Is the application of safeguard duty based on investigation in Vietnam? What are regulations on the investigation for imposition of safeguard measures in Vietnam?

Is the application of safeguard duty based on investigation in Vietnam?

Based on Article 14 of the Law on Export and Import Taxes 2016, it is stipulated as follows:

safeguard duty

1. Conditions for Applying safeguard duty:

a) The volume, quantity, or value of imported goods increases suddenly in an absolute or relative manner compared to the volume, quantity, or value of similar goods or directly competitive goods produced domestically;

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

2. Principles of Applying safeguard duty:

a) safeguard duty is applied within the scope and to the extent necessary to prevent or limit serious damage to the domestic industry and creates conditions for the industry to enhance its competitiveness;

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

c) safeguard duty is applied on a non-discriminatory basis and does not depend on the origin of goods.

3. The duration of applying safeguard duty shall not exceed 04 years, including the temporary application period. The duration can be extended for no more than 06 additional years, provided there is still serious damage or a threat of causing serious damage to the domestic industry and there is evidence that the industry is adjusting to enhance competitiveness.

Thus, according to the above regulation, the principle is that the application of safeguard duty must be based on investigation conclusions, except in case of temporary safeguard duty application.

Additionally, the safeguard duty must also adhere to the following principles:

- safeguard duty is applied within the necessary scope and extent to prevent or limit serious damage to the domestic industry and creates conditions for the industry to enhance its competitiveness;

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

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

The duration of safeguard duty application can be extended for no more than 06 additional years, provided there is still serious damage or a risk of causing serious damage to the domestic industry and there is proof that the industry is adjusting to enhance competitiveness.

Is the application of safeguard duty based on investigation in Vietnam? What are regulations on the investigation for imposition of safeguard measures in Vietnam? (Image from the Internet)

What are 5 cases where safeguard duty will be applied to goods in Vietnam?

Based on Article 15 of the Law on Export and Import Taxes 2016, it is stipulated as follows:

- The application, change, or abolition of anti-dumping tax, countervailing duties, and safeguard duty is carried out in accordance with the Law on Export and Import Taxes 2016 and the laws on anti-dumping, countervailing, and safeguards.

- Based on the tax rate, quantity, or value of goods subject to anti-dumping tax, countervailing duties, or safeguard duty, customs declarants are responsible for declaring and paying taxes in accordance with tax management regulations.

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

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

- In cases where the interests of the Socialist Republic of Vietnam are harmed or violated, based on international treaties, the Government of Vietnam reports to the National Assembly to decide on applying other appropriate safeguard duty measures.

Does the investigation for imposition of safeguard measures in Vietnam require information on the increase in import of goods under consideration?

Based on Article 50 of Decree 10/2018/ND-CP, the regulation on the content of the decision to investigate the application of safeguard measures to goods is as follows:

- A detailed description of the investigated imported goods, the goods codes according to the List of Export and Import Goods of Vietnam, and the effective import tax rates applied according to the export and import tariffs in each period;

- Names of the enterprises and representatives of the organizations and individuals domestically producing similar goods, directly competing goods requesting the application of safeguard measures;

- A summary of the information on the increase in investigated imported goods;

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

Thus, according to the above regulation regarding the contents of the decision to investigate the application of safeguard measures to goods, it is necessary to include a summary of information on the increase in investigated imported goods.