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MINISTRY OF
INDUSTRY AND TRADE
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SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.:
19/2019/TT-BCT
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Hanoi, September
30, 2019
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CIRCULAR
PRESCRIBING
SPECIAL SAFEGUARD MEASURES FOR IMPLEMENTATION OF COMPREHENSIVE AND PROGRESSIVE
AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP (CPTPP)
Pursuant to the Law on foreign trade management
dated June 12, 2017;
Pursuant to the Resolution No. 72/2018/QH14 dated
November 12, 2018 of the National Assembly on ratification of the Comprehensive
and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and relevant
documents;
Pursuant to the Government’s Decree No.
98/2017/ND-CP dated 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 dated January 15, 2018 on guidelines for the Law on foreign trade
management regarding trade remedies;
At the request of the Director of the Trade
Remedies Authority of Vietnam;
The Minister of Industry and Trade promulgates a
Circular prescribing special safeguard measures for implementation of the
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP).
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GENERAL PROVISIONS
Article 1. Scope
This Circular introduces regulations on the special
safeguard measures for implementation of the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP),
including:
1. Safeguard measures to be taken during the
transition period.
2. Emergency actions against textile and apparel
goods.
Article 2. Regulated entities
This Circular applies to:
1. Vietnamese regulatory authorities that have
jurisdiction to inspect, apply and handle special safeguard measures for
implementation of the CPTPP Agreement.
2. Vietnamese traders, traders of Parties of the
CPTPP Agreement, other domestic and foreign agencies, organizations and
individuals related to the investigation, application and handling of special
safeguard measures for implementation of the CPTPP Agreement.
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For the purpose of this Circular, the terms below
are construed as follows:
1. “Agreement” means the Comprehensive and Progressive Agreement
for Trans-Pacific Partnership .
2. “Party” means any State or territory
implementing the Agreement.
3. “like good” means a good that is identical in
all respects to the good subject to investigation. In the absence of such
a good, the like good is another good that has characteristics closely
resembling those of the good subject to investigation.
4. “directly competitive good” means a good that is
accepted by buyers as a substitute for the good subject to the safeguard
measures because of its price advantage and uses.
5. “transition period” means, in relation to a
particular good, the 03-year period beginning on the date of entry into force
of the Agreement. Where the tariff elimination for the good occurs over a
longer period of time, the transition period shall be the period of the staged
tariff elimination for that good.
6. “transitional safeguard measure” means a measure
described in Article 99 of the Law on foreign trade management and Article 6.3
Chapter 6 of the Agreement.
7. “transition period for textile and apparel
goods” means the period beginning on the date of entry into force of the
Agreement until 05 years after the date on which Vietnam eliminates duties on
textile and apparel goods for the exporting Party pursuant to the Agreement.
8. “emergency action against textile and apparel
goods” means an action described in Article 99 of the Law on foreign trade
management and Article 4.3 Chapter 4 of the Agreement.
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10. “date of entry into force of the Agreement” is
January 14, 2019.
Article 4. Interested parties
in investigation and application of transitional safeguard measures and
emergency actions against textile and apparel goods
1. Interested parties in the case of investigation
and application of transitional safeguard measures and emergency actions
against textile and apparel goods include:
a) the producer or exporter of a Party whose goods
are imported into the territory of Vietnam and subject to the investigation (;
b) the importer of goods subject to investigation;
c) the trade or business association a majority of
the members of which are producers or exporters of goods subject to
investigation;
d) the government and authorities of the exporting
Party of goods subject to investigation;
dd) the applicant for imposition of transitional
safeguard measures or emergency actions against textile and apparel goods;
e) the producer of the domestic like or directly
competitive goods;
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h) such other person or organization that has
legitimate rights and interests related to or useful for the investigation or
representative consumer organizations.
2. Any organization or individual desiring to
become an interested party in the investigation shall register with and must be
approved by the investigating authority in accordance with regulations of the
Law on foreign trade management regarding registration procedures.
3. An interested party in the investigation is
entitled to access information and documents provided for the investigating
authority by other interested parties in accordance with Clause 2 Article 75 of
the Law on foreign trade management and Article 11 of the Government’s Decree
No. 10/2018/ND-CP dated January 15, 2018.
Chapter II
TRANSITIONAL SAFEGUARD
MEASURES
Article 5. Rules for imposition
of a transitional safeguard measure
1. A transitional safeguard measure shall not be
applied on the same good at the same time with one of the following measures:
a) a safeguard measure imposed on goods imported
into Vietnam set out in the Law on foreign trade management;
b) an emergency action against textile and apparel
goods prescribed herein.
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3. A transitional safeguard measure shall not be
applied more than once on the same good.
4. A transitional safeguard measure shall not be
imposed on any goods imported under a tariff quota established under the
Agreement.
5. Neither tariff rate quotas nor import quotas
shall be a permissible form of transactional safeguard measure.
6. The investigation and imposition of a
transitional safeguard measure must comply with regulations of the Law on
foreign trade management, Decree No. 10/2018/ND-CP and provisions in Article 6,
Article 7 and Article 8 hereof.
Article 6. Application for
imposition of a transitional safeguard measure
1. An application for imposition of the
transitional safeguard measure includes the application form for imposition of
the transitional safeguard measure and relevant documents specified in Article
47 of Decree No. 10/2018/ND-CP.
2. The application form for imposition of the
transitional safeguard measure specified in Clause 2 Article 47 of Decree No.
10/2018/ND-CP must also include the following information:
a) Description of the imported good as prescribed
in Point d Clause 2 Article 47 of Decree No. 10/2018/ND-CP that is the
information relating to the good imported from one or more of the Parties and
subject to the investigation upon the request for imposition of transitional
safeguard measure. Information relating to the HS code and import duty must be
provided according to the special preferential import/export tariff schedules
for implementation of the Agreement.
b) Information relating to quantities and values of
the imported good subject to investigation as prescribed in Point e Clause 2
Article 47 of Decree No. 10/2018/ND-CP within the 03-year period before
submitting the application, including at least 06 months after the Agreement
comes into force;
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d) Information relating to the transition period
for the imported good subject to the investigation upon the request for
imposition of transitional safeguard measure.
Article 7. Imposition of
transitional safeguard measure in case no application is submitted
1. In case no application is submitted but there
are clear signs that an originating good of one or more Parties is being
imported into Vietnam in increased quantities during the transition period as a
result of the reduction or elimination of a customs duty under the Agreement as
to cause or threaten to cause serious injury to the domestic industry, the
investigating authority may prepare and submit an application to the Minister
of Industry and Trade for making investigation decision.
2. An application submitted by the investigating
authority must comply with regulations of Article 6 hereof, except Point a,
Point b and Point c Clause 2 Article 47 of Decree No. 10/2018/ND-CP .
3. Relevant organizations and individuals shall
cooperate and provide necessary information at the request of the Ministry of
Industry and Trade.
Article 8. Imposition of a
transitional safeguard measure
1. The Minister of Industry and Trade shall decide
the imposition of a transitional safeguard measure when the report given by the
investigating authority contains the following findings:
a) There is an increase in the quantities of the
subject good which is imported from one or more Parties in increased
quantities, in absolute terms or relative to domestic production, as a result
of the reduction or elimination of a customs duty pursuant to the Agreement.
If there is an increase in the quantities of the
subject good imported from two or more Parties in increased quantities, the
imports from such each Party into which the investigation is made have
increased, in absolute terms or relative to domestic production, since the date
of entry into force of the Agreement for those Parties;
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c) The serious injury or threat of serious injury incurred
by the domestic industry is caused by the increased imports as set out in Point
a of this Clause.
2. The transitional safeguard measures to be
imposed include:
a) Suspension of the further reduction of any rate
of customs duty provided for under the Agreement on the good subject to
investigation;
b) Increase in the rate of customs duty on the good
to a level not to exceed the lesser of the most-favoured-nation applied rate of
customs duty in effect at the time the measure is applied and the most-favoured-nation
applied rate of customs duty in effect on the day immediately preceding the
date of entry into force of the Agreement.
3. A transitional safeguard measure shall be
maintained for a period not exceeding 02 years. This period may be
extended by up to 01 year if the investigating authority determines that the
transitional safeguard measure continues to be necessary to prevent or remedy
serious injury and to facilitate adjustment for the domestic industry.
4. Where the expected duration of a transitional
safeguard measure is over 01 year, it must be progressively liberalized at
regular intervals during the period of application.
5. On the termination of a transitional safeguard
measure, the rate of customs duty shall be imposed on the relevant good
according to the special preferential import tariffs for implementation of the
Agreement in effect at the time of termination of such transitional safeguard
measure.
Chapter III
EMERGENCY ACTIONS
AGAINST TEXTILE AND APPAREL GOODS
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1. No emergency action shall be taken against a
textile or apparel good that is, at the same time, subject to one of the
following measures:
a) a safeguard measure imposed on goods imported
into Vietnam set out in the Law on foreign trade management;
b) a transitional safeguard measure provided for
under this Circular.
2. No emergency action shall be taken against a
textile or apparel good beyond the expiration of the transition period for such
textile or apparel good.
3. No emergency action shall be taken against any
particular textile or apparel good more than once.
4. The investigation and imposition of an emergency
action against textile and apparel goods must comply with regulations of the Law
on foreign trade management, Decree No. 10/2018/ND-CP and provisions in Article
10, Article 11 and Article 12 hereof.
Article 10. Application for
taking of emergency actions against textile and apparel goods
1. An application for taking of an emergency action
against a textile or apparel good includes the application form and relevant
documents specified in Article 47 of Decree No. 10/2018/ND-CP.
2. The application form for taking of an emergency
action against a textile or apparel good prepared according to Clause 2 Article
47 of Decree No. 10/2018/ND-CP must also include the following information:
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b) Information relating to quantities and values of
the imported textile or apparel good as prescribed in Point a of this Clause
within the 03-year period before submitting the application, including at least
03 months after the Agreement comes into force;
c) Information relating to quantities and values of
the like or directly competitive good produced by the domestic industry as
prescribed in Point g Clause 2 Article 47 of Decree No. 10/2018/ND-CP within
the 03-year period before submitting the application, including at least 03
months after the Agreement comes into force.
d) Information relating to the transition period
for the imported textile or apparel good subject to the investigation.
Article 11. Taking an
emergency action against textile and apparel goods in case no application is
submitted
1. In case no application is submitted but there
are clear signs that a textile or apparel good is being imported into Vietnam
in increased quantities during the transition period as a result of the
reduction or elimination of a customs duty under the Agreement as to cause or threaten
to cause serious injury to the domestic industry, the investigating authority
may prepare and submit an application to the Minister of Industry and Trade for
making investigation decision.
2. An application for taking emergency action
submitted by the investigating authority must comply with regulations of
Article 10 hereof, except Point a and Point b Clause 2 Article 47 of Decree No.
10/2018/ND-CP .
3. Relevant organizations and individuals shall
cooperate and provide necessary information at the request of the Ministry of
Industry and Trade.
Article 12. Taking an
emergency action against textile and apparel goods
1. The Minister of Industry and Trade shall decide
to take an emergency action against a textile or apparel good when the report
given by the investigating authority contains the following findings:
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b) The domestic industry suffers serious injury or
threat of serious injury;
c) The serious injury or threat of serious injury
incurred by the domestic industry is caused by the increased imports as set out
in Point a of this Clause.
2. After consideration of relevant variables as
output, productivity, utilization of capacity, inventories, market share,
exports, employment, wages, domestic prices, profits and investment, the
investigating authority shall determine the serious injury or threat of serious
injury incurred by the domestic industry as prescribed in Point b Clause 1 of
this Article. Changes in technology or consumer preference shall not be
considered.
3. An emergency action may be taken against a
textile or apparel good in the form of increasing the rate of customs duty on
the good to a level not to exceed the lesser of the most-favoured-nation
applied rate of customs duty in effect at the time the measure is applied and
the most-favoured-nation applied rate of customs duty in effect on the day
immediately preceding the date of entry into force of the Agreement.
4. An emergency action shall be maintained for a
period not exceeding 02 years and may be extended for an additional period of
up to 02 years.
5. On termination of the emergency action, the rate
of customs duty shall be imposed on the relevant textile or apparel good
according to the special preferential import tariffs for implementation of the
Agreement in effect at the time of termination of such emergency action.
Chapter IV
IMPLEMENTATION
Article 13. Effect
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2. Investigating authorities shall consider receiving
applications for imposition of transitional safeguard measures or emergency
actions against textile and apparel goods according to the effect of the
Agreement.
MINISTER
Tran Tuan Anh
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