What is anti-dumping duty? What are the conditions and principles for applying anti-dumping duty in Vietnam?

What is anti-dumping duty? What are the conditions and principles for applying anti-dumping duty in Vietnam?

According to Clause 5, Article 4 of the Law on Export and Import Taxes 2016, anti-dumping duty is an additional import tax applied in cases where imported goods are being dumped in Vietnam, causing or threatening to cause significant damage to domestic production or hindering the establishment of domestic production.

According to Clauses 1 and 2, Article 12 of the Law on Export and Import Taxes 2016, the conditions and principles for applying anti-dumping duty are as follows:

* Conditions for applying anti-dumping duty:

- Imported goods are being dumped in Vietnam, and the dumping margin must be specifically determined;- The dumping of goods is the cause or threat of causing significant damage to domestic production or hindrance to the establishment of domestic production.

* Principles for applying anti-dumping duty are as follows:

- Anti-dumping duty is applied only to the extent necessary and reasonable to prevent or limit significant damage to domestic production;

- The application of anti-dumping duty is carried out after an investigation and must be based on the investigation conclusions according to the provisions of the law;

- Anti-dumping duty is applied to goods being dumped into Vietnam;

- The application of anti-dumping duty must not harm the domestic socio-economic interests.

What is anti-dumping duty? What are the conditions and principles for applying anti-dumping duty in Vietnam? (Image from Internet)

How long is the period for applying anti-dumping duty in Vietnam?

According to Clause 3, Article 12 of the Law on Export and Import Taxes 2016, the duration for applying anti-dumping duty is no more than 5 years from the effective date of the decision on the application. If necessary, the decision on the application of anti-dumping duty can be extended.

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

According to Clause 3, Article 81 of the Law on Foreign Trade Management 2017, the application of anti-dumping duty is implemented as follows:

- In the event the commitment specified in Clause 2, Article 81 of the Law on Foreign Trade Management 2017 is not achieved, after the investigation concludes, the investigating authority shall publish the final conclusions on the investigated matters specified in Article 80 of the Law on Foreign Trade Management 2017. The final conclusions of the investigating authority and the main grounds for issuing the final conclusions must be appropriately notified to the related parties in the investigation;

- Based on the final conclusions of the investigating authority, the Minister of Industry and Trade issues a decision on whether or not to apply anti-dumping duty;

- The rate of anti-dumping duty must not exceed the dumping margin in the final conclusions;

- The duration for applying anti-dumping duty is no more than 5 years from the effective date of the decision on the application of anti-dumping duty, except in cases extended as stipulated in Clause 2, Article 82 of the Law on Foreign Trade Management 2017.

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

According to Clause 4, Article 81 of the Law on Foreign Trade Management 2017, the retroactivity of the anti-dumping duty is implemented as follows:

- In cases where the final conclusion of the investigating authority determines there is significant damage or a threat of significant damage to domestic production, the Minister of Industry and Trade may decide to apply anti-dumping duty retroactively;

- Anti-dumping duty is applied retroactively to imported goods within 90 days before the temporary anti-dumping duty is applied if the imported goods are determined to be dumped; the volume or quantity of dumped goods imported into Vietnam increased dramatically during the period from the beginning of the investigation to the application of temporary anti-dumping duty, causing irreparable damage to domestic production.

Which authority has the power to apply anti-dumping duty in Vietnam?

According to Clause 3, Article 15 of the Law on Export and Import Taxes 2016, it is stipulated as follows:

Application of anti-dumping duty, anti-subsidy duty, and safeguard duty

1. The application, modification, and abolition of anti-dumping duty, anti-subsidy duty, and safeguard duty are carried out in accordance with the provisions of this Law and the law on anti-dumping, the law on anti-subsidy, and the law on safeguards.

2. Based on the tax rate, quantity, or value of goods subject to anti-dumping duty, anti-subsidy duty, and safeguard duty, the customs declarant is responsible for declaring and paying taxes in accordance with the provisions of tax management law.

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

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

5. In cases where the interests of the Socialist Republic of Vietnam are infringed or violated, based on international treaties, the Government of Vietnam reports to the National Assembly for a decision on the application of other protective tax measures.

Thus, the authority to apply anti-dumping duty rests with the Ministry of Industry and Trade.