HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND

FINANCE FACULTY OF ECONOMICS

FOREIGN TRADE OPERATION - BUS1107E

REPORT OF GROUP 07

% contribution Evaluation
No. Full name Student ID Tasks of the task to of task
the overall task results
Part 01 , part
1 Bùi Nguyễn Anh Hào 205142118 02 (2.1, 2.2) 20%
Editing Canva
Part 03 (3.3,
2 Lê Thành Đạt 3.4) 20%
Editing Canva
Part 02 (2.3)
3 Nguyễn Mỹ Linh 20%
Compile Word
Part 02 ( 3.1,
4 Trương Trường An 3.2) Editing 20%
Canva
Total: 100%

1. Market:
1.1 Diplomatic - political relations with Vietnam
January 18, 1950 went down in the history of Vietnam-China relations as an
important milestone. Not long after its establishment, the People's Republic of China
was the first country in the world to establish diplomatic relations with the Democratic
Republic of Vietnam, now the Socialist Republic of Vietnam. The two parties, the two
countries and the peoples of the two countries have stood shoulder to shoulder,
giving each other great and valuable support and assistance, contributing to the
success of the revolutionary cause of national liberation and socialist construction.
society in each country. Over the past 70 years, Vietnam-China relations have had
ups and downs, but friendship and cooperation are still the main flow. The friendship
cultivated by Presidents Ho Chi Minh and Chairman Mao Zedong and generations of
leaders of the two countries has become a valuable common asset of the two
peoples, contributing to maintaining the trend of stable development. the traditional
friendship between Vietnam and China, bringing practical benefits to the two
peoples.

1.2 Economic relations about

Vietnam:
More than 72 years since the establishment of diplomatic relations between Vietnam
and China, the exchange and cooperation in economic and trade at all levels,
sectors and fields between the two countries has increasingly flourished, bringing the
two countries more and more. have an important position in the overall foreign
economic relations of each other:

Regarding trade, over the past 25 years, Vietnam's exports to China and vice versa
have grown by an average of 22% per year. China is Vietnam's largest trading
partner and second largest export market for 18 consecutive years.

Since 2016, Vietnam has continuously been China's largest trading partner in
ASEAN and China's sixth largest partner in the world. China is the largest market for
Vietnamese agriculture, accounting for 74% of Vietnam's total fruit and vegetable
exports. With a large market capacity and high demand, China is importing most of
Vietnam's fruits such as litchi, longan, watermelon, dragon fruit, mango, etc. In the
opposite direction, Vietnam also imports a large amount. goods from China.

In 2018, the bilateral trade turnover between Vietnam and China reached 100 billion
USD (reaching more than 106 billion USD, up 12.7 billion USD compared to 2017)
and China is Vietnam's first trading partner. set this record.

Total trade turnover between Vietnam and China in 2021 will increase by 24.6%,
reaching 165.9 billion USD (according to Chinese data, it is more than 230 billion
USD, up 19.7%).

According to statistics of Vietnam Customs, in the first nine months of 2022, two-way
turnover reached 132.3 billion USD, up 10.2% over the same period last year.
Vietnam's fruit exports to China have made new progress, with durian officially being
the tenth fruit officially exported to China from July 2022.

In particular, the two sides have agreed to allow the use of local currencies in
payment of foreign trade activities in border areas. Specifically, according to Circular
No. 19/2018/TT-NHNN dated August 28, 2018 of the Governor of the State Bank of
Vietnam guiding the management of foreign exchange for border trade activities
between Vietnam and China, traders, residents of the Vietnamese border, traders
and residents of the Chinese border having commercial activities in the Vietnam -
China border; commercial banks, foreign bank branches licensed to conduct foreign
exchange operations in Vietnam; Branches of banks are allowed to be located in
border areas, border-gate economic zones between Vietnam and China;
organizations dealing in duty-free goods, providing services in isolated areas at
international border gates, organizing business in bonded warehouses at border
areas, Vietnam - China border gate economic zones and other organizations Other
organizations and individuals involved in payment activities in the Vietnam - China
border trade, regulations and payment currency in activities of buying, selling,
exchanging goods and services across Vietnam's border - Traders' China is a freely
convertible foreign currency, VND or CNY; The currency of payment in the purchase
and sale, exchange of goods and services of border residents and at border markets
is VND or CNY. Entrustment for payment in CNY means that the authorized bank
(the Entrusting Party) entrusts the authorized bank with a border bank branch (the
Trustee) to make the payment in CNY via branches of border banks in the activities
of traders buying, selling and exchanging goods and services across borders
according to the provisions of this Circular.
Nhận lời mời của Tổng Bí thư Ban Chấp hành Trung ương Đảng Cộng sản Trung
Quốc, Chủ tịch nước Cộng hòa Nhân dân (CHND) Trung Hoa Tập Cận Bình, Tổng
Bí thư Ban Chấp hành Trung ương Đảng Cộng sản Việt Nam Nguyễn Phú Trọng đã
có chuyến thăm chính thức CHND Trung Hoa từ ngày 30/10 - 01/11/2022. Chuyến
đi không dài đã khép lại, nhưng dư âm và những kết quả chuyến đi sẽ nối dài và tiếp
thêm động lực cho sự phát triển quan hệ hai bên, trong đó có quan hệ kinh tế, lên
tầm cao mới, như khẳng định của “Tuyên bố chung Việt Nam - Trung Quốc về tiếp
tục đẩy mạnh và làm sâu sắc hơn nữa quan hệ đối tác hợp tác chiến lược toàn diện
Việt Nam - Trung Quốc” được hai bên công bố.

Payment activities in trading and exchanging goods and services across the Vietnam
- China border by traders, including: freely convertible foreign currencies, VND or
CNY. The payment method can be made via bank (payment in freely convertible
foreign currency through banks is permitted under current regulations on foreign
exchange management; payment in CNY via border bank branch; and payment in
VND via border bank branches); payment in VND cash or CNY cash; to pay the
difference in the clearing transaction of exported goods and services with imported
goods and services in the trader's activities of buying, selling and exchanging goods
and services.

1.3 Market demand for cashew nuts

According to the Import-Export Department (Ministry of Industry and Trade), citing
data from the General Department of Customs, it is estimated that in May 2022,
Vietnam's cashew nut exports will reach 55,000 tons, worth US$330 million, up 13%
in value. volume and increased 13.7% in value compared to April 2022, 3.2%
increase in volume and 0.8% increase in value compared to May 2021. In May 2022,
the average export price of Vietnam's cashew nuts was estimated at $6,000/ton, up
0.6% compared to April 2022, but down 2.3% compared to May 2021. Generally, in
the first 5 months of 2022, the average export price of Vietnam's cashew nuts is
estimated at 5,968 USD/ton, up 0.3% over the same period in 2021.
2. Item:
2.1 HS Code:
HS Code: 0801310000
Chinese description: unshelled fresh or dried cashews

HS Code: 080132000 VND

Chinese description: shelled fresh or dried cashews
2.2 State management policies for commodities:
2.2.1 legal documents
This is not on the list of goods banned from export, so we can export this item. But
because Cashew is a product of plant origin, we need to do a phytosanitary
certificate for each export shipment.
Dossier to apply for a phytosanitary certificate for cashew nut (Phytosanitary
Certificate):

• Business license.
• A valid establishment certificate of food safety or certification of product quality
declaration or GMP or HACCP or ISO 22000 or IFS or BRC or FSSC 22000 or
equivalent.
• Label.
• Certificate of phytosanitary registration for export (under the form specified in
Appendix IV issued together with Circular 33/2014/TT-BNNPTNT).
• Commercial contract

The process of applying for a phytosanitary certificate for cashew nuts

(Phytosanitary Certificate):

- Step 1: We directly submit 01 set of registration documents to the nearest plant

quarantine agency.
- Step 2: The plant quarantine agency receives and checks the dossiers according to
regulations. If the application is incorrect or incomplete, the application shall be
supplemented and completed.
- Step 3: After checking the dossier, the plant quarantine agency decides the
quarantine location at the production establishment, the place of departure, the place
of storage inland or the border gate of exportation and arranges civil servants. Check
the shipment immediately.
- Step 4: The plant quarantine agency issues the Phytosanitary Certificate.
+ In case of detecting that the lot does not meet the phytosanitary requirements of
the importing country, the plant quarantine agency shall not issue a phytosanitary
certificate.

2.2.2 Export standards for cashew nuts to the Chinese market:

About general requirements
In the standards for sending cashew nuts to China, the following terms and definitions are
used:
 – Dried cashews: The fruit of the cashew tree has a silk skin, a hard shell and a cashew kernel
Cashew hard shell: The outer shell of the cashew nut is hard, covering the silk shell and
kernel
Cashew nut silk: The thin shell is located between the seed and the hard shell, they are pale
pink, white to light brown.
– Defective nuts: Deformed cashews, underdeveloped or underdeveloped kernels or damaged
due to biological, physical, and chemical causes such as empty kernels, moldy kernels,
immature seeds, damaged kernels due to insects, kernels contaminated with oil, kernels with
spots and kernels that are rotten will not be qualified to export cashew nuts to China.
– Impurities: Consists of non-cashew nuts such as soil, rocks, branches, metals, etc., mixed
in.
– Shipment: A quantity of cashew nuts of the same quality, with the same symbol and packed
in the same packaging.
– Ratio of kernels recovered: Quality kernels with silk skins left after hard shells have been
removed

Technical requirements

Standard size
Raw cashews are divided into 6 different sizes including:
- Cashew W180 : King size, from 170 to 180 nuts.
- Cashew nuts W210: Large, 200 - 210 nuts.
- Cashew nuts W240: medium size 220-240 nuts.
- Cashew nuts W320: Medium (medium range) 300 - 320 nuts.
- Cashew nuts W450: Small medium size 400-450 nuts.
- Cashew nuts W500: Small 450 - 500 nuts.
 Sensory requirements
Cashew nuts must have a characteristic shape.
– Color: uniform color, can be pinkish white or bright white, brown to light brown typical for
the product.
- Absolutely no strange odors, live insects, foreign objects.
Quality indicators
- Humidity not more than 10%
- The rate of the recovery multiplier is not more than 25%
– The percentage of defective particles is not more than 10%
- Impurities not more than 1%
Food safety requirements
– Mycotoxins: Cashew nuts meet the limits of mycotoxins in accordance with current
regulations
– Residues of pesticides: Cashew nuts meet the maximum limit of pesticide residues
according to current regulations.
Packaging requirements
Standard packaging when exporting cashews to China is to be packed in new, clean and leak-
free containers. The transportation must ensure that the goods inside are intact, and the outer
carton has a layer of carton to prevent mold and insects from appearing.
The pesticide used depends on the regulations of the exporting country. For example, in the
US, brand names Phosphine - 0.1ppm, Flutriafol - 0.02 ppm will be allowed. In addition,
cartons must be fully marked with the items listed below:

– Product name and brand

– Name and address of the place of manufacture and packaging
– Type level
– In the amount
- National production
– Sign or name of the buyer
- Port of destination

2.2.3 Regulations on export tax applied to cashew nuts to the Chinese market.
Regarding export tax, both VAT and export tax are exempt. As follows:
VAT: According to current regulations on export, VAT for exported goods, including
cashew nuts, is 0%. Export tax: Cashew nuts are not on the list of items subject to
export tax, meaning businesses do not have to pay this tax.
2.3 Types of import and export documents:
REQUIRED CERTIFICATES INCLUDES:
- Commercial contract (Sales Contract): A commercial contract is an important
document to serve as the basis for the remaining documents. Therefore, it is
necessary to pay attention to check the exact contents of the contract, such as:
information of the seller and the buyer, the name of the goods, origin, quantity,
quality, price, incoterm terms , form and terms of payment, packing, delivery
and required documentation.
- Commercial Invoice: About Invoice, this is one of the important documents
for payment, tax payment and customs declaration. This is a document
representing the seller's request to the buyer to pay the amount of goods stated
on the invoice. In addition, Invoice also clearly states the characteristics, unit
price and total value of the goods, payment methods, and modes of transport.
Therefore, it is necessary to double-check the information, quantity, unit price,
payment method, delivery conditions to compare whether it is in accordance
with the contract or not before proceeding to input data or declare manually.
customs customs.
- Packing List: Regarding the Packing List, this is a document showing the ways
of packing goods, declaring information about the goods in the shipment.
Therefore, it is necessary to carefully check the number of packages, net weight,
gross weight, packing process, .. on the packing list with the actual goods.
Bill of Lading: These are documents issued by the carrier confirming receipt of
the goods for carriage, which is considered as proof that the contract of carriage
has been signed and clearly states the contents of that contract.
Normally, bills of lading are usually divided into 3 types:
- Sea waybill
- Air waybill
- Rail waybill (road)
- Customs Declaration: A customs declaration is a document in which the goods
owner or vehicle owner must fully declare detailed information about the
shipment when exporting or importing. Making a customs declaration is one of
the mandatory steps to take when you want goods to be cleared.
- Other types of documents
- Certificate of Origin (C/O - Certificate of Origin): The Certificate of Origin
(C/O - Certificate of Origin) helps the goods to be proven to have a clear origin,
legal to tariffs and other issues. other provisions of law in import and export.
There are 2 main types of C/O
- Non-preferential C/O: this is a normal C/O, it is confirmed with the origin of a
specific product from a certain country.
- Preferential C/O: this is a type of C/O that allows products to be reduced or
exempted from tax to countries that extend this privilege.
- Phytosanitary Certificate: Depending on the type of commodity, consider
whether a quarantine certificate is needed to complete the import and export
documents, usually plant and animal quarantine permits. certified by the
inspection agency. The purpose of this certificate is to check and prevent the
spread of disease on goods to other countries around the world.
- Other documents depending on the type of item:
Quality certification
Inspection certificate
Hygiene Certificate
Fumigation License
2.3.1 Import and export documents – commercial invoices:
For commercial invoices of import and export documents, abbreviated as INV
(Commercial Invoice). This is considered a basic document of payment
transactions. Therefore, the commercial invoice requires the buyer to pay the
exact amount as shown on the invoice.
The content must clearly state the characteristics of the goods, the value and
unit price for such goods, etc. The value of the invoice may not be the same as
the value of the contract. Therefore, invoices are often made in many copies and
used in many different situations.
2.3.2 Import-Export documents – Invoice for unpaid goods:
Invoice for non-payment is abbreviated NCV (No Commercial Value). As we
all know, goods when crossing the border must have an invoice together. This is
a type of document showing the value of the goods (whether this is a gift,
donation, donation or rental, loan, etc.). The consignee is not required to pay for
the goods and an invoice issued by the sender is required to be presented to
customs.
In addition, non-payment shipments must have a clear caption such as “No
commercial value” or “No commercial value. Value shown for customs purpose
only” (Invoice has no commercial value. Value shown is for customs
declaration only).
Special: Even though the shipment is "no commercial value", the costs incurred
in tax are still borne.
Import and export documents – Packing slip:
Packing list is abbreviated P/L (Packing List). This is the manifest of all the
goods of the package. In addition, the packing slip is made with the contents of
the goods packaging including: name of goods, name number, contract number,
loading date...
In addition, in addition to ordinary packing slips, there are also the following
types of coupons:
+ Detailed packing list: with relatively detailed titles and contents.
+ Neutral packing list: the content does not indicate the seller's name.
+ Packing list cum weight list (Packing and Weight list).
2.3.4 Import and export documents – Bill of lading:
The bill of lading has the symbol B/L (Bill Of Lading and Airway Bill). This is
a document issued by the carrier or the forwarder to the sender himself. To
determine ownership of the goods in transit. This is also considered as the
payment basis of the importer. For this bill of lading, it also provides important
information about the date, the shipment is loaded on the ship and also contact
information for the release of goods at the port of destination.
2.3.5 Import and export documents – Air waybill:
Air waybill is denoted by AWB (Airway Bill). This is a type of document
issued by the carrier or the forwarder himself, for the sender himself to
determine the ownership of the goods during transportation. This is also
considered as the payment basis of the importer. The air waybill no longer
shows important information about the date of departure and also contact
information for the release of goods at the arrival airport.
2.3.6 Import and export documents – Certificate of origin:
The certificate of origin has the symbol C/O (Certificate Of Origin). This is a
document that identifies the origin of goods, issued by the competent authority
in a certain country or territory based on regulations and rules. In addition, this
type of document is very important for shippers. Because this type of voucher
will help them enjoy preferential tax or tax reduction.
2.3.7 Import and export documents – Quality certificate:
The quality certificate has the symbol C/Q (Certificate Of Quality). This is a
type of document confirming the quality of the actual goods for delivery and
proving that the quality of the goods is in accordance with the conditions in the
contract. In addition, if the contract does not stipulate otherwise, the quality
certificate may be provided by the factory or by the factory producing the
goods. Besides, it can also be issued by the export inspection agency.
Quality certificates are of two types:
+ Certificate of normal quality.
+ Final certificate: has the effect of confirming that the results of the quality
inspection at a certain place are mutually agreed upon by both parties.
2.3.8 Import and export documents – Quarantine certificate:
Quarantine Certificate (or Phytosanitary Certificate). Goods related to or
derived from animals and plants will be subject to quarantine. To ensure the
safety of the importing country. Therefore, this document will be issued by the
quarantine agency to determine that the import and export consignment has
been quarantined.
2.3.9 Import and export documents – Insurance documents:
Insurance policy (Insurance Policy). This is the type of document that can show
whether the goods have been insured or not? So that when an accident or loss
occurs, insurance will compensate. Therefore, insurance documents will include
2 types:
+ Certificate of insurance.
+ Insurance policy.
In fact, very few owners of goods buy to save costs.
2.3.10 Import and export documents – Fumigation certificate:
Fumigation Certificate (English is Fumigation Certificate). When we export
goods of organic and wood origin (eg bamboo, handicrafts, pepper, coffee...)
often require chemical treatment to avoid the arising of termites and mold
during transportation. , insect. Therefore, in order to certify that the goods have
been fumigated, most exporters must present a certificate.
2.3.11 Import and export documents – Documents for chemicals and
cosmetics:
Documents for chemicals and cosmetics are marked MSDS (Material Safety
Data Sheet). This is goods that can be dangerous during transportation.
Therefore, an MSDS should be included in the customs file to confirm that this
document has been accepted by the importer.
 3.1 Foreign trade contract template

CASHEW NUT PURCHASE AND SALE

CONTRACT
Number: 1213. Date 12/12/2014

Between Foshan Haitian Flavouring & Food Co. Ltd

16 -22 Guangdong, China
Tel: 8479900, 8976422: Fax: 4839200
Telex: 57889 WSGTC India (hereinafter referred to as Buyer)

And Hanoi Food Import and Export Company, Vianfood 1

40 Hai Ba Trung Street, Hanoi VIETNAM
Tel: 328999, Telex: 328492 - VNF VT
Telegram address: VINAFOOD HANOI (hereinafter referred to as the seller)

After the two parties discuss and agree to buy and sell cashew imported raw materials
according to the following conditions and terms (the buyer agrees to buy and the seller
agrees to sell):

I. Type of goods:

Raw cashew nuts (cashew nuts in the shell) originated in Dak Lak, crop 2013.

IV. Quantity: 10,000 metric tons(+/- 5%)

II. Price:

- Unified buying and selling at CIF prices, port to Belgal, India.

- Unit price: 10,000 USD/ton (net weight)

- Contract value: 100,000,000. + 1,000,000 + 1,000,000 = $102,000,000

- The above price is understood as CIF price, Port of Belgal, India, Incoterms 2010,
inclusive of packaging, insurance and transport rental costs.

- All surcharges incurred during transportation whether at the port of export or port of
import shall be borne by the buyer.

III. Package size:

- Packed in new jute bags, net weight about 50 kg / bag, about 50.2 kg whole package,
hand stitched at the mouth with jute thread suitable for loading and unloading and
transporting by sea.

- The seller will provide 0.2% of the new jute bags free of charge in addition to the
total bags loaded on board.

- Ticker: Raw Cashew Nut, Vinafood 1, Origin: Vietnam. Produced: 2/2015, Handle

with care.

IV. Insurance: the seller bears.

 Insurance is purchased at a reputable insurance company.

Insured value = 110% of the total CIF price.

Buy in the contract currency (USD)

Buy insurance under minimum conditions. Condition C of the London Insurers

Association.

Insurance period: after delivery to the importer, the insurance expires.

Certificates of insurance or single insurance are transferable.

V. Charter terms

The seller hires an ordinary seafaring vessel, in accordance with the characteristics of
cashew nuts.

MICRO. Quality and quality inspection:

- Quality is inspected by Vinacontrol inspection agency.

- Quality inspection location: at the request of the buyer.

- Inspection costs are paid by the seller. The quality certificate is issued by

Vinacontrol and is valid.

- Weighing location: at the buyer's warehouse (for qualified companies) or at Hai

Phong port.

1. Quality standards:

- Recovery norm: minimum 15 lbs/bag/80kg.

- Total grain: 100 grains/kg.

- Incomplete granules: no more than 5% maximum.

- Humidity: maximum 10%.

- Impurities: up to 0.5%.

- Materials with black mold on the surface of the shell are not counted and the buyer
does not have to pay the seller.

2. Sampling and inspection methods:

a. Sampling method:

- Take samples immediately after opening the container door.

- The packaging must be dark PE bags (black or dark blue).

- After putting samples into the container, the lead must be clamped at the ends of the
container.

- Place to store samples: keep in a place with a cool temperature not exceeding 26oC

b. Raw cashew quality inspection method:

- The sample inspection time must not exceed 24 hours from the receipt of samples
(for the norm of calculating collection norms

anise).

- Humidity is measured by the "Cashew Tester" machine immediately after opening

the container for sampling.

c. Cashew kernels are included in the recovery norms after peeling silk as follows:

- When inspecting cashew kernels, both the outer and inner sides of cashew kernels
must be checked.

- Cashew kernels with white and light yellow colors are included in the recall norm.

- Cashew kernels are yellow, pigmented colors occupying an area less than or equal to
30% of the kernel area

Cashew kernels are counted in the 100% recovery norm, if it is greater than 30% of
the cashew kernel area, 50% of the recovered kernels will be calculated.

- Cashew kernels with one yellow spot, one melasma spot, one black dot (but not
more than 3mm) are charged 50% of the recall norm.

- Cashew kernels that are immature or atrophy of the kernel surface are counted as
50% of the recovery norm.

d. The types of kernels not included in the recovery norm are as follows:

- Cashew kernels that are contaminated with oil or have a dark yellow color due to
long-term osmosis cannot

included in the withdrawal norm.

- The cashew kernel is black yellow, dark yellow, dark brown, black, black, the
atrophic cashew kernel is blank

in the middle greater than 50% is not included in the withdrawal norm.

- Moldy cashew kernels are not included in the recall norm.

VII. Delivery Time and Conditions:

1. The latest delivery time is 23/3/1025. Cargo packed in 20'/40'. The container must
be well ventilated, without foreign odors, damp hooks, the container must not be
dented or punctured.

2. Delivery conditions:

One-time delivery. The seller must send a delivery notice to the buyer within 05 days
from

The date of the ship bill and details are as follows:

- Quantity includes net weight and gross weight.

- Train name and trip number.

- Date of delivery, bill of lading number.

- Date of unloading.

- Bill, invoice, packing list 01 copy.

- Insurance is paid by the seller.

VIII. Payment conditions and payment documents:

1. Payment by LC 180 days late from the date of arrival of the cargo at the port of
Belgal based on the notification of arrival of the shipping line, the buyer will open LC
97%-100% of the value of the shipment. The LC opening period does not exceed 30
days from the date of signing the contract.

2. Payment documents include:

- 3/3 of the original bill set shows "Freight Prepaid".

- 03 Original commercial invoices.

- 3 Original packing list

- 02 original copies and 01 copy of quality and weight certificates issued by competent
authorities in the host country (the host country is the place of origin of raw cashews).

- 02 original copies and 01 copy of the certificate of origin issued by the Ministry of
Trade in the host country.

- 02 original copies and 01 copy of phytosanitary certificate issued by the Ministry of

Agriculture and Rural Development in the host country.

- 02 original copies and 01 copy of the fumigation certificate issued by the competent
authority in the host country.
XII. LC Requirements:

- The seller is allowed to present documents to the bank within 15 days from the date
of B/L.

- Telegram errors, typos are acceptable. Except for unacceptable errors such as:
substance

quantity, quantity, unit price, value and errors in the description of goods.

- Costs incurred at the seller's bank shall be borne by the seller, and costs incurred at
the buyer's bank shall be borne by the buyer.

- After receiving the inspection results of the assessment agency, the two parties will
make a debt reconciliation table, the excess amount will be paid by TTR method
within 10 days from the date the assessment agency issues the certificate.

IX. Force Majeure:

The two parties are not responsible for the failure to perform all or part of their
contractual obligations in case of force majeure. As soon as the BKK appears, events
beyond the control of the parties, unforeseen and inevitable, including but not limited
to the following events: war, civil war, riot, strike, natural disaster, storm, flood,
earthquake, tsunami, explosion, factory failure, government intervention,.... The
affected party will send a notice by fax to the other party. BKK evidence will be
issued by the competent authority and sent to the other party within 7 days. Beyond
that time, BKK was not considered. If the BKK situation or its remedy lasts beyond
60 days of notice, the parties have the right to terminate the contract after notifying the
other party in writing.

XIV. Disputes:

In case the two parties cannot reach an agreement, the two parties agree to choose the
Vietnam International Arbitration Authority (besides the Vietnam Chamber of
Commerce and Industry) as the final venue. The two parties must seriously comply
with the decision of Vietnamese international arbitration. Court costs shall be borne
by the losing party.

X. General Commitment:

Both parties commit to strictly implement the terms of the contract

Any changes or modifications must be made in writing and approved by the other
party.

The time for inspection of goods at the buyer's warehouse shall be agreed upon by the
two parties and notified to the inspection agency to conduct sampling of the shipment,
but if for some reason one of the parties is absent, both parties must accept the
inspection results of the inspection agency.

This contract is made in 04 English copies, each party keeps 02 originals with equal
legal validity. The contract is valid from the date of signing until the end of April 13,
2015.

REPRESENTATIVE OF THE SELLER REPRESENTING THE BUYER

 3.2 Comercial practices

● Package size:

- Packed in new jute bags, net weight about 50 kg / bag, about 50.2 kg whole package,
hand stitched at the mouth with jute thread suitable for loading and unloading and
transporting by sea.

- The seller will provide 0.2% of the new jute bags free of charge in addition to the
total bags loaded on board.

- Ticker: Raw Cashew Nut, Vinafood 1, Origin: Vietnam. Produced: 2/2015, Handle

with care.

● Sampling and inspection methods:

a. Sampling method:

- Take samples immediately after opening the container door.

- The packaging must be dark PE bags (black or dark blue).

- After putting samples into the container, the lead must be clamped at the ends of the
container.

- Place to store samples: keep in a place with a cool temperature not exceeding 26oC

b. Raw cashew quality inspection method:

- The sample inspection time must not exceed 24 hours from the receipt of samples
(for the norm of calculating collection norms

anise).

- Humidity is measured by the "Cashew Tester" machine immediately after opening

the container for sampling.

c. Cashew kernels are included in the recovery norms after peeling silk as follows:
- When inspecting cashew kernels, both the outer and inner sides of cashew kernels
must be checked.

- Cashew kernels with white and light yellow colors are included in the recall norm.

- Cashew kernels are yellow, pigmented colors occupying an area less than or equal to
30% of the kernel area

Cashew kernels are counted in the 100% recovery norm, if it is greater than 30% of
the cashew kernel area, 50% of the recovered kernels will be calculated.

- Cashew kernels with one yellow spot, one melasma spot, one black dot (but not
more than 3mm) are charged 50% of the recall norm.

- Cashew kernels that are immature or atrophy of the kernel surface are counted as
50% of the recovery norm.

d. The types of kernels not included in the recovery norm are as follows:

- Cashew kernels that are contaminated with oil or have a dark yellow color due to
long-term osmosis cannot

included in the withdrawal norm.

- The cashew kernel is black yellow, dark yellow, dark brown, black, black, the
atrophic cashew kernel is blank

in the middle greater than 50% is not included in the withdrawal norm.

- Moldy cashew kernels are not included in the recall norm.