Removing obstacles for cashew businesses
Export of cashew declines in three criteria | |
Cashew industry urged to focus on markets with FTAs | |
Binh Phuoc Customs facilitates sustainable development of cashew businesses |
Leader of the Investment Management Customs Branch worked with Vietnam Intersnack Cashew Co., Ltd. Photo: T.H |
No problems with customs procedures
“We have exchanged, answered, guided and solved many problems for FDI enterprises online and offline. However, the branch has not received any complaints from Vietnam Intersnack Cashew Co., Ltd, so we are very surprised at the problems raised by the representative of Vietnam Intersnack Cashew Co., Ltd at the conference,” Manager of the investment management customs branch Nguyen Xuan Binh said.
Ms. Tran Thi Lan Huong, Finance Director of Vietnam IntersnackCashew Co., Ltd, said that she was very grateful for this working session of the Customs agency with the company to understand problems and provide solutions.
Responding to the question of Customs, Ms. Huong explained: "In fact, the company has not faced difficulties in customs procedures. The problem that the company is encountering is the general policies when meeting specialized management agencies.”
Specifically, according to Ms. Huong, Vietnam Intersnack Cashew Co., Ltd specializes in importing raw cashew nuts from Africa (which is not on the List of countries, territories and organizations and individuals that are allowed to export plant products into Vietnam according to Official Letter 906/BVTV-ATTPMT dated April 5, 2018 of the Plant Protection Department).
The company imported 100 tons of raw cashew nuts in the import type E31, but only produced 24 tons of cashew kernels, of which 17 tons were eligible for export. The company wanted to change to customs regime of the remaining eight tons from imports for export processing into imports for domestic consumption but could not. The company contacted the Food Safety Authority for guidance but the agency said that this matter was decided by the Customs.
The second problem is that the products are manufactured in Vietnam and labeled "Product of Vietnam", why are the company’s products not granted a food safety certificate and allowed to be sold in Vietnam? If they are destroyed or sold as waste products, the price is very low, causing loss to the company.
It is necessary to update prevailing provisions
Answering the above questions of Vietnam Intersnack Cashew Co., Ltd., the leader of the Investment Management Customs Branch said that when the company registered to import raw cashew nuts as raw materials for export production to enjoy tax incentives and other preferential policies, including regulations on specialized inspection. If the company wants to change the import type from imports for export production to imports for domestic consumption, the company must comply with regulations on specialized inspection for imported goods. Accordingly, both the company and Customs agency must review the list of countries allowed to export plant-originated food to Vietnam, announced by the Plant Protection Department under the Ministry of Agriculture and Rural Development (the list includes 48 countries)
If the finished products produced for export cannot be sold abroad, nor allowed to be sold in the domestic market, the company must carry out procedures to change the purpose for destruction according to the provisions of Article 64 of Circular 38/ 2015/TT-BTC dated March 25, 2015 which is amended and supplemented in Clause 42, Article 1 of Circular 39/2018/TT-BTC dated April 20, 2018; and Article 72 Circular 38/2015/TT-BTC dated March 25, 2015.
Regarding the question of goods manufactured in Vietnam and labeled "Product of Vietnam", why are they not granted with a food safety certificate and allowed to sell in Vietnam.
The customs branch also explained that these are two completely different fields. The company performs some processing stages of raw cashew nuts in Vietnam, if it meets the criteria of Vietnamese origin as prescribed in Decree 31/2018/ND-CP, Circular. 05/2018/TT- BTC and the Circulars guiding the origin of goods under the Free Trade Agreements, on the export declaration, the customs declarant may declare the origin of Vietnam according to the guidance at Point 2.69, Appendix II issued together with the Circular. 38/2015/TT-BTC dated March 25, 2015, amended and supplemented in Circular 39/2018/TT-BTC dated April 20, 2018, to enjoy tax incentives.
The company wants to change the import type into imports for domestic consumption, whether raw materials or finished products after production, even destruction, sale of scrap and discarded products, the company must meet the requirements, regulations on standards, quality, procedures of specialized state management agencies and customs procedures (if any). These issues have been instructed by the Investment Management Customs Branch.
Accordingly, the Customs Branch noted that the company should regularly update, study and understand the prevailing provisions to the company's production, business, import and export fields. Besides Customs, the company should contact with State management agencies and associations to exchange and find solutions for problems arising.
Cashew industry lowers export targets due to difficulties |
In order to help the company, the customs asked the company to submit an application that states full contents discussed by the two sides so that the Customs agency will act as an immediate agency to connect with relevant units to solve the problem.
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