Proposal to abolish tariff on Vietnamese shrimp imported into RoK
Friday, 19/04/2024 20:30 (GMT+7)
The Vietnam Association of Seafood Exporters and Producers (VASEP) has just sent an official dispatch to the Prime Minister, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, and the Ministry of Foreign Affairs requesting the abolition of a tariff for Vietnamese shrimp imported into the Republic of Korea (RoK).
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According to VASEP, 2024 is the 10th year of implementing the Vietnam-Korea Free Trade Agreement (VKFTA). According to the roadmap, most seafood items are subject to a 0% duty.
However, according to commitments, there are still seven categories of seafood products imported from Vietnam into the RoK that only enjoy tariff benefits up to a certain volume.
Specifically, the RoK grants these products tax free import under the VKFTA up to 15,000 tons per year. Any imports exceeding this are subject to a 20% basic tariff. Thus, for key shrimp products alone, in 2016-2023, 34-48% of Vietnamese shrimp output imported into the RoK is subject to a duty of 20%.
This makes importers less likely to increase purchases of Vietnamese shrimp to serve the growing demand in the RoK, but instead to consider buying more shrimp from other countries (such as Peru) that have Free Trade Agreement with the RoK with an import tax rate returning to 0% for a 5-7 year roadmap. This eliminates all tariff advantages from VKFTA for Vietnamese frozen shrimp products in the Korean market.
Faced with this situation, considering requesting the RoK to remove the tariff mechanism for Vietnamese frozen shrimp under VKFTA is very urgent to protect the market share and long-term benefits of Vietnamese shrimp in the market./.
BTA