Aquatic exports to EU to enjoy zero tax once EVFTA takes effect

14-Jul-2020 Intellasia | VOV | 6:02 AM Print This Post

Approximately 220 tariff lines of aquatic products with basic tax rates of 0 22 percent are set to be slashed to 0 percent immediately after the European Union-Vietnam Free Trade Agreement (EVFTA) comes into effect, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

VASEP stated that once the trade deal comes into effect on August 1, the remaining tax lines will be reduced to 0 percent in line with the three and seven year-reduction roadmaps.

A number of seafood products that are subject to high import duties of between 6-22 percent and beneficial from the tax cut scheme include lobster, cod fish, Atlantic bluefin tuna, pink shrimp, oysters, scallops, squid, octopus, clams, abalone, and processed snails.

The Ministry of Industry and Trade notes the EVFTA is expected to open up a range of bright prospects for the nation’s seafood exports to the EU. Vietnam’s exports to this demanding market are anticipated to increase by 2 percent annually between 2020 and 2030, while imports from the EU are likely to rise between 2.8 percent and 5%.

At present, the EU represents one of the country’s three largest seafood import markets, accounting for 15 percent to 17 percent of all Vietnamese seafood exports. The country’s seafood exports to the bloc remained stable at over $1.3 billion per year during the 2015 to 2019 period.

The general Department of Vietnam Customs reports Vietnam’s seafood exports last year endured a slight decrease of 2.8 percent to $8.54 billion in comparison to 2018′s figures, with the country’s five largest export markets being the United States, Japan, the EU, China, and the Republic of Korea.

Indeed, the first half of the year saw the country’s seafood exports decline by 10 percent to over $3.5 billion in comparison with the same period last year.


Category: Economy, Vietnam

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