Shrimp Export Consignments with an Export Tax of 0% Are On the Way to Europe (17-12-2020)

In the morning of September 11, 2020, the Ministry of Agriculture and Rural Development in collaboration with the People's Committee of Ninh Thuan province and Thong Thuan Co., Ltd. held a ceremony to export brackish water shrimp consignments to the European market under EVFTA Agreement.
Shrimp Export Consignments with an Export Tax of 0% Are On the Way to Europe

Attending the export ceremony were Deputy Minister of Agriculture and Rural Development, Mr. Phung Duc Tien and Mr. Luu Xuan Vinh, Deputy Secretary of the Provincial Party Committee, Chairman of Ninh Thuan Provincial People's Committee.

The ceremony was also witnessed by Madam Elsbeth Akkerman, Embassy of the Netherlands in Vietnam; Mr. Carsten Schittek, representative of the EU delegation in Vietnam and Mr. Truong Huu Thong, Chairman of the Board of Members, General Director of Thong Thuan Group.

In addition, there are leaders representing a number of ministries and departments: The Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, the General Department of Fisheries, the units under the Directorate of Fisheries and the leaders and staff of Thong Thuan, reporters and reported on the ceremony.

The first container trucks carrying brackish water shrimp products entitled to 0% tax rate officially left the warehouse of Thong Thuan Co., Ltd. (in Ninh Thuan) to pass the EU market. This is an important milestone for the Vietnamese shrimp industry in particular and Thong Thuan Co., Ltd. in general opens a breakthrough in shrimp export activities in the coming time.

Currently, Thong Thuan Company is raising high quality shrimp with an annual output of 5 billion seed. In addition, the company also carries out commercial shrimp farming in Khanh Hoa, Ninh Thuan and Kien Giang provinces to serve raw materials for export processing factories. All Thong Thuan's factories and factories meet international standards such as: BRC, Global GAP, ASC, BAP, etc.

For the export shrimp processing sector, Thong Thuan Group currently has two factories: One is located in Thanh Hai industrial zone, Ninh Thuan province and the other is located in Suoi Dau industrial zone, Khanh Hoa province. Export sales of the two factories annually reach 100-120 million USD.

Thong Thuan's main export market structure is Japan (35% of revenue), Europe (45% of revenue), the US market accounts for 10% and other markets 10%.

The EU is the 4th largest seafood export market of Vietnam, after the US, Japan, China - Hong Kong. This market always accounts for over 15.12% of the total seafood export value of Vietnam to other markets. In particular, shrimp products, the EU accounts for about 20.5% of Vietnam's exports, Cat fish accounts for 11.7%, tuna accounts for about 19.4%, seafood products account for about 30 - 35%.

EVFTA is a comprehensive, high-quality, and balanced agreement of interests for both Vietnam and the EU. This is an agreement with the highest level of commitment a partner commits to Vietnam. With the leading economic community in the world including 27 countries, many of which are economic powers such as Germany, France, Italy, Spain, Denmark, etc with GDP of nearly 18.3 trillion USD, accounting for 40% of global foreign trade, is the room for many export products of Vietnam.

EVFTA will be a huge boost to Vietnam's exports, helping to diversify markets and export products, especially agricultural and aquatic products as well as Vietnamese products that have many competitive advantages. The commitments to provide fair, equal, safe and adequate treatment of each other's investments and investors in the IPA will also contribute positively to building a legal and investment environment. Therefore, Vietnam will attract more investors from the EU and other countries.

As soon as the EVFTA Agreement comes into effect, nearly 50% of the tariff lines will have the base tax rate of 0-22%, of which most of them are high from 6-22%, will be reduced to 0% (about 840 tariff lines). About 50% of the remaining tax lines with the base tax rate of 5.5-26% will be returned to 0% after 3 to 7 years. For canned tuna and fish balls, the EU gives Vietnam the tariff quotas of 11,500 tons and 500 tons, respectively.

In addition, most frozen squid and octopus’s products have a basic tax rate of 6-8%, will be reduced to 0%, other products such as surimi will be reduced from 14.2% to 0%, fish chess from 7.5% to 0%.

For frozen shrimp and black tiger shrimp (HS 03061792), tax will be reduced from the basic rate of 20% to 0% as soon as the agreement comes into effect. Other shrimp products follow the 3-5-year roadmap, only for processed shrimp, the 7-year tax reduction schedule. For Cat fish, the tax reduction schedule is 3 years, the smoked fish has a 7-year roadmap. Frozen tuna products are entitled to a tax reduction of 0% immediately, except for frozen tuna loin (loin) which needs a 7-year roadmap and canned tuna product has 0% tax quota of 11,500 tons.

Le Mai (theo

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