Potential effects of the COVID-19 outbreak on the global down trade
2020-05-20
It has been so long since the COVID-19 outbreak began at the end of last year changed our daily lives across the globe. Considering the characteristics of virus infection, it becomes evident that COVID-19 greatly affects transboundary movements of people and logistics. The current issue of Insulation newsletter contains some thoughts on how Covid-19 can change the down import and export.
Down Fill Material Must Undergo Quarantine
Down fill material has undergone the mandatory quarantine upon import/export even before the Covid-19 outbreak. The quarantine is a procedure intended to prevent the spread of disease or pests from overseas. As for down fill material, an applicant should apply for the certificate of quarantine issued by the inspection agency on the entire amount to be exported and submit the certificate upon import declaration to the counterpart country.
<Export process of down fill material>
There are no significant changes in the import/export procedures due to Covid-19 as down fill material has to undergo a strict quarantine inspection. However, we recommend to take some time for shipping the material in practice considering minor changes in the shipping methods and duration.
| Importing country | Shipping method | Average duration (day) |
|---|---|---|
| Vietnam | Maritime | 5 |
| Inland | 8 | |
| Indonesia | Maritime | 2~3 |
| Myanmar | Maritime | 10 |
<Average time taken to import down fill material by country (departure from China, FCL basis)>
Shipping Status by Country
-China
There were some difficulties in shipping at the beginning of the Coronavirus outbreak as inspection and temperature check of drivers were made to transfer goods across the country. However, things have settled down and there are no problems for inland cargo transfer and export now, besides Wuhan. It is on lockdown due to confirmed cases of coronavirus in some districts of the city as of mid-May.
PRAUDEN’s Chinese branch, NPA, is located in Nanjing City and the company makes sure not to pass through Hubei Province affected with the disease upon procurement of raw materials, inland cargo transfer, and export.
-Vietnam
It took one more day to process inland transfer and maritime shipping departed from China than before as Vietnamese government adopted a rigorous policy of social distancing. However, everything went back to normal as of mid-May.
<Container trucks are traveling nearby Chinese border>
Source: Global Economic
-Indonesia
To import down fill material to Indonesia, the exporter should obtain a permit by the country’s Ministry of Maritime Affairs and Fisheries and his/her information should be registered to the authority. Also, the mark indicating that the item was ‘fumigated with formaldehyde’ should be contained in the quarantine certificate. The customs clearance is allowed only with the issuance of Certificate of Animal Quarantine Release. But there are no further measures regarding the coronavirus.
-Myanmar
The text indicating that we ‘ensure that the item went through sterilization process to eliminate AI virus and has no harm to humans, animals, and plants’ should be included in the quarantine certificate. Also, an applicant should submit the original copy of quarantine certificate and samples that are the same with shipping items to the authority in order to obtain the Import License (IL). Currently, shipping by air is not available as the departure and landing of international airlines via Myanmar Airport have banned completely as of mid-May (excluding DHL and chartered plane).
Response by PRAUDEN
For down, it is fumigated upon receipt and completely sterilized through heat treatment at high temperature up to 120℃ during manufacturing process to eliminate any potential risk. They are safe in terms of hygiene and comply with applicable laws as no country imposes sanctions on down imported or departed from China around the world. In case where a brand intends to purchase down of which origin is irrelevant to China due to internal decisions, PRAUDEN has sufficient room to respond to such request as the company has already established a distribution system by using its Vietnamese branch or Cheonan plant in Korea as an option.
Considering that the Covid-19 pandemic has not ended yet, PRAUDEN awares that things can suddenly change at any moment with regard to logistics. Based on decades of experience and advice from logistics experts, the company carefully monitors rapidly changing terms and trends of global shipping and customs authorities to ensure safe delivery of goods for its clients.
By Yoon Jung-yeon, Insulation Operation Part
