How to calculate countervailing duties in Vietnam? What is the duration of application of countervailing duties in Vietnam?

How to calculate countervailing duties in Vietnam?

According to Clause 2, Article 39 of Circular 38/2015/TT-BTC (amended by Clause 23, Article 1 of Circular 39/2018/TT-BTC), the method of calculating countervailing duties is stipulated as follows:

(1) In case of calculation according to percentage

(2) In case of calculation according to absolute tax rate

How to calculate countervailing duties in Vietnam? (Image from the Internet)

What are regulations on collection and handling of countervailing duties in Vietnam?

According to Clauses 5 and 6, Article 39 of Circular 38/2015/TT-BTC (amended by Clauses 5 and 6, Article 1 of Circular 39/2018/TT-BTC), the collection and handling of countervailing duties are regulated as follows:

(1) Collection of countervailing duties

- Safeguard duty, anti-dumping duty, countervailing duty under the Temporary Tax Application Decision by the Minister of Industry and Trade shall be paid into the deposit account of the customs office where the customs declaration is registered at the State Treasury (according to the corresponding state budget index for the types of taxes);

- In case the Minister of Industry and Trade issues a decision on official application of safeguard duty, anti-dumping duty, countervailing duty, the amount already paid according to the temporary decision shall be transferred from the deposit account to be paid to the state budget by the customs office.

(2) Handling of excess countervailing duties paid

The amount of safeguard duty, anti-dumping duty, countervailing duty already paid according to the Temporary Tax Application Decision by the Minister of Industry and Trade which is greater than the amount payable after the official decision is issued shall be refunded to the taxpayer from the customs office’s deposit account.

What are procedures for application of countervailing duties in Vietnam?

According to Article 15 of the Import and Export Duty Law 2016, the application of countervailing duties is regulated as follows:

- The application, modification, or abolition of anti-dumping, countervailing, and safeguard duties shall be carried out according to the provisions of this Law and the law on anti-dumping, the law on countervailing, and the law on safeguards.

- Based on the tax rate, the quantity or value of goods subject to anti-dumping duty, countervailing duty, and safeguard duty, the customs declarant is responsible for declaring and paying tax according to the law on tax management.

- The Ministry of Industry and Trade decides on the application of anti-dumping duty, countervailing duty, and safeguard duty.

- The Ministry of Finance regulates the declaration, collection, payment, and refund of anti-dumping duty, countervailing duty, and safeguard duty.

- In cases where the interests of the Socialist Republic of Vietnam are harmed or violated, based on international agreements, the Government of Vietnam reports to the National Assembly to decide on the application of other appropriate safeguard tax measures.

What is the duration of application of countervailing duties in Vietnam?

According to Clause 3, Article 13 of the Import and Export Duty Law 2016, the duration of application of countervailing duties is regulated as follows:

Condition for applying anti-dumping duties:

a) The imported goods are dumped in Vietnam, and the dumping margin must be specifically determined;

b) Dumping is the cause or threatens to cause significant damage to the domestic production sector or prevents the formation of a domestic production sector.

2. Principle of applying anti-dumping duties:

a) Anti-dumping duties shall only be applied at a necessary, reasonable level to prevent or limit significant damage to the domestic production sector;

b) The application of anti-dumping duties shall be implemented after investigation and must be based on the investigation conclusion according to the provisions of the law;

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

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

3. The duration of application of anti-dumping duties does not exceed 5 years from the effective date of the application decision. In necessary cases, the decision to apply anti-dumping duties may be extended.

Thus, the duration of application of countervailing duties does not exceed 5 years from the effective date of the application decision.

In necessary cases, the decision to apply countervailing duties may be extended.