Raw cashew nuts imported from Africa are an essential source of raw materials for many cashew processing companies in Vietnam. However, one of the most common questions among businesses is whether raw cashew nuts imported under the Export Production (E31) regime can be sold in the domestic market. This article explains the relevant regulations and highlights important considerations for enterprises importing and utilizing raw cashew nuts.
1. Why Do Vietnamese Companies Import Raw Cashew Nuts from Africa?
1.1. Supplementing Raw Material Supply for the Cashew Processing Industry
Vietnam is one of the world’s leading cashew processing and exporting countries, resulting in a consistently high demand for raw materials. Since domestic cashew production is insufficient to meet processing requirements, many businesses choose to import raw cashew nuts from Africa to secure a stable supply and maintain year-round production.
1.2. Supporting Cashew Kernel Production for Export
Most imported raw cashew nuts are processed into cashew kernels for export markets. This is also the primary purpose of the Export Production import regime, under which imported materials are used to manufacture export products rather than being sold directly in the domestic market.
Workers sorting raw cashew nuts.
2. Can Raw Cashew Nuts Imported from Africa Be Sold Domestically?
2.1. Raw Cashew Nuts Imported Under the Export Production Regime Cannot Be Directly Sold in Vietnam
For raw cashew nuts imported under the Export Production regime, businesses are not allowed to sell the raw materials directly in the domestic market. According to customs regulations, imported materials under this import category must be used exclusively for manufacturing goods intended for export and are not permitted to circulate freely within the domestic market.
When submitting customs declarations, businesses must clearly state that the imported raw materials are intended for export-oriented production. As a result, the entire process of importing, warehousing, production, and material consumption is subject to customs supervision and management.
In other words, importing raw cashew nuts under the Export Production regime does not allow companies to purchase and resell them to local traders, processing facilities, or domestic customers. The imported materials must be used solely for producing export goods in accordance with the declared customs regime.
If a business later wishes to sell the imported materials or products in the domestic market, it must comply with applicable customs regulations and complete all required procedures before any sale takes place. This is an important point that companies should consider when planning their raw cashew nut imports from Africa.
2.2. Why Do Businesses Continue Importing Raw Cashew Nuts from Africa?
Although direct domestic sales are not permitted under the Export Production regime, African raw cashew nuts remain a critical source of supply for Vietnam’s cashew industry. Many processing factories, especially those located in Binh Phuoc Province and other major processing regions, rely heavily on imported raw materials to maintain stable operations throughout the year.
After importation, the raw cashew nuts are processed into higher-value cashew kernels. Most of these processed products are then exported to international markets, fully complying with the objectives of the Export Production import regime.
Cashew kernels
3. Support for Import Documentation and Customs Procedures
Importing raw cashew nuts requires businesses to complete various customs clearance and phytosanitary procedures. With extensive experience in international trade and logistics, PNP Global Supply can assist companies with customs declarations, phytosanitary inspections, and import documentation processing, helping ensure a smoother and more efficient customs clearance process.
4. Conclusion
Raw cashew nuts imported from Africa under the Export Production regime cannot be directly sold in Vietnam’s domestic market. Instead, they must be used for manufacturing export products in accordance with the declared import purpose. Therefore, businesses should fully understand regulations related to raw cashew nut imports, customs procedures, and post-import material management to avoid potential legal and compliance risks.
If a company intends to shift imported materials or products to domestic consumption, it must follow the relevant customs procedures and seek professional guidance based on its specific circumstances.
