Consolidated Document number 06/VBHN-BCT Circular guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Ireland on trade defense.

CIRCULAR

Guidelines for Implementing the Free Trade Agreement on Anti-Dumping and Countervailing Measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland

Circular No. 14/2021/TT-BCT dated October 29, 2021, issued by the Minister of Industry and Trade guiding the implementation of the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland, amended and supplemented by:

Circular No. 27/2025/TT-BCT dated May 15, 2025, issued by the Minister of Industry and Trade amending and supplementing certain provisions of Circular No. 14/2021/TT-BCT dated October 29, 2021, issued by the Minister of Industry and Trade guiding the implementation of the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland.

Pursuant to the Law on Foreign Trade Management No. 05/2017/QH14 dated June 12, 2017;

Pursuant to Decree No. 98/2017/NĐ-CP dated August 18, 2017, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 10/2018/NĐ-CP dated January 15, 2018, of the Government detailing some articles of the Law on Foreign Trade Management regarding trade remedy measures;

To implement the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland;

At the proposal of the Director of the Department of Trade Remedies^[[1]];

The Minister of Industry and Trade issues this Circular guiding the implementation of the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular guides the investigation and application of anti-dumping measures, countervailing measures, and bilateral safeguard measures to enforce the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland.

2. The provisions of this Circular apply to goods imported from the United Kingdom and Ireland under the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland.

Article 2. Applicability

1. State management agencies of Vietnam have the authority to investigate, apply, and handle trade remedy measures to enforce the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland.

2. Domestic and foreign traders, agencies, organizations, and individuals related to the investigation, application, and handling of trade remedy measures to enforce the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland.

Article 3. Explanation of Terms

According to this Circular, the following terms are understood as follows:

1. The UKVFTA is the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland.

2. The EVFTA is the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union.

3. Bilateral safeguard measure is a special safeguard measure prescribed in Article 99 of the Law on Foreign Trade Management and Article 3.10 of Chapter 3 of the EVFTA incorporated into the UKVFTA, applicable to goods originating from the United Kingdom and Ireland enjoying preferential tariffs under the UKVFTA imported into Vietnam, subject to the conditions and procedures for investigation stipulated in this Circular.

4. Transition period is the period from January 1, 2021 to December 31, 2030.

5.^[[2]] The domestic industry in the investigation and application of bilateral safeguard measures is a collection of producers of like or directly competitive products within the territory of Vietnam or their representatives who hold a significant share in the total production volume of that product produced domestically. The determination of the significant share of the domestic industry representative is carried out according to the provisions of point b, Clause 2 and Clause 3, Article 4 of Decree No. 86/2025/NĐ-CP.

6. The investigating authority is the Department of Trade Remedies - Ministry of Industry and Trade.

Chapter II

ANTI-DUMPING AND COUNTERVAILING MEASURES

Article 4. Consideration of Economic and Social Benefits

1. The Ministry of Industry and Trade shall decide not to apply anti-dumping or countervailing measures if, based on information available during the investigation, the Investigating Authority concludes that such application would be inconsistent with economic and social benefits.

2. When assessing economic and social benefits, based on relevant information provided, the Investigating Authority will consider the situation of domestic production industries, importers, related associations, organizations, and individuals using or consuming the investigated goods.

Article 5. Rules for Lower Tax Rates

1. Anti-dumping duty or countervailing duty shall not exceed the dumping margin or subsidy rate.

2. Based on the Investigating Authority's conclusion, the Ministry of Industry and Trade will consider applying a lower anti-dumping or countervailing duty than the dumping margin or subsidy rate if this lower duty is sufficient to eliminate damage to the domestic production industry.

Chapter III

BILATERAL DEFENSIVE MEASURES

Article 6. Principles for Applying Bilateral Defensive Measures

1. At the same time, bilateral defensive measures and defensive measures under Article XIX of the General Agreement on Tariffs and Trade 1994 shall not be applied simultaneously to the same imported goods benefiting from preferential tariffs under the UKVFTA Agreement.

2. Bilateral defensive measures shall not be applied outside the transitional period except where there is agreement with the United Kingdom and Ireland.

3.^[[3]] The examination of the application file, investigation, and application of bilateral defensive measures shall be carried out in accordance with the Law on Foreign Trade Management 2017, Decree No. 86/2025/ND-CP, and the provisions of this Chapter.

Article 7. Application File for Investigation of Bilateral Defensive Measures^[[4]]

1. The application file for investigation of bilateral defensive measures (referred to herein as the application file) includes relevant papers, documents, and evidence as stipulated in Article 63 of Decree No. 86/2025/ND-CP.

2. The application file for investigation of bilateral defensive measures as stipulated in Article 63 of Decree No. 86/2025/ND-CP must also include the following specific contents:

a) Information describing the imported goods as specified in Clause 4 of Article 63 of Decree No. 86/2025/ND-CP is information about the imported goods enjoying special preferential tariff rates under the Agreement being requested to be subject to bilateral defensive measures. In this regard, the commodity code information must be based on the Export Tariff, Special Preferential Import Tariff to implement the Agreement;

b) Information on the volume, quantity, and value of imported goods as specified in point a of this clause over at least three consecutive years prior to submitting the application file;

c) Information, data, and evidence regarding serious injury or threat of serious injury to the domestic production industry as specified in Clause 7 of Article 63 of Decree No. 86/2025/ND-CP is information, data, and evidence over at least three consecutive years prior to submitting the application file. In cases where the domestic production industry has been operating for less than three years, the collected data is the entire period of operation of the domestic production industry up to the date of submission of the application file;

d) Specific request for the application of bilateral defensive measures, duration of application, and degree of application.

Article 8. Notification

The investigating authority shall notify in writing the United Kingdom and Northern Ireland Union regarding the investigation to apply bilateral safeguard measures and consult with the United Kingdom and Northern Ireland Union in accordance with the provisions of the UKVFTA Agreement.

Article 9. Investigation and Application of Bilateral Safeguard Measures

1. The investigation period for applying bilateral safeguard measures is one year from the date the investigation decision is issued.

2. The Minister of Industry and Trade decides on the application of bilateral safeguard measures when the investigation report of the investigating authority includes the following contents:

a) There is an absolute or relative increase in imports of goods benefiting from preferential tariffs under the UKVFTA Agreement compared to the volume and quantity of similar domestic products and directly competitive domestic products;

b) The domestic industry suffers serious injury or is threatened with serious injury;

c) The import increase specified in point a of this clause is the cause of serious injury or threat of serious injury to the domestic industry.

3. Bilateral safeguard measures include:

a) Suspension of further reduction of import tariff rates as provided for in the UKVFTA Agreement; or

b) Increase in import tariff rates for such goods but not exceeding the preferential import tariff rate in effect at the time of applying this measure or the basic import tariff rate specified in the Tariff Schedules in Appendix 2-A (Abolition of Customs Duties) of Article 2.7 (Reduction or Abolition of Customs Duties on Imported Goods) of the EVFTA Agreement (incorporated into Part 2 of the Amended Certain Provisions of the Text of the EVFTA Agreement in the UKVFTA Agreement), whichever is lower.

4. The duration of applying bilateral safeguard measures shall not exceed two years. In cases where the investigating authority concludes that it is necessary to continue applying bilateral safeguard measures to prevent or remedy serious injury and facilitate adjustment by the domestic industry, the application period may be extended by up to two additional years.

5. In cases where the duration of applying bilateral safeguard measures exceeds two years, the bilateral safeguard measures must gradually decrease in intensity throughout the application period.

6. After the expiration of the bilateral safeguard measure application period, the import tariff rate applicable to related goods shall be implemented according to the provisions of the UKVFTA Agreement effective at the time of termination of the bilateral safeguard measure.

Article 10. Interested Parties in the Investigation of Bilateral Safeguard Measures

1. Interested parties in the investigation of bilateral safeguard measures include:

a) Organizations and individuals producing and exporting goods under investigation into Vietnam;

b) Organizations and individuals importing goods under investigation;

c) Associations with a majority of members being organizations and individuals producing and exporting goods under investigation;

d) Government and competent authorities of the United Kingdom and Northern Ireland exporting goods under investigation;

đ) Organizations and individuals submitting applications for the application of bilateral safeguard measures;

e) Organizations and individuals domestically producing similar goods and directly competitive goods;

g) Domestic associations in Vietnam with a majority of members being organizations and individuals producing similar goods and directly competitive goods;

h) Other organizations and individuals having legitimate rights and interests related to the investigation or who can assist in the investigation process or represent consumer interests.

2. Organizations and individuals must register and be approved by the investigating authority to become interested parties in the investigation in accordance with the provisions of the Law on Foreign Trade Management.

3.^[[5]] Interested parties in the investigation have access to information and documents provided by other interested parties to the investigating authority in accordance with Clause 3 of Article 74 of the Law on Foreign Trade Management 2017.

Chapter IV

IMPLEMENTING PROVISIONS

Article 11. Effective Date^[[6]]

This Circular takes effect from December 15, 2021./.

^{_____________________________________}

^[[1]] Circular No. 27/2025/TT-BCT dated May 15, 2025, of the Minister of Industry and Trade amending and supplementing certain articles of Circular No. 14/2021/TT-BCT dated October 29, 2021, of the Minister of Industry and Trade guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland on trade defense, is promulgated based on the following:

“Pursuant to the Law on Foreign Trade Management dated June 12, 2017;

Pursuant to Decree No. 40/2025/NĐ-CP dated February 26, 2025, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 86/2025/NĐ-CP dated April 11, 2025, of the Government detailing some provisions of the Law on Foreign Trade Management on trade defense measures;

To implement the Free Trade Agreement on anti-dumping and countervailing measures between the Socialist Republic of Vietnam and the United Kingdom and Ireland;

At the proposal of the Director of the Anti-Dumping and Countervailing Duties Department;"

^[2] This clause has been amended in accordance with Clause 1 of Article 1 of Circular No. 27/2025/TT-BCT dated May 15, 2025, of the Minister of Industry and Trade amending and supplementing certain articles of Circular No. 14/2021/TT-BCT dated October 29, 2021, of the Minister of Industry and Trade guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland on trade defense, which takes effect from July 1, 2025.

^[[3]] This clause has been amended in accordance with Clause 2 of Article 1 of Circular No. 27/2025/TT-BCT dated May 15, 2025, of the Minister of Industry and Trade amending and supplementing certain articles of Circular No. 14/2021/TT-BCT dated October 29, 2021, of the Minister of Industry and Trade guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland on trade defense, which takes effect from July 1, 2025.

^[[4]] This provision is amended in accordance with Clause 3, Article 1 of Circular No. 27/2025/TT-BCT dated May 15, 2025, issued by the Minister of Industry and Trade to amend and supplement some provisions of Circular No. 14/2021/TT-BCT dated October 29, 2021, issued by the Minister of Industry and Trade guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Ireland on trade defense measures, which shall take effect from July 1, 2025.

^[[5]] This clause is amended in accordance with Clause 4, Article 1 of Circular No. 27/2025/TT-BCT dated May 15, 2025, issued by the Minister of Industry and Trade to amend and supplement some provisions of Circular No. 14/2021/TT-BCT dated October 29, 2021, issued by the Minister of Industry and Trade guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Ireland on trade defense measures, which shall take effect from July 1, 2025.

^[[6]] Article 2 of Circular No. 27/2025/TT-BCT dated May 15, 2025, issued by the Minister of Industry and Trade to amend and supplement some provisions of Circular No. 14/2021/TT-BCT dated October 29, 2021, issued by the Minister of Industry and Trade guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Ireland on trade defense measures, which shall take effect from July 1, 2025, provides as follows:

"Article 2. Implementation Provisions

This Circular takes effect from July 1, 2025. In cases where the legal documents referred to and applied in this Circular are amended, supplemented, or replaced, they shall be implemented in accordance with the new laws./.”