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THE MINISTRY OF
INDUSTRY AND TRADE
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SOCIALIST REPUBLIC
OF VIET NAM
Independence - Freedom – Happiness
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No. 2968/QD-BCT
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Hanoi, July 18,
2016
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DECISION
ON
APPLICATION OF SAFEGUARD MEASURES
THE MINISTER OF INDUSTRY AND TRADE
Pursuant to the Ordinance No.
42/2002/PL-UBTVQH10 dated May 25, 2002 of the Standing Committee of the
National Assembly on safeguards in the import of foreign goods into Vietnam;
Pursuant to the Government’s Decree No.
150/2003/ND-CP dated December 08, 2003 detailing the implementation of the
Ordinance on safeguards in the import of foreign goods into Vietnam;
Pursuant to the Government's Decree No.
95/2012/ND-CP dated November 12, 2012, defining the functions, tasks, powers
and organizational structure of the Ministry of Industry and Trade;
Pursuant to the Decision No. 848/QD-BCT dated
February 05, 2013 of the Minister of Industry and Trade defining functions,
tasks, powers and organizational structure of the Vietnam Competition Authority
(VCA);
At the request of the Director General of the
Vietnam Competition Authority,
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Article 1. To apply official safeguard measures to the import of steel
billets and long steel products from different countries/territories into
Vietnam with contents detailed in the Notice enclosed to this Decision.
Article 2. Procedures for applying global safeguard measures shall
comply with the law on safeguards in imports of foreign goods into Vietnam.
Article 3. This Decision comes into force after 15 days from the day on
which it is signed.
Article 4. This Decision replaces Decision No. 862/QD-BCT of the
Ministry of Industry and Trade dated March 7, 2016 on application of
provisional safeguard measures.
Article 5. The Director of Vietnam Competition Authority and Heads of
relevant units and interested parties shall implement this Decision./.
PP. MINISTER
DEPUTY MINISTER
Tran Quoc Khanh
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OF
APPLICATION OF OFFICIAL SAFEGUARD MEASURES
(Issued together with Decision No. 2968/QD-BCT dated July 18, 2016 of the
Minister of Industry and Trade)
Pursuant to the Ordinance No. 42/2002/PL-UBTVQH10
dated May 25, 2002 of the Standing Committee of the National Assembly on
safeguards in imports of foreign goods into Vietnam and the Government’s Decree
No. 150/2003/ND-CP dated December 8, 2003 detailing the implementation of the
Ordinance on safeguards in the import of foreign goods into Vietnam, the
Ministry of Industry and Trade does announce detailed contents of applying
global safeguard measures against steel billets and long steel products
imported from countries/territories into Vietnam as follows:
1. Basic information
On December 25, 2015, the Ministry of Industry and
Trade has promulgated Decision No. 14296/QD-BCT on investigation into safeguard
measures against the import of steel billets and long steel products from
different countries/territories into Vietnam.
On March 7, 2016, the Ministry of Industry and
Trade has promulgated Decision No. 862/QD-BCT to impose provisional safeguard
duties of 23,3% on steel billets and of 14.2% on long steel products in the
form of import surcharges.
2. Imported goods against
which safeguard measures are applied
Imported products against which safeguard measures
are applied include alloy and non-alloy steel billets, and alloy and non-alloy
long steel products (including coils and bars of steel) that are imported into
Vietnam with the following HS codes: 7207.11.00; 7207.19.00; 7207.20.29;
7207.20.99; 7224.90.00; 7213.10.00; 7213.91.20; 7214.20.31; 7214.20.41;
7227.90.00; 7228.30.10; 9811.00.00.
With regard to HS code 9811.00.00, the safeguard
measure is only applied to the imported goods referred to the following 3
original HS codes: 7224.90.00; 7227.90.00; 7228.30.10; and not applied to the
imported goods referred to other original HS codes.
Steel billets and long steel products that have one
of the following specifications shall be excluded from the application of the
safeguard measure:
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(2) Steel billets containing one of the following
elements in the specified proportions (%) as follows: C > 0.37%; Si >
0.60%; Cr > 0.60%; Ni > 0.60%; Cu > 0.60%; (3) Plain round bars of
steel whose nominal diameter exceeds 14 mm;
(4) Steel products containing one of the following
elements in the specified proportions (%) as follows: C > 0.37%; Si >
0.60%; Cr > 0.60%; Ni > 0.60%; Cu > 0.60%; (5) Alloy wire rods of a
kind used for producing soldering sticks (solder).
For being exempted from safeguard measures,
importers of steel billets and long steel products specified in section (1),
(2), (3) and (4) must provide documents proving that their imported goods have
satisfied requirements for being exempted from safeguard measures as stated
above to the customs authorities.
Importers of wire rods specified in section (5) should
refer to Appendix 1 of this Notice to take necessary procedures for exemption
from the aforesaid safeguard measures.
3. Official safeguard duties
3.1. Safeguard duties applicable to steel
billets
The Ministry of Industry and Trade shall apply
safeguard measures in form of import surcharges to steel billets imported into
Vietnam as follows:
Validity period
Duty
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23.3%
From March 22,
2017 to March 21, 2018
21.3%
From March 22,
2018 to March 21, 2019
19.3%
From March 22,
2019 to March 21, 2020
17.3%
From March 22,
2020
0%
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The safeguard duty of 23.3% in the form of import surcharge
shall be imposed on steel billets imported to Vietnam with specific HS codes as
follows:
No.
HS code
Description
7207
Semi-finished products of iron or non-alloy steel
7207.11.00
- - Of rectangular (including square) cross-section,
the width measuring less than twice the thickness
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7207.19.00
- - Other
7207.20
- Containing by weight 0.25% or more of carbon
7207.20.29
- - - - Other
7207.20.99
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7224
Other alloy steel in ingots or other primary
forms; semi-finished products of other alloy steel.
7224.90.00
- Other
3.2. Safeguard duties applicable to long
steel products
The Ministry of Industry and Trade shall apply safeguard
measures in form of import surcharges to long steel products imported into
Vietnam as follows:
Validity period
Duty
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14.2%
(provisional safeguard duty)
From August 2,
2016 (officially effective date of the Decision) to March 21, 2017
15.4%
(official safeguard duty in the initial year)
From March 22,
2017 to March 21, 2018
13.9%
From March 22,
2018 to March 21, 2019
12.4%
From March 22,
2019 to March 21, 2020
10.9%
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0%
(excluding
extension)
The safeguard duties in the form of import surcharges
shall be imposed on long steel products imported to Vietnam with specific HS
codes as follows:
No.
HS code
Description
7213
Bars and rods, hot-rolled, in irregularly wound
coils, of iron or non-alloy steel.
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- Containing indentations, ribs, grooves or other
deformations produced during the rolling process
7213.91.20
- - - Of a kind used for concrete reinforcement
(rebars)
7214
Other bars and rods of iron or non-alloy steel, not
further worked than forged, hot-rolled, hot-drawn or hot-extruded, but
including those twisted after rolling.
7214.20
- Containing indentations, ribs, grooves or other
deformations produced during the rolling process or twisted after rolling:
- - Containing by weight less than 0.6% of
carbon:
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7214.20.31
- - - - Of a kind used for concrete reinforcement
(rebars)
7214.20.41
- - - - Of a kind used for concrete reinforcement
(rebars)
7227
Bars and rods, hot-rolled, in irregularly wound
coils, of other alloy steel.
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- Other
7228
Other and rods of other alloy steel; angles,
shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy
or non-alloy steel
7228.30
- Other bars and rods, not further worked than
hot-rolled, hot-drawn or extruded:
7228.30.10
- - Of circular cross-section
9811
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9811.00.00
Alloy steel containing Boron and/or Chromium, other
than categories of flat-rolled steel products that are hot-rolled.
4. Countries/territories that
are exempted from safeguard measures
Pursuant to Article 13 of the Government’s Decree No.
150/2003/ND-CP dated December 08, 2003 detailing the implementation of the
Ordinance on safeguards in the import of foreign goods into Vietnam,
provisional safeguard measures shall be imposed on products imported from all
countries/territories to Vietnam, except for developing countries and
underdeveloped countries whose quantity of products exported to Vietnam does
not exceed 3% of total quantity of products imported to Vietnam from all
countries/territories provided that total imports of such country/territory
account for not more than 9% of total imports of the product concerned in
Vietnam. A list of countries/territories eligible for exemption from safeguard
measures is provided in Appendix 2 of this Notice.
5. Duration of application of
safeguard measures
The safeguard measure shall be applied in 4 years
from the effective date of the Decision on application of the provisional
safeguard measure.
6. Grounds for applying
safeguard measures
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- Domestic industry is composed of domestic
manufacturers of steel billets/long steel products that account for more than
50% of total production of those products.
- Domestically produced steel billets and long
steel products are like products as those imported into Vietnam.
- Quantity of steel billets and long steel products
imported to Vietnam manifests the increase in both absolute and relative terms
during the investigation.
- Domestic industry has incurred serious injury
such as reduction of market share, capacity, revenue, profits, workforce and
increase of inventories in the period 2012 - 2015, especially in 2015.
- The increase of import volume of goods causes
serious injury to the domestic industry.
- The China’s excess of production capacity and
real output associated with the large amount of Chinese steel inventories are
considered as “unforeseen developments" and resulted in sudden increase of
the import volume of steel billets and long steel products into Vietnam.
7. Subsequent procedures
After the official safeguard measure comes into
force, the General Department of Customs shall initiate the collection of
import surcharges from taxable goods as prescribed in Section 2 according to
the duties specified in Section 3 from countries/territories, excluding
countries/territories in the list of Appendix 2.
In case where any organization/individual has
reasonable grounds to prove that the Decision on application of such safeguard
measure violates regulations of law in force, it/he/she may file a complaint
against this Decision in accordance with the Law on complaints No. 02/2011/QH13
dated November 11, 2011.
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The information about the Decision on application
of official safeguard measures against the import of steel billets and long
steel products is available at the website of the Ministry of Industry and
Trade (http://www.moit.gov.vn) and the website of the Vietnam Competition Authority
(http://www.vca.gov.vn or http://www.qlct.gov.vn).
Concerned information and comments should be sent
to:
The Trade Remedies Investigation Division - the
Vietnam Competition Authority - the Ministry of Industry and Trade
Address: 25 Ngo Quyen Street, Hoan Kiem District,
Hanoi City, Vietnam
Telephone: (+84 4) 222.05002 (Ext. 1035) (Ms. Phan
Mai Quynh) or (+84 4) 222.05018; Email: [email protected]:
[email protected].
ANNEX 1
NOTICE OF APPLICATION OF OFFICIAL SAFEGUARD
MEASURES
(Issued together with Decision No. 2968/QD-BCT dated July 18, 2016 of the
Minister of Industry and Trade)
PROCEDURES FOR
REGISTRATION OF EXEMPTION FROM APPLICATION OF SAFEGUARD MEASURES AGAINST
IMPORTERS OF WIRE RODS USED FOR PRODUCING SOLDERING STICKS
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- Step 1 (Registration of exemption):
Importers of wire rods with HS code 7227.90.00 of a kind used for producing
soldering sticks shall send documents on production capacity and the need of
material import to the investigation authority (Vietnam Competition Authority
of the Ministry of Industry and Trade) and a request for exemption of those
products from the application of safeguard measures.
The documents on production capacity must be
recognized by the Service of Industry and Trade of the province where the
importer has its production premises located (in accordance with Article 13 of
Circular No. 12/2015/TT-BCT dated June 12, 2015 on automatic issuance of import
permit to some of steel products).
- Step 2 (Verification): Upon receipt of
sufficient documents of the importer, the investigation authority shall request
the Minister of Industry and Trade to establish a group to verify and assess
the importer’s documents. A verification visit may be conducted at the
importer’s premises (if necessary). The investigation authority shall, after
the verification, request the Minister of Industry and Trade to consider
approving the exemption from application of safeguard measures granted to wire
rods with HS code 7227.90.00 of a kind used for producing soldering sticks, and
then request the customs authorities to grant the importer an exemption from
safeguard duties according to quota monitoring method in accordance with the
Decision of the Minister of Industry and Trade. The Minister of Industry and
Trade shall issue a decision within 60 days from the date on which sufficient
documents of the importer are submitted.
- Step 3 (Periodical report): Any importer
producing solder that is eligible for safeguard tariff exemption shall submit
quarterly reports on actual imports of wire rods with HS code 7227.90.00 to the
investigation authority. If the importer fails to submit the report on schedule
to the investigation authority, the Ministry of Industry and Trade may revoke
the above decision.
- Step 4 (Post-exemption inspection): The
investigation authority may carry out annual inspection of actual yearly
production capacity and imports that are exempted from safeguard measures of
every importer. The investigation also may conduct irregular inspection of any
of those importers if it has reasonable doubts about improper use of the
imported products eligible for exemption.
- Step 5 (Actions against violations): If
the investigation authority gives a conclusion that imported products eligible
for exemption are used improperly, the Ministry of Industry and Trade shall
revoke the decision on exemption and the violating importer shall be collected
import duty arrears previously exempted as prescribed by law.
APPENDIX 2
NOTICE
OF APPLICATION OF OFFICIAL SAFEGUARD MEASURES
(Issued together with Decision No. 2968/QD-BCT dated July 18, 2016 of the
Minister of Industry and Trade)
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1. Sub-Saharan Africa
Angola
Madagascar
Nigeria
Benin
Malawi
Rwanda
Botswana
Mali
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Burkina Faso
Mauritania
Senegal
Burundi
Mauritius
Sierra Leone
Cabo Verde
Mozambique
Somalia
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Namibia
South Africa
Central African
Republic
Niger
South Sudan
Chad
Gabon
Sudan
Comoros
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Swaziland
Congo, Dem. Rep.
Ghana
Tanzania
Congo, Rep.
Guinea
Togo
Cote d’Ivoire
Guinea-Bissau
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Eritrea
Kenya
Zambia
Ethiopia
Lesotho
Zimbabwe
Liberia
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American Samoa
Myanmar
Cambodia
Palau
Fiji
Papua New Guinea
Indonesia
Philippines
Kiribati
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Korea, Dem. Rep.
Solomon Islands
Lao PDR
Thailand
Malaysia
Timor-Leste
Marshall Islands
Tonga
Micronesia, Fed. Sts.
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Mongolia
Vanuatu
3. Europe and Central Asia
Albania
Macedonia, FYR
Armenia
Moldova
Azerbaijan
Montenegro
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Romania
Bosnia and
Herzegovina
Serbia
Bulgaria
Tajikistan
Georgia
Turkey
Kazakhstan
Turkmenistan
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Ukraine
Kyrgyz Republic
Uzbekistan
4. Latin America and Caribbean
Belize
Guyana
Bolivia
Haiti
Brazil
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Colombia
Jamaica
Costa Rica
Mexico
Cuba
Nicaragua
Dominica
Panama
Dominican Republic
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Ecuador
Peru
El Salvador
St. Lucia
Grenada
St. Vincent and
the Grenadines
Guatemala
Suriname
5. Middle East and North Africa
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Libya
Djibouti
Morocco
Egypt, Arab Rep.
Syrian Arab Republic
Iran, Islamic Rep.
Tunisia
Iraq
West Bank and Gaza
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Yemen, Rep.
Lebanon
6. South Asia
Afghanistan
Maldives
Bangladesh
Nepal
Bhutan
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India
Sri Lanka