How is countervailing duty in Vietnam regulated? What are the rules for applying countervailing duties in Vietnam?
How is countervailing duty in Vietnam regulated?
According to Clause 6, Article 4 of the 2016 Law on Export and Import Duties in Vietnam on the countervailing duties as follows:
Definitions
For the purpose of this Law, the terms below are construed as follows:
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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.
Thus, the countervailing duties are regulated in accordance with the above provisions.
At the same time, according to the provisions of Article 15 of the 2016 Law on Export and Import Duties in Vietnam on the imposition of anti-dumping duties, countervailing duties, safeguard duties as follows:
Imposition 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.
Thus, according to regulations, the Ministry of Industry and Trade shall decide the application of anti-dumping duties, countervailing duties, safeguard duties.
How is countervailing duty in Vietnam regulated? What are the rules for applying countervailing duties in Vietnam? (Image from the Internet)
What are the rules for applying countervailing duties in Vietnam?
Pursuant to Article 13 of the 2016 Law on Export and Import Duties in Vietnam on the countervailing duties as follows:
Countervailing duties
1. Conditions for applying countervailing duties:
a) It is determined that imports are subsidized as prescribed by law;
b) The imports cause or threaten to cause considerable damage to domestic manufacturing or prevent the formation of domestic manufacturing.
2. Rules for applying countervailing duties:
a) Countervailing duties may only be applied to a reasonable extent to prevent or minimize damage to domestic manufacturing;
b) The countervailing duties shall be applied after an investigation is carried out and conform to the investigation conclusion as prescribed by law;
c) Countervailing duties shall be imposed upon subsidized imports in Vietnam;
d) The application of countervailing duties must not cause damage to domestic socio-economic interest.
3. Countervailing duties shall be applied for a period not exceeding 5 years from the day on which the decision to apply anti-dumping duty takes effect. Such decision may be extended where necessary.
Thus, according to the above regulations, the rules for applying countervailing duties:
- Countervailing duties may only be applied to a reasonable extent to prevent or minimize damage to domestic manufacturing;
- The countervailing duties shall be applied after an investigation is carried out and conform to the investigation conclusion as prescribed by law;
- Countervailing duties shall be imposed upon subsidized imports in Vietnam;
- The application of countervailing duties must not cause damage to domestic socio-economic interest.
What are the regulations on imposition of countervailing measures in Vietnam?
According to Article 89 of the 2017 Law on Foreign Trade Management in Vietnam on the imposition of countervailing measures as follows:
Imposition of countervailing measures in Vietnam
1. The imposition of provisional countervailing duty is decided by the Minister of Industry and Trade according to the preliminary determination provided by the investigating authority. The rate of provisional countervailing duty shall not exceed the rate of subsidization defined in the preliminary determination.
The maximum duration of provisional countervailing duty is 120 days from the day on which the decision on imposition of provisional countervailing duty comes into force. The Minister of Industry and Trade may grant an extension of this measure up to 60 days.
2. The undertakings measure shall be imposed as follows:
a) After the preliminary determination is reached and before the investigation finishes, the producer or exporter of products under consideration or the Government subsidizing products can make an undertaking with the investigating authority on voluntary removal of subsidy, reduction of the rate of subsidization, adjustments to the prices of exports or imposition of other appropriate measures;
b) The investigating authority can accept, refuse the undertaking or request the adjustments to contents of the undertaking based on opinions of the representative of the domestic industry.
3. The countervailing duty shall be imposed as follows:
a) If the undertaking prescribed in Clause 2 of this Clause is not made, after the investigation finishes, the investigating authority will publish the final determination related to the contents of the investigation prescribed in Article 88 of this Law. The final determination of the investigating authority and main bases thereof shall be notified to interested parties via appropriate measures.
b) According to the final determination provided by the investigating authority, the Minister of Industry and Trade shall decide whether the countervailing duty is imposed;
c) The rate of countervailing duty shall not exceed the rate of subsidization defined in the final determination;
d) The maximum duration of countervailing duty is 05 years from the day on which the decision on imposition of countervailing duty comes into force, unless it is extended as prescribed in Clause 2 Article 90 of this Law.
4. Retroactivity of the countervailing duties
a) If the final determination provided by the investigating authority shows that there is material injury or threat of material injury to the domestic industry, the Minister of Industry and Trade will decide the retroactivity of countervailing duties;
b) Countervailing duties will be imposed retroactively on imports within 90 days prior to the date of imposition of provisional countervailing duties if the imports are determined to be subsidized and the volume or quantity of subsidized products imported to Vietnam rise sharply in the period from the date of the investigation to the date of imposition of provisional countervailing duties causing the injury which is difficult to be repaired to the domestic industry
5. Other countervailing measures shall be imposed in accordance with international treaties to which the Socialist Republic of Vietnam is a signatory or principles of international law.
Thus, the imposition of countervailing measures is prescribed as above.
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