Import Duty on Cashew Nuts from Vietnam: 2026 Rate Guide for Indian Buyers

Before you can import cashew nuts from Vietnam, you must first understand how to get import export code IEC online. This mandatory 10-digit registration issued by the DGFT is your primary license for international trade and must be active before your shipment arrives at Indian ports. Vietnam is India's largest supplier of cashew nuts, accounting for over 60% of our raw cashew imports. If you're in the nut processing or trading business, understanding the exact import duty structure is critical for your costing and profitability once you have secured your IEC registration.

How to Get Import Export Code IEC Online: Your First Step

Learning how to get import export code IEC online is simpler than many importers expect. The Digital India initiative has streamlined the process through the DGFT website, allowing businesses to obtain their Import Export Code within 1-2 working days without visiting any government office.

To import cashew nuts from Vietnam legally, follow these steps to secure your IEC:

1. Visit the DGFT Portal: Access the official DGFT website and navigate to the IEC services section
2. Prepare Documents: Keep your PAN card, GST registration, bank account details, and digital photograph ready
3. Online Application: Fill out the ANF 2A form with your business details and pay the government fee of ₹500
4. Verification: The system automatically verifies your PAN and GST details in real-time
5. Download IEC: Once approved, download your e-IEC certificate which contains your unique 10-digit code

Remember, you cannot clear cashew shipments at customs without this code. The IEC is linked to your PAN and remains valid for lifetime unless surrendered or revoked. Having this registration before negotiating with Vietnamese suppliers ensures you can provide necessary documentation for their export formalities.

Current Import Duty Structure (2026)

Here's what you need to know about importing cashew nuts from Vietnam under the ASEAN-India Free Trade Agreement (AIFTA):

HS Codes to Use:

• Raw cashew nuts in shell: 0801 31 00
• Shelled cashew nuts: 0801 32 00

Understanding AIFTA Benefits for Cashew Imports

The ASEAN-India Free Trade Agreement creates significant advantages for Indian importers sourcing cashews from Vietnam. Unlike imports from non-FTA countries, Vietnamese cashews enter India with substantial duty savings.

When you import under AIFTA, you benefit from the Preferential Trade Agreement (PTA) rates that eliminate Basic Customs Duty entirely. This 0% BCD rate applies specifically to cashew nuts classified under HS codes 0801 31 00 and 0801 32 00, provided you meet the Rules of Origin requirements.

The agreement covers both raw cashew nuts in shell and processed kernels. However, the 5% IGST remains applicable regardless of the FTA benefits, as this is a domestic tax levied on the assessable value comprising CIF value plus 1% landing charges and insurance costs.

To claim these benefits, your customs broker must declare the AIFTA preference in the Bill of Entry and produce the supporting Form D Certificate of Origin. Without proper documentation, customs will apply the standard MFN (Most Favored Nation) rates, which can be significantly higher and impact your profit margins.

Key Facts for 2026

• AIFTA Benefit: Vietnam enjoys zero BCD on cashew nuts under the ASEAN-India Free Trade Agreement, provided you submit a valid Form D Certificate of Origin
• Rules of Origin: The cashew nuts must be wholly obtained or produced in Vietnam to qualify for duty exemption
• IGST Applicability: Even with zero BCD, 5% IGST applies on the assessable value (CIF + landing charges + insurance)
• Import Licensing: No specific import license required, but FSSAI registration is mandatory if importing for food consumption/trading

Watch Out: Ensure your Vietnamese supplier provides a correctly formatted Form D with accurate HS codes. Errors here can lead to denial of AIFTA benefits and full MFN duty rates.

Additional Compliance Requirements

Beyond understanding how to get import export code IEC online, importers must maintain FSSAI license for food safety compliance. The Food Safety and Standards Authority of India mandates that all edible imports meet packaging and labeling requirements under the Food Safety and Standards (Import) Regulations, 2017.

Your import documentation package should include:

• Commercial Invoice and Packing List
• Bill of Lading or Airway Bill
• Form D Certificate of Origin (original)
• Phytosanitary Certificate from Vietnam's Plant Protection Department
• FSSAI Import License (if for consumption)
• IEC printout linked to your PAN

Any discrepancy in these documents can trigger customs examination delays, demurrage charges, and potential rejection of AIFTA benefits.

What This Means for Your Business

The 0% BCD under AIFTA gives Vietnamese cashew nuts a significant cost advantage over imports from non-FTA countries. However, with IGST at 5%, your total landed cost calculation should factor in:

• CIF value of goods
• 1% landing charges (customs norm)
• 5% IGST on total assessable value
• Clearing agent fees, port charges, and transportation

For a ₹50 lakh CIF shipment, expect to pay approximately ₹2.6 lakh in IGST plus ancillary costs.

Strategic Cost Management

When planning your imports, remember that the IGST paid is available as input tax credit against your GST liability on domestic sales. This means while you pay 5% upfront, you recover this cost as you sell the processed cashews in the Indian market.

Compare this with non-FTA imports where you may pay BCD (non-recoverable) plus 5% IGST. On a ₹50 lakh shipment, FTA origins like Vietnam can result in significant savings compared to countries without preferential trade agreements.

Pro Tip: If you're importing raw cashews for processing and re-export, consider applying for an Advance Authorization or Duty Exemption Entitlement Certificate (DEEC) scheme to make your exports more competitive. These schemes allow duty-free import of inputs against confirmed export orders.

Frequently Asked Questions

Q: Do I need an IEC to import cashew nuts from Vietnam?

A: Yes, absolutely. Before learning how to get import export code IEC online, understand that this 10-digit registration is mandatory for all commercial imports. Without an active IEC linked to your PAN, customs will not clear your cashew shipment. The IEC application takes 1-2 days through the DGFT portal.

Q: Can I claim AIFTA benefits without a Form D certificate?

A: No. The Form D Certificate of Origin is mandatory to claim the 0% Basic Customs Duty under the ASEAN-India FTA. Your Vietnamese supplier must obtain this from their local trade authority. Without it, you'll pay standard MFN duty rates, which can significantly increase your import costs.

Q: Is FSSAI registration required for importing cashews?

A: FSSAI registration is mandatory if you're importing for human consumption or trading in the domestic market. If you're importing raw cashews solely for processing and 100% re-export, you may not need FSSAI, but most importers maintain this license to ensure compliance flexibility.

Q: How long does it take to clear cashew nuts at Indian ports?

A: With proper documentation including your IEC, Form D, and FSSAI license, green channel clearance can happen within 24-48 hours. However, if documents are incomplete or HS codes are disputed, examination can take 5-7 days, incurring demurrage charges of ₹5,000-10,000 per day.

Q: Can individuals import cashew nuts or only companies?

A: Both individuals and companies can import cashew nuts provided they have a valid IEC and GST registration. However, for commercial quantities, a registered business entity is preferred by customs and suppliers. Individuals importing small quantities may face scrutiny regarding end-use.

Need help calculating exact landed costs for your Vietnam cashew imports? Contact our customs clearance team for a detailed duty assessment tailored to your shipment value and specifications.

Sources: DGFT Notification on AIFTA, CBIC Customs Tariff, FSSAI Import Guidelines

Need help with this process? Befach handles the entire process end-to-end so you can focus on your business. Let us handle it