Helping export businesses take advantage

“The dossier requires a list of purchases from farmers, with a copy of ID card, confirmation of the commune, while previously we did not buy goods directly from farmers but had to go through agents and general agents to be sufficient. amount. Enterprises take a lot of time to complete the application, so it is very necessary for the authorities to remove it in the direction of simplification so that we can buy raw materials from farmers “- a representative of an enterprise suggested.

Head down, tail not in

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), some tuna exporters to Germany are also facing the problem of C/O form EUR1 (with tariff preferences). Specifically, the importer in Germany received information from German customs that some tuna shipments imported from Vietnam with C/O EUR1 were “in doubt” of validity and that the German importer had to make a deposit. Secured with customs at the tax rate of 24% to clear the shipment.

This has been going on since the beginning of the year, currently the German importer has not received a refund after more than 6 months of waiting. To date, this issue has not been resolved, so the German importer is asking Vietnamese enterprises to share 50% of the deposit. If the problem is not solved, German enterprises will not dare to import goods from Vietnam, if they buy, customers will also sign contracts with unfavorable terms for Vietnamese enterprises.

Therefore, VASEP recommends the Ministry of Industry and Trade to send a letter to the German competent authority to clarify the issue of C/O EUR1 of Vietnamese shipments exported to Germany so that the two sides can have a timely handling plan, helping to Normal commercial activities return.

Also related to making the most of the advantages brought by the FTA, VASEP has written suggestions to the Ministry of Industry and Trade to expand the agreement on rules of origin according to the criteria for HS code conversion (DN uses raw materials). materials outside the FTA, undergoing deep processing (PV) are also entitled to incentives. At present, the rules of origin in FTAs ​​require that raw materials used for processing and export must be of pure origin (i.e. materials of domestic origin) or of intra-regional origin (materials of domestic origin). originating from FTA member countries) has limited many preferential shipments.

Regarding the cashew industry, an official in charge of issuing C/O for businesses in the South said that the cashew industry has a high rate of importing raw materials, more than 60%, so there is a high risk of origin fraud, inspection work. control must be very tight. “Other commodities where Vietnam has advantages in raw materials such as rice, pepper, coffee, etc., are of low risk, so they are rarely inspected.

Enterprises when buying domestic raw materials, besides the purchase invoice, need to prove where the source of the cashew is grown and harvested, from which farmer with a specific address to confirm the correct origin. In case enterprises do not buy goods directly from farmers, sales agents for enterprises are responsible for providing documents, “- this official suggested.

There’s still a lot of work to do

According to statistics of the Ministry of Industry and Trade, in 2021, export turnover taking advantage of tariff preferences under FTAs ​​will reach US$69.08 billion, accounting for 32.66% of total exports to FTA-signed markets. For the whole year, there were 1.2 million sets of preferential C/O issued, an increase of 24% in value and an increase of 23% in the number of sets of C/O compared to 2020.

The Ministry of Industry and Trade explained that the rate of using preferential C/O of only 32.66% does not mean that the remaining export turnover of Vietnam is subject to high tax. In fact, most favored nation (MFN) import tax in some markets is already 0% or very low 1%-2%. In these cases, enterprises do not apply for preferential C/O when exporting because the presence or absence of a preferential C/O does not make a difference in tariffs.

Economic experts believe that FTAs ​​are the driving force for enterprises to resolve to improve product quality and specifications, but also in terms of labor, environment, and social responsibility. enterprises in the direction of green enterprises, humanity and sustainable development.

An expert from the Center for WTO and Integration under the Vietnam Federation of Trade and Industry (VCCI) recognized that above all, it is necessary to take the initiative of the business community to take full advantage of tax incentives in FTAs. Enterprises must meet production rules, sources of raw materials, etc., along with improving competitiveness through improving weak areas. However, up to now, besides businesses paying attention to invest and make changes to be qualified to meet these requirements, there are still many businesses that have not really cared to learn thoroughly or take action. to take advantage of the opportunities FTA brings.

Mr. Pham Xuan Hong – Chairman of the Board of Directors of Sai Gon 3 Garment Joint Stock Company, Chairman of Ho Chi Minh City Textile and Embroidery Association – admitted that up to now, many textile and garment enterprises have not taken advantage of FTAs.

The reason lies in the inherent limitations of the textile industry, which is not proactive in the source of raw materials, heavily dependent on Chinese materials while most FTAs ​​require rules of origin, for example CPTPP (Agreement). The Comprehensive and Progressive Agreement for Trans-Pacific Partnership) requires a rule of origin “from the yarn onwards”, the EVFTA (Vietnam – EU Free Trade Agreement) requires “from the fabric onwards”.

“Enterprises basically meet the criteria of labor safety, environment, green production… With the requirement of origin, there are enterprises that have invested in raw material areas, supply chains, and domestic production of fabrics, but the number this is not much. Garment Saigon 3 itself has enjoyed the advantage of exporting at preferential tax rates to the US and Japan, “- Mr. Hong shared.

Economic expert – Dr. Le Dang Doanh said that Vietnamese enterprises have too little potential, so they cannot take advantage of tariff preferences and other incentives from FTAs. “We want to avoid being too dependent on our big partner, China, so we have signed many FTAs. However, these markets have many strict regulations on intellectual property, environmental sanitation, and origin of goods.

Enterprises that are not linked together will find it difficult to meet the requirements. The past time is not too short for businesses to take advantage and promote the advantages brought by FTAs. Therefore, in the next period, it is necessary to cooperate with research institutes, universities, export support agencies with small and medium enterprises to more effectively exploit advantages in markets with FTAs. – Dr. Doanh gave comments.