Case of applying emergency measures to textile and garment products in the CPTPP Agreement

According to the provisions of Article 12 of Circular 19/2019/TT-BCT, the Minister of Industry and Trade decides on the application of emergency measures on textiles to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership when the investigation report of the investigative agency contains the following content:

Illustrative image (source: internet)

- There is an absolute or relative increase in imports compared to the volume, quantity of domestic production of textiles under investigation from one or more member countries as a result of tariff preferences under the Agreement.- The domestic industry suffers or is threatened with serious damage;- The increase in imports specified in point a of this clause is the cause of serious damage or threat of serious damage to the domestic industry.

However, based on the consideration of factors including production output, actual capacity, productivity, inventory, market share, exports, labor, wages, domestic sales price, profit, and investment, the investigative agency determines the serious damage or threat of serious damage to the domestic industry according to regulations. Factors related to changes in technology or changes in consumer preferences will not be considered.

Note: Emergency measures on textiles are applied in the form of increasing the tariff rate on those goods, but not exceeding the preferential tariff rate effective at the time of applying this measure or the preferential tariff rate valid the day before the Agreement comes into effect, whichever rate is lower.

Also according to Circular 19/2019/TT-BCT, the duration of application of transitional safeguard measures must not exceed 2 years and can be extended for up to an additional 2 years. After the expiration of the application period of emergency measures on textiles, the import tariff rate applied to the relevant goods shall follow the Special Preferential Import Tariff Schedule implementing the Agreement effective at the end of the application period of this emergency measure on textiles.

More details can be found in Circular 19/2019/TT-BCT effective from November 14, 2019.

Thu Ba

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