Duty to be imposed on a sliding scale for a period of four years.
Imported monosodium glutamate (MSG) will be subject to a safeguard duty from March 25 under Decision No. 920/QD-BCT dated March 10 from the Ministry of Industry and Trade (MoIT).
For a period of 12 months, one ton of imported MSG will be imposed a duty of VND4.39 million ($197), which will then gradually fall by 10 per cent every three years until March 25, 2020.
The safeguard duty will not be imposed on MSG imported from a less-developed country that has been investigated and whose total quantity of MSG imported into Vietnam does not exceed 3 per cent and the total MSG imported from less-developed countries that have been investigated should not exceed 9 per cent of the total.
Countries that will not be subject to the safeguard duty are provided for in Appendix 1 attached to Decision No. 920.
MoIT’s Vietnam Competition Authority decided to impose the safeguard duty after receiving petitions from Vedan Vietnam on June 9, 2015, which asked it to impose safeguard duty on MSG coded 2922.42.20.
According to MoIT, due to the economic downturn in China in 2014 and the US imposing an anti-dumping duty of 52.27 per cent on Chinese MSG, there has been an influx of imported MSG in Vietnam, to the detriment of domestic manufacturers. MoIT therefore decided to adopt safeguard measures last September.
According to the General Department of Customs, MSG imports increased from 18,143 tons in 2012 (which was up 102 per cent against 2011), to 43,935 tons in 2013 (a 142 per cent increase), and 58,446 tons in 2014 (33 per cent higher).
- monosodium glutamate