Customs incentives to boost cashew sector, GDCE says

Customs incentives to boost cashew sector, GDCE says

The General Department of Customs and Excise of Cambodia (GDCE) Tuesday conducted a workshop on government customs incentives for the processing, exporting, and importing of the cashew sub-sector.

The workshop on ‘Customs Incentives to Cashew Nut Industry’ was chaired by Bun Chiv, Director of the Customs Department of the General Department of Customs and Excise of Cambodia, in Phnom Penh.

Uon Silot, President of the Cashew Nut Association of Cambodia (CAC), Suy Kokthhean, Vice President of CAC along with representatives from the community, cashew growers, processors, and exporters took part in the workshop.

Underscoring the significance of the workshop, Chin said it aligns with the National Policy on Cashews for 2022-2027.

“This policy is designed to actively promote customs incentives that will enhance competitiveness and build capacity within the cashew sector. The workshop’s objective was clear to identify the key challenges faced by this sector and to formulate additional incentives and support mechanisms that will drive progress,” he said.

Chiv further said that the customs incentives on the table include exemptions from customs duties and value-added tax for the importation of production equipment, construction materials, and production inputs under the Investment Law and Customs Incentive Mechanisms for Small and Medium Enterprises (SMEs).

“Investors and SMEs must take action by requesting information and submitting proposals to the Council for the Development of Cambodia or the Capital-Provincial Investment Sub-Committee, as well as to the General Department of Customs,” Chiv emphasised.

Silot provided an overview of the current landscape of cashew cultivation, harvesting, processing, and export. “We still face several significant challenges including a lack of drying and storage facilities, insufficient investment capital, and inadequate production equipment. Presently, local cashew processing accounts for a mere 3.9 percent of total cashew nuts that demands urgent action,” he said.

To effectively tackle these challenges, particularly the shortage of production equipment, Chiv insisted that CAC members and investors must leverage the national policy on cashews, including the available customs incentives.

He urged them to actively report issues to relevant ministries and institutions to secure actionable solutions. Specifically, for the cashew sector, the goal is to promote and facilitate the export of both raw and processed cashew nut.

The workshop also covered how to facilitate Qualified Investment Project (QIP) applications, allowing factories to import processing machines and equipment, along with production lines, duty-free.

Suy Kokthean, Vice President of CAC, told Khmer Times yesterday that the key topics discussed during the meeting include data collected by the association and challenges that the cashew sub-sector faces across the country.

He added that the GDCE also mentioned the request for customs incentives for the processing, exporting, and importing of the cashew sub-sector so that processors will clearly understand how to apply for these incentives.

Kokthean said that the CAC requested mitigation of all services and simplification of certain documents related to the export of cashew nuts from Cambodia to other countries.

The workshop brought together approximately 40 customs and excise officials, as well as representatives from the community, cashew growers, processors, and exporters, according to the statement of the GDCE.

khmertimeskh