On October 29th, 2021, the Minister of Industry and Trade issued Circular 14/2021/TT-BCT (hereinafter referred to as “Circular 14”) guiding the implementation of the Free Trade Agreement between the Republic of Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland on Trade Remedies (UKVFTA). Some notable points of Circular 14 are as follows:
a. Note on the scope of regulation of Circular 14
According to the guidance, the scope of Circular 14 is to deal with issues related to the investigation, application of anti-dumping measures, anti-subsidy measures and bilateral safeguard measures for the implementation of the Trade Agreement between the Socialist Republic of Vietnam and the United Kingdom of Great Britain and Northern Ireland.
At the same time, these provisions also apply 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.
b. Lower tax rate rule in Anti-Dumping and Anti-subsidy
The anti-dumping or countervailing tax cannot be higher than the dumping margin or the level of subsidy.
Based on the investigation authorities’ conclusion, the Ministry of Industry and Trade will consider applying an anti-dumping and anti-subsidy tax rate lower than the dumping margin or the subsidy level if this lower tax rate is enough to eliminate damage to the domestic industry.
c. Principles of applying bilateral safeguard measures
At the same time, the bilateral safeguard measure and the safeguard measure specified in Article XIX of the General Agreement on Trade and Tariffs 1994 shall not be applied to the same imported goods enjoying preferential treatment tariffs under the UKVFTA Agreement.
A bilateral safeguard measure may not be applied beyond the transition period, except in the case of agreement with the United Kingdom of Great Britain and Northern Ireland.
d. The time limit for investigation and application of bilateral safeguard measures
The time limit for investigation and application of bilateral safeguard measures is 01 year from the date of the investigation decision being announced.
The time limit for the application of bilateral safeguard measures must not exceed 02 years. If the investigating authority concludes that it is necessary to continue to apply a bilateral safeguard measure to prevent or remedy serious damage and facilitate the adjustment of the domestic industry, the application period may be extended for up to 02 years.
If the duration of application of a bilateral safeguard measure is longer than 02 years, the bilateral safeguard measure must be gradually reduced in magnitude throughout the application process.
Circular 14 takes effect from December 15th, 2021.
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