Binh Phuoc Customs facilitates sustainable development of cashew businesses

	Binh Phuoc Customs seizes 32 kg of drugs, guns and bullets
	Proposing the establishment of bonded warehouse for cashew products in Binh Phuoc
	Establish bonded warehouse for cashew nuts in Binh Phuoc suggested

The lack of understanding of legal policies in export production causes many enterprises to commit violations. Photo: N.H

Therefore, Binh Phuoc Customs Department has provided solutions to control cashew production, business, import and export activities in Binh Phuoc.

Four risk signs of cashew export production

According to the data of Binh Phuoc Customs Department, Binh Phuoc is home to cashew business and production with 1,416 cashew nut processing establishments, 140 small and medium-sized enterprises, more than 1,200 micro-enterprises, and 39 cooperative production groups with over 500 members that operate under the form of supporting each other in production links, aiming to produce in a closed chain.

Of which, more than 200 enterprises are engaged in cashew import and export activities. The cashew industry makes a great contribution to the province's economic growth when accounting for one-third of the province's total annual export turnover.

Raw cashew materials of importers and exporters in Binh Phuoc province are sourced from foreign imports, domestic trading and self-supply. The raw cashew is mainly imported from Nigeria, Ghana, Gambia, Ivory Coast, Benin, Togo, Guinea, Tanzania, Burkina Faso, Cambodia and Indonesia.

Despite the strong development, the production, business, import and export of cashew in Binh Phuoc still sees spontaneous operation. The small trading between businesses causes difficulties in customs control.

Deputy Head of Technical Division- Binh Phuoc Customs Department Nguyen Thi Duyen, said that Binh Phuoc Customs Department recognized four risk signs of violating the preferential tax exemption policy for this regime.

Enterprises have taken advantage of preferential tax exemption policies for the import of raw materials but failed to put them into production or partially produced for export, selling the remaining quantity of raw materials in the domestic market without customs declaration.

Enterprises import less than declared to illegally transport abroad. The third sign, enterprises import less than customs declaration to legalize the sale of imported materials and products eligible for tax exemption in the domestic market. Fourth, cashew products are subject to plant quarantine and food safety inspection. Therefore, there is a risk of putting into use or selling imported cashew materials before the goods are cleared.

Helping enterprises develop sustainably

Binh Phuoc Customs Department has detected enterprises that import goods inconsistent with regulations, and directed its subordinate units to strengthen management for each enterprise in the area.

The local customs department issued a notification on violation of product management policy to the local banks when collecting loans from the auction of collateral assets that are "raw cashew nuts and have not been peeled yet and imported under the regime of export production in the Vietnamese market, which is a violation of specialized management and these goods are subject to the customs control.

In the second half of 2021 and the first half of 2022, the department established post-clearance inspection teams at the headquarters of more than 40 local enterprises.

Through inspection, the department detected violations of businesses such as the false declaration of name, origin, unit price, code of export shipment of cashew kernels; false declaration of quantity and value of goods compared with the actual value of import shipments; providing documents inconsistent with the request of the Ministry of Industry and Trade on issuing C/O.

In addition, some enterprises have changed the use purpose of imported materials and accessories without customs declaration; ineffectively managed imported raw materials so that the actual inventory showed the difference from those on the customs declaration dossier; made a settlement report inconsistent with actual use; handled a quantity of imported scrap under the regime of export production not in line with regulations.

In fact, many businesses suffer from difficulties due to the Covid-19 pandemic, which causes production disruption and increases in transportation costs.

Some enterprises want to stop doing business under the regime of import for export production but there are still a small number of finished products and cashew kernel waste products that still have economic value but are not eligible for export. The enterprises do not know how to deal with the products because there is no legal basis for this case.

For start-ups, it is difficult to find reliable partners to supply raw materials from abroad, and sources to export finished products after completing production.

In the near future, the department will promote the dissemination of the law on management for export production so that enterprises can understand and comply with regulations.

Director of Binh Phuoc Customs Department Nguyen Van Lich said that to remove shortcomings in the management of cashew nut export production, Binh Phuoc needs to establish a bonded warehouse for cashew products. The operation of bonded warehouses will improve management efficiency for Customs authorities, and facilitate businesses in trading raw cashews, and avoid risks in trading and management of the item.