Are safeguard duties applied in a discriminatory manner and goods origins in Vietnam?

Are safeguard duties applied in a discriminatory manner and goods origins in Vietnam?

Based on Article 14 of the Law on Export and Import Tax 2016 regulations as follows:

safeguard duty

1. Conditions for applying safeguard duty:

a) The volume, quantity, or value of imported goods increases suddenly and absolutely or relatively compared to the volume, quantity, or value of similar or directly competitive goods produced domestically;

b) The increase in the volume, quantity, or value of imported goods specified at point a of this clause causes or threatens to cause serious damage to the domestic production of similar goods or directly competitive goods or hinders the formation of a domestic industry.

2. Principles for applying safeguard duty:

a) Safeguard duty is applied within the necessary scope and level to prevent or limit serious damage to the domestic production and create conditions for that industry to improve competitiveness;

b) The application of safeguard duty must be based on investigation conclusions, except in cases of temporary application of safeguard duty;

c) Safeguard duty is applied on a non-discriminatory manner and regardless ofthe origin of goods.

3. The duration for applying safeguard duty shall not exceed 04 years, including the period of temporary application of safeguard duty. The duration for applying safeguard duty can be extended for a maximum of 06 additional years, provided that there is still serious damage or the threat of serious damage to the domestic production and there is evidence that the industry is adjusting to improve competitiveness.

Thus, based on the above regulations, safeguard duties must ensure non-discrimination and independence from the origin of goods.

Additionally, safeguard duties must adhere to the following principles:

- Safeguard duty is applied within the necessary scope and level to prevent or limit serious damage to the domestic production and create conditions for that industry to improve competitiveness;

- The application of safeguard duty must be based on investigation conclusions, except in cases of temporary application of safeguard duty;

*Note: The duration for applying safeguard duty shall not exceed 04 years, including the period of temporary application of safeguard duty.

The duration for applying safeguard duty can be extended for a maximum of 06 additional years, provided that there is still serious damage or the threat of serious damage to the domestic production and there is evidence that the industry is adjusting to improve competitiveness.

Are safeguard duties applied in a discriminatory manner and goods origins in Vietnam? (Image from the Internet)

What are the regulations on applying safeguard duty in Vietnam?

Based on Article 15 of the Law on Export and Import Tax 2016 regulations as follows:

- The application, alteration, and abolition of anti-dumping tax, countervailing tax, and safeguard duty shall be implemented according to the provisions of this Law and the laws on anti-dumping, countervailing, and safeguards.

- Based on tax rates, quantities, or values of goods subject to anti-dumping, countervailing, and safeguard duties, the customs declarant is responsible for declaring and paying the tax according to the regulations of the law on tax management.

- The Ministry of Industry and Trade decides on the application of anti-dumping tax, countervailing tax, and safeguard duty.

- The Ministry of Finance regulates the declaration, collection, payment, and refund of anti-dumping tax, countervailing tax, and safeguard duty.

- In cases where the interests of the Socialist Republic of Vietnam are violated, based on international treaties, the Government of Vietnam reports to the National Assembly for decision on applying other appropriate protective tax measures.

What are the contents of an investigation for imposition of safeguard measures in Vietnam?

Based on Article 50 of Decree 10/2018/ND-CP regulating the contents of an investigation decision on imposition of safeguard measures as follows:

- Detailed description of the imported goods being investigated, the commodity code according to the List of Export and Import Goods of Vietnam, and the applicable import tax rate according to the export and import tariff schedule at each period;

- Names of enterprises and representatives of domestic organizations and individuals producing similar goods or directly competitive goods requesting safeguard measures;

- Summary of information on the increase in imports of the goods being investigated;

- Serious damage or the threat of serious damage to the domestic industry due to the increase in imports.