According to the Vietnam Pepper Association (VPA), the Nepalese Ministry of Industry, Commerce and Supplies issued a decision to suspend imports of peppercorn on March 25. Although the decision came into effect on April 6, it only allowed the clearance of peppercorn shipments that had a Letter of Credit (L/C) before March 29.
Peppercorn harvest in Gia Lai Province
By that time, the Vietnamese peppercorn containers were already on the way to Nepal.
Moreover, to have their shipments re-exported, Vietnamese firms are required to have an application for re-export from Nepalese importers. However, the containers are meeting difficulties in transit procedures in India before being returned to Vietnam. The department and the Vietnamese Embassy in India and Nepal are working with concerned agencies in India and Nepal to deal with the case.
After the Vietnamese Embassy in India’s efforts, Nepalese customs authorities have issued a 'No Objection Certificate' (NOC) for peppercorn containers to be shipped back home.
Phung Thu Huyen, director of Nam International Ltd. Co. said that her firm is making the big loss as their containers have been stuck for months. By August 25, it would cost USD14,000 for the parking fees of each container.
According to Tran Phuoc Hau, deputy general director of Tran Chau Import and Export Company, the company has 22 containers stranded in Nepal. The daily parking fees for each container is USD170, meaning that the firm sees a loss of VND90 million (USD3,913).
The company has worked with the shipping firm to reduce the fees by half. It is unclear when the containers would be brought back home.
The Ministry of Industry and Trade has also advised Vietnamese exporters to study importing countries’ regulations to mitigate possible risks.
Earlier, the ministry also warned of tightened Indian regulations on peppercorn imports.
The Ministry of Agriculture and Rural Development reported that in the first seven months of this year, Vietnam exported 187,000 tonnes of peppercorn, worth a total USD405 million, down 6.5% and 20.6% on-year respectively.