Last year, Vietnam exported more textile and garment items than those entitled to preferential tariffs in the Eurasian Economic Union under a bilateral free trade agreement.

The Ministry of Industry and Trade recently received a diplomatic note from the Eurasian Economic Commission saying that while the quota for jerseys, pullovers, cardigans, and waistcoats was 1,520 tonne a year, exporters had shipped over 1,640 tonne. Exports of knitted women’s suits also exceeded the quota of 382.7 tonne, with 414.9 tonne being shipped.

According to the safeguard measures incorporated in the agreement, Vietnamese textile-garment exporters will therefore not be entitled to preferential tariffs for a period of six to nine months and instead will have to pay Most Favored Nation import duties.

However, Pham Xuan Hong, Chairman, Chi Minh City Textile and Garment Association, said, its members had not received any warnings from their partners in the EAEU market. Nguyen Ly Truong An, Deputy CEO, Sea Air Global, said some textile companies with factories in Vietnam import products from China and pass them off as made in Vietnam, thus causing export volumes to surge. He urged authorities to take strong action against this.

The Trade Remedies Authority of Vietnam announced a list of 13 other products also likely to face trade origin fraud or illegal transshipment investigations, including plywood made from hardwood, foam cushions and wooden cabinets exported to the U.S., and car tire exports to the US and the EU.