What is notification and consultations in implementation of application of a transitional RCEP safeguard measure in Vietnam?

1. What is notification and consultations in implementation of application of a transitional RCEP safeguard measure in Vietnam?

Pursuant to Article 13 of Circular 07/2022/TT-BCT stipulating notice and consultation as follows:

1. The investigating authority shall provide written notice to the other Party in the following circumstances:

a) The Minister of Industry and Trade decides to apply the transitional RCEP safeguard measure;

b) The Minister of Industry and Trade decides to terminate the investigation;

c) The investigating authority has given the draft preliminary determination or the draft final determination;

d) The Minister of Industry and Trade decides to apply the provisional transitional RCEP safeguard measure, apply or extend the transitional RCEP safeguard measure;

dd) The Minister of Industry and Trade decides to modify the application of the provisional transitional RCEP safeguard measure, or modify the application or extension of the transitional RCEP safeguard measure.

2. A written notice prescribed in Point a Clause 1 of this Article shall include:

a) A description of the imported good eligible for the most-favoured-nation rate of customs duty under the RCEP Agreement and subject to the transitional RCEP safeguard measure, including its name, heading and the most-favoured-nation rate under the special preferential import tariff schedule for implementation of the RCEP Agreement;

b) A summary of the reason for the decision to initiate the investigation issued by the Minister of Industry and Trade;

c) The date of the Minister of Industry and Trade’s decision to initiate the investigation and the period of investigation.

3. A written notice referred to in Point c and Point d Clause 1 of this Article shall include:

a) A description of the imported good eligible for the most-favoured-nation rate of customs duty under the RCEP Agreement and subject to the transitional RCEP safeguard measure, including its name, heading and the most-favoured-nation rate under the special preferential import tariff schedule for implementation of the RCEP Agreement;

b) Evidence of the serious injury or threat of serious injury caused by increased imports of the originating good of another Party or Parties as a result of the reduction or elimination of a customs duty pursuant to the RCEP Agreement;

c) A description of the proposed provisional transitional RCEP safeguard measure or transitional RCEP safeguard measure;

d) The proposed date of the introduction of the provisional transitional RCEP safeguard measure or transitional RCEP safeguard measure, its expected duration, and timetable for the progressive liberalization of the transitional RCEP safeguard measure;

dd) Evidence that the domestic industry concerned is adjusting in the case the Minister of Industry and Trade decides to extend the application of the transitional RCEP safeguard measure.

4. A written notice referred to in Point dd Clause 1 of this Article shall include:

a) A description of the imported good eligible for the most-favoured-nation rate of customs duty under the RCEP Agreement and subject to the transitional RCEP safeguard measure, including its name, heading and the most-favoured-nation rate under the special preferential import tariff schedule for implementation of the RCEP Agreement;

b) Modification of the application of the provisional transitional RCEP safeguard measure, or modification of the application or extension of the transitional RCEP safeguard measure.

5. The investigating authority shall provide written notice to Parties of the RCEP Agreement before the Minister of Industry and Trade decides to apply the provisional transitional RCEP safeguard measure.

6. The investigating authority shall provide to another Party a copy or address of the website on which the public version of the report on the case. The provided report must be in Vietnamese language.

7. The consultations held at the request of interested parties during the investigation or review for extension of a transitional RCEP safeguard measure shall comply with Clause 1 Article 13 of the Decree No. 10/2018/ND-CP.

2. What are regulations on compensation procedures in case Vietnam initiates investigation, applies or extends the transitional RCEP safeguard measure? 

According to Article 14 of Circular 07/2022/TT-BCT, compensation is provided as follows:

1. Compensation procedures in case Vietnam initiates investigation, applies or extends the transitional RCEP safeguard measure shall be followed in accordance with Article 7.7 of the RCEP Agreement.

2. Authority to make compensation shall comply with Clause 3 Article 98 of the Law on Foreign Trade Management.

Best Regards!