What are regulations on retroactivity of the anti-dumping duty in Vietnam?

What is Anti-Dumping Duty?

Pursuant to the provisions in Clause 5, Article 4 of the Law on Export and Import Duties 2016, anti-dumping duty is an additional import tax applied in cases where dumped goods imported into Vietnam cause or threaten to cause significant damage to the domestic industry or hinder the establishment of a domestic industry.

What are regulations on retroactivity of the anti-dumping duty in Vietnam?

Pursuant to the provisions in Clause 4, Article 81 of the Law on Foreign Trade Management 2017, the retroactive application of anti-dumping duty is carried out as follows:

Application of Anti-Dumping Measures

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4. The retroactive application of anti-dumping duty is carried out as follows:

a) In cases where the final conclusion of the Investigation Authority determines significant damage or a threat of significant damage to the domestic industry, the Minister of Industry and Trade may decide to apply the anti-dumping duty retroactively;

b) Anti-dumping duty is applied retroactively on goods imported within 90 days prior to the temporary application of anti-dumping duty if the imported goods are determined to have been dumped; the volume or quantity of dumped goods imported into Vietnam increases sharply during the period from the investigation to the temporary application of anti-dumping duty and causes irremediable damage to the domestic industry.

Thus, the Minister of Industry and Trade may decide to apply the anti-dumping duty retroactively in cases where the final conclusion of the Investigation Authority determines significant damage or a threat of substantial damage to the domestic industry.

What are regulations on retroactivity of the anti-dumping duty in Vietnam? (Image from the Internet)

How to determine significant damage to the domestic industry in Vietnam?

The method of determining significant damage to the domestic industry is stipulated in Article 23 of Decree 10/2018/ND-CP as follows:

(1) Determining significant damage to the domestic industry is based on considering the following factors:

- Absolute or relative increase in the volume or quantity of dumped or subsidized imported goods into Vietnam compared to the volume or quantity of similar goods produced domestically or consumed domestically;

- Price suppressing or price depressing effects of the investigated imported goods into Vietnam on the sales prices of similar domestically produced goods;

- Impact of the dumped or subsidized goods on the operational status of production and business activities in the domestic industry, including actual and potential declines in revenue, sales volume, profits, production volume, market share, capacity, productivity, investment; factors affecting domestic sales prices; the magnitude of dumping margins, subsidy levels; and actual and potential adverse effects on cash flow, inventories, labor, wages, and the ability to raise capital;

- Other impacting factors.

(2) The determination of significant damage to the domestic industry must be based on specific evidence.

How to determine the threat of causing significant damage to the domestic industry in Vietnam?

The method of determining the threat of causing significant damage to the domestic industry is stipulated in Article 24 of Decree 10/2018/ND-CP, specifically:

(1) Determining the threat of causing significant damage to the domestic industry is based on considering the following factors:

- Absolute or relative increase in the volume or quantity of dumped or subsidized imported goods into Vietnam compared to the volume or quantity of similar goods produced domestically or domestic consumption;

- Production capacity of foreign producers and exporters is large enough or can significantly increase in the near future leading to a potential increase in the volume, quantity of investigated imported goods into Vietnam;

- The dumped or subsidized goods imported into Vietnam significantly reduce prices, maintain prices at a significant level, or prevent substantial price increases for similar domestically produced goods, leading to a potential increase in demand for imported goods;

- Inventory data of the investigated goods;

- Other factors.

(2) The comprehensive consideration of the above stipulated factors reveals the potential increase in imports of dumped, subsidized goods, and if anti-dumping, countervailing measures are not applied, significant damage will occur.

(3) Determining the threat of causing significant damage to the domestic industry must be based on specific evidence.