Shall the retroactive tax rates in Vietnam be equal to the temporary tax rates or official tax rates?

Who may request the imposition of retroactive anti-dumping duties in Vietnam?

The imposition of retroactive anti-dumping duties is stipulated in Article 45 of Decree 10/2018/ND-CP as follows:

Imposition of retroactive anti-dumping and countervailing duties

1. The imposition of retroactive anti-dumping and countervailing duties is carried out in accordance with Clause 4, Article 81, and Clause 4, Article 89 of the Law on Foreign Trade Management.

2. The imposition of retroactive anti-dumping and countervailing duties is considered upon the request of the Applicant in cases where there is a sudden increase in the volume of imported goods under investigation into Vietnam from the time the investigation decision is made until the temporary anti-dumping or countervailing duties are applied, causing irremediable harm to the domestic production.

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Thus, the imposition of retroactive anti-dumping and countervailing duties is considered upon the request of the Applicant in cases where there is a sudden increase in the volume of imported goods under investigation into Vietnam from the time the investigation decision is made until the temporary anti-dumping duties are applied, causing irremediable harm to the domestic production.

Furthermore, based on point a, clause 4, Article 81 of the Law on Foreign Trade Management 2017, if the final conclusion of the Investigating Authority determines significant damage or threat thereof to the domestic industry, the Minister of Industry and Trade may decide to apply anti-dumping duties retroactively.

The determination of damage to the domestic industry is performed in accordance with Articles 23, 24, and 25 of Decree 10/2018/ND-CP, specifically:

- Determination of significant damage to the domestic industry (Article 23)

- Determination of a threat causing significant damage to the domestic industry (Article 24)

- Determination of significant hindrance to the formation of the domestic industry (Article 25)

Rates of retroactive anti-dumping duties in Vietnam (Image from the Internet)

How to determine the rate of retroactive anti-dumping duties in Vietnam?

The rate of retroactive anti-dumping duties is determined according to Clauses 3 and 4, Article 45 of Decree 10/2018/ND-CP as follows:

(i) In case the official anti-dumping duty is higher than the temporary anti-dumping duty, the retroactive duty rate equals the temporary anti-dumping duty.

(ii) In case the official anti-dumping duty is lower than the temporary anti-dumping duty, the retroactive duty rate equals the official anti-dumping duty.

In which:

- The official anti-dumping duty shall not exceed the dumping margin in the final conclusion (As per point c, clause 3, Article 81 of the Law on Foreign Trade Management 2017).

- The temporary anti-dumping duty shall not exceed the dumping margin in the preliminary conclusion (As per clause 1, Article 81 of the Law on Foreign Trade Management 2017).

What is the duration for the imposition of retroactive anti-dumping duties in Vietnam?

Based on the provisions of clause 4, Article 81 of the Law on Foreign Trade Management 2017, the imposition of retroactive anti-dumping duties is implemented as follows:

Application of anti-dumping measures

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4. The imposition of retroactive anti-dumping duties is implemented as follows:

a) If the final conclusion of the Investigating Authority determines significant damage or threat of significant damage to the domestic production, the Minister of Industry and Trade may decide to apply anti-dumping duties retroactively;

b) Anti-dumping duties are retroactively applied to imported goods within 90 days before the temporary anti-dumping duties are imposed if the imported goods are determined to be dumped; the volume or quantity of dumped goods imported into Vietnam increased sharply during the period from the investigation until the temporary anti-dumping duties are applied, causing irremediable harm to the domestic industry.

Thus, anti-dumping duties are retroactively applied to imported goods within 90 days before the temporary anti-dumping duties are imposed if the imported goods are determined to be dumped; the volume or quantity of dumped goods imported into Vietnam increased sharply during the period from the investigation until the temporary anti-dumping duties are applied, causing irremediable harm to the domestic industry.