Circular 14/2021/TT-BCT trade remedies under Free Trade Agreement Vietnam - UK

CIRCULAR

Guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland regarding trade remedies^[1]

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

Pursuant to the Government’s Decree No. 98/2017/ND-CP of August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 10/2018/ND-CP of January 15, 2018, detailing a number of articles of the Law on Foreign Trade Management regarding trade remedies (below referred to as Decree No. 10/2018/ND-CP);

To implement the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland;

At the proposal of the Director of the Trade Remedies Authority of Vietnam,

The Minister of Industry and Trade promulgates the Circular guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland regarding trade remedies.

Chapter 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 implement the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.

2. This Circular applies to imported goods originating 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. Subjects of application

1. State management agencies of Vietnam that are competent to carry out investigation, and apply trade remedies for the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.

2. Traders, and domestic and foreign agencies, organizations and individuals involved in the investigation, and application of trade remedies for the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. UKVFTA stands for the Free Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.

2. EVFTA stands for the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union.

3. Bilateral safeguard measure means a special safeguard measure specified in Article 99 of the Law on Foreign Trade Management and Article 3.10, Chapter 3 of the EVFTA, which has been included in the UKVFTA, that is applicable to goods originating from the United Kingdom of Great Britain and Northern Ireland and eligible for preferential tariffs under the UKVFTA for being imported into Vietnam, and subject to the investigation conditions and procedures specified in this Circular.

4. Transitional period means the period from January 1, 2021, through December 31, 2030.

5. Domestic industry in the investigation and application of bilateral safeguard measures means a group of manufacturers of similar goods or directly competitive goods within the territory of Vietnam or their representatives that contribute a major proportion in the aggregate output of domestically manufactured goods of such industry. The determination of major proportion of contribution by representatives of the domestic industry must comply with Clause 2, Article 4 of Decree No. 10/2018/ND-CP.

6. Investigating authority means the Trade Remedies Authority of Vietnam of the Ministry of Industry and Trade.

Chapter II

ANTI-DUMPING MEASURES AND COUNTERVAILING MEASURES

Article 4. Consideration of socio-economic benefits

1. The Ministry of Industry and Trade shall decide on non-application of anti-dumping measures and countervailing measures if, based on available information during the investigation process, the investigating authority makes a clear conclusion that the application of such measures does not bring about socio-economic benefits.

2. Upon evaluation of socio-economic benefits, the investigating authority shall, based on the relevant information provided, consider the situation of the domestic industry, importers, related associations, and organizations and individuals that use and consume goods under investigation.

Article 5. Lesser duty rule

1. Anti-dumping duty or countervailing duty must not be higher than the margin of dumping or subsidy level.

2. Based on conclusions of the investigating authority, the Ministry of Industry and Trade shall consider applying an anti-dumping or countervailing duty rate lower than the margin of dumping or subsidy level if this lower duty rate is adequate to remove the injury to the domestic industry.

Chapter III

BILATERAL SAFEGUARD MEASURES

Article 6. Principles for imposition of bilateral safeguard measures

1. It is not allowed to concurrently apply the bilateral safeguard measure and the safeguard measure provided in Article XIX of the 1994 General Agreement on Tariffs and Trade to the same imported goods item eligible for preferential tariffs under the UKVFTA.

2. Bilateral safeguard measures may not be applied beyond the transitional period, unless agreed upon with the United Kingdom of Great Britain and Northern Ireland.

3. The investigation and application of bilateral safeguard measures to imported goods originating from the United Kingdom of Great Britain and Northern Ireland must comply with this Circular and Vietnam’s regulations on trade remedies.

Article 7. Dossiers of request for application of bilateral safeguard measures

1. A dossier of request for application of bilateral safeguard measures (referred to in this Chapter as a dossier of request) must comprise a written request for application of bilateral safeguard measures and relevant papers and documents specified in Article 47 of Decree No. 10/2018/ND-CP.

2. A written request for application of bilateral safeguard measures specified in Clause 2, Article 47 of Decree No. 10/2018/ND-CP must have the following specific contents:

a/ Names, addresses and other vital information of representatives of the concerned domestic industry;

b/ Information, data and evidence for identification of representatives of the domestic industry, covering a list of domestic manufacturers of similar goods or directly competitive goods; and volume and quantity of the manufactured similar goods or directly competitive goods;

c/ Names and addresses of manufacturers of similar goods or directly competitive goods that support or oppose the trade remedies case;

d/ Information describing imported goods eligible for preferential tariffs under the UKVFTA that are requested for investigation for application of safeguard measures, covering scientific names, trade names and common names; composition; basic physical and chemical characteristics; main use purpose; manufacturing process; applicable international and Vietnamese standards and technical regulations; goods headings and special preferential import duty rates under the Special Preferential Import Tariff for the implementation of the UKVFTA;

dd/ Information describing similar goods or directly competitive goods of the domestic industry, covering scientific names, trade names and common names; basic physical and chemical characteristics; main use purpose; manufacturing process; and applicable international and Vietnamese standards and technical regulations;

e/ Information on volume, quantity and value of imported goods specified at Point d of this Clause during the period of 3 years before the date of dossier submission, which must include a period of at least 6 months after the effective date of the UKVFTA;

g/ Information on volume, quantity and value of similar goods or directly competitive goods of the domestic industry specified at Point dd of this Clause during the period of 3 years before the date of dossier submission, which must include a period of at least 6 months after the effective date of the UKVFTA. In case a domestic industry has operated for under 3 years, to-be-collected data are those in the entire operation duration of such domestic industry counted by the date of dossier submission;

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

i/ Information, data and evidence on the causal relationship between the import of the goods specified at Point d of this Clause and serious injury or threat of serious injury to the domestic industry;

k/ Specific requirements on application of safeguard measures, and period and extent of application.

Article 8. Notification

The investigating authority shall notify in writing the United Kingdom of Great Britain and Northern Ireland of the investigation for application of bilateral safeguard measures and consult the latter in accordance with the UKVFTA.

Article 9. Investigation and application of bilateral safeguard measures

1. The time limit for investigation for application of bilateral safeguard measures is 1 year from the date the investigation decision is issued.

2. The Minister of Industry and Trade shall decide on application of bilateral safeguard measures when the investigating authority’s investigation conclusion shows that:

a/ There is an absolute increase or a relative increase in imported goods eligible for preferential tariffs under the UKVFTA compared to the volume or quantity of domestically manufactured similar goods or directly competitive goods;

b/ The domestic industry suffers serious injury or threat of serious injury;

c/ The increase in imported goods specified at Point a of this Clause causes serious injury or threatens serious injury to the domestic industry.

3. To-be-applied bilateral safeguard measures include:

a/ Suspension of continued reduction of the import duty rate for a goods item in accordance with the UKVFTA; or,

b/ Increase of the import duty rate applicable to such goods item, which must not exceed the preferential import duty rate effective at the time of application of this measure or the base import duty rate specified in the tariffs provided in Annex 2-A (Elimination of Customs Duties) under Article 2.7 (Reduction or Elimination of Customs Duties on Imported Goods) of the EVFTA (already included in Section 2 of the Annex modifying the incorporation of the EVFTA into the UKVFTA), whichever is lower.

4. The period of application of a bilateral safeguard measure must not exceed 2 years. In case the investigating authority concludes that it is necessary to continue applying a bilateral safeguard measure to prevent or remedy serious injury to and facilitate the adjustment in the domestic industry, the measure application duration may be extended for up to 2 years.

5. In case the period of application of a bilateral safeguard measure is longer than 2 years, such measure must be gradually loosened throughout the measure application period.

6. Upon the expiration of the period of application of a bilateral safeguard measure, the import duty rate applicable to the concerned goods item must comply with the UKVFTA’s provisions which are effective at the time of termination of application of such bilateral safeguard measure.

Article 10. Related parties in investigation cases regarding the application of bilateral safeguard measures

1. Related parties in an investigation case regarding the application of bilateral safeguard measures include:

a/ The organization(s) and individual(s) manufacturing or exporting goods under investigation into Vietnam’s territory;

b/ The organization(s) and individual(s) importing goods under investigation;

c/ The association(s) with a majority of members being organizations and individuals manufacturing or exporting goods under investigation;

d/ The Government and competent authority(ies) of the United Kingdom of Great Britain and Northern Ireland that export goods under investigation;

dd/ The organization(s) and individual(s) filing dossiers of request for application of bilateral safeguard measures;

e/ The domestic organization(s) and individual(s) manufacturing similar goods or directly competitive goods;

g/ Vietnam’s domestic association(s) with a majority of members being organizations and individuals manufacturing similar goods or directly competitive goods;

h/ Other organizations and individuals that have lawful rights and interests related to the investigation or may render help during the investigation process or representative organizations protecting consumer interests.

2. An organization or individual shall register for becoming, and must obtain the investigating authority’s approval to become, a related party in an investigation case in accordance with the Law on Foreign Trade Management.

3. Related parties in an investigation case may access information and documents under Article 9 of Decree No. 10/2018/ND-CP.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 11. Effect

This Circular takes effect on December 15, 2021.-

  Minister of Industry and Trade
 NGUYEN HONG DIEN