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  • Difficulties for importers 10/03/2022

    Oct 3rd, 2022

    Ms. Nam Phuong - Financial Director of Intersnack Cashew Co., Ltd. said that the company imports raw cashews from Africa - countries that are not on the list of countries registered to export food of plant origin to Vietnam by the Department of Agriculture and Rural Development. Plant Protection (Ministry of Agriculture and Rural Development) promulgated, to process and export cashew kernels. According to Ms. Phuong, the unit imports 85% of raw cashew nuts from Africa for production and export but only gets 25%, the rest is hard shell and silk shell. However, in this 25%, only 17% of products can be exported, the remaining 8% products do not meet the standards of the importer but cannot be shipped domestically. “To solve the remaining 8% of products, the unit asked many places. Customs said to cancel but the tax industry did not allow. If you want to sell domestically, you must have a certificate of food safety. Due to the lack of output for the above goods, the company is having to store containers, storing several thousand tons, which is very costly. Moreover, the finished kernel if left for 1-2 months is bran. If it is considered a waste product, the price is very low and causes a lot of damage to businesses "- Ms. Phuong explained. Also related to this issue, LNT & Partners Companyinformation, enterprises import raw cashew nuts for production and export to the European market. However, a large part of products (about 70% - 80%) do not meet the strict export standards required by the buyer, leading to a large backlog of products that cannot be exported. Enterprises want to transfer domestic consumption of goods that do not meet this export standard. According to research, to consume in the Vietnamese market, cashew nuts must be tested for food safety. However, raw cashew nuts of enterprises are imported from countries that are not on the list of countries registered to export food of plant origin to Vietnam by the Plant Protection Department (Ministry of Agriculture and Rural Development). promulgate. In addition, the inspection of food safety and hygiene can only be done when the goods are cleared (the time of customs clearance of raw cashew). This unit wants to have instructions on how to handle the number of products that do not meet export quality in this case. In addition, businesses wonder, can this be considered a waste product and sold to other domestic enterprises or not. Responding to the problems that businesses are facing, Mr. Nguyen Huu Nghiep - Deputy Director of Ho Chi Minh City Customs Department said that in the past time, many enterprises have imported raw materials from other countries for production and then exported to the market. European school. Due to a significant decrease in domestic raw materials in the provinces of Binh Phuoc, Dong Nai, Tay Ninh.... It is worth mentioning that through this activity, the authorities discovered that there was a situation of short export to refund value added tax. . Through inspection, many units were found to have false declarations of weight, waste products... were administratively fined. Mr. Nghiep asked the Customs Sub-department to guide enterprises in more detail. As for the rate of loss and scrap, the Customs Sub-department that manages investment goods must have a quick reply report to the enterprise. Confused about the origin of goods Regarding cashew import and export activities, businesses dealing in this item also wonder about regulations on origin of goods. A representative of an enterprise said that the enterprise regularly imports raw cashew nuts from Indonesia, Cambodia, Bissau, Conakry, Ivory Coast, Senegal, Ghana and Tanzania to Vietnam for production. Finished cashew nut products that meet the standards for export to foreign markets are packaged with the label “Product of Vietnam” and recorded Vietnamese origin. The authorities do not agree with the labeling and origin of goods as mentioned above. A representative of Intersnack Cashew Co., Ltd said that the enterprise imports raw cashew materials, produces, processes and exports cashew kernels. So enterprises write on the goods labels as "Products of Vietnam", or "Packing in Vietnam" as suggested by some customs branches. “According to the rules of origin of non-preferential goods of current Vietnamese law, is the finished product (cashew kernels) for export of enterprises considered as goods of Vietnamese origin? In case, if enterprises export cashew kernels to Cambodia or European markets, according to the preferential rules of origin, enterprises will determine whether exported cashew nuts have Vietnamese origin in accordance with regulations of law. legal or not? If not, on what basis do we need to determine the origin of the goods and will the determination of the origin of the goods be done once or for each export?" - the representative of the enterprise asked. Regarding the origin of goods, the Ho Chi Minh City Customs Department affirmed that goods must meet Vietnamese standards to write the origin, otherwise, only indicate the place where the final stage is performed or completed in or packed in Vietnam. According to the leader of the City Customs Department. In Ho Chi Minh City, in many trade agreements, there are many issues related to import tax reduction. In the coming time, the City Customs will organize a training on origin of goods. Origin of goods is very important, businesses that do not do well are not entitled to a reduction in origin tax.