Notice of Receipt Application for Exemption from Anti-dumping and Anti-subsidy Measures in Mar 2022

On November 29^th, 2019, the Ministry of Industry and Trade provided guidance on a number of extent on trade remedy measures under Circular No. 37/2019/TT-BCT for which Trade Remedies Authority requires enterprises that meet the conditions to be exempted to submit a dossier of application for exemption from anti-dumping and anti-subsidy measures for the specific cases.

 

Anti-dumping law firm in Vietnam

Regarding the dossiers of application for exemption from anti-dumping and anti-subsidy measures, the Trade Remedies Authority requires enterprises to provide all documents specified in Article 14 and Appendix 03 of the Circular No. 37/2019/TT-BCT.

In addition, for enterprises that have been granted an exemption for 2022 and are about to use up the granted exemption volume, enterprises can submit an additional application for exemption according to the provisions of Clause 4, Article 16 of Circular 37/ 2019/TT-BCT at any time in 2022.

The relevant parties must submit the application for exemption via online public service portal before 17:00 April 11^th, 2022 (Hanoi time).

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

 

 

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Trade Remedies for Polyester Long Fiber Products

How to Request Exemption from Application of Trade Remedies for Polyester Long Fiber Products (AD10)?

 

Anti-dumping Law Firm in Vietnam

On October 13^th, 2021, the Minister of Industry and Trade issued Decision No.2302/QD-BCT on applying the official anti-dumping measures on long fiber products made from polyester originating from the People’s Republic of China, the Republic of India, the Republic of Indonesia (Case No. AD10).

On October 19^th, 2021 the Trade Remedies Authority of Vietnam issued Announcement No. 23/TB-PVTM on receiving application for exemption from application of trade remedies for a number of polyester long fiber products (Case No. AD10).

The Investigation Agency requires the relevant parties that meet the conditions for exemption to consider submitting an application for exemption from anti-dumping measures including the documents specified in Clause 1, Clause 2, Article 14 of Circular 37/2019/TT-BCT dated February 29, 2019 of Ministry of Industry and Trade (Circular 37/2019/TT-BCT) and Appendix 3 issued together Circular No. 37/2019/TT-BCT.

The relevant parties submit their application for exemption to the Trade Remedies Department before 5:00 p.m. on November 18, 2021 (Hanoi time).

The information provided in the application must be accurate. After submitting the application, the concerned parties pay attention to the processing of the application. In case of necessity, the investigating authority may organize working with related parties, including verification at production and business facilities of relevant organizations and individuals to clarify the contents of the dossier.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

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Questionnaire for Anti-dumping Investigation on Table and Chair Products From the China and Malaysia

MOIT Issues the Questionnaire for Anti-dumping Investigation on Table and Chair Products From the China and Malaysia (Code of case AD16).

 

Anti-dumping Law Firm in Vietnam

On September 01^st, 2021, the Ministry of Industry and Trade (MOIT) issued the Decision No.2091/QDD-BCT on investigating to anti-dumping measures on some table and chair products origination from the People’s Republic of China and Malaysia (Code of case AD16). The Department of Trade Remedies issued an anti-dumping investigation questionnaire on quantity and value for foreign manufacturers/exporters.

Regarding the proposal to extend the time for submitting the questionnaires, the Investigating Authority agreed to extend the time to respond to the questionnaires for the relevant parties. The content of the response will be the same with the following instructions in Official Letter No.683/PVTM-P2 dated September 16, 2021. After the extension period, the Investigating Authority does not receive timely responses from foreign manufacturers/exporters or the information provided is incorrect or incomplete, the Investigating Authority will use information and documents provided by related parties, the information and documents collected by the Investigating Authority or available information and documents for giving the result according to the regulation of Law on Foreign trade management.

The relevant parties must respond to the Investigation Authority before 17:00 November 08^th, 2021 (Hanoi time).

The information, data provided in the Questionnaire of the Investigation Authority and the right to access the information of the case during the investigating term will be implemented in the regulations of the laws.

To ensure its rights and interests, the relevant parties need to answer and submit the Questionnaire on time.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, an Anti-dumping law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

 

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Final Review for the Safeguard Measure for DAP and MAP Imported Fertilizers (SG06)

The MOIT Receives the Dossier on Final Review for the Safeguard Measure for DAP and MAP Imported Fertilizers (SG06).

 

Anti-dumping Law Firm in Vietnam

On March 03th, 2020, the Ministry of Industry and Trade issued the Decision No.715/QD-BCT on extending the application of safeguard measure to DAP/MAP imported fertilizers holding the HS code: 3105.10.20; 3105.10.90; 3105.20.00; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; 3105.90.00. The extension period for application of safeguard measures is 30 months from March 7^th, 2020 to September 6^th, 2022 (if not extended).

According to the Article 69.1 Decree No.10/2018/ND-CP on guidelines for the law on foreign trade management on trade remedies, at least 09 months before the decision on imposition of safeguard measures expires, the investigating authority shall announce the receipt of dossiers for final review of imposition of safeguard measures. Within 30 days since the announcement of the investigating authority, organizations and individuals may submit the dossier for final review of imposition of safeguard measures.

The Trade Remedies Authority in Vietnam required the domestic producers of like or directly competitive products that wish to extent the duration of the safeguard measure shall submit an application for the extension of the safeguard measure.

The dossier including an application for the extension of the safeguard measure shall obtain the evidence, showing that the domestic industry has made necessary adjustments to raise its competitive capability, and the withdrawal of the safeguard measure will cause the serious injury or threat of serious injury to the domestic industry.

Deadline for submitting the dossier on requiring final review is before 5:00 P.M on October November 09^th, 2021.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, an Anti-dumping law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

 

 

  

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Trade Re­­­medies for Polyester Long Fiber Products

How to Request Exemption from Application of Trade Remedies for Polyester Long Fiber Products (AD10)?

 

Anti-dumping Law Firm in Vietnam

On October 13^th, 2021, the Minister of Ind­ustry and Trade issued Decision No.2302/QD-BCT on on applying the official anti-dumping measures on long fiber products made from polyester originating from the People’s Republic of China, the Republic of India, the Republic of Indonesia (Case No. AD10).

On October 19^th, 2021 the Trade Remedies Authority of Vietnam issued Announcement No. 23/TB-PVTM on receiving application for exemption from application of trade remedies for a number of polyester long fiber products (Case No. AD10).

The Investigation Agency requires the relevant parties that meet the conditions for exemption to consider submitting an application for exemption from anti-dumping measures including the documents specified in Clause 1, Clause 2, Article 14 of Circular 37/2019/TT-BCT dated February 29, 2019 of Ministry of Industry and Trade (Circular 37/2019/TT-BCT) and Appendix 3 issued together Circular No. 37/2019/TT-BCT.

The relevant parties submit their application for exemption to the Trade Remedies Department before 5:00 p.m. on November 18, 2021 (Hanoi time).

The information provided in the application must be accurate. After submitting the application, the concerned parties pay attention to the processing of the application. In case of necessity, the investigating authority may organize working with related parties, including verification at production and business facilities of relevant organizations and individuals to clarify the contents of the dossier.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

 

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The Ministry of Industry and Trade Receiving Request for Exemption from Applying Anti-Dumping and Countervailing Measures in September 2021

According to the regulations on the trade remedies in the Circular No.37/2019/TT-BCT on providing detailed regulations on trade remedy, in March and September of every year, the Trade Remedies Agency of Vietnam requires the companies which meet the conditions of exemption from apply anti-dumping and countervailing measures in the cases of AD01 (Cold rolled stainless steel products), AD02 (Galvanized steel products), AD03 and AD12 (H-Shaped steel products), AD04 (Color coated steel products), AD05 (Aluminum profiles products), AD07 (Plastics and plastic products made from polymers of propylene), AD08 (Cold rolled (cold pressed) steel in coils or sheets), AD09 (MSG), AD10 (Long yarn made of polyester), AD13-AS01 (Sugar cane), AD14 (Sorbitol).

 

Deadline for companies submitting the dossier on requiring applying for the exemption from anti-dumping and countervailing measures is before 5:00 P.M on October 09^th, 2021.

Application dossiers for applying for the exemption from anti-dumping and countervailing measures:

i) A written request for exclusion from trade;

ii) A copy of the enterprise’s certificate of business registration or investment certificate;

iii) Description of the good for which the exclusion request is submitted, including scientific name, trade name, common name; basic physical and chemical properties; main uses; production process; applicable international and domestic standards and/or regulations; HS code according to Vietnam’s nomenclature of exports and imports;

iv) The document stating information about the volume, quantity and value of the imported good for which the exclusion request is submitted (in the last 03 years and in current year);

v) The written production process of the product of which input material is the good for which the exclusion request is submitted;

vi) The demand for consumption or use of the imported good for which the exclusion request is submitted (in the past 03 years and in the current year);

vii) The prescribed or estimated level of consumption of raw material which is the good for which the exclusion request is submitted;

viii) Documents or samples proving the difference between the good for which the exclusion request is submitted and the like or directly competitive products produced by the domestic industry;

ix) The document stating information about the production line and output of the good for which the exclusion request is submitted in the past 03 years and those in the current year;

x) Documents proving the demand for use of the quantity of good for which the exclusion request is submitted, including contracts signed with customers, written approvals for in-progress projects or other relevant documents.

Note: In case the company which has been granted an exemption for 2021 is about to use up the granted exemption volume, the company can submit an additional application for exemption at any time in 2021.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

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Notice of Application for Exemption from Trade Remedies for Fertilizers, Billet and Long Steel Product

On March 03rd, 2020, the Ministry of Industry and Trade issued Decision No. 715/QD-BCT on extending the application of safeguard measures to the goods which are imported DAP/MAP fertilizers bear the following HS codes: 3105.10.20; 3105.10.90; 3105.20.00; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; 3105.90.00.

 

   Notice of Application for Exemption from Trade Remedies for Fertilizers, Billet and Long Steel Product

On March 20th, 2020, the Ministry of Industry and Trade issued Decision No. 918/QD-BCT on extending the application of safeguard measures to the goods which are imported billet and long steel products bear the following HS codes: 7207.11.00; 7207.19.00; 7207.20.29; 7207.20.99; 7224.90.00; 7213.10.10; 7213.10.90; 7213.91.20; 7214.20.31; 7214.20.41; 7227.90.00; 7228.30.10; 9811.00.00.

On March 20th, 2020, the Ministry of Industry and Trade issued Decision No. 920/QD-BCT; on extending the application of measures to prevent evasion of trade remedies for imported coil and wire products which bear the following HS codes: 7213.91.90; 7217.10.10; 7217.10.29; 7229.90.99; 9839.10.00.

According to the regulation of Article 16.1.c Circular 37/2019/TT-BCT on November 29th, 2019, the Ministry of Industry and Trade specified some contents on trade remedy measures (Circular 37/2019/ TT-BCT) in detail. Whereby, the Trade Remedies Administration (PVTM) requests enterprises that meet the conditions to be exempted in submitting a dossier of application for exemption from the application of trade remedies in the three cases mentioned above, including: documents specified in Article 14 and Appendix 03 Circular 37/2019/TT-BCT.

According to the regulation of Articles 15 and Article 16.3 Circular 37/2019/TT-BCT, it is recommended that companies to submit their application for exemption online or directly to the Trade Remedies Department before 17:00 on October 6th, 2021.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

 

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The Ministry of Industry and Trade to Investigate the Dumping of Table and Chair Products Imported into Vietnam

On September 01^st, 2021 the Ministry and Trade issued the Decision No.2091/QD-BCT on investigation of application of anti-dumping measures for some table and chair products holding the HS Code: 9401.30.00; 9401.40.00; 9401.61.00; 9401.69.90; 9401.71.00; 9401.79.90; 9401.80.00; 9401.90.40; 9401.90.92; 9401.90.99; 9403.30.00; 9403.60.90; 9403.90.90 origin China and Malaysia (Case code AD16) (Decision No.2091).

 

On December 29^th, 2020 the Trade Remedies Authority of Vietnam received the required dossier of some domestic producers on applying anti-dumping measures of the products above. This dossier is confirmed that is valid on June 03^rd, 2021.

According to the regulation on Law on Foreign trade management, Decision No.2091, and related regulations, the period of anti-dumping investigation is 12 months from July 01^st, 2020 to June 30^th, 2021. And the investigation period for determining damage is 03 years from July 01^st, 2018 to June 30^th, 2021.

The requesting anti-dumping tax of the requesting parties is 35,20% for the table, and 21,40% for the chairs products from China. The requesting anti-dumping tax is 32,40% for table and 24,90% for chair products from Malaysia.

The Trade Remedies Authority will send an investigation questionnaire to relevant parties to collect information, analyze and evaluate the allegations, including: (i) dumping behavior of the exporting enterprises of China and Malaysia; (ii) damage to the domestic industry; and (iii) a causal relationship between dumping and damage to the domestic industry.

The related organizations, individuals having importing, exporting, trading, using the investigation products should register the related parties and provide the necessary information to the Trade Remedies Authority to ensure their rights and benefit according to the regulation of the laws.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

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Extension of Submission Duration of the Questionnaire in Investigation on the Anti-dumping Case AD15

On April 02nd, 2021, Trade Remedies Authority of Vietnam – Ministry of Industry and Trade (Investigation Body) has issued the investigation questionnaire for the interested parties in AD15. Accordingly, the deadline for receiving the full answer is 5pm of May 7th 2021.

 

Investigation Body has received some requests for extending duration of answering the questionnaire for the interested parties in AD15.

In order to facilitate for the interested parties to fully cooperate, pursuant to Article 35.2 of Decree 10/2018/ND-CP on January 15th, 2018 of Government on detailed regulations of some provisions of Law on foreign trade management of trade remedies, the Investigation Body extends the duration of receiving the answer for the interested parties in AD15 to 5pm on June 05th, 2021. The response will be considered properly received when the Investigation Body receives full hard copies and soft copies before this deadline.

Trade Remedies Authority of Vietnam propose the interested parties implement other requirements according to the instructions in the questionnaire issued on April 08th 2021.

Our international trade and competition lawyers in Vietnam at ANT Lawyers will always follow the development from authorities to provide update to our clients.

ANT Lawyers is a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. 

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Vietnam to Initiate the Investigation of Imposing Anti-dumping Measure to HFCS (AD11)

On June 29th 2020, Minister of Ministry of Industry and Trade signed the Decision No. 1715/QD-BCT regarding the Investigation of imposing Anti-dumping measure to some High Fructose Corn Sweetener Products with the HSCode of 1702.60.10 and 1702.60.20 from People’s Republic of China and Republic of Korea (Case AD11). Related parties may by themselves or authorize to experienced law firm in Vietnam on international trade to work with Trade Remedies Authority of Vietnam to cooperate.

Background

May 21 2020, Trade Remedies of authority of Vietnam (TRAV), Ministry of Industry and Trade received the dossiers on requesting the anti-dumping measure to some HighFructose Corn Sweetener Products with the HS Code of 1702.60.10 and 1702.60.20from People’s Republic of China (China) and Republic of Korea (Korea).

The requester is the representative of domestic of refined sugar industry, includes six (06 companies: (i) Son La Sugar Joint Stock Company (ii) Lam Son Sugar Cane Joint Stock Corporation (iii) KCP Vietnam Industries Limited (iv) Can Tho sugar Joint stock Company (v) MK Sugar Vietnam Company Limited (vi) La Nga Sugar Cane And Sugar Joint Stock Company. In which, production of Requester and Supporter take 59,94% total similar production produced domestically and there is no domestic producer opposing the case.

The requester provided the reasonable bases for calculation of dumping margin originated from China and Korea. The requester provided the reasonable information to prove the significant damage of domestic industry. The requester’s dossier proved the existence of causal relationship between imported products and the significant damage of domestic industry.

Hence, TRAV determined dossier of the requester satisfied the law of anti-dumping and petition of Minister of Ministry of Industry and Trade.

Investigation’s details

-Products under investigation

Product’s name: High Fructose Corn Sweetener

Science name/English name: High-Fructose Corn Syrup

Common name: Tropicana slim, syrup sugar, corn sugar, corn syrup sugar, HFCS

The Ministry of Industry and Trade may amend and supplement the list of HS codes of the product under investigation in accordance with the description of the product under investigation and other changes (if any).

-Originated of products under investigation: China and Korea

-Period of investigation (POI)

·        Period of investigation to determine the anti-dumping action: from April 1st 2019 to March 31st 2020

·        Period of investigation to determine the damage of domestic industry:

·        The first year: from April 1st 2017 to March 31st 2018

·        The second year: from April 1st 2018 to March 31st 2019

·        The third year: from April 1st 2019 to March 31st 2020

-Duty Levels Proposed by Requester:

China: 36,09%

Korea: 40,02%

-Register as related parties:

Pursuant to Article 6 of Circular No. 37/2019/TT-BCT, organizations and individuals stipulated in Article 74 of Law on foreign trade management can register as related parties in this case with TRAV in order to access to publicly circulated information during the investigation process, send comments, information and evidence related to the investigation content mentioned in this Notice according to form issued in Annex I of Circular 37/2019/TT-BCT and send them to TRAV within sixty (60) working days from the day on which the decision on investigation takes effect via post or email.

In order to ensure rights and interests, the investigating authority recommend that organizations and individuals which produce, import or use products under investigation register as related parties to carry out the right to access information, provide information and express opinions during the investigation process

Investigation Questionnaire:

Within 15 days after the issuance of the investigation decision of the Minister of Industry and Trade, the Investigating Authority shall send the investigation questionnaire to the Related Parties, including:

-The applicant requests for application of Anti-dumping measures;

-Other domestic manufacturers which Investigating Authority knows;

-Parties requesting for application investigation of anti-dumping measures which Investigating Authority knows;

-Importers of products under investigation;

-Diplomatic authorities of the country where the origin of products under investigation;

-Other related

Cooperating in the investigation process

Any related party refuses to participate in the case or does not provide necessary evidences or significantly ​obstructs the completion of the investigation, the investigation conclusion regarding such relevant party shall be based on available information.

Any related party provides false or misleading evidences, such evidences shall not be reviewed and investigation conclusion regarding such relevant party shall be based on available information.

TRAV recommends that related party participate and cooperate fully in the process in order to ensure legitimate rights and interests.

Competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

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US Anti-Dumping and Countervailing Duty Petitions of Tire Products From Vietnam

On May 13, 2020, The United States Department of Commerce (“DOC”) has received an investigation request for anti-dumping and countervailing measures against passenger and light truck tires (“PVLT tires”) originating from Korea, Taiwan-China, Thailand and Vietnam. The madatory respondents being US importers have also consulted with anti-dumping and countervailing duty lawyers in Vietnam and US to prepare for the investigation cooperation.

In this case, the plaintiff alleges that the tires under investigation were dumped and subsidized into the United States market, causing significant damage to the domestic manufacturing industry. In 2015, the same petitioner succeeded in securing anti-dumping and countervailing duties on PVLT tires from China.

The scope of these investigations is passenger vehicle and light truck tires. Passenger vehicle and light truck tires are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. Tires covered by these orders may be tube-type, tubeless, radial, or nonradial, and they may be intended for sale to original equipment manufacturers or the replacement market. The products covered by the investigations are currently classified under the following Harmonized Tariff Schedule of the United States (“HTSUS”) subheadings: 4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10.  The scope could also include tires entering under HTSUS subheadings 4011.90.10.10, 4011.90.10.50, 4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.80, 8708.70.60.30, 8708.70.60.45, and 8708.70.60.60.

Petitioner alleges the following dumping margins: 45.95% to 195.20% for South Korea, 21% to 102% for Taiwan, 106.4% to 217.5% for Thailand, and 14.73% to 33.06% for Vietnam. The petitions also detail numerous government subsidies benefitting Vietnamese tire producers, including loans, tax breaks, and grants. PVLT tire imports from these four countries shot up nearly 20% from 2017 to 2019, reaching 85.3 million tires, valued at 4.4 billion dollars, last year.

According to data from the United States International Trade Commission (“USITC”), the export value of Vietnam’s investigated products to the United States market reached 12.1 million dollars in 2019, accounting for about 6.7% of total United States imports of this product.

In Vietnam, the product under investigation is a product that has been warned by the Ministry of Industry and Trade of risks of foreign investigation by applying trade remedies measures from July 2019 with a high level of warning. Therefore, in the past time, the Ministry of Industry and Trade has actively coordinated and worked with associations and exporters to the United States to actively capture information and respond in case of initiating an investigation. Under United States regulations, the DOC will consider initiating an investigation of the case within 20 days of receiving it. In the event that the DOC decides to initiate an investigation, the Ministry of Industry and Trade of Vietnam will closely coordinate with export associations and enterprises in investigating the case and have timely support and treatment measures to protect the legitimate rights and interests of Vietnamese enterprises.

Vietnam international trade lawyers in competition, and anti-dumping practice will need to be involved with the process including data collection and possibly initial drafting of questionnaire responses in cooperation with US anti-dumping and countervailing duty lawyers to defend the case.

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Anti-dumping Law: The Basic Concepts

1. What is dumping?

In international trade, dumping is a phenomenon occurs when a commodity is exported at a price lower than the selling price of that item in the domestic market of the exporting country. Therefore, it is simple to understand that if the export price of a commodity is lower than its domestic prices, the product may be considered to be dumped. 

Antitrust lawyers in Vietnam

2. Why is dumping?

There are many causes of dumping in international trade. In fact, there are many cases that seller deliberately dumping in order to achieve certain benefits such as: Dumping to eliminate competitors in the import market to become monopoly and gain market share; Selling at low price to acquire foreign currency… Sometimes, the dumping is reluctant because the manufacturer and exporter cannot sell product, the production is stalled then the long-term storage products could be corrupted… Hence, they have to sell off to recover capital.

In international trade, the anti-dumping tax may be imposed without regarding to the reason why the manufacturers dumping. Dumped into foreign markets is often perceived as a negative phenomenon because it reduces the competitiveness of prices and the market share of domestic products of importing countries.

However, dumping can have positive impacts on the economy: consumers benefit from low price goods; if dumped goods are inputs of other manufacturing sector then the low raw material prices can make certain growth of that industry… Therefore, not all acts of dumping will be applying the anti-dumping measures.

As regulated by the World Trade Organization (WTO), the anti-dumping measures can only be applied in certain circumstances and must meet certain conditions. Specifically, the anti-dumping measures are applied only when the following three conditions are met: The imported goods are dumped; the manufacturing sector of similar products of the importing countries is significantly affected; there is a causal relationship between the dumping of imports goods and losses mentioned above

3. The anti-dumping tax?

The anti-dumping tax is the additional taxes besides the normal import tax, which is imposed on foreign products that are dumped into the importing country. This type of tax is to prevent dumping and eliminate the damages caused by the dumping of imported goods. In fact, the anti-dumping tax is used in many countries as a form of “legal protection” for its domestic production. In order to prevent the abuse of this measure, the WTO member countries have together agreed on the provisions required to comply regarding the investigation and imposition of anti-dumping tax, concentrated in an Agreement of the WTO on anti-dumping, which is the ADA Agreement.

ANT Lawyers in a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.

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