Import taxes and limits on rice entering Northern Europe

DNHN - The Vietnam Trade Office in Sweden stressed the most crucial criterion for Vietnamese rice to capture the Nordic market: "Consistent quality is the key!"

Products that might be exported

According to the Vietnam Trade Office in Sweden, the commodity with the most significant expansion in recent years entering Northern Europe is rice, which also serves the Nordic market. Sweden's rice imports from Vietnam have expanded dramatically since the implementation of the EVFTA.

Vietnamese brand rice grains have become increasingly well-known and favoured by people all over the globe in recent years.
Vietnamese brand rice grains have become increasingly well-known and favoured by people all over the globe in recent years..

The favourable influence of the EVFTA has assisted Vietnam's rice goods in being more competitive in the market than rivals such as Indian and Thai rice. Furthermore, the Trade Office has aggressively encouraged the rice trade, educating and mobilizing enterprises to import Vietnamese rice to gain from tariffs.

Rice imported into the Nordic market is classified into three types: rice for human use, rice for animal feed, and rice for further processing.

The Vietnam Trade Office in Sweden suggests that importing enterprises play a key role in ensuring quality and safety criteria food of rice, as well as distribution to smaller customers and resellers, to better dominate the Nordic market.

"It is preferable for specialized rice providers to have strong relationships and avoid dealing rice in huge volumes." When it comes to greater amounts, rice importers, millers, and brokers may be useful, but selling speciality rice needs a strong network.

The Trade Office stressed the most crucial criterion for Vietnamese rice to dominate the Nordic market: "Consistent quality is the key!" A dependable and well-managed production method is essential to provide a constant degree of quality when producing rice with specified grain size, fragrance, or other attributes.

"With particular varieties of Vietnamese rice, the EVFTA Agreement recognizes and protects geographical indicators." The global tasty rice prize went to rice ST24 and ST25. "Enterprises may do research and introduce various varieties of rice into the Nordic market under the brand name Vietnamese Specialty Rice," according to the Vietnam Trade Office in Sweden.

Sweden and Denmark, as EU members, have mechanisms and policies for rice imports that are consistent with the EU's system and policies. Although Norway is not a member of the EU, it is a member of the European Economic Community. As a result, the restrictions for importing agricultural goods and food from Norway, Sweden, and Denmark meet standard EU food safety requirements.

All goods sold in the European Union (EU), including rice, must adhere to the European Food Law, which protects food safety. Regulations governing additives, contaminants, pesticide residue limitations, and mycotoxins must be properly followed.

The presence of mycotoxins, pesticide residues, microbes, and heavy metals is the most prevalent contaminant-related allegation. Furthermore, agricultural goods and food entering the EU must conform to packaging, labelling, and a variety of other restrictions.

Businesses must take notice

To comprehend rice-related processes, exporters can examine the market's required requirements on official EU websites such as Trade Help Desk and CBI. For an overview of legal papers and rules, see the European Commission's legal foundation for grains and rice. Check for regulatory changes using the European Federation of Rice Mills (FERM) Appryza online program, which gives up-to-date regulatory information on European and export markets another login.

The EU imports 80,000 tons of Vietnamese rice each year (Artwork).
The EU imports 80,000 tons of Vietnamese rice each year (Artwork)..

In addition, use the EU MRL database for pesticides and rice-related active chemicals; search for rice (or code 0500060).

In terms of taxation, the EU out-quota tax on Vietnamese rice (including Sweden and Denmark) is now 175 Euro/ton for milled rice, 65 Euro/ton for broken rice, and 211 Euro/ton for paddy.

The Vietnam-EU Free Trade Agreement (EVFTA) went into force on August 1, 2020, and it outlines the parameters for rice cultivars to get preferential treatment. The following are specific commitments: The EU reserves a total quota of 80,000 tons for Vietnam, with a 0% tariff within the limit. After 5 years, the import tariff on broken rice would be eliminated; rice products will be tax-free in 3-5 years.

Rice is taxed at a low or nil rate in Norway. Items in this category are often non-Norwegian. Tariff quotas are often applied to products in this category.

In terms of quotas, the EU has set aside a total of 80,000 tons for Vietnam, with a 0% quota tariff.

Rice shipments that satisfy this quota must be accompanied by a certificate of the appropriate kind issued by Vietnam's relevant authorities.

The EU's focal point for the EVFTA Agreement's tariff-rate quota (TRQ) system for rice is the G.4 (Crops and Olive Oil) unit under the General Department of Agriculture and Rural Development (Arable Cops and Olive Oil, DG Agriculture and Rural Development).

When shipments of fragrant rice are exported to the EU market, they must conform with the EU's enforcement laws on opening and accepting import TRQs for rice originating in Vietnam. Enterprises must apply for an import license with the appropriate authorities of the member nation and pay a security deposit of 30 Euro/ton at the time of application.

If the number of registrations exceeds the number allowed under the TRQ for the time, the EU will establish an allocation factor.

The Enforcement Regulation (EU) 2020/991 governs the issuance and acceptance of TRQs for Vietnamese rice.

When exporting to the EU market, fragrant rice shipments subject to TRQ must have an authenticity certificate issued by the competent authority of Vietnam indicating that the rice belongs to one of the rice types entitled to preferential treatment under the Agreement's TRQ.

Fragrant rice must be classified as one of the following: Jasmine 85, ST 24, ST 25, Lady Flower 9, VD 20, RVT, OM 4900, or OM 5451.

Rice imported into the EU through the TRQ method will be distributed on a "first-come, first-served" basis, depending on the date the import license application is received and accepted by EU customs officials.

Rice is taxed at a low or nil rate in Norway. Items in this category are often non-Norwegian. Tariff quotas are often applied to products in this category. Tariff quotas may be granted in a variety of ways.

Others quotas apply to all nations, while others are exclusively accessible to countries with bilateral or regional trade agreements, and some grant developing countries special tax treatment under the GSP program. Tariff quotas may also be awarded by auction, application, or first come, first served.

Bao Ngan

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