What does the application for imposition of safeguard measures include? When can the duration of safeguard duty application be extended?

What is the safeguard duty in Vietnam?

Based on Clause 7, Article 4 of the 2016 Law on Export and Import Duties, safeguard duty is an additional import tax applied when goods are imported into Vietnam excessively, causing serious damage or threatening to cause serious damage to the domestic production sector or hindering the formation of domestic production.

What does the application for imposition of safeguard measures include? When can the duration of safeguard duty application be extended? (image from the Internet)

When can the duration of safeguard duty application be extended in Vietnam?

Based on Clause 3, Article 14 of the 2016 Law on Export and Import Duties stipulated as follows:

safeguard duty

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3. The duration of the safeguard duty application shall not exceed 4 years, including any temporary safeguard duty application duration. The safeguard duty application duration may be extended for no more than an additional 6 years, provided that there continues to be serious damage or the risk of serious damage to the domestic production sector and evidence shows that the sector is adjusting to enhance competitiveness.

Thus, through the regulation above, the safeguard duty application duration can only be extended under one of two conditions:

- There continues to be serious damage

- The risk of causing serious harm to the domestic production sector, accompanied by evidence proving that the sector is adjusting to enhance competitiveness.

Vietnam: What does the application for imposition of safeguard measures include?

Based on Article 47 of Decree 10/2018/ND-CP, the application for imposition of safeguard measures includes:

- The application for imposition of safeguard measures (hereinafter referred to as the Request Dossier) includes the Request for the application of safeguard duty and related documents and materials.

- The Request for the application of safeguard duty includes the following contents:

+ Name, address, and other necessary information of the organization or individual representing the domestic production sector;

+ Information, data, and evidence to identify the representative of the domestic production sector, including a list of organizations and individuals domestically producing similar or directly competitive goods; volume, quantity of similar or directly competitive goods produced by the aforementioned organizations and individuals;

+ Name, address of organizations, and individuals producing similar goods who support or oppose the case;

+ Information describing the imported goods requested for investigation, including scientific name, trade name, common name; composition; basic physical and chemical properties; primary usage; production process; international and Vietnamese standards and regulations; commodity codes according to the Vietnam Export and Import Goods List and applicable import tax rates under the export and import tariff schedule for each period;

+ Information describing the similar or directly competitive goods of the domestic production sector, including scientific name, trade name, common name; basic physical and chemical properties; primary usage; production process; international and Vietnamese standards and regulations;

+ Information on the volume, quantity, and value of imported goods specified at point d, clause 2, Article 47 of Decree 10/2018/ND-CP in the 3-year period before submitting the Request Dossier;

+ Information on the volume, quantity, and value of similar or directly competitive goods of the domestic production sector specified at point đ, clause 2, Article 47 of Decree 10/2018/ND-CP in the 3-year period before submitting the Request Dossier.

In case the domestic production sector has been in operation for less than 3 years, the data collected will cover the entire operational period of the domestic production sector up to the time of submitting the Request Dossier;

+ Information, data, and evidence about serious damage or threat of serious damage to the domestic production sector;

+ Information, data, and evidence about the causal relationship between the importation of goods specified at point d of this clause and serious damage or the threat of serious damage to the domestic production sector;

+ Specific request regarding the application of safeguard duty, duration, and level of application.

Which agency has the authority to decide on the application of safeguard duty?

Based on Clause 3, Article 15 of the 2016 Law on Export and Import Duties stipulates as follows:

Application of Anti-dumping Tax, Countervailing Tax, safeguard duty

1. The application, adjustment, and removal of anti-dumping tax, countervailing tax, and safeguard duty shall be conducted according to this Law and legislation on anti-dumping, countervailing, and safeguard measures.

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

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

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

5. In case 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 for decisions on applying other appropriate safeguard duty measures.

Thus, from the regulation above, the agency with the authority to decide on the application of safeguard duty is the Ministry of Industry and Trade.