Circular No. 30/2020/TT-BCT guiding the Free Trade Agreement between Vietnam and EU on trade remedies

CIRCULAR

Guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union regarding trade remedies^[1]

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

Pursuant to the National Assembly’s Resolution No. 102/2020/QH14 of June 8, 2020, on ratification of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union;

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;

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 European Union regarding trade remedies.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Circular guides the application of bilateral safeguard measures, anti-dumping measures and countervailing measures to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union.

2. The provisions of this Circular apply to goods originated from:

- European Union member state territories;

- The United Kingdom of Great Britain and Northern Ireland; and,

- The Principality of Andorra; and the Republic of San Marino.

Article 2.Subjects of application

1. State management agencies of Vietnam that are competent to investigate, apply and handle trade remedies for the implementation of the Agreement.

2. Domestic and foreign traders, agencies, organizations and individuals involved in the investigation, application and handling of trade remedies for the implementation of the Agreement.

Article 3.Interpretation of terms

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

1. Agreement means the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union.

2. Bilateral safeguard measure means a measure specified in Article 3.10, Chapter 3 of the Agreement and Article 99 of the Law on Foreign Trade Management.

3. Transitional period means the period from August 1, 2020, through July 31, 2030.

4. 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, which make up a major percentage in the aggregate output of domestically manufactured goods of such industry. The determination of major percentage of representatives of a domestic industry must comply with Clause 2, Article 4 of Decree No. 10/2018/ND-CP.

5. Investigating agency means the Ministry of Industry and Trade’s Trade Remedies Authority of Vietnam.

Chapter II

ANTI-DUMPING MEASURES AND COUNTERVAILING MEASURES

Article 4.Consideration of socio-economic interests

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 agency clearly concludes that the application of measures is not in line with socio-economic interests.

2. Upon assessment of socio-economic interests, the investigating agency shall, based on the relevant information provided, consider the situation of the domestic industry, importers, related associations, and organizations and individuals using and consuming the goods under investigation.

Article 5.Lesser duty rule

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

2. Based on conclusions of an the investigating agency, the Ministry of Industry and Trade shall consider applying anti-dumping or countervailing duty rate lower than the dumping margin or subsidy level if this lower duty rate is sufficient to eliminate damage for the domestic industry.

Chapter III

BILATERAL SAFEGUARD MEASURES

Article 6.Principles for application of bilateral safeguard measures

1. The bilateral safeguard measure and the safeguard measure provided in Article XIX of the 1994 General Agreement on Tariffs and Trade may not be concurrently applied to the same imported goods eligible for special preferential import duty rates under the Agreement.

2. Bilateral safeguard measures may not be applied beyond the transitional period, unless agreed upon with the European Union.

3. Investigation and application of bilateral safeguard measures must comply with the Law on Foreign Trade Management, Decree No. 10/2018/ND-CP and the provisions of this Chapter.

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 dossier of request) must comprise a written request for application of bilateral safeguard measures and relevant 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 necessary information of organizations and individuals representing the concerned domestic industry;

b/ Information, data and evidence for identification of representatives of the domestic industry, including a list of domestic organizations and individuals manufacturing similar goods or directly competitive goods; volume and quantity of similar goods or directly competitive goods manufactured by the above-mentioned organizations or individuals;

c/ Names and addresses of producers of similar goods supporting or opposing the case;

d/ Information describing imported goods eligible for special preferential import duty rates under the Agreement, which are requested for investigation for application of safeguard measures, including 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 Tariffs for the implementation of the Agreement;

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

e/ Information on the volume, quantity and value of the imported goods mentioned at Point d of this Clause during the period of 3 years before the date of dossier submission, including at least 6 months after the effective date of the Agreement;

g/ Information on the 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, including at least 6 months after the effective date of the Agreement. In case that industry has operated for under 3 years, data collected shall be those of the entire operation time of the domestic industry by the date of dossier submission;

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

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

Article 8.Notices

The investigating agency shall notify in writing to the European Union the investigation for application of bilateral safeguard measures and consult the European Union in accordance with the Agreement.

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 the application of bilateral safeguard measures when the investigation conclusion of the investigating agency has the following contents:

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

b/ The domestic industry suffers from severe damage or threat of severe damage;

c/ An increase in imported goods specified at Point a of this Clause causes severe damage or threat of severe damage to the domestic industry.

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

a/ Suspension of further reduction of the import duty rate in accordance with the Agreement; or

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

4. The duration for application of a bilateral safeguard measure must not exceed 2 years. In case the investigating agency concludes that a bilateral safeguard measure must be further applied to prevent or remedy serious damage and facilitate the adjustment of the domestic industry, the duration for application may be extended for 2 more years.

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

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

Article 10.Parties involved in an investigation case regarding the application of bilateral safeguard measures

1. Parties involved in an investigation case regarding the application of bilateral safeguard measures include:

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

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

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

d/ The government(s) and competent authority(ies) of the European Union member states exporting the 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/ The domestic association(s) of Vietnam of which a majority of members are organizations and individuals manufacturing similar goods or directly competitive goods;

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

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

3. Parties involved 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

1. This Circular takes effect on January 11, 2021.

2. The provisions of this Circular apply only to goods originated from the United Kingdom of Great Britain and Northern Ireland from the date this Circular takes effect through December 31, 2020 (which may be extended for up to 24 months in accordance with the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union).-

Minister of Industry and Trade
TRAN TUAN ANH