What is safeguard duty? What is the period of application of safeguard duties in Vietnam?

What is safeguard duty? What is the period of application of safeguard duties in Vietnam? (Internet image)

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

1. What is safeguard duty?

Safeguard duty means an additional import duty that is imposed in case the quantity of goods imported into Vietnam is above the acceptable level and thus causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.

(Clause 7, Article 4 of the Law on Export and import duties 2016)

2. What is the period of application of safeguard duties in Vietnam?

Safeguard duties shall be applied for a period not exceeding 4 years, including the period of applying temporary safeguard duties.

The period of application of safeguard duties may be extended for up to 06 more years if serious damage or the threat of serious damage to domestic manufacturing still remains and there is evidence that the manufacturing is improving its competitiveness.

(Clause 3, Article 14 of the Law on Export and import duties 2016)

3. What are the conditions for applying safeguard duties in Vietnam?

According to Clause 1, Article 14 of the Law on Export and import duties 2016, conditions for applying safeguard duties include:

- The volume, quantity or value of imports drastically increases compared to the volume, quantity, or value of like or directly competitive domestic goods;

- The increase of volume, quantity or value of imports mentioned in Clause a of this Clause causes or threatens to cause considerable damage to domestic manufacturing of like or directly competitive goods or prevents the formation of domestic manufacturing.

4. Rules for applying safeguard duties in Vietnam

Rules for applying safeguard duties specified in Clause 2, Article 14 of the Law on Export and import duties 2016 include:

- Safeguard duties may only be applied to a reasonable extent to prevent or minimize serious damage to domestic manufacturing and facilitate the improvement of competitiveness of manufacturing;

- The application of safeguard duties shall take into account the investigation conclusion, unless temporary safeguard duties are applied;

- Safeguard duties are applied in a non-discriminatory manner and regardless of goods origins.

5. Regulations on application of anti-dumping duties, countervailing duties, safeguard duties in Vietnam

Application of anti-dumping duties, countervailing duties, safeguard duties is prescribed as follows:

- The application, adjustment, removal of anti-dumping duties, countervailing duties, safeguard duties shall comply with the Law on Export and import duties 2016, regulations of law on anti-dumping, anti-subsidy, and safeguard measures.

- In consideration of duty rates, quantity, or value of goods subject to anti-dumping duties, countervailing duties, or safeguard duties, the declarant shall declare and pay duties in accordance with regulations of law on tax administration.

- The Ministry of Industry and Trade shall decide the application of anti-dumping duties, countervailing duties, safeguard duties.

- The Ministry of Finance shall provide for the declaration, collection, payment, and refund of anti-dumping duties, countervailing duties and safeguard duties.

- Where the interests of Socialist Republic of Vietnam are infringed or violated, pursuant to international treaties, the Government shall propose to the National Assembly other appropriate safeguard duty measures.

(Article 15 of the Law on Export and import duties 2016)

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