Tax Rate and Extension Period for Safeguard Measures on Imported Long Steel Products Under the Latest Regulations
Which HS codes are applied for the imported goods subject to safeguard measures?
Based on Section 1 of the Notification issued together with Decision 691/QD-BCT of 2023, this content is regulated as follows:
- Imported goods subject to safeguard measures include alloy and non-alloy long steel products (including coil steel and rod steel) imported into Vietnam, with HS codes 7213.10.10; 7213.10.90; 7213.91.20; 7214.20.31; 7214.20.41; 7227.90.10; 7227.90.90; 7228.30.10; 9811.00.10.
- For HS code 9811.00.10, safeguard measures only apply to imports referring to original HS codes 7227.90.10; 7227.90.90; 7228.30.10 and do not apply to imports referring to other original HS codes.
- Long steel products with any of the following characteristics are excluded from the scope of safeguard measures:
(1) Plain round steel bars with a nominal diameter greater than 14 mm;
(2) Steel containing one of the elements with the following percentage range: C > 0.37%; Si > 0.60%; Cr > 0.60%; Ni > 0.60%; Cu > 0.60%;
(3) Alloy wire rods with HS codes 7227.90.10; 7227.90.90 used for welding rods (welding materials).
- Organizations and individuals importing long steel items under points (1) and (2) must provide appropriate documents to customs authorities to prove that the imported goods meet the exemption criteria from safeguard measures.
- Organizations and individuals importing wire rod products under point (3), please refer to Article 4 of this Notification to carry out the procedures for exemption from safeguard measures.
What are the latest regulations on safeguard tax rates and extension periods for imported long steel products? (Image from the Internet)
What are the latest regulations on safeguard tax rates and extension periods for imported long steel products?
Previously, Decision 918/QD-BCT of 2020 recorded a safeguard tax rate of 0% for long steel from March 22, 2023, if the Ministry of Industry and Trade did not issue an extension decision.
However, on March 21, 2023, the Ministry of Industry and Trade issued Decision 691/QD-BCT of 2023, officially extending the application of safeguard tax on imported long steel products. Specifically:
Section 2 of the Notification issued together with Decision 691/QD-BCT of 2023 stipulates the safeguard tax rates and extension periods for imported long steel products as follows:
| Effective Period | Safeguard Tax Rate for Long Steel || --- | --- || From March 22, 2023, to March 21, 2024 | 6.3% || From March 22, 2024, to March 21, 2025 | 6.2% || From March 22, 2025, to March 21, 2026 | 6.1% || From March 22, 2026, onwards | 0% |
Which imported steel products are exempt from safeguard tax?
Section 4 of the Notification issued together with Decision 691/QD-BCT of 2023 stipulates as follows:
4. Exemption from Safeguard Measures
In cases where organizations and individuals importing goods believe that their imported products meet the scope of exemption from safeguard measures specified in point (3) Article 1 of this Notification and Article 10 of Circular 37/2019/TT-BCT dated November 29, 2019, by the Ministry of Industry and Trade on detailed regulations on trade remedy measures, the importing organizations and individuals have the right to submit an application for exemption from safeguard measures to the Trade Remedies Authority - Ministry of Industry and Trade. The procedure for submitting an exemption application is based on Circular 37/2019/TT-BCT.
Referring to Article 10 of Circular 37/2019/TT-BCT stipulates as follows:
The Minister of Industry and Trade considers exempting the application of temporary and official trade remedy measures for certain imported goods subject to trade remedy measures in one of the following cases:
- Goods that are not produced domestically;
- Goods with distinct characteristics compared to domestically produced goods that cannot be replaced by those domestically produced goods;
- Goods that are special products of similar or directly competitive goods produced domestically;
- Similar or directly competitive goods produced domestically are not sold in the domestic market under the same ordinary conditions;
- Similar or directly competitive goods produced domestically do not meet the sufficient domestic consumption quantity;
- Imported goods fall within the total exemption quantity stipulated from clauses 1 to 5 of this Article, serving research, development, and other non-commercial purposes.
Thus, imported steel products exempt from safeguard tax must be alloy wire rods with HS codes 7227.90.10; 7227.90.90 used for welding rods (welding materials) and fall under the exemption cases for application of trade remedy measures in Article 10 of Circular 37/2019/TT-BCT.
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