Take advantage of the 'open' regulations of the FTA to increase exports for the cashew industry Given the forecast of many difficulties in consumption, in order to promote cashew exports in the coming time, Vietnamese businesses need to make good use of Free Trade Agreements (FTAs). Especially in some markets with FTAs ​​with fairly open regulations, allowing Vietnamese businesses to import raw cashew nuts for processing, if they have a certificate of origin, they will be exempt from export tax. Looking at the prospects for the cashew industry in the near future, Mr. Vu Thai Son, Chairman of Binh Phuoc Cashew Association, General Director of Long Son Joint Stock Company, expressed concern about the export market. Take advantage of FTAs Because, due to the characteristics of cashew products, which are high-end snacks, if the situation of the Russia-Ukraine war continues, European and American consumers will still be affected by inflation, prices If consumption is still high, the situation of the cashew industry in 2023 is not bright. Dissolution of regulation 8217 , 8217 of fta de velopment for the food industry In the midst of difficulties in output, it is necessary for Vietnamese cashew businesses to exploit the advantages that FTAs ​​bring to promote exports. Talking to VnBusiness, Mr. Son said that unless the Russia-Ukraine war ends, the economy returns to stability and the prices of essential goods decrease, then the opportunities for the cashew industry will be better. “Our business (enterprise) in 2023 will focus a lot on reducing production costs and taking advantage of free trade agreements (FTAs) to promote exports, sales of intensive processing from their strengths," said Mr. Son. According to the General Director of Long Son Joint Stock Company, on the basis of export experience for global retailers such as Walmart in the US, China and EU, the company is continuing to develop new customers in the near future through the take advantage of FTAs. In the cashew nut export market, the US and EU accounted for more than 50% of Vietnam's export turnover. However, there are many forecasts indicating that both markets will continue to face difficulties this year, consumption demand will drop sharply when inflation in the US is still high, EU also falls into economic crisis, geopolitical tensions. Anticipating the market's difficulties, the Vietnam Cashew Association (Vinacas) recently proposed to adjust the target of cashew export sales in 2023 at a modest level of about 3.1 billion USD, a slight increase of 30 million USD compared to the previous year. with 2022. Meanwhile, like in 2022, although it applied to reduce the export target from 3.8 billion USD to 3.2 billion USD, in the end the cashew industry only finished at 3.07 billion USD. However, in the coming time, according to experts, cashew exports can still find positive signals from some new or niche markets, even "core" markets such as the US and EU, despite difficulties. If it is difficult, businesses still have to know how to "find opportunities in danger". Moreover, the Import-Export Department (Ministry of Industry and Trade) has recommended that Vietnamese cashew businesses need to exploit the advantages that new-generation FTAs ​​bring to boost exports to these markets. From the perspective of the Binh Phuoc Cashew Association, Mr. Vu Thai Son said that enterprises taking advantage of 17 FTAs ​​signed by Vietnam with foreign countries can help export cashew products more smoothly. Especially, on the basis of Vietnam's cashew exports to some markets with FTAs, if there is a certificate of origin (C/O), it will be exempt from import tax. Must understand the rules of origin However, in the past time, because it is still not fully understood about 17 FTAs, many businesses in the cashew industry mistakenly believe that in order to get C/O, they must be goods of Vietnamese origin, so they have sought to declare the origin of goods. Vietnam. In fact, it is important for businesses in the cashew industry to understand the procedures to apply for a certificate of origin, the best form to export cashew kernels to countries with a tax rate of 0%... Vietnam signed, from the exporting country to the importing country, according to regulations, enterprises operating in the same field and goods can apply for C/O in 18 different forms. Therefore, it is necessary to declare the goods name, origin, unit of calculation, and type of shipment to apply for C/O certification. If enterprises doing import and export do it wrong, the cashew nut export enterprises will suffer huge losses. According to experts, there are a number of FTAs ​​with fairly open regulations when allowing cashew businesses to import raw materials from African countries to Vietnam for production and export to other countries. For example, exports to Japan and Korea are still exempt from import tax. This will help businesses a lot. Because, if there is no such provision in some FTAs, the business side will have to prove that all the seeds are 100% grown in Vietnam. Therefore, this is an advantage for the Vietnamese cashew industry to take advantage of in this difficult period. However, businesses still have problems with the Chinese market (accounting for 10% of Vietnam's cashew export output) and countries in ASEAN when still requiring cashew nuts to be exported not as raw materials from Africa but forced to export. must be materials originating in Vietnam. To solve this problem when Vietnam imports a lot of African cashews, businesses are turning to importing raw materials from Cambodia to take advantage of the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China (ACFTA). ). And businesses that produce cashews from Cambodian raw materials with C/O form E (Certificate of Origin form E, issued under ACFTA) and then export to China, are still exempt from tax. Therefore, in this difficult time, it is necessary for businesses to understand clearly about the rules of origin to enjoy preferential tariffs in markets with FTAs. With this, it will help Vietnamese cashew businesses increase their competitive advantage in the export market, especially when international consumers tend to choose products with prices that are suitable for their pocket. belly".