Textile and garment products exported to EAEU exceed quota threshold
VOV.VN - Depending on the amount of exports exceeding the threshold, Vietnamese textile and garment products are set to be subject to the most favoured nation (MFN) tax rate for a period of six months or nine months.
This comes after the Ministry of Industry and Trade received Note No. 14-575 dated September 28 from the Eurasian Economic Commission (EEC), notifying that Vietnamese textile and garment products exported to the Eurasian Economic Union (EAEU) surpass the threshold of import preferential tariff quotas. This occurred during the first seven months of the year as prescribed in the Vietnam-EAEU Free Trade Agreement (VN-EAEU FTA).
In the list of items that exceed the threshold are lingerie, skirts, women's clothing, suits, jackets, sport coats, and trousers.
According to Article 2.10 of the VN-EAEU FTA which outlines the threshold safeguard measures for 12 groups of Vietnamese export products, textiles and garments are at risk of being applied through threshold safeguard measures when imported into the EAEU.
In line with this, depending on the amount of exports exceeding the threshold, local textile and garment products are set to be subject to the MFN tax rate for a period of six months or nine months.
According to Decision No. 85 dated July 6 of the EEC regarding the application of threshold safeguard measures, effective from August 7, two groups of skirts, dresses, and women's clothing from the nation are not entitled to enjoy the preferential tax rate of 0% under the VNEAEU FTA. This will be the case when being exported to the EAEU market over the next six months due to exceeding the prescribed threshold for 2020.