What is anti-dumping measure? What are the conditions for the application of anti-dumping measures in Vietnam?
What is anti-dumping measure?
Pursuant to Clause 1, Article 77 of the 2017 Law on Foreign Trade Management in Vietnam defining anti-dumping measures as follows:
Anti-dumping measure imposed on imports of Vietnam is a measure imposed on products that are dumped when being imported to Vietnam, which causes material injury or threaten to cause material injury to domestic industry or retard the establishment of the domestic industry.
In addition, a product that is determined as dumped if price of this product imported to Vietnam is less than the comparable price of its like products sold in the exporting country or third country under the common commercial conditions or the price that is self-calculated by the investigating authority.
Anti-dumping measures include:
- Imposition of anti-dumping duty;
- Undertakings to implement measures for removing the dumping carried out by organizations and individuals producing and exporting products subject to the anti-dumping measures with the investigating authority of Vietnam or domestic producers in case of the approval of the investigating authority.
What is anti-dumping measure? What are the conditions for the application of anti-dumping measures in Vietnam? (Image from the internet)
What are the conditions for the application of anti-dumping measures in Vietnam?
Pursuant to Article 78 of the 2017 Law on Foreign Trade Management in Vietnam stipulating as follows:
Conditions for the application of anti-dumping measures
1. Anti-dumping measures will be applied if all following conditions are satisfied:
a) Imports of Vietnam are dumped with specific dumping margins, except for the case prescribed in Clause 2 of this Law;
b) There is material injury or threat of material injury to the domestic industry or material retardation of establishment of the domestic industry;
c) There is the existence of a causal link between the dumping on imports and injury to the domestic industry prescribed in Point b of this Clause.
2. The anti-dumping measure shall not be imposed on a product whose dumping margin is not more than 2 % of its export price.
3. If the production of imports that originate in a country accounts for not more than 3% of the total production of their imports of like products to Vietnam and the total production of products that originate in countries satisfying the abovementioned conditions accounts for 7% or less of the total production of their imports of like products to Vietnam, these countries will be exempt from anti-dumping measures.
Thus, anti-dumping measures are applied to imported goods when the following conditions are fully satisfied:
(1) Imports of Vietnam are dumped with specific dumping margins, except for the case prescribed in Clause 2 of this Law;
(2) There is material injury or threat of material injury to the domestic industry or material retardation of establishment of the domestic industry;
(3) There is the existence of a causal link between the dumping on imports and injury to the domestic industry prescribed in (2).
In addition, the anti-dumping measure shall not be imposed on a product whose dumping margin is not more than 2 % of its export price.
- If the production of imports that originate in a country accounts for not more than 3% of the total production of their imports of like products to Vietnam and the total production of products that originate in countries satisfying the abovementioned conditions accounts for 7% or less of the total production of their imports of like products to Vietnam, these countries will be exempt from anti-dumping measures.
When are applicants for anti-dumping measures considered representatives of domestic industry?
Pursuant to Clause 2, Article 79 of the 2017 Law on Foreign Trade Management in Vietnam, the application shall be considered to have been made on behalf of the domestic industry if the following conditions are satisfied:
- The total production of like products produced by the applicant(s) and domestic producers supporting the application is greater than those produced by domestic producers that object to the application;
- The total production of like products produced by the applicant(s) and domestic producers supporting the application accounts for at least 25% of total production of like products produced by the domestic industry.
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