What is the guidance on applying anti-dumping duty and countervailing duty to goods that have been cleared but then their use purpose has changed for domestic consumption in Vietnam?
What are the definitions of anti-dumping duty and countervailing duty in Vietnam?
Under the provisions in Clause 5, Clause 6 of Article 4 of the Law on Export and Import Duties 2016 explaining anti-dumping duty and countervailing duty:
Definitions
For the purpose of this Law, the terms below are construed as follows:
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5. Anti-dumping duty means an additional import duty imposed upon dumped imports in Vietnam that cause or threaten to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.
6. Countervailing duty means an additional import duty imposed upon subsidized goods imported into Vietnam that causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.
Furthermore, according to the provisions in Clause 3, Clause 4 of Article 15 of the Law on Export and Import Duties 2016 on the application of anti-dumping duty, countervailing duty, and safeguard duty as follows:
Application of anti-dumping duties, countervailing duties, safeguard duties
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3. The Ministry of Industry and Trade shall decide the application of anti-dumping duties, countervailing duties, safeguard duties.
4. The Ministry of Finance shall provide for the declaration, collection, payment, and refund of anti-dumping duties, countervailing duties and safeguard duties.
Thus, according to the regulations, anti-dumping duties and countervailing duties are stipulated as above.
What is the guidance on applying anti-dumping duty and countervailing duty to goods that have been cleared but then their use purpose has changed for domestic consumption in Vietnam? (Image from the Internet)
Are materials imported for manufacturing exports in Vietnam eligible for export duty and import duty exemption?
According to Clause 7 of Article 16 of the Law on Export and Import Duties 2016 on duty exemption:
Duty exemption
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7. Materials, supplies, components imported for manufacture of exports. products.
At the same time, according to the provisions in Clause 1 of Article 12 of Decree 134/2016/ND-CP (amended by Clause 6 of Article 1 of Decree 18/2021/ND-CP) regulating duty exemption for imports used for manufacturing exports:
Duty exemption for imports used for manufacturing exports
1. Imports used for manufacturing exports are exempt from import duty as provided in Clause 7, Article 16 of the Law on Export and Import Duties, including:
a) Materials, supplies (including materials for packaging or packaging to package export products), parts, semi-finished products directly constituting exported products or directly participating in the process of manufacturing exports but not directly transformed into products;
b) Finished products imported to package, label, or be affixed, assembled into export products or packaged into uniform items with export products;
c) Parts and accessories imported for warranty of export products;
d) Imports not used for trading, exchange, or consumption but only used as samples;
dd) Imports used for manufacturing exports permitted to be destroyed in Vietnam and have been actually destroyed.
Thus, according to the regulations, materials imported for manufacturing exports are eligible for export duty and import duty exemption.
Shall anti-dumping duty and countervailing duty be applied to goods that have been cleared but then their use purpose has changed for domestic consumption in Vietnam?
Under Clause 5 of Article 25 of Decree 08/2015/ND-CP (amended by Clause 12 of Article 1 of Decree 59/2018/ND-CP) on customs declaration:
Customs declaration
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5. If exports or imports are classified as regulated entities required to pay export and import duties, excise duties, value-added taxes, environmental taxes, or of which export and import taxes are exempted or the tax rate and flat-rate duty are imposed according to the tariff quota, and the cargos are customs released or cleared but then subject to changes in entities that are not required to pay taxes or in purposes for which exports and imports are exempted from paying taxes; exports and imports are taxed for flat-rate duty or at the rate that conforms to the tariff quota; imports are raw materials used for processing or manufacturing exports and temporarily imported—re-exported products that have been released or cleared but then their use purpose has changed for domestic consumption, new customs declarations shall be submitted instead. Policies on management of exports and imports; and policies on taxes levied on exports and imports shall be implemented at the time when new customs declarations are registered, except cases where all of polices on management of exports and imports have been fully implemented at the time when the initial customs declaration is registered.
Simultaneously, Clause 7 of Article 39 of Circular 38/2015/TT-BTC regulates as follows:
Safeguard duty, anti-dumping duty, countervailing duty
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7. The declaration, tax collection, tax payment, tax refund concerning safeguard duty, anti-dumping duty, countervailing duty are carried out as import duties in accordance with the law on export, import duties and related laws.
In Official Dispatch 4211/TCHQ-TXNK in 2022, the General Department of Vietnam Customs guides as follows:
Under the provisions in Decision No. 1578/QD-BCT dated June 15, 2021, of the Ministry of Industry and Trade on the application of official anti-dumping duties and countervailing duties on certain products of sugar cane classified by HS codes 1701.13.00; 1701.14.00; 1701.91.00; 1701.99.10; 1701.99.90; and 1702.90.91 imported into Vietnam, originating from the Kingdom of Thailand. The effective date is from June 16, 2021, and the application duration is 5 years from the effective date of this decision.
Under the aforementioned regulations, if Vedan Vietnam Joint Stock Company's goods are exempted from duty, and the goods have cleared customs but then their use purpose has changed for domestic consumption, it must declare a new customs declaration. Exports and imports management policies and export and import duty policies are applied at the time of registration of the new customs declaration.
Detailed content may be found in Official Dispatch 4211/TCHQ-TXNK in 2022 issued by the General Department of Vietnam Customs.
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