What is the scope of exclusion from trade remedies in Vietnam?

Hello, Lawnet would like to answer as follows:

1. What is the scope of exclusion from trade remedies in Vietnam?

According to the provisions of Article 10 of Circular 37/2019/TT-BTC, the Minister of Industry and Trade shall consider granting exclusions from provisional and/or official trade remedies on certain imports subject to trade remedies in the following circumstances:

- Goods cannot be domestically produced;

- The good has characteristics which are different from and cannot be substituted by the domestically produced products;

- The goods are special products of the like or directly competitive products produced by domestic industry;

- There are no sale of the like or directly competitive products produced by the domestic industry in the ordinary course of trade in the domestic market;

-. The like or directly competitive products produced by the domestic industry are not enough to satisfy the needs of the domestic market;

- The imports within the total quantities of imports requesting for exclusion prescribed in Clause 1 through 5 of Article 10 of Circular 37/2019/TT-BTC are intended for serving research and development purposes as well as other non-commercial purposes.

According to Article 12 of Circular 37/2019/TT-BTC, the following entities may submit requests for exclusion from trade remedies:

- Importers of the good which is subject to the trade remedy investigation;

- Users of the good which is subject to the trade remedy investigation for their production;

- Other organizations and individuals as decided by the Minister of Industry and Trade.

Thus, the exclusion aims to ensure the legitimate rights of businesses and consumers, while still ensuring the goal of protecting domestic production when applying trade remedies.

2. What are the criteria and forms of grant of exclusion from trade remedies in Vietnam?

According to Article 13, Circular 37/2019/TT-BTC, criteria and forms of grant of exclusion from trade remedies are as follows:

- The Minister of Industry and Trade shall consider and decide to grant exclusion from trade remedies on goods in the circumstances laid down in Section 1 on the basis of reports on appraisal of requests for exclusion made by the investigating authority. The investigating authority shall promulgate and announce the procedures for appraisal of request for exclusion from trade remedies.

- Every request for exclusion of the good from trade remedies as prescribed in Section 1shall be considered according to one or some of the following criteria:

+ Regulations on list of products which cannot be produced domestically, investigation determinations, technical regulations, standards, opinions given by regulatory authorities, business or trade associations, and other relevant technical documents;

+ Ingredients, physical and chemical properties, standards, technical regulations, uses of the good;

+ The possibility to produce the like or directly competitive products by the domestic industry compared to the good for which the exclusion is requested;

+ The availability of the like or directly competitive products produced by the domestic industry to substitute the product for which exclusion is requested.

- The exclusion from trade remedies shall be granted in each specific case in one of the following forms:

+ There is no limitation on users, uses, volume or quantity of the good granted exclusion in case it is able to distinguish the good for which the exclusion request is submitted and the good subject to trade remedies;

+ The volume or quantity of the good granted exclusion and/or its uses shall be limited.

- The Ministry of Industry and Trade shall refuse to grant exclusion from trade remedies in case such exclusion may facilitate the evasion of trade remedies.

Thus, the exclusion from trade remedies is based on consideration and comparison of relevant factors such as volume, quantity, standards, etc.between imported goods and domestically produced goods.

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