TO GUIDE THE IMPLEMENTATION OF THE FREE TRADE AGREEMENT REGARDING TRADE REMEDIES
On November 26, 2020, the Ministry of Industry and Trade promulgates the Circular No. 30/2020/TT-BCT guiding the implementation of the Free Trade Agreement between the Socialist Republic of Vietnam and the European Union regarding trade remedies.
Accordingly, anti-dumping tax or countervailing tax must not be higher than the dumping margin or subsidy level. Based on conclusions of the investigating agency, the Ministry of Industry and Trade shall consider applying anti-dumping and countervailing tax rates that are lower than the dumping margin or subsidy level if this lower tax rate is sufficient to eliminate damage for the domestic industry.
Additionally, the time limit for application of a bilateral safeguard measure is 02 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, time limit for application may be extended for up to 02 years. In case time limit for application of a bilateral safeguard measure is longer than 02 years, such measure must be gradually loosened throughout the application of the measure.
Bilateral safeguard measures to be applied include: Suspension of further reduction of import duty rates in accordance with the Agreement; Increase of import duty rates applicable to such goods, which must not exceed preferential import duty rates effective at the time of application of this measure or base import duty rates specified in tariffs.
This Circular takes effect on January 11, 2021.
