HANOI – Vietnam’s exports of a number of textiles and garments that are entitled to preferential tariffs in the Eurasian Economic Union (EAEU) have exceeded their quotas.
The Eurasian Economic Commission (EEC) on September 28 sent a document to the Vietnamese Ministry of Industry and Trade saying that Vietnam’s exports of some textiles and garments from January to July 2021 exceeded the quotas for preferential tariffs.
Exports of underwear (Harmonized System (HS) codes 6107, 6108, 6207, 6208 and 6112) amounted to 175% of the quotas. Besides, the exports of dresses and women’s clothing (HS codes 6104.41- 6204.49) and exports of suits, jackets, sport coats and trousers (HS codes 6103 41 – 6204 69) reached 105% and 100% of the quotas, respectively.
According to Clause 2.10 of the VN-EAEU free trade agreement, these items may not be entitled to the preferential tariff of 0% for a period of six to nine months and instead will have to pay the Most Favored Nation import duties of 12%.
The Eurasian Economic Union, whose members comprise Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, has an integrated single market of 180 million people.
The free trade agreement between Vietnam and the EAEU came into effect in 2016. Two-way trade between Vietnam and the EAEU rose 6.5% year-on-year to US$5.2 billion in 2020, of which Vietnam’s exports to the EAEU reached US$3.1 billion, while imports amounted to US$2.1 billion, up 7.2% and 5.5% from the previous year, respectively.
Russia accounted for 94% of Vietnam’s exports to the EAEU last year.