THE NUMBER OF SEAFOOD EXPORTERS TO THE EU INCREASED SHARPLY WITH EVFTA

The general report of the Ministry of Industry and Trade has recorded that the number of seafood exporters to the EU market has increased sharply after the Vietnam - EU Free Trade Agreement (EVFTA) took effect from August 1, 2020.

Citing statistics from the General Department of Vietnam Customs shows that, before the EVFTA took effect, the number of enterprises involved in exporting seafood to the EU was 370. In which, the number of enterprises participating in seafood export to EU every month is below 200 enterprises / month. But after EVFTA took effect, the number of enterprises participating in seafood export to the EU has increased to over 200 enterprises / month.

Preliminary estimates in 2020, there will be 409 Vietnamese enterprises exporting seafood to the EU, most of these businesses are reputable enterprises and have good supply ability.

However, according to enterprises, the application of commitments in EVFTA in exporting seafood to the EU market still faces many difficulties, especially the implementation of paperwork and certification regulations is still confused. Specifically: C/O form Eur1: Confusion in the application in the business community and within the EU member states. C/O is often issued in long time because it relates to certification under the IUU regulation.

The application of HS codes is also difficult when enterprises are confused, do not know what code to declare / code under the agreement is not accepted by the importing country. However, the authorities also soon had seminars, guidance, support and proactive flexibility from businesses and Vietnam's seafood exports to the EU are showing positive results.

In 2020, despite the good push from EVFTA to come into effect, seafood exports to the EU will still decrease by 8.8% in volume and 6.21% in value compared to 2019, estimated at 205.9 thousand tons with the value of 947.89 million USD, accounting for 10.18% of the volume and accounting for 11.29% of the seafood export value of Vietnam. The UK's departure from the EU in 2020 makes the EU market no longer in the group of markets with seafood export value of over US $ 1 billion in 2020.

Vietnam's seafood products exported to the EU are quite diversified, bringing the largest foreign currencies, shrimp, worth over 500 million USD, tuna of 128 million USD, pangasius-basa fish with 123 million USD, and clams $ 55 million, frozen fish $ 39.4 million, squids of $ 31.8 million, surimi nearly $ 10 million ...

Export statistics show that when EVFTA came into effect, shrimp, clam, tuna and squid were the items that had most benefited from EVFTA tax incentives.

In 2021, Vietnam's seafood exports will have many opportunities to surpass the USD 1 billion mark in the EU market, because Vietnamese seafood exporters will exploit more effectively than the EVFTA Agreement.

According to the commitment, EVFTA comes into effect from August 1, 2020, 220 seafood products with the base tax rate from 0-22%, of which the high tax rate from 6-22% will be 0%. In particular, some processed products with high basic tax rate (20%) will be immediately reduced to 0% such as oysters, scallops, squid, octopus, clams, oysters, processed abalone ...

Particularly canned tuna and fish balls, the EU gives Vietnam tariff quotas of 11,500 tons and 500 tons respectively. In addition, most frozen squid and octopus products have a basic tax rate of 6-8%, which will be immediately reduced to 0%, other products such as surimi will be reduced from 14.2% to 0%, fish chess from 7.5% to 0%.

Frozen tiger shrimp and white leg shrimp products (HS code 03061792) are reduced from the current 4.2% (GSP tax) to 0% from 1 August 2020. Other shrimp products according to the 3-5 year roadmap, for processed shrimp, the tax will be reduced from 7% (GSP) to 0% after 7 years.

For frozen pangasius products, the tax reduction schedule is from 5.5% to 0% after 3 years, only for smoked fish, the 7-year roadmap. Frozen tuna products are entitled to a tax reduction of 0% immediately, except for frozen tuna loin, which takes 7 years.

Source: https://baodautu.vn/so-luong-dn-xuat-khau-thuy-san-sang-eu-tang-manh-khi-co-evfta-d138818.html

Publication date: March 04, 2021