Some textile and garment items from Vietnam that are entitled to preferential tariffs in the Eurasian Economic Union (EAEU) under a bilateral free trade agreement (FTA) exceeded the quota last year. The ministry of industry and trade said it recently received a diplomatic note from the Eurasian Economic Commission saying while the quota for jerseys, pullovers, cardigans and waistcoats was 1,520 tonnes a year, exporters had shipped over 1,640 tonnes.
Exports of knitted women’s suits also exceeded the quota of 382.7 tonnes, with 414.9 tonnes being shipped.Some Vietnamese textile-garment items entitled to preferential tariffs in the Eurasian Economic Union under a free trade agreement exceeded the quota last year. The government received a diplomatic note from the economic bloc saying while the quota for jerseys, pullovers, cardigans and waistcoats was 1,520 tonnes a year, exporters shipped over 1,640 tonnes.#
The agreement incorporates safeguard measures against exceeding quotas, and accordingly Vietnamese textile-garment exporters will not be entitled to preferential tariffs for a period of six to nine months and instead will have to pay Most Favored Nation import duties.
But Pham Xuan Hong, chairman of Ho Chi Minh City Textile and Garment Association, told domestic media outlets that members had not received any warnings from their partners in the EAEU market.
Some textile companies with factories in Vietnam import products from China and pass them off as ‘Made in Vietnam’, thus causing export volumes to surge.
ALCHEMPro News Desk (DS)
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