Vietnam: What is the margin of dumping to impose anti-dumping duties? How is the dumping margin determined?
What is the margin of dumping to impose anti-dumping duties in Vietnam?
Pursuant to Clause 5.8 Article 5 of Agreement 261/WTO/VB on Anti-Dumping - Implementation of Article VI of the General Agreement on Tariffs and Trade GATT 1994 provides as follows:
Initiation and Subsequent Investigation
...
5.8 ... The dumping margin is considered no more than the minimum if it is less than 2% of the export price. The volume of dumped imports will be considered negligible if the volume of dumped imports from a particular country accounts for less than 3% of the total import of similar products into the importing country, except in cases where the import volume of similar products from each country has an import volume of less than 3%, but the total number of similar products imported from these countries accounts for over 7% of imports of similar products into the Importing Member.
In addition, pursuant to Clause 2, Article 78 of the Law on Foreign Trade Management 2017 stipulates as follows:
Article 78. Conditions for the application of anti-dumping measures
…
2. The anti-dumping measure shall not be imposed on a product whose dumping margin is not more than 2 % of its export price.
Thus, when the dumping margin is less than 2% of the export price of goods to Vietnam, anti-dumping measures are not applied.
Vietnam: What is the margin of dumping to impose anti-dumping duties? How is the dumping margin determined?
How is the dumping margin determined in Vietnam?
Pursuant to Article 20 of Decree 10/2018/ND-CP with the following contents:
Article 20. Method of determining the dumping margin
1. 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.
2. The dumping margin shall be determined according to one of the following methods:
a) Compare the weighted average of the normal price with the weighted average of the export price;
b) Compare the normal price with the export price on the basis of each transaction;
c) 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.
3. 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.
4. 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.
5. 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:
a) 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;
b) 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;
c) 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;
d) The particular dumping margin applied to goods under consideration of the remaining producers and exporters.
Thus, in case the dumping margin is greater than 2% of the export price of goods to Vietnam, anti-dumping measures may be considered to apply to imported goods, with the dumping margin to be determined by competent state agencies according to the above provisions.
Is the dumping margin a basis for applying anti-dumping duties in Vietnam?
Pursuant to Clause 3, Article 81 of the Law on Foreign Trade Management 2017 stipulates:
Article 81. Imposition of anti-dumping measures
…
3. The anti-dumping duty shall be imposed as follows:
a) If the price 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 80 of this Law. The final determination provided by the investigating authority and main bases thereof shall be notified to relevant parties of the case via appropriate measures.
b) According to the final determination of the investigating authority, the Minister of Industry and Trade shall decide whether the anti-dumping duty is imposed;
c) The rate of the anti-dumping duty shall not exceed the dumping margin defined in the final determination;
d) The maximum duration of anti-dumping duty is 05 years from the day on which the decision on imposition of anti-dumping duty comes into force, unless it is extended as prescribed in Clause 2 Article 82 of this Law.
Thus, the anti-dumping duty applied to imported goods should not exceed the dumping margin.
LawNet
