Under what circumstances are export prices considered unreliable in Vietnam? How to determine the dumping margin?
Under what circumstances are export prices considered unreliable?
According to the provisions of Clause 3, Article 18 of Decree 10/2018/ND-CP of Vietnam on the method of determining the export price in Vietnam as follows:
Method of determining the export price in Vietnam
1. Export price refers to the sales price of the goods under consideration exported to Vietnam according to legal transaction vouchers.
2. In the absence of export price or there are evidences proving that the export price is unreliable, the investigating authority shall determine the export price in one of the following methods:
a) The export price is established based on the price resold to the first independent customer. The first independent customer refers to a customer that has no relationship with the concerned producer and exporter specified in Article 5 this Decree;
b) The export price is established and built on other reasonable bases.
3. The export price shall be treated as unreliable as specified in Clause 2 this Article if the producer, exporter, importer or a third party having relationships as prescribed in Article 5 hereof or having agreements on netting.
Thus, the export price shall be treated as unreliable as specified in Clause 2 this Article if the producer, exporter, importer or a third party having agreements on netting or having relationships related to organizations and individuals importing/exporting goods under investigation of trade remedies as prescribed in Article 5 of Decree 10/2018/ND-CP of Vietnam:
- This party directly or indirectly controls the other party;
- Both parties are directly or indirectly controlled by a third party;
- Both parties directly or indirectly control a third party.
Under what circumstances are export prices considered unreliable in Vietnam? How to determine the dumping margin?
How to adjust export prices?
According to Article 19 of Decree 10/2018/ND-CP of Vietnam on adjustment of normal price and export price as follows:
- When determining the dumping margin, the investigating authority shall consider the following adjustments:
+ Adjust normal price and export price to the same stage in the goods circulation process;
+ Adjust normal price and export price to the same calculation time or at the nearest calculation times;
+ Adjust normal price and export price when there are differences in tax, sale terms, commercial levels, volume, physical characteristics and other factors which the investigating authority deems appropriate;
+ When exchanging currencies, the investigating authority shall use the exchange rate at the time of goods sold, unless the exchange rate in the import sale transaction under forward contract is the exchange rate specified in such contract. In the event of exchange rate fluctuation, the investigating authority shall adjust the fluctuation to an appropriate exchange rate in the period of investigation;
+ Other adjustments deemed appropriate by the investigating authority.
What is the method of determining dumping margin in Vietnam?
According to Article 20 of Decree 10/2018/ND-CP of Vietnam on the method of determining dumping margin in Vietnam as follows:
- The dumping margin is determined according to the difference between the normal price and the export price as prescribed in Article 16, 17, 18 and 19 of this Decree.
- The dumping margin shall be determined according to one of the following methods:
+ Compare the weighted average of the normal price with the weighted average of the export price;
+ Compare the normal price with the export price on the basis of each transaction;
+ Compare the weighted average of the normal price with the weighted average of the export price on the basis of each transaction if there are significant differences in the export price between buyers, geographical areas and export time.
- The investigating authority shall determine a particular dumping margin for each foreign producer and exporter in the anti-dumping investigation, except for cases specified in Clause 4 this Article.
- In case the quantity of the requested parties is too large or the category of goods subject to investigation is too large, the investigating authority may limit the scope of investigation by the sampling method specified in Article 36 hereof to determine the dumping margin.
- In case the investigating authority limits the scope of investigation in accordance with Clause 4 this Article, the dumping margin shall be applied as follows:
+ The particular dumping margin applied to goods under consideration of each producer and exporter from which the sample is drawn and cooperating with the investigating authority in the investigation phase;
+ The particular dumping margin applied to goods under consideration of each producer and exporter from which the sample is drawn but not cooperating or cooperating inadequately with the investigating authority in the investigation phase;
+ The particular dumping margin applied to goods under consideration of each producer and exporter from which the sample is not drawn but voluntarily participating and cooperating with the investigating authority in the investigation phase;
+ The particular dumping margin applied to goods under consideration of the remaining producers and exporters.
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