Exporting cashew nuts has become a commodity that brings substantial revenue to the export industry in Vietnam. Vietnamese cashew nuts are considered to have high nutrients and are favored by customers in various countries such as the US, China, Taiwan, and the United Arab Emirates. So what procedures do you need to follow to bring Vietnamese cashew nuts to these markets? Let’s find out with Viet Linh in this article.
Discovering about cashew nuts and its benefits
Cashew nuts belong to the Anacardium occidentale family originating from Brazil, which are widely grown in the southern provinces of Vietnam. In addition to its delicious taste, cashew nuts also have high nutritional value along with great benefits for human health.
Cashews contain many vitamins and minerals, antioxidants such as vitamins E, K, B6 and minerals copper, phosphorus, zinc, magnesium, iron and selenium to help maintain good body functions.
Therefore, cashew nuts can bring numerous benefits to human health including:
- Prevention of cardiovascular disease
- Maintaining sound eye functions
- Improvement for muscle and nervous system health.
- Prevention of some cancer diseases.
Nowadays, there is an increasing trend to consume a vegan and plant-based diet, which prioritizes alternative protein sources. Since then, the demand for nuts and foods processed from nuts has increased. This has brought a huge opportunity for Vietnam’s cashew industry. As a result of that, it is foreseeable to observe a remarkable growth of cashew nut export price in the near future.
Several general standards for exporting cashew nuts in accordance with AFI standard
AFI standards for cashew nuts are standards for quality, parameters, classification, and abbreviations to standardize cashew nuts when imported into the US market. Currently, AFI standards are commonly applied in the cashew nut production industry. They are applied in many markets, not just the US market, which generally consist of:
- Cashew nuts must not be infected with live pests
- Only use pesticides that are allowed for use on cashew nuts and the amount of pesticides is at the level allowed by the Government of the importing country.
- No residues of any pesticides banned by the importing country are allowed.
- Cashew nuts must not have strange odors, insects or mold, traces of rodent activity or other foreign substances.
- The moisture content of cashews should be between 3% and 5% according to the AOAC reference method.
- Hard clumping is not allowed
- The product must be packaged in a new, clean, dry, leak-free, lead-free container and lined with paper inside.
- Properly packaging to keep goods intact throughout the transportation and storage process.
- The outside of the box is covered with a new carton, free of insects and mold.
Some requirements for classifying, packaging, and transporting cashew nuts
So when exporting cashew nuts to foreign markets, what factors need to be ensured? What types of licenses do I need to apply for? Let’s find out the next part of the article.
Some typical types of cashew nuts are frequently exported
Today, cashew nuts are divided into many different types for export. Below are a few types of cashew nuts that are widely exported:
- Seeds of type W180: Medium size, with a quantity of 170 – 180 seeds.
- Seeds of type W210 seeds: Large size, 200 -210 seeds in quantity.
- Seeds of type W240 seeds: Medium-large size, with 220 – 240 seeds.
- Seeds of type W320 seeds: Medium or mid-sized, with a quantity of 300 – 320 seeds.
- Seeds type W450: Small to medium size, with a quantity of 400 – 450 seeds.
- Seeds of type W500: Small size, with a quantity of 450 – 500 seeds.
- In addition to the above types of nuts, there are some other types such as: SW, WS, LP, SSP, etc. This classification will affect the export price of cashew nuts, the higher the requirements, the more expensive the price.
Detailed requirements of packaging for cashew nuts
Packaging of cashew nuts for export needs to meet standards such as packing in new, clean, dry, leak-free containers, no lead solder, and no paper lining inside. The outside of the box is covered with a new carton, ensuring there are no insects or mold. When sealing, do not use staples. In addition, the following requirements must be met:
- Cartons must at least pass the 200 pound, 32 ECT load test. The CO2 gas charged must be food grade.
- The bill of lading has a section listing the carton number, country of origin and symbols on the carton.
All cartons must be clearly marked according to regulations and agreements between both parties. It must have the following items:
- Product name and any related trade mark.
- Name and address of the manufacturer or packer.
- Grade, net weight, country of origin, buyer’s name, destination port.
- Other symbols according to agreement between buyer and seller.
- The batch number or product code must be written on the outside of the box according to the laws of the importing country.
Detailed requirements of good delivery:
Product delivery must be accompanied by food preservation in good conditions. Those criteria are:
- The product is free from strange odors, insects or mold, rodent activity and other foreign substances.
- The moisture content of cashew nuts must be from 3% – 5% and determined according to the AOAC reference method.
- Cashews are not allowed to form solid chunks. This means that the cashew nuts are not formed into hard blocks and cannot be separated from each other. Unless using external tools to impact the product.
- Cashew kernels must be free of hard, sharp, foreign objects, hair, etc.
When your cashew nuts meet AFI standards, it will help your products reach many other demanding markets.
Latest cashew export procedures in 2023
When there is an availability of a source of cashew nuts that meet export standards, the basic export process of cashew nuts is as follows:
Cashew export policy
Pursuant to Decree 69/2018/ND-CP guiding the Law on Foreign Trade Management, cashew nuts are not on the list of goods banned from import and export. Therefore, businesses, gardeners, and enterprises can absolutely export this agricultural product to foreign countries.
HS Code and cashew export tax rate
Based on Circular 65/1027/TT-BTC, the HS Code of exported cashew nuts is specifically as follows:
- For unshelled cashews: HS Code is 08013100
- For shelled cashews: HS Code is 08013200
- Of which 0801 refers to coconuts, Brazil nuts and cashews, fresh or dried, whether or not shelled or peeled.
According to regulations, when exporting cashew nuts, businesses need to pay 2 taxes including:
- VAT: According to current export regulations, for exported goods, the VAT rate is 0%.
- Export tax: Cashew exporters currently do not have to pay this tax. Because cashew nuts are not on the list of items subject to export tax.
Customs documents when carrying out cashew export procedures
Pursuant to Clause 1, Article 16 of Circular 39/2018/TT-BTC, amended and supplemented from Circular 38/2015/TT-BTC, documents when carrying out cashew export procedures include:
- The customs declaration is specified in form No. 02, Appendix II issued with this Circular.
- In case the buyer must pay the seller, it is necessary to prepare a commercial invoice or documents of equivalent value.
- Export licenses or related documents permitting export are issued by competent authorities according to law.
- Specialized inspection certificate
- Documents proving that organizations and individuals are eligible to export cashew nuts according to the provisions of law.
Documents required when declaring cashew nuts for export include:
- Invoice (Commercial Invoice);
- Packing list (Goods packing slip);
- Sales Contract (Commercial Contract);
- Bill of Lading;
- Phytosanitary Certificate.
Are cashew nuts subject to plant quarantine?
Pursuant to Article 1, Circular No. 30/2014/TT-BNNPTNT issued on September 5, 2014 of the Ministry of Agriculture and Rural Development. For exported vegetables and fruits, they will be on the list of objects subject to plant quarantine. Therefore, when carrying out export procedures for cashew nuts, the unit needs to do plant quarantine for export.
Pursuant to Articles 9 and 10 of VBHN 02/VBHN-BNNPTNT, the plant quarantine registration dossier for exported cashew nuts includes:
- Plant quarantine registration for export or re-export (Registration form is specified in Appendix IV issued with this Circular).
- In case of re-export, it is necessary to prepare the original Phytosanitary Certificate of the exporting country.
Vietlinh Agrimex – An enterprise providing full package for cashew export services
When the EVFTA agreement took effect and officially came into operation, it opened up a huge opportunity for Vietnamese cashew exports. The opening of the playground means businesses face more difficulties in exporting, especially those who are new to the profession.
But with Viet Linh’s export entrustment service, it will help gardeners and businesses solve these difficulties effortlessly. Your companies do not need to learn about the market, just connect with Vietlinh Agrimex to bring your products to the international market.
Vietlinh Agrimex, where all elements of people, experience, and processing expertise converge, will help businesses and gardeners gain the highest profits from cashew nuts.
Summary
Through the information that has been shared above, Vietlinh Agrimex has helped customers to understand more thoroughly about the procedures of exporting cashew nuts. Customers need support in terms of paperwork, legality, customs procedures, finding customers… Please contact Viet Linh at hotline +84345128188 for the best support.
