VCN – Canned tuna products from Vietnam exported to the EU will be exempted from duty in the quota of 11,500 tonnes / year. How will this quota distribution be made?
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| Canned tuna, EU is intended for Vietnam the tariff quota is 11,500 tonnes. |
Among Vietnamese tuna businesses, especially canned tuna producers – the Vietnamese product line is unable to compete with products from the Philippines or Ecuador due to high tariffs inthe EU market – will be more beneficial and export to this market.
Vietnam’s tuna products mainly compete with similar products from Ecuador, Thailand, Indonesia and the Philippines. Vietnam struggles to compete with other countries, the reason is that the catch volume, scale and tuna production capacity of these countries are much greater than ours.
In addition, Vietnam also finds it difficult to compete with the Philippines and Ecuador because they enjoy preferential tariffs, while Vietnam does not enjoy preferential treatment.
The EVFTA, which has been approved by the National Assembly, is expected to come into effect in early August and is expected to bring many opportunities for Vietnam’s tuna industry to explore markets.
When it comes into effect, Vietnam’s tuna products will have tax advantages compared to countries like Thailand and China, Vietnam’s major competitors have large export market shares in the EU but have not signed FTAs with the EU.
Under the commitment in EVFTA, the EU will eliminate tariffs on fresh and frozen tuna products (except for tenderloin/frozen tuna fillets code HS0304) as soon as the agreement becomes effective.
For canned processed tuna products (such as canned tuna in canned oil, canned bags, fish products in the canned tuna family), the EU will exempt Vietnam from the tax rate of 11,500 tonnes /year.
However, there is currently no official information on the allocation of this quota. However as usual, this quota will be allocated by the EU. According to the previous method of allocating the Autonomous Tariff Quota (ATQ) to frozen steamed tuna imported into the EU, importers often sign contracts to import this product from an early age so orders could be shipped to the EU in October and November, and stored in bonded cold storage and in transit port areas, awaiting clearance after a few months. To be eligible to use this quota, canned processors must notify import volumes on the first working day of the year and the EU Customs must arrive at the middle of anew year to allocate this quota to manufacturers. Processing has filed a request. Thus, it is likely the duty-free quota of canned tuna imported from Vietnam to EU countries will be applied this way. Therefore, businesses that want to take advantage of this quota must be prepared and accelerate contracts signed before the effective date of the quota.
According to VASEP, in the long term, the EVFTA will bring many opportunities for Vietnam’s tuna industry to expand its market share in 27 EU countries. However, in the short term, businesses will face many difficulties. Because this FTA includes a comprehensive and strong chapter on trade and sustainable development, covering the labour and environmental issues involved in trade relations between the EU and Vietnam. In addition, meeting requirements of traceability and regulations on fighting illegal, undeclared and unregulated fishing will also cause many problems for businesses.
By Le Thu/ Thao Huyen
