What are the bases for conducting countervailing duty investigations? What are the regulations on the written request for imposition of countervailing measures in Vietnam?
What are the bases for conducting countervailing duty investigation in Vietnam?
Pursuant to Article 87 of the 2017 Law on Foreign Trade Management in Vietnam stipulating this content as follows:
Bases for conducting countervailing duty investigation
1. A countervailing duty investigation will be conducted if a representative of the domestic industry requests for the imposition of countervailing measures.
2. The application for the countervailing measures shall be considered to have been made on behalf of the domestic industry if the following conditions are satisfied:
a) 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;
b) 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.
3. The Minister of Industry and Trade shall decide the investigation if there is obvious evidence that the import of subsidized products causes the material injury or threat of material injury to the domestic industry or retards the establishment of the domestic industry.
Thus, a countervailing duty investigation will be conducted if a representative of the domestic industry requests for the imposition of countervailing measures.
In which, the application for the countervailing measures 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.
What are the bases for conducting countervailing duty investigations? What are the regulations on the written request for imposition of countervailing measures in Vietnam?
What are the regulations on the written request for imposition of countervailing measures in Vietnam?
Pursuant to Article 29 of Decree No. 10/2018/ND-CP, the written request for imposition of countervailing measures includes the following contents:
- Name, address and other necessary information of the organization/individual representing the domestic industry;
- Information, data and evidences for determining the representative of the domestic industry, including list of domestic organizations and individuals producing similar goods; volume and quantity of similar goods produced by the above organizations and individuals;
- Names and addresses of organizations and individuals producing similar goods supporting or opposing the case;
- Description of the imports subject to investigation of imposition of countervailing measures, including scientific names, trade names, common names; ingredient; basic physical and chemical characteristics; production process; main purpose; Vietnam and international standards/regulations; codes of goods in accordance with the List of Imports and Exports of Vietnam and the effective import tax rates applied according to the export tariffs and import tariffs in each period;
- Description of similar goods of the domestic industry, including scientific names, trade names, common names; ingredient; basic physical and chemical characteristics; main purpose; Vietnam and international standards/regulations;
- Information on the volume, quantity and value of the imports specified in Point d of this Clause within 12 months prior to the submission of dossiers;
- Information on the volume, quantity and value of similar goods of the domestic industry specified in Point dd of this Clause within 12 months prior to the submission of dossiers; except where the domestic industry operates less than 12 months;
- Information and evidences of foreign subsidies, including the existence of subsidies; the allegedly subsidizing country; name and address of the foreign organization or individual accused of receiving the subsidies; form and policy of subsidy; quantity, volume and value of the subsidy;
- Information, data and evidences on significant damage, threat to cause significant damage to domestic industry or significant obstruction to the establishment of a domestic industry;
- Information, data and evidences on the causal relationship between the import of goods specified in Clause d this Point and the damage to domestic industry significant damage, threat to cause significant damage to domestic industry or significant obstruction to the establishment of a domestic industry;
- Specific requirements on the imposition of countervailing measures, the duration and the extent of imposition.
What are the contents of a countervailing duty investigation in Vietnam?
Pursuant to Article 88 of the 2017 Law on Foreign Trade Management in Vietnam, the contents of a countervailing duty investigation include:
(1) Determine subsidized products imported to Vietnam and the rate of subsidization, including:
- Determine the value of subsidy;
- Determine the export price;
- Determine the specific rate of subsidization imposed on each foreign producer or exporter.
(2) Determine the material injury or threat of material injury to the domestic industry or the material retardation of establishment of the domestic industry, including:
- Determine the production of subsidized imports and impacts on prices of like products in the domestic market;
- Determine impacts of subsidized imports on the domestic industry.
(3) Determine the causal link between the import of subsidized products and the material injury or threat of material injury to the domestic industry or the material retardation of establishment of the domestic industry.
(4) Determine impacts of countervailing duties on the economy and society.
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