Which DAP and MAP fertilizer products have been subject to official safeguard measures in Vietnam?

Which DAP and MAP fertilizer products have been subject to official safeguard measures in Vietnam?

Pursuant to Decision 686/QD-BCT of 2018, the DAP and MAP fertilizer products subject to official safeguard measures are those with the following HS codes:

HS: 3105.10.20; 3105.10.90; 3105.20.00; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; 3105.90.00 imported into Vietnam from various countries/territories, with detailed content specified in the notification attached to this Decision 686/QD-BCT of 2018.

Specifically: In the notification regarding the application of official safeguard measures issued with Decision 686/QD-BCT of 2018, as follows:

- Imported goods subject to official safeguard measures

The imported goods subject to official safeguard measures are complex or compound inorganic fertilizers under the following HS codes: 3105.10.20; 3105.10.90; 3105.20.00; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; 3105.90.00.

*Note: Fertilizer products with one of the components having the following content will be excluded from the scope of official safeguard measures: Nitrogen (N) < 7%; Phosphorus (P2O5) < 30%; and Potassium (K2O) > 3%.

What is the List of countries exempt from safeguard measures in Vietnam according to Decision 686/QD-BCT of 2018?

Pursuant to Section 4 of the notification on the application of official safeguard measures issued with Decision 686/QD-BCT of 2018 providing for the list of countries exempt from safeguard measures as follows:

According to Article 13 of Decree 150/2003/ND-CP (a document no longer in effect and replaced by Decree 10/2018/ND-CP of the Government of Vietnam dated December 08, 2003, stipulating detailed implementation of the Ordinance on Safeguards in the importation of foreign goods into Vietnam (Decree 150/2003), official safeguard measures apply to goods imported from all countries/territories (hereafter referred to as countries), except for developing countries with export volumes to Vietnam not exceeding 3% of Vietnam's total imports, and total export volumes from developing countries not exceeding 9% of Vietnam's total imports.

The list of developing countries with export volumes to Vietnam not exceeding 3% of Vietnam's total imports (known as countries exempt from official safeguard measures) is listed in the appendix attached to this notification.

In case the import volume from a developing country in this appendix exceeds 3% of Vietnam's total imports, the Ministry of Industry and Trade will issue a decision to amend and supplement this appendix.

For organizations and individuals importing goods, to be exempt from official safeguard measures as stipulated above, besides the documents required by customs and specialized agencies, when importing goods, it is necessary to provide customs authorities with a Certificate of Origin in compliance with current regulations, clearly indicating that the imported goods originate from countries listed in the appendix of this notification.

Download the full appendix of the notification on the application of official safeguard measures issued with Decision 686/QD-BCT of 2018.

Shall the safeguard duty be applied for 5 years?

Pursuant to Article 14 of the Law on Export and Import Duties 2016 stipulating the safeguard duty as follows:

safeguard duty

1. Conditions for applying safeguard duty:

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

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

2. Principles for applying safeguard duty:

a) safeguard duty shall be applied within the necessary scope and extent to prevent or mitigate serious damage to domestic production and to provide the domestic industry with conditions to enhance competitiveness;

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

c) safeguard duty shall be applied on a non-discriminatory basis and independent of the origin of the goods.

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

The law prescribes that the duration for applying safeguard duty shall not exceed 04 years, including the period of applying temporary safeguard duty.

The duration for applying safeguard duty can be extended by no more than 06 additional years, provided that serious damage or risk of serious damage to the domestic industry persists, and there is evidence that the industry is adjusting to improve competitiveness.

Thus, according to the safeguard duty regulations, it can potentially be applied for 5 years; however, this occurs in cases of extension, and the maximum application upon extension is 6 years.

In typical cases, the duration for applying safeguard duty shall not exceed 04 years, including the period of applying temporary safeguard duty.

How are the regulations on applying safeguard duty to goods?

Pursuant to Article 15 of the Law on Export and Import Duties 2016 stipulating the application of safeguard duty to goods as follows:

- The application, modification, or abolition of anti-dumping tax, countervailing duty, and safeguard duty is implemented as per the regulations of this Law and legislation on anti-dumping, countervailing, and safeguard measures.

- Based on the tax level, quantity, or value of goods subject to anti-dumping tax, countervailing duty, and safeguard duty, customs declarants are responsible for declaring and paying taxes following the regulations of tax management law.

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

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

- In the event that 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 the application of other protective tax measures as appropriate.