Under the terms of the EU-Vietnam Free Trade Agreement (EVFTA), it is anticipated that the EU will offer tax incentives for 10,000 tonnes of white sugar and 10,000 tonnes of products containing over 80% sugar, according to the Agro Processing and Market Development Authority (Agrotrade).
The implementation of the EVFTA on August 1 has served to present a wealth of opportunities aimed at promoting the export of Vietnamese agricultural products and foodstuffs to the EU market through offering substantial tax reductions.
In line with the commitments outlined in the EVFTA, all products that have been classified in accordance to tax lines on the EU Tariff List are set to be exempt from import duties, with an annual tariff quota reaching 20 000 tonnes of raw sugar.
Under the regulations for sugar and sugar confectionery that are stipulated in the trade deal, products whose origin are classified under tax line 1701.14.90 in the EU Tariff List will enjoy an exemption of import duties with a quota of 400 tonnes per year.
Accordingly, Agrotrade has requested that the Vietnam Sugar Association (VSSA) notify their subsidiary units to strengthen co-ordination with the department, in addition to the Vietnamese trade office in the EU, in an effort to promote the export of sugar and products that contain sugar to the fastidious market