Guidelines for the Implementation of EVFTA Agreement on Trade Remedies

05/10/2020, 05:57 AM

The Ministry of Industry and Trade is drafting a Circular guiding the implementation of the Free Trade Agreement between Vietnam and the European Union (EVFTA) on the trade department.

This draft Circular guides the application of safeguard measures in the transition period, anti-dumping measures and countervailing measures to implement the Free Trade Agreement between Vietnam and the European Union. Europe (hereinafter referred to as Agreement).

According to the draft, principles of applying the measure of transitional order are: At the same time, the transitional safeguard measure and safeguard measure under the Foreign Trade Management Law shall not be applied at the same time to the same EU origin imported goods imported into Vietnam.

The investigating body will notify the EU side in writing of the initiation of a transitional safeguard investigation and consult with the EU in accordance with the Agreement.

Investigate and apply transitional safeguard measures

The draft clearly states that the time limit for the investigation to apply transitional safeguard measures is 01 year from the date of issuance of the decision to initiate the investigation. The Minister of Industry and Trade shall decide on the application of a transitional safeguard measure when the investigation conclusion of the investigation authority has the following contents:

  1. There is an increase in the absolute or relative import compared to the volume or quantity of domestically produced import of the imported goods under investigation from the EU as a result of the reduction or elimination of the duties of the good under the Agreement;
  2. The domestic industry suffers serious damage or is threatened with serious damage;
  3. The increase in import specified at Point a of this Clause causes serious damage or threatens to cause serious damage to the domestic industry.

The applied transitional safeguard measure includes:

  1. To suspend the further reduction of tax rates under the Agreement for the goods under investigation as prescribed in Annex 2-A (elimination of customs duties) of the Agreements;
  2. Increase the tax rate on such goods but not exceed the preferential tax rate in effect at the time of application of this measure or the base tax rate specified in the tariff schedules in Annex 2-A under Article 2.7 (Reduce or eliminate customs duties on imported goods) in this agreement, whichever is lower.

The time limit for applying the transitional safeguard measure must not exceed 2 years. In the event that the Investigation Agency concludes that the transitional safeguard measure should continue to be applied to prevent or remedy serious damage and facilitate the adjustment of the domestic industry, the application deadline can be extended for up to 2 years.

The Ministry of Industry and Trade is collecting people's comments on this draft at its web portal.

 

Source: Bao Chinh Phu

Comment(s)