What are the conditions for extending the period of the safeguard duty application in Vietnam? Who has the authority to decide on the application of safeguard duty in Vietnam?

What are the conditions for extending the period of the safeguard duty application in Vietnam?

Pursuant to Clause 3, Article 14 of the Law on Export and Import Duties 2016, the regulations for extending the period of the safeguard duty application are as follows:

Safeguard Duty

1. Conditions for applying safeguard duty:

a) The volume, quantity, or value of imported goods increases dramatically, either absolutely or relatively, 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 sector of similar or directly competitive goods or hinders the establishment of a domestic production sector.

2. Principles for applying safeguard duty:

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

b) The application of safeguard duty must be based on the investigation's conclusion, except in cases of temporary safeguard duty application;

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

3. The period for applying the safeguard duty does not exceed four years, including the time of applying temporary safeguard duty. The period of applying the safeguard duty may be extended for no more than six additional years, provided there remains serious damage or the risk of causing serious damage to the domestic production sector and there is evidence proving that the sector is adjusting to enhance its competitiveness.

From the above regulation, it can be seen that the condition to extend the period of applying safeguard duty is that there remains serious damage or a risk of causing serious damage to the domestic production sector and there is evidence proving that the sector is adjusting to enhance its competitiveness.

Additionally, it is necessary to note that the period for applying safeguard duty may be extended for no more than six additional years from the year of safeguard duty application.

What are the conditions for extending the period of the safeguard duty application in Vietnam? Who has the authority to decide on the application of safeguard duty in Vietnam? (Image from the Internet)

What are principles for applying safeguard duty in Vietnam?

According to Clause 2, Article 14 of the Law on Export and Import Duties 2016, the principles for applying the safeguard duty are stipulated as follows:

Safeguard Duty

1. Conditions for applying safeguard duty:

a) The volume, quantity, or value of imported goods increases dramatically, either absolutely or relatively, 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 sector of similar or directly competitive goods or hinders the establishment of a domestic production sector.

2. Principles for applying safeguard duty:

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

b) The application of safeguard duty must be based on the investigation's conclusion, except in cases of temporary safeguard duty application;

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

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Thus, the safeguard duty is applied based on the following principles:

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

- The application of safeguard duty must be based on the investigation's conclusion, except in cases of temporary safeguard duty application;

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

Who has the authority to decide on the application of safeguard duty in Vietnam?

Pursuant to Clause 3, Article 15 of the Law on Export and Import Duties 2016 2016, it is stipulated as follows:

Application of Anti-Dumping Duty, Countervailing Duty, and Safeguard Duty

1. The application, modification, or abolition of anti-dumping duty, countervailing duty, and safeguard duty is carried out according to the provisions of this Law and the laws on anti-dumping, subsidies, and safeguards.

2. Based on the tax rate, quantity, or value of goods subject to anti-dumping duty, countervailing duty, and safeguard duty, the customs declarant is responsible for declaring and paying tax in accordance with the law on tax management.

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

4. The Ministry of Finance prescribes the declaration, collection, payment, and reimbursement of anti-dumping duty, countervailing duty, and safeguard duty.

5. 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 protective tax measures.

From the above regulation, it can be seen that the Ministry of Industry and Trade is the competent authority to decide on the application of safeguard duty.