Scope of goods to be granted exclusions from trade remedies in Vietnam as of February 16, 2024

Scope of goods to be granted exclusions from trade remedies in Vietnam as of February 16, 2024 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On December 28, 2023, the Minister of Industry and Trade issued Circular 42/2023/TT-BCT amending Circular 37/2019/TT-BCT guiding the content of trade remedies.

Scope of goods to be granted exclusions from trade remedies in Vietnam as of February 16, 2024

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:

(1) Goods cannot be domestically produced;

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

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

(4) There are no sales of the like or directly competitive goods produced by the domestic industry in the ordinary course of trade in the domestic market or in force majeure circumstances resulting in short supply by the domestic industry

(Article 10 of Circular 37/2019/TT-BCT, amended in Circular 42/2023/TT-BCT)

Period of exclusion from trade remedies in Vietnam (Latest)

Specifically, Article 11 of Circular 37/2019/TT-BCT, amended in Circular 42/2023/TT-BCT, stipulates the time limit for exemption from application of trade remedies as follows:

(i) The period of exclusion from application of a trade remedy shall not exceed the validity period of such trade remedy. Every year, the Ministry of Industry and Trade of Vietnam shall consider deciding the exclusion periods according to applications for exclusion from trade remedies in one of the cases in clauses 2, 3 and 4 of Article 11 of Circular 37/2019/TT-BCT.

(ii) Regarding an application for exclusion from trade remedies submitted according to point a clause 1 Article 16 of Circular 42/2023/TT-BCT, the period of exclusion from application of a trade remedy shall not exceed the validity period of such provisional trade remedy.

(iii) Regarding an application for exclusion from trade remedies submitted according to point b clause 1 Article 16 of Circular 42/2023/TT-BCT, the exclusion period shall not exceed 18 months from the effective date of the decision on imposition of trade remedies to December 31 of the same year inclusively or to December 31 of the following year.

(iv) Regarding an application for exclusion from trade remedies submitted according to point c clause 1 Article 16 of Circular 42/2023/TT-BCT, the exclusion period shall not exceed 18 months from January 01 of the year in which the application for exclusion is received or from the effective date of the decision to grant exclusion from trade remedies.

(v) With regard to applications for additional exclusion received by the investigating authority as per regulations in clause 4 Article 16 of Circular 42/2023/TT-BCT, the period of the granted additional exclusion shall be determined on the basis of the exclusion period specified in the decision to grant initial exclusion.

More details can be found in Circular 42/2023/TT-BCT taking effect on February 16, 2024.

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