How many methods are there for calculating anti-dumping duties in Vietnam?

What are rules for applying anti-dumping duties in Vietnam?

Based on the provisions of Article 12 of the Law on Export and Import Duties 2016 regarding anti-dumping duties as follows:

Anti-Dumping Duties

1. Conditions for applying anti-dumping duties:

a) Imported goods are dumped in Vietnam and the margin of dumping must be specifically determined;

b) The dumping of goods is the cause or threat of causing significant harm to domestic production or hinders the establishment of domestic production.

2. Principles for applying anti-dumping duties:

a) Anti-dumping duties should only be applied to the extent necessary and reasonable to prevent or reduce significant damage to domestic production;

b) The application of anti-dumping duties is conducted following an investigation and must rely on the investigation conclusions as required by law;

c) Anti-dumping duties are applied to goods dumped into Vietnam;

d) The application of anti-dumping duties should not harm domestic socio-economic interests.

3. The duration for applying anti-dumping duties is not more than 5 years from the date the decision on the application comes into effect. If necessary, the decision on applying anti-dumping duties can be extended.

Thus, the application of anti-dumping duties must ensure the following principles:

- Anti-dumping duties should only be applied to the extent necessary and reasonable to prevent or reduce significant damage to domestic production;

- The application of anti-dumping duties is conducted following an investigation and must rely on the investigation conclusions as required by law;

- Anti-dumping duties are applied to goods dumped into Vietnam;

- The application of anti-dumping duties should not harm domestic socio-economic interests.

How many methods are there for calculating anti-dumping duties in Vietnam? (Image from the Internet)

How many methods are there for calculating anti-dumping duties in Vietnam?

Based on the provisions of paragraph 2, Article 39 of Circular 38/2015/TT-BTC amended by paragraph 23, Article 1 of Circular 39/2018/TT-BTC regarding methods for calculating anti-dumping duties as follows:

(1) Calculated based on a percentage

Amount of anti-dumping duties payable = Quantity of each item imported as indicated in the customs declaration subjected to anti-dumping duties x Value for calculating duty on a unit of goods x Anti-dumping duty rate

(2) Calculated based on absolute duties

Amount of anti-dumping duties payable = Quantity of each item imported as indicated in the customs declaration subjected to anti-dumping duties x Amount of anti-dumping duties payable per unit of goods

When is the timing for calculating anti-dumping duties in Vietnam?

Based on the provisions of paragraph 3, Article 39 of Circular 38/2015/TT-BTC amended by paragraph 23, Article 1 of Circular 39/2018/TT-BTC, the timing for calculating anti-dumping duties is implemented according to the provisions of Article 35 of Circular 38/2015/TT-BTC.

Timing for Calculating Duties, Exchange Rate for Export and Import Goods

1. The timing for calculating export duty, import duty, safeguard duty, anti-dumping duty, and countervailing duty (within the validity period of the Enforcement Decision of the Minister of Industry and Trade) is the date of registration of the customs declaration. Export duty, import duty is calculated according to the duty rate, value for duty calculation, and exchange rate at the time of calculation.

If the taxpayer declares and calculates duties on the paper customs declaration before the date of registration of the customs declaration but with a different exchange rate than the one applied at the date of registration of the customs declaration, the customs authority recalculates the duty payable based on the exchange rate applied at the date of registration.

2. The exchange rate for taxation is implemented according to the provisions of Decree 08/2015/ND-CP.

a) The General Department of Vietnam Customs will coordinate with the Joint Stock Commercial Bank for Foreign Trade of Vietnam to update the buying exchange rate of foreign currency in the form of wire transfer from the Head Office at the end of the day on Thursday or the end of the day on the nearest working day before Thursday in case Thursday is a holiday, and announce this exchange rate on the Portal of the General Department of Vietnam Customs and update into the electronic customs data system to apply in determining the exchange rate for taxation on customs declarations registered in the following week;

b) For foreign currencies not announced by the Head Office of the Joint Stock Commercial Bank for Foreign Trade of Vietnam, the General Department of Vietnam Customs updates the exchange rate announced by the State Bank of Vietnam as the latest on the website of the State Bank of Vietnam to be announced on the Portal of the General Department of Vietnam Customs and updated into the electronic customs data system to apply in determining the exchange rate for taxation of export and import goods.

Thus, the timing for calculating anti-dumping duties (within the validity period of the Enforcement Decision of the Minister of Industry and Trade) is the date of registration of the customs declaration.

In the case where the taxpayer declares and calculates taxes on the paper customs declaration before the date of registration of the customs declaration but with a different exchange rate than the one applied at the date of registration of the customs declaration, the customs authority recalculates the duty payable based on the exchange rate applied at the date of registration.