating the sale of fertilizers must also have a certificate. The fertilizer seller must have a degree in agriculture or a certificate of professional fostering in fertilizer. This certificate is issued by the Plant Protection Department after 3 days of training. Such management is excessive, "Loc said.

While many experts are concerned about the feasibility of asking the fertilizer trader to have the certification, the above qualification, Hoang Trung explained: The requirement is not impossible, it is true. This is because the Plant Protection Department has a system of 63 branches and very strong stations in the country. This system is closely managing each of the over 30,000 agents, shops selling materials and pesticides in the country. While practically all of these facilities are trading in fertilizers.

Talking to reporters Customs, TS. Nguyen Dang Nghia, a fertilizer expert said that in general, Decree 108, despite its introduction, contains many new contents, but the key issue is the backlog of fertilizer management which is shifted from the Ministry of Industry and Trade without being resolved. "When the Ministry of Industry and Trade participates in fertilizer management, a number of plants have been licensed to produce fertilizers and the numerous types of fertilizers are recognized ... This makes the fertilizer market turbulent, artificial fertilizer, poor Quality has the opportunity to roll. However, Decree 108 was issued to focus on the content of tightening fertilizer management, convenient for managers, but no way to solve the problem on how, "said Nghia.

Some evaluators, covering the whole of Decree 108, expressed the general feeling that the management agency had a strong emphasis on post-inspection. This is really beneficial to managers without consideration for the development of agriculture in general, the fertilizer industry in particular. In addition, this is one of the rare legal documents issued by the agricultural sector that has not yet been promulgated. With countless "beads" as the current, it is likely that the "longevity" of Decree 108 may not be longer than Decree 202 before the bag and management of fertilizers are unknown to ever have a satisfactory solution.

Some new points in Decree 108

Firstly, on the scope of regulation: If the past regulation was announced to be circulated, now it is tightened, it must go through technical steps to the stage of circulation and then is recognized. Naming, labelling and advertising are added. The next step is the change in management approach. Previously the two management ministries are now only managed by MARD to create initiative and avoid overlapping.

Secondly, about testing: Previously, the regulation allowed enterprises and individuals to self-test. Decree 108 is very strict as All prior products to circulation must be tested (except for one basic type, organic fertilizer and scientific works from the department level upwards are recognized technical progress it is not assayed). All fertilizers tested must be tested in eligible institutions.

Thirdly, the production conditions: Compared to Decree 202, Decree 108 clarifies the field of fertilizer production. Some of the equipment specified in the annexes attach specific conditions. The validity of a certificate of eligibility for production is only five years rather than the same as before.

Fourthly, the Fertilizer trading: According to Decree 108, agents who want to trade in fertilizers must have a certificate of eligibility.

Fifthly, on fertilizer quality control: The state inspection of the imported fertilizers was given responsibility for management by MARD instead of the previous one. 100% of the imported fertilizer lots are subjected to state inspection, but the imported fertilizer is allowed to be put in the storage of enterprises. Customs offices shall complete the procedures prescribed by law after obtaining the state inspection results. Enterprises are allowed to use the state examination results to make regulation.

Sixthly, labelling and naming of products are clearly defined in addition to the regulations of Decree 143 of the Government on labelling and fertilizer as a particular item, so it is necessary to add some general provisions such as the contents of the decision is announced for circulation in Vietnam.

A very important new point in Decree 108 is decentralization to the locality. There are about 8 contents on state management, 6 tasks have been decentralized to the locality

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