CHINA TO REDUCE THE IMPORT TAX OF SHRIMP AND PANGASIUS

China has issued new tax policies for imports of fisheries products. Accordingly, many potential products of Vietnam such as pangasius, shrimp, octopus and tuna are on the list of tax reduction.

On May 31st, 2018, the Chinese Ministry of Finance announced import duties on 221 seafood products from the most-favored nations (MFN) would fall from 10% to 2%. In addition, down from 18% to 2% for 15 canned seafood products. The new tax policy will take effect from July 1st, 2018.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), this new tax policy facilitates some key export items such as the import tax on frozen pangasius fillets (code 03046290), will reduce from 10% to 7%, the tax rate of fresh or chilled fish will decrease from 12% to 7%. International Trade Center (ITC) announced that in 2017, China directly imports $92.5 million of pangasius products in general, mostly from Vietnam.

Besides, the tax for fresh and chilled tuna will reduce from 12% to 7%. Fresh, chilled and frozen octopus products will also fall from 17% to 7%. The tax for frozen peeled tiger prawns (code 03061721) will also reduce from 8% to 7%.

According to statistics from Vietnam’s organizing agencies, in 2017, Vietnam exports $420 million of catfish to China, up 37% from 2016. China overtakes the US to become a primary customer of Vietnamese pangasius products. While according to ITC, direct imports of pangasius from China is only $92.5 million.

Điều này cho thấy các doanh nghiệp Việt Nam vẫn chưa thật sự khai thác được thị trường này, có hơn ¾ lượng cá tra xuất khẩu vào Trung Quốc phải trông chờ vào các nhà thương mại trung gian. Điều này làm giảm tính cạnh tranh của sản phẩm cá tra Việt Nam so với các mặt hàng khác.

It can be seen that Vietnamese enterprises still have not been able to exploit this market. More than three quarters of pangasius exports to China have to rely on intermediaries, resulting in the decline in the competitiveness of Vietnamese pangasius compared to other commodities.

According to some businesses, the new tax policy of China will create opportunities for enterprises to promote export into this large market. However, the benefits can only come to official and direct exporters and to China.

Source: thanhnien