How long is the duration of anti-dumping tax application in Vietnam?

What is Anti-Dumping Tax?

According to Clause 4 of Article 4 Law on Export and Import Duties 2016, it is stipulated as follows:

Explanation of Terms

In this Law, the following terms are understood as follows:

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5. Anti-dumping tax is an additional import tax applied in the case of dumped goods imported into Vietnam causing or threatening to cause significant damage to the domestic production sector or preventing the establishment of a domestic production sector.

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At the same time, Clause 3 of Article 77 Law on Foreign Trade Management 2017 stipulates anti-dumping measures as follows:

Anti-Dumping Measures

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3. Anti-dumping measures include:

a) Application of anti-dumping tax;

b) Commitments on measures to eliminate dumping by organizations or individuals producing or exporting the goods requested to apply anti-dumping measures with the Investigation Agency of Vietnam or with domestic producers if accepted by the Investigation Agency.

Thus, anti-dumping tax is one of the anti-dumping measures and is an additional import tax applied in the case of dumped goods imported into Vietnam causing or threatening to cause significant damage to the domestic production sector or preventing the establishment of a domestic production sector.

How long is the duration of anti-dumping tax application in Vietnam? (Image from the Internet)

How long is the duration of anti-dumping tax application in Vietnam?

According to Clause 3 of Article 12 Law on Export and Import Duties 2016 which stipulates anti-dumping tax as follows:

Anti-Dumping Tax

1. Conditions for applying anti-dumping tax:

a) Dumped goods are sold in Vietnam and the dumping margin must be specifically determined;

b) The dumping of goods is the cause or threat to cause significant damage to the domestic production sector or to prevent the establishment of a domestic production sector.

2. Principles of applying anti-dumping tax:

a) Anti-dumping tax is only applied to the necessary, reasonable extent to prevent or limit significant damage to the domestic production sector;

b) The application of anti-dumping tax is implemented when the investigation has been conducted and must be based on the investigation conclusions in accordance with the law;

c) Anti-dumping tax is applied to dumped goods sold into Vietnam;

d) The application of anti-dumping tax must not harm domestic socio-economic interests.

3. The duration of applying anti-dumping tax is not more than 05 years from the effective date of the decision to apply. If necessary, the decision to apply anti-dumping tax can be extended.

Thus, the duration of applying anti-dumping tax is not more than 05 years. Anti-dumping tax can be extended if necessary.

What are the conditions for applying anti-dumping tax in Vietnam?

According to Article 78 Law on Foreign Trade Management 2017, which stipulates the conditions for applying anti-dumping measures. Anti-dumping tax is one of the anti-dumping measures. The conditions for applying anti-dumping tax are as follows:

- Anti-dumping tax is applied to imported goods when the following conditions are met:

+ Imported goods into Vietnam are dumped with a specifically determined dumping margin, except for the case specified in Clause 2 of this Article;
+ The domestic production sector suffers or is threatened with significant damage or is prevented from being established;
+ A causal relationship exists between the import of dumped goods mentioned in point a of this Clause and the damage to the domestic production sector mentioned in point b of this Clause.

• Anti-dumping tax is not applied to imported goods with a dumping margin not exceeding 2% of the export price of goods into Vietnam.

In the case of imported goods originating from a country with a volume or quantity not exceeding 3% of the total volume or quantity of similar goods imported into Vietnam and the total volume or quantity of goods originating from countries meeting these conditions not exceeding 7% of the total volume or quantity of similar goods imported into Vietnam, these countries are excluded from the scope of anti-dumping tax application.

What are bases for investigating the application of anti-dumping tax in Vietnam?

According to Clause 1 of Article 79 Law on Foreign Trade Management 2017, it is stipulated as follows:

Basis for investigating the application of anti-dumping measures

1. The investigation for applying anti-dumping measures is implemented when there is a dossier requesting the application of anti-dumping measures by an organization or individual representing the domestic production sector.

2. Organizations or individuals submitting dossiers requesting the application of anti-dumping measures are considered representing the domestic production sector when meeting the following conditions:

a) The total volume or quantity of similar goods produced by domestic producers submitting the dossier and domestic producers supporting the anti-dumping measures request must be greater than the total volume or quantity of similar goods produced by domestic producers opposing the anti-dumping measures request;

b) The total volume or quantity of similar goods produced by domestic producers submitting the dossier and domestic producers supporting the anti-dumping measures request must account for at least 25% of the total volume or quantity of similar goods produced by the domestic production sector.

3. The Minister of Industry and Trade must decide to investigate when there is clear evidence of the import of dumped goods causing significant damage or threatening to cause significant damage to the domestic production sector or preventing the establishment of the domestic production sector.

Thus, the basis for investigating the application of anti-dumping tax is the presence of a dossier requesting the application of anti-dumping tax by an organization or individual representing the domestic production sector.