Seafood exports to EU rose slightly

Other 15:29 02/11/2020
(seafood.vasep.com.vn) One month after the EVFTA Agreement took effect, in August 2020, the total value of seafood exports to the EU reached nearly US$ 98 million, a slight increase of 1% over the same period in 2019. This has reflected the positive impact of the EVFTA Agreement in promoting the export of seafood products with incentive tax (0%) right from the date of the agreement's entry into force. Exports of shrimp, squid, and octopus all increased over the same period in 2019 and compared to July 2020, before EVFTA comes into effect.

This shows enterprises have timely grasped and applied the incentives of the agreement, although initially implementing the confusion of procedures such as HS code declaration, declaration form of EUR1 certificate of origin, and other regulations ...

The most positive and obvious changes are shrimp and squid and octopus, of which shrimp went up by nearly 16% over the same period in 2019, up nearly 9% compared to July 2020; squid and octopus increased 10% over the same period in 2019 and nearly 24% compared to July 2020.

Pangasius exports recovered 4% compared to July but still decreased by nearly 24% compared to the same period in 2019. Tuna exports after increasing by 65% in July, exports in August decreased by 17% compared to the same period in 2019 and declined by 28% compared to July 2020. The export of other seafood products is similar to the trend of tuna: down 25% over the same period and down 14% compared to July 2020.

Exports to EU in the first 8 months of 2020

Total exports reached over US$ 600 million, down by over 13% over the same period in 2019. In which, shrimp still plunged by 2% over the same period in 2019, pangasius dipped by 34%, tuna, octopus, and other seafood declined by 9%, 37%, and 14% respectively.

Shrimp accounted for 52% of seafood exports to the EU, with the growth rate after EVFTA, is expected to account for a higher share in the coming months. Pangasius accounted for 15%, tuna accounted for 14% - These 2 products have no prospect of recovery in the last months of the year. Cephalopod represents 5%, and other seafood made up for 14%. It is forecasted that squid and octopus will increase by 10-15% in the last months of the year and the growth rate depends on raw materials exploited in the country.

The EVFTA Agreement took effect from 1 August 2020, 220 seafood products have a base tax rate of 0-22%, of which the high tax rate of 6-22% will be 0% from August 1. In particular, some processed products with a high basic tax rate (20%) will be immediately reduced to 0% such as oysters, scallops, squid, octopus, clams, oysters, processed abalone ...

For canned tuna and fish balls, the EU is destined for Vietnam the tariff quotas of 11,500 MT and 500 MT, respectively. Besides, most frozen squid and octopus 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%, swordfish reduced from 7.5% to 0%.

Frozen black tiger shrimp and whiteleg shrimp products (HS code 03061792) are reduced from the current rate of 4.2% (GSP tax) to 0% from 1 August 2020. Other shrimp products according to the 3-5 year roadmap, for processed shrimp, the tax will be reduced from 7% (GSP) to 0% after 7 years.

For frozen pangasius, the tax reduction schedule is from 5.5% to 0% after 3 years, only for smoked fish has a road map of 7 years.

Frozen tuna products get tax reduction to 0% immediately, except for frozen tuna loin, which takes 7 years.

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