Circular No. 14/2021/TT-BCT guides the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom and Northern Ireland on trade defense.

 

CIRCULAR

Guidelines for implementing the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland on trade defense measures

Vietnam and the United Kingdom of Great Britain and Northern Ireland on trade defenceKingdom of the United Kingdom and Northern Ireland for anti-dumping and countervailing purposes ||| Anti-dumping and Countervailing Duties relating to the Kingdom of the United Kingdom and Northern 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 Defense;

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

Article 1. These Circulars guide the investigation and application of anti-dumping measures, countervailing measures, and bilateral safeguard measures to enforce the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.

Article 2. The provisions of these Circulars apply to goods imported from the United Kingdom of Great Britain and Northern Ireland under the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.

Article 2. Applicability

1. Vietnamese state management agencies authorized to investigate, apply, and handle trade defense measures to enforce the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.

2. Domestic and foreign traders, agencies, organizations, and individuals related to the investigation, application, and handling of trade defense measures to enforce the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern 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.

Bilateral safeguard measures are special safeguard measures prescribed in Article 99 of the Law on Foreign Trade Management and Article 3.10 of Chapter 3 of the EU-Vietnam Free Trade Agreement (EVFTA), incorporated into the provisions of the UK-Vietnam Free Trade Agreement (UKVFTA), applicable to goods originating from the United Kingdom of Great Britain and Northern Ireland enjoying preferential tariffs under the UKVFTA when imported into Vietnam, subject to the conditions and procedures for investigation stipulated in these Circulars.

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

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

Article 1. The Ministry of Industry and Trade decides not to apply anti-dumping or countervailing measures if, based on available information during the investigation, the Investigating Authority concludes clearly that applying such measures would not be in line with economic and social interests.

Article 2. When assessing economic and social interests, based on relevant information provided, the Investigating Authority will consider the situation of the domestic industry, 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.

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

Chapter III

BILATERAL DEFENSIVE MEASURES

Article 6. Principles for Applying Bilateral Defensive Measures

Article 1. At the same time, bilateral safeguard measures and safeguard 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.

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

1. The application file for bilateral safeguard measures (referred to in this Chapter as the Application File) includes the Application Form for Bilateral Safeguard Measures and related documents and materials as prescribed in Article 47 of Decree No. 10/2018/NĐ-CP.

2. The Application Form for Bilateral Safeguard Measures as prescribed in Clause 2 of Article 47 of Decree No. 10/2018/NĐ-CP must meet the following specific contents:

a) Name, address, and other necessary information of the organization or individual representing the domestic producing industry.

b) Information, data, and evidence to determine the representative of the domestic producing industry, including a list of organizations and individuals within the country producing similar goods or directly competing goods; the volume and quantity of similar goods or directly competing goods produced by the aforementioned organizations and individuals.

c) Name and address of organizations and individuals producing similar goods or directly competing goods supporting or opposing the case.

d) Information describing the imported goods benefiting from preferential tariffs under the UKVFTA that are subject to investigation for the application of safeguard measures, including scientific name, trade name, common name; composition; basic physical and chemical characteristics; main purpose of use; production process; international and Vietnamese standards and regulations; tariff code and special preferential import tariff rate according to the Special Preferential Import Tariff Schedule implementing the UKVFTA Agreement.

đ) Information describing similar goods or directly competing goods of the domestic producing industry, including scientific name, trade name, common name; composition; basic physical and chemical characteristics; main purpose of use; production process; international and Vietnamese standards and regulations.

e) Information on the volume, quantity, and value of the imported goods specified in point d of this clause during the three-year period prior to submitting the Application File and including at least six months after the UKVFTA Agreement took effect.

g) Information on the volume, quantity, and value of similar goods or directly competing goods of the domestic producing industry specified in point đ of this clause during the three-year period prior to submitting the Application File and including at least six months after the UKVFTA Agreement took effect. In cases where the domestic producing industry has been operating for less than three years, the collected data covers the entire period of operation of the domestic producing industry up to the time of submitting the Application File.

h) Information, data, and evidence regarding serious injury or threat of serious injury to the domestic industry;

i) Information, data, and evidence about the causal relationship between the importation of goods specified in clause d of this article and serious damage or threat of serious damage to the domestic producing industry.

k) Specific requests regarding the application of safeguard measures, duration of application, and degree of application.

Article 8. Notification

The investigating authority will notify the United Kingdom and Northern Ireland in writing of the investigation for the application of bilateral safeguard measures and consult with the United Kingdom and Northern Ireland 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 the importation of goods benefiting from preferential tariffs under the UKVFTA compared to the volume and quantity of similar goods and directly competing goods produced domestically.

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

c) The increase in imports specified in point a of this clause is the cause of serious damage or a threat of serious damage to the domestic production 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 the import tariff rate on such goods but not exceeding the effective preferential import tariff rate at the time of applying this measure or the base import tariff rate stipulated in the tariff schedules in Appendix 2-A (Abolishing Customs Duties) under Article 2.7 (Reduction or Elimination of Customs Duties on Imports) 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 the application of 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 mitigate serious damage and facilitate the adjustment of the domestic producing industry, the application period may be extended by an additional maximum of two 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 application period for bilateral safeguard measures, 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 application of bilateral safeguard measures.

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.

Chapter IV

IMPLEMENTING PROVISIONS

Article 11. Effective Date

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