Vietnam to share monthly export data with EAEU

23 Aug '18

1 min read

Vietnam’s department of trade defence under the ministry of industry and trade will start sharing monthly export data to the Eurasian Economic Union (EAEU), consisting of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, to help local businesses avoid most favoured nation (MFN) tariffs. Vietnamese exports to the EAEU include apparel and footwear.

Under a free trade agreement (FTA) signed between Vietnam and the EAEU in May 2015, the EAEU committed to eliminating tariffs for up to 9,774 tax lines (90 per cent) for products imported from the former. The FTA came into effect in October 2016.

Vietnam’s footwear, textiles and garments, and interior design products are eligible for zero import duty, but if the volume of these products exceeds a threshold level defined in the agreement, the EAEU will adjust the zero import duty to MFN tariffs for six to nine months, depending on the volume, according to a report in a Vietnamese news portal.

As of June 2018, the MFN tariffs had been imposed on Vietnamese underwear and kidswear products.

The department said though there are no products at risk of tax in 2019, domestic firms should act accordingly to avoid the imposition. (DS)

Fibre2Fashion News Desk – India

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