When is the anti-dumping duty applied in Vietnam?

When is the anti-dumping duty applied in Vietnam?

Based on the provisions stipulated in Clause 2, Article 12 of the Law on Export and Import Duties 2016 regarding the principles of applying anti-dumping duties as follows:

Anti-dumping duty

1. Conditions for applying anti-dumping duty:

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

b) The dumping of goods causes or threatens to cause significant damage to the domestic industry or hampers the establishment of a domestic industry.

2. Principles for applying anti-dumping duty:

a) Anti-dumping duties shall only be applied to the extent necessary and reasonable to prevent or limit significant damage to the domestic industry;

b) The application of anti-dumping duty is implemented when an investigation has been conducted, and it must be based on the conclusions of the investigation according to legal regulations;

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

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

3. The duration of the application of anti-dumping duty shall not exceed 5 years from the date the decision on application takes effect. In necessary cases, the decision on applying anti-dumping duties may be extended.

The application of anti-dumping duties is only implemented after an investigation is conducted and must be based on investigation conclusions in accordance with legal provisions.

When is the anti-dumping duty applied in Vietnam? (Image from the Internet)

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

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

[1] In cases where the commitment described in Clause 2, Article 81 of the Law on Foreign Trade Management 2017 is not achieved, after the investigation concludes, the Investigating Authority announces the final conclusion on the investigation contents stipulated in Article 80 of the Law on Foreign Trade Management 2017.

The final conclusion of the Investigating Authority and the main grounds for issuing the final conclusion must be notified appropriately to the parties involved in the investigation;

[2] Based on the final conclusion of the Investigating Authority, the Minister of Industry and Trade issues a decision on whether to apply anti-dumping duties;

[3] The anti-dumping tariff must not exceed the dumping margin stated in the final conclusion;

[4] The duration for applying anti-dumping duties shall not exceed 5 years from the date the anti-dumping duty application decision becomes effective, except in cases of extensions as specified in Clause 2, Article 82 of the Law on Foreign Trade Management 2017, specifically:

- 1 year before the end of the application period of anti-dumping measures, the Minister of Industry and Trade issues a decision to conduct a final review on the application of anti-dumping measures;

- The purpose of the review is to determine the necessity, reasonableness, and socio-economic impact of continuing the application of anti-dumping measures;

- Based on the review results from the Investigating Authority, the Minister of Industry and Trade decides on whether to extend or not extend the application of anti-dumping measures;

d) The final review period is not more than 9 months from the date the review decision is issued, and if necessary, it may be extended once but not more than 3 months.

What are regulations on investigation contents for applying anti-dumping measures in Vietnam?

The investigation contents for applying anti-dumping measures stipulated in Article 80 of the Law on Foreign Trade Management 2017 are as follows:

(1) Determine the goods being dumped and imported into Vietnam, and the dumping margin, including:

- Determining the normal value;

- Determining the export price;

- Conducting a fair comparison between the normal value and the export price, and determining the specific dumping margin of the goods subject to investigation for each organization and individual producing and exporting the investigated goods (hereinafter referred to as manufacturers, exporters).

(2) Determine the significant damage or threat of significant damage to the domestic industry or prevention of the establishment of a domestic industry.

(3) Determine the causal relationship between the importation of dumped goods and the significant damage or threat of significant damage to the domestic industry or the prevention of the establishment of a domestic industry.

(4) Determine the impact of the anti-dumping measures on socio-economics.