For Vietnam’s exported goods, right after the Agreement comes into effect, the EU will eliminate import duties on about 85.6% of tariff lines, equivalent to 70.3% of Vietnam’s export turnover. to the EU. After 07 years from the date of entry into force of the Agreement, the EU will eliminate import duties on 99.2% of tariff lines, equivalent to 99.7% of Vietnam’s export turnover. For the remaining 0.3% of export turnover, the EU commits to give Vietnam a tariff rate quota (TRQ) with the import tax in the quota of 0%.
Thus, it can be said that nearly 100% of Vietnam’s export turnover to the EU will be eliminated from the import tax after a short journey. So far, this is the highest level of commitment that a partner gives us in the FTA agreements has been signed. This benefit is especially meaningful when the EU is continuously one of the two largest export markets of Vietnam today.
For important commodity groups, the EU’s commitments are as follows:
Within 5 years from the date of entry into force of the Agreement, the EU will eliminate tariffs with 77.3% of our exports, the remaining 22.7% of turnover will be eliminated after 7 years. This EU commitment is made in accordance with the ability to meet the requirement of a “2-stage” rule of origin (from fabric onwards) of the Vietnamese textile and garment industry (i.e. to enjoy preferential tariffs under In the EVFTA Agreement, Vietnam’s garment and textile must be made from fabrics of Vietnamese origin). In addition, the EU also accepts flexibly with this rule as the inclusion of origin from Korea.
EU commits to reduce tax to 0% for 42.1% of our export turnover right after the Agreement comes into effect. After 03 years and 07 years from the date of entry into force of the Agreement, this rate will be 73.2% and 100% respectively.
Seafood (except canned tuna and fish balls):
The EU will eliminate tariffs on 86.5% of our exports within 3 years, 90.3% within 5 years and 100% within 7 years. For canned tuna, the EU gives us a tariff quota of 11,500 tons.
The EU gives Vietnam a quota of 80,000 tons of rice (including 30,000 tons of milled rice, 20,000 tons of unmilled rice and 30,000 tons of fragrant rice). In particular, the EU will fully liberalize broken rice (making it possible to export up to 100,000 tons of broken rice to the EU annually). For products from rice, the EU will bring the tax rate to 0% after a certain roadmap.
EU gives Vietnam a quota of 10,000 tons of white sugar and 10,000 tons of products containing over 80% of sugar.
The EU will eliminate tariffs as soon as the Agreement comes into force and will not apply tariff quotas.
Fruit and vegetable products, processed fruits and vegetables, other fruit juices, bags, suitcases, plastic products, glass ceramics products:
Basically, tariffs will be eliminated as soon as the Agreement comes into force.
Other products subject to tariff-rate commitments:
The EU gives us a tariff quota of 25,000 tons of cassava starch (on the EU’s total imports of 33,000 tons), and 5,000 tons of sweet corn (baby corn alone will not be subject to the tariff quota and enjoy a 0% tax rate within the EU. 7 years), 400 tons of garlic, and 350 tons of mushrooms.
The quota rate of all products subject to EU tariff rate quota commitments is 0%.