Which entities have the authority to decide the application of anti-dumping duties in Vietnam?

Which entities have the authority to decide the application of anti-dumping duties in Vietnam?

Pursuant to Article 15 of the Export and Import Tax Law 2016, regulations on the application of anti-dumping duties, countervailing duties, and safeguard duties are as follows:

Application of anti-dumping duties, countervailing duties, safeguard duties

1. The application, amendment, and abolishment of anti-dumping duties, countervailing duties, and safeguard duties shall be carried out in accordance with this Law and the laws on anti-dumping, countervailing, and safeguarding.

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

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

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

5. In cases where the interests of the Socialist Republic of Vietnam are harmed or violated, based on international treaties, the Government of Vietnam will report to the National Assembly to decide on applying other appropriate defensive measures.

Thus, the Ministry of Industry and Trade has the authority to decide on the application of anti-dumping duties.

How to calculate anti-dumping duties in Vietnam?

According to Clause 1, Article 39 of Circular 38/2015/TT-BTC (amended by Clause 23, Article 1 of Circular 39/2018/TT-BTC) which regulates the calculation of anti-dumping duties as follows:

(1) Tax Calculation Basis:

- The actual imported quantity of each item listed in the customs declaration subject to safeguard duties, anti-dumping duties, countervailing duties;

- The taxable import value of each imported item subject to safeguard duties, anti-dumping duties, countervailing duties;

- The tax rate for each item as regulated by the Ministry of Industry and Trade.

(2) Tax Calculation Method:

- In the case of percentage-based calculation

- In the case of specific tax rate calculation

(3) Timing of Tax Calculation

The time to calculate anti-dumping duties (within the effective duration of the Decision of the Minister of Industry and Trade) is the date of customs declaration registration. Export and import taxes are calculated based on the tax rate, taxable value, and exchange rate at the time of tax calculation.

In the event that the taxpayer declares and computes taxes on a paper customs declaration before the date of registration but the exchange rate differs from that applied at the time of registration, the customs office will recalculate the payable tax based on the exchange rate at the time of registration.

(4) For Imported Goods

One of the import tax measures (safeguard duty, anti-dumping duty, countervailing duty) must be applied, meaning the taxable value for excise duty and VAT must include the safeguard duty, anti-dumping duty, countervailing duty.

(5) Payment of Countervailing Duty

- Safeguard duty, anti-dumping duty, and countervailing duty according to the temporary application decision of the Minister of Industry and Trade are to be paid into the deposit account of the customs office where the customs declaration is registered at the State Treasury (According to the State Budget List corresponding to each type of tax);

- If the Minister of Industry and Trade issues an official decision to apply safeguard duties, anti-dumping duties, countervailing duties, the taxes paid according to the temporary decision will be transferred from the deposit account to the state budget.

(6) Handling of Overpaid Safeguard, Anti-dumping, Countervailing Duties

The amount of anti-dumping duty paid according to the temporary application decision that exceeds the amount payable after the official decision is made will be refunded to the taxpayer from the deposit account of the customs office.

Procedures for refund of overpaid taxes are stipulated in Article 131 and Article 132 of Circular 38/2015/TT-BTC.

(7) Declaration, tax collection, tax payment, and tax refund for anti-dumping duties are implemented as for import duties according to the laws on export and import duties and related legislations.

What are the principles for applying anti-dumping duties in Vietnam?

According to Clause 2, Article 12 of the Export and Import Tax Law 2016 which stipulates the principles for applying anti-dumping duties as follows:

- Anti-dumping duties are only applied to the necessary and reasonable extent to prevent or limit significant harm to domestic production;

- The application of anti-dumping duties is executed after investigation and must be based on investigation conclusions according to the law;

- Anti-dumping duties are applied to goods dumped into Vietnam;

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