Hanoi (VNS/VNA) - Domestic cashewprocessing enterprises have been facing difficulties due to a newregulation that requires additional checks on raw materials imported fromAfrican ports.

Dang Hoang Giang, Vice President and Secretary Generalof the Vietnam Cashew Association (Vinacas), said: "The domestic industryis facing difficulties this year, and new regulations has pushed upproduction costs."

They needed more time and money to obtaincustoms clearance, according to the association.

The enterprises also had to send more staff totrack their shipments, causing congestion at ports and reducing thecompetitiveness of enterprises and the industry, it said.

In mid-March, Vinacas President Pham Van Congsent a letter to the Department of Plant Protection to propose solutions forthe new regulations that aimed to prevent the Trogoderma SP worm fromentering the country.

Hoang Trung, Director of the Ministry ofAgriculture and Rural Development’s Department of Plant Protection, said thedepartment had directed the Plant Quarantine Sub-department of Region 2that in April if no batches were infected, the sub-department would permitbusinesses to move shipments directly to their warehouses.

If any batches were found to be infected, thequarantine sub-department would propose stopping shipments from the relevantcountries, Trung said.

Since the beginning of the year, the departmenthad checked all shipments arriving at the country’s ports. The process took7-10 days compared to 2-3 days in the past.

Vinacas has asked the Plant ProtectionDepartment to resume quick inspections at the dock and further checks wherenecessary at warehouses.

This was the peak time for buying and importingraw cashew for processing, so if the new regulation was not adjusted, it wouldseriously hit the domestic cashew industry, Giang said.

Trung said since 2013, the department has foundnumerous shipments from Africa containing the Trogoderma SP worm. The worm isclassed as dangerous and is on a list of tightly-controlled pests in manycountries.

Previously, the quarantine process for importedgoods needed four hours at border gates and 10 hours at seaports and airports.

“We have continued to find the worms in importedcashew shipments so enterprises must work with quarantine agencies to stop thispest from entering the country. Vietnamese goods would face many difficultiesand eradicating the worms would cost a lot.”

“If quarantine agencies do not find worms in thenext 5-7 batches, we will permit businesses to ship them to warehouses and thencheck the remaining batches, creating favourable conditions,” Trung said.

According to the ministry, imports of raw cashewnuts in the first quarter of this year reached 224,000 tonnes worth 389 millionUSD. The imports surged by 6.2 percent year on year in volume but reduced 19.5 percentin value.

In the first quarter, Cambodia was the largestsupplier of cashews for Vietnam, accounting for 33.2 percent of total importvalue, up about 10 times year-on-year. The second largest import value was fromthe Ivory Coast with 47 million USD, up about 2 times. The third was fromIndonesia with 24.2 million USD, up 1.8 times.

Vietnam’s raw cashew imports are forecast toreach more than 1 million tonnes this year. The nation has imported rawmaterials for many years because of its reduction in cashew growing areaand output.-VNS/VNA