What is the period of imposition of safeguard duty in Vietnam?

What is the period of imposition of safeguard duty in Vietnam?

* Under Clause 7, Article 4 of the Law on Export and Import Duties 2016, safeguard duty means an additional import duty that is imposed in case the quantity of goods imported into Vietnam is above the acceptable level and thus causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.

According to Clause 3, Article 14 of the Law on Export and Import Duties 2016 regulating safeguard duties:

Safeguard duties

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3. Safeguard duties shall be imposed for a period not exceeding 4 years, including the period of imposing temporary safeguard duties. The period of imposition of safeguard duties may be extended for up to 06 more years if serious damage or the threat of serious damage to domestic manufacturing still remains and there is evidence that the manufacturing is improving its competitiveness.

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Thus, the safeguard duties shall be imposed for a period not exceeding 4 years, including the period of imposing temporary safeguard duties.

However, this period may be extended for up to 06 more years if serious damage or the threat of serious damage to domestic manufacturing still remains and there is evidence that the manufacturing is improving its competitiveness.

What is the period of imposition of safeguard duty in Vietnam? (Image from the Internet)

What are the conditions for imposition of safeguard duty in Vietnam?

Under Clause 1, Article 14 of the Law on Export and Import Duties 2016, the conditions for imposition of safeguard duty in Vietnam are as follows:

- The volume, quantity or value of imports drastically increases compared to the volume, quantity, or value of like or directly competitive domestic goods;

- The increase of volume, quantity or value of imports mentioned above causes or threatens to cause considerable damage to domestic manufacturing of like or directly competitive goods or prevents the formation of domestic manufacturing.

What are the regulations on power to decide the imposition of safeguard duty in Vietnam?

According to Clause 3, Article 15 of the Law on Export and Import Duties 2016:

imposition of anti-dumping duties, countervailing duties, safeguard duties

1. The imposition, adjustment, removal of anti-dumping duties, countervailing duties, safeguard duties shall comply with this Law, regulations of law on anti-dumping, anti-subsidy, and safeguard measures.

2. In consideration of duty rates, quantity, or value of goods subject to anti-dumping duties, countervailing duties, or safeguard duties, the declarant shall declare and pay duties in accordance with regulations of law on tax administration.

3. The Ministry of Industry and Trade shall decide the imposition of anti-dumping duties, countervailing duties, safeguard duties.

4. The Ministry of Finance shall provide for the declaration, collection, payment, and refund of anti-dumping duties, countervailing duties and safeguard duties.

5. Where the interests of Socialist Republic of Vietnam are infringed or violated, pursuant to international treaties, the Government shall propose to the National Assembly other appropriate safeguard duty measures.

Therefore, the Ministry of Industry and Trade shall decide the imposition of safeguard duty in Vietnam.

What are the regulations on the imposition of safeguard duty in Vietnam?

Under Article 95 of the Law on Foreign Trade Management 2017 on imposition of safeguard measures, safeguard duties are one of the safeguard measures, and the imposition of safeguard duties is as follows:

- The imposition of provisional safeguard duties shall be decided by the Minister of Industry and Trade according to the preliminary determination provided by the investigating authority if the delay in imposing safeguard duties causes the serious injury or threat of serious injury which is difficult to be repaired to the domestic industry.

The maximum duration of safeguard measure is 200 days from the day on which the decision on the imposition of safeguard measure comes into force.

- An official safeguard measure shall be imposed as follows:

+ After the investigation finishes, the investigating authority shall publish the final determinations of contents related to the investigation prescribed in Article 94 of the Law on Foreign Trade Management 2017. The final determination of the investigating authority and main bases thereof shall be notified to interested parties of the case via appropriate measures;

+ According to the final determination provided by the investigating authority, the Minister of Industry and Trade shall decide whether the official safeguard measure is imposed;

+ The maximum duration of safeguard measure including the duration of provisional safeguard measure is 04 years unless this duration is extended as prescribed in Clause 2 Article 96 of the Law on Foreign Trade Management 2017;

+ The total duration of the safeguard measure including the duration of the provisional measure, the official measure and extension thereof shall not exceed 10 years.