Vietnam import duties reduced thanks to free trade agreement
31 July 2020
Eliminating 99% of import and export duties within 7 years – that’s the objective of the free trade agreement between the EU and Vietnam. This ambitious trade agreement will come into force on 1 August 2020. If you regularly import goods from Vietnam, it is likely that you will be eligible for a rate reduction or zero rate on your import duties from as early as next month.
Importing from Vietnam will cost less
Clothing, shoes, furniture and telecommunications equipment: many of these products are imported from Vietnam. Depending on the type of goods, you will pay a certain import duty rate. These costs can add up considerably and rather quickly.
The new trade agreement means importing from Vietnam will cost less. This is because when this agreement enters into force on 1 August, 71% of export from Vietnam will be exempt from import duties. Over the next 7 years, import duties will be phased out for virtually all other products imported into the EU from here. Eventually, 99% of all products imported from Vietnam will be exempt from import duties.
Are you curious to see if you could also benefit from a rate reduction or zero rate on your import duties? From 1 August, our customs specialists can look into your options. Please contact us to see if you could save money.
Trade agreements boost trade
Encouraging and boosting trade is an important spearhead for the EU. Trade agreements are negotiated regularly precisely to this end. The most recent examples are the free trade agreements with Japan, Singapore and Vietnam. The main priority is economic interest, such as the creation of more jobs and economic growth. In addition, there is a focus on working conditions, human rights and the environment.
The free trade agreement between the EU and Vietnam will resolve trade obstructions and create more opportunities. It means export and import to and from Vietnam will become more attractive for entrepreneurs. It is expected that trade with Vietnam will rise sharply over the coming years.
Are you already importing from Vietnam?
Have you ever considered importing from Vietnam? Ritra Cargo is represented in all important trade and production locations in this country, including Hanoi and Ho Chi Minh City. We are proud to have many clients who have been involved in importing from Vietnam for a long time. We would be happy to tell you more about the options and opportunities. Visit our Vietnam page or contact us without obligation.
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