Textiles products exceed the import quota in EAEU

Some goods items exceeding trigger could be applied trigger measure in half year. Photo: Nguyễn Thanh

According to the Ministry of Industry and Trade: the EAEU Committee (Department of Domestic Market Protection) has issued a document No.14-674 announcing the number of underwear items (HS codes 6107, 6108, 6207, 6208, 6112 and children’s garments (HS 6111 20, 6111 30, 6111 90, 6209) that were imported from the beginning of the year to the end of October into the Union territory have reached 173,330 kg and 112,732 kg.

These numbers have exceeded triggers levels in 2017 as specified in Annex 2 of the Vietnam-EAEU Free Trade Agreement.

As committed in the Vietnam-EAEU Free Trade Agreement, when reaching trigger levels, the Union may apply a trigger mechanism to the related goods for a period of approximately six months. This is what textile exporters need to pay special attention to.

If the trigger mechanism is applied, during the effective period of the applicable decision, the related products will not be entitled to the preferential tax rate under the Vietnam-EAEU Agreement. It will be applied tax under MFN.

The trigger measure is a measure which is more likely to half of the tariff quotas (with limits on quantity) and half of protection (procedures for consultations on the possibility of causing damage to the domestic industry).

For each product, a trigger will apply each year if the volume of any products imported into the EAEU exceed the trigger for that year, the EAEU will immediately announce it to Vietnam by written document.