What are regulations on the imposition of retroactive countervailing tax in Vietnam?

What are regulations on the imposition of retroactive countervailing tax in Vietnam?

The imposition of retroactive countervailing tax is stipulated in Clause 1, Article 45 of Decree 10/2018/ND-CP as follows:

Imposition of retroactive anti-dumping and countervailing tax

1. The imposition of retroactive anti-dumping and countervailing tax is implemented according to the provisions in Clause 4, Article 81 and Clause 4, Article 89 of the Law on Foreign Trade Management.

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Referring to Clause 4, Article 89 of the Law on Foreign Trade Management 2017 as follows:

Application of countervailing measures

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4. The imposition of retroactive countervailing tax is implemented as follows:

a) In cases where the final determination by the Investigating Authority concludes that there is significant damage or a threat of significant damage to the domestic industry, the Minister of Industry and Trade may decide to impose countervailing tax with retroactive effect;

b) countervailing tax are retroactively applied to imported goods within 90 days before the imposition of provisional countervailing tax if the imported goods are determined to be subsidized; the volume or quantity of subsidized goods imported into Vietnam rapidly and significantly increases during the period from the initiation of the investigation to the imposition of provisional countervailing tax, causing irreparable injury to the domestic industry.

Thus, the imposition of retroactive countervailing tax is implemented as follows:

- In cases where the final determination by the Investigating Authority concludes that there is significant damage or a threat of significant damage to the domestic industry, the Minister of Industry and Trade may decide to impose countervailing tax with retroactive effect;

- countervailing tax are retroactively applied to imported goods within 90 days before the imposition of provisional countervailing tax if the imported goods are determined to be subsidized; the volume or quantity of subsidized goods imported into Vietnam rapidly and significantly increases during the period from the initiation of the investigation to the imposition of provisional countervailing tax, causing irreparable injury to the domestic industry.

What are regulations on the imposition of retroactive countervailing tax in Vietnam? (Image from the Internet)

Who considers the imposition of retroactive countervailing tax upon request in Vietnam?

Based on the regulation in Clause 2, Article 45 of Decree 10/2018/ND-CP as follows:

The application of anti-dumping and countervailing tax with retroactive effect is considered upon the request of the requesting Party regarding the significant increase in the volume or quantity of goods under investigation imported into Vietnam during the period from the investigative decision until the imposition of provisional countervailing tax, causing irreparable injury to the domestic industry.

Who is responsible for deciding on investigations when there is clear evidence of subsidized imports causing significant damage to the Vietnamese industry?

According to Article 87 of the Law on Foreign Trade Management 2017 as follows:

Basis for initiating investigations to apply countervailing measures

1. Investigations to apply countervailing measures are conducted upon receiving a dossier requesting the application of countervailing measures from organizations or individuals representing the domestic industry.

2. Organizations or individuals submitting a dossier requesting the application of countervailing measures are considered representatives of the domestic industry when the following conditions are met:

a) The total volume or quantity of similar goods produced by domestic producers submitting the dossier and those supporting the request for countervailing measures must exceed the total volume or quantity of similar goods produced by domestic producers opposing the request;

b) The total volume or quantity of similar goods produced by domestic producers submitting the dossier and those supporting the request for countervailing measures must account for at least 25% of the total volume or quantity of similar goods produced by the domestic industry.

3. The Minister of Industry and Trade is responsible for deciding on investigations when there is clear evidence of subsidized imports causing or threatening to cause significant damage to the domestic industry or preventing the establishment of a domestic industry.

Thus, the Minister of Industry and Trade is responsible for deciding on investigations when there is clear evidence of subsidized imports causing significant damage to the domestic industry.