Wednesday, 17/05/2017 | 17:01 GMT+7

Inorganic Fertiliser – The Ministry of Industry and Trade initiated safeguard investigation

Vietnam Ministry of Industry and Trade initiated safeguard investigation of imported mineral or chemical fertilizers into Vietnam on 12 May, 2017. Details of the investigation are as follows:

Subject merchandise .

The subject merchandises are complex or compound mineral or chemical fertilizers products consisting of nitrogen and phosphorus (P2O5), of which nitrogen is at least 7% and P2O5 is at least 30%. The addition of other elements such as magnesium, calcium, sulfur, kali ... or other trace elements do not change the nature of the physical and chemical characteristics as well as the purpose and object of the product. The subject merchandises are classified under HS code: 3105.10.90; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; 3105.90.00.

These products are used to directly fertiflize the soil or to produce NPK fertilizers.

Petitioners

DAP-Vinachem JSC and DAP2- Vinachem JSC. These producers alleged that their outputs account for 100% of the chemical or mineral fertilizer produced domestically.

Preliminary of VCA on the application

  • The volume of imported fertilizers into Vietnam in 2016 relatively increased by 35.04% as opposed to the volume of domestically produced fertilizers
  • There are signals of serious injury suffered by the petitioners reflected in the decrease in sale quantity, revenue, profit, production output, capacity utilization, market share, inventory and employee.
  • There are signals of a causal link between the imported fertilizers and serious injury of petitioners.

Next steps

  • VCA already issued questionnaires to interested parties including the domestic producers and importers. No questionnaires are issued to foreign exporters
  • It’s important that MOIT informed that they may monitor the imports by issuing import license of the subject merchandise. This never happens before in any Vietnam case although the license does not restrict the volume or price of the imported subject merchandise.
  • Any party that wishes to register as an interested party must submit a written registration to VCA by 14 June 2017.