| THE STANDING COMMITTEE OF NATIONAL ASSEMBLY ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ------------ |
| No: 42/2002/PL-UBTVQH10
| Hanoi, May 25, 2002 |
ORDINANCE
ON SAFEGUARDS IN THE IMPORT OF FOREIGN GOODS INTO VIETNAM
(No. 42/2002/PL-UBTVQH10 of May 25, 2002)
(No. 42/2002/PL-UBTVQH10 of May 25, 2002)
In order to enhance the State management over the economy, create conditions for the Vietnamese economy to effectively integrate into the international economy, restrict unfavorable impacts causing serious injury to the domestic production due to abnormal increases in the import of goods into Vietnam;
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001 of the Xth National Assembly at its 10th session;
Pursuant to the Resolution of the Xth National Assembly, 10th session, on the 2002 law- and ordinance-making program;
This Ordinance provides for the safeguard measures in the import of foreign goods into Vietnam,
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001 of the Xth National Assembly at its 10th session;
Pursuant to the Resolution of the Xth National Assembly, 10th session, on the 2002 law- and ordinance-making program;
This Ordinance provides for the safeguard measures in the import of foreign goods into Vietnam,
Chapter I
GENERAL PROVISIONS
Article 1.- Scope of regulation
This Ordinance prescribes the safeguard measures, the conditions and procedures for the application of these measures in cases of excessive import of goods into Vietnam, which causes serious injury to the domestic production.
Article 2.- Right to apply safeguard measures
The Vietnamese Government has the right to apply safeguard measures in cases where goods of a certain kind are excessively imported into Vietnam under the provisions of this Ordinance.
Article 3.- Safeguard measures
The safeguard measures in the import of foreign goods into Vietnam include:
1. Raising the import tariffs;
2. Imposing import quotas;
3. Other measures to be stipulated by the Government.
Article 4.- Interpretation of terms
In this Ordinance, the following word phrases are construed as follows:
1. "Excessive import of goods" means the import of goods with a volume, quantity or value increasing, absolutely or relatively, as compared with the volume, quantity or value of similar or directly competitive home-made goods.
2. "Serious injury to the domestic manufacturing industry" means a state where such manufacturing industry declines considerably in its output, domestic consumption level, production profits, production growth rate, and has greater and greater amounts of unsold goods, badly affecting employment, salary level, investment and other norms of the domestic manufacturing industry which turns out such goods.
3. "Threat to cause serious injury to the domestic manufacturing industry" means the likely, obvious and provable possibility to cause serious injury to the domestic manufacturing industry.
4. "Domestic manufacturing industry" means all manufacturers of the similar or directly competitive goods within the territory of Vietnam or their lawful representatives, accounting for a major proportion in the total output of goods made by that industry in the country.
5. "Similar goods" are identical goods or goods with the same functions, utility, quality specifications, technical properties and other basic intrinsic features.
6. "Directly competitive goods" are goods likely to be accepted by buyers in replacement of the goods falling under the scope of application of safeguard measures, because of their competitive edges in terms of price and use purpose.
Article 5.- Principles for application of safeguard measures
1. Safeguard measures shall be applied within the necessary scope and to the necessary extent in order to prevent or limit serious injury to the domestic manufacturing industry and create conditions for that manufacturing industry to raise its competitiveness.
2. The application of safeguard measures must rely on the investigation results prescribed in Chapter II of this Ordinance, except for cases of application of temporary safeguard measures.
3. Safeguard measures shall apply on the basis of non-discrimination and non-dependence on goods origin.
Article 6.- Conditions for the application of safeguard measures
Safeguard measures shall apply to imported goods only when the following conditions are met:
1. The volume, quantity or value of imported goods suddenly increases, either absolutely or relatively, as compared with the volume, quantity or value of similar or directly competitive home-made goods.
2. The rapid increases in the volume, quantity or value of imported goods mentioned in Clause 1 of this Article cause or threaten to cause serious injury to the domestic industry producing similar or directly competitive domestic goods.
Article 7.- Consultation
1. The Ministry of Trade may consult the concerned parties in the process of investigation and application of safeguard measures at their requests in order to create conditions for all the concerned parties to express their opinions and supply necessary information.
2. The concerned parties shall not be obliged to attend consultations; Any parties not present at consultations shall still have their interests related to safeguard measures preserved.
Article 8.- Injury indemnification
1. The indemnification and extent of indemnification of injury caused by the application of safeguard measures shall comply with the provisions of the Vietnamese laws and the international treaties which Vietnam has signed or acceded to.
2. The indemnification and degree of injury shall be determined on the basis of the results of consultation between the concerned parties.
Chapter II
INVESTIGATION FOR THE APPLICATION OF SAFEGUARD MEASURES
Article 9.- Agency responsible for investigation
The Ministry of Trade shall be responsible for conducting investigation before deciding to apply or not to apply safeguard measures.
Article 10.- Bases for investigation
1. The Ministry of Trade shall conduct investigation after receiving the dossiers requesting the application of safeguard measures from the organizations and/or individuals representing the domestic manufacturing industry on the condition that all goods made by these organizations and/or individuals accounting for at least 25% of the output of similar or directly competitive home-made goods. The organizations and/or individuals submitting such dossiers shall be accountable for the information in their dossiers.
2. The Ministry of Trade shall conduct investigation at its own initiative in cases where they have evidences proving the necessity to apply safeguard measures.
Article 11.- Dossiers requesting the application of safeguard measures
The dossiers requesting the application of safeguard measures addressed to the Ministry of Trade shall consist of:
1. The written request for the application of safeguard measures, made according to the form set by the Ministry of Trade;
2. Documents and information related to the kind of goods subject to investigation for the application of safeguard measures, and similar or directly competitive goods.
Article 12.- Decisions to investigate for application of safeguard measures
1. In cases where a dossier requesting the application of safeguard measures lacks information, within 15 days after receiving such dossier, the Ministry of Trade must inform the dossier-submitting organization or individual thereof for addition of information. The time limit for information addition shall be at least 30 days as from the date the concerned organization or individual receives the request for information addition. The Ministry of Trade shall not issue investigation decisions if information is not supplied within the prescribed time limit.
2. Within 30 days after receiving the dossiers already added with full information, the Ministry of Trade must issue investigation decisions.
3. Pending the official investigation decisions, the Ministry of Trade must not disclose the contents of the dossiers requesting the application of safeguard measures.
4. Where it refuses to issue an investigation decision, the Ministry of Trade must notify the reasons therefor to the organization or individual that has submitted the dossier requesting the application of safeguard measures.
