What are the conditions for the imposition of countervailing measures in Vietnam? What countervailing measures are currently in place?
What are the conditions for the imposition of countervailing measures in Vietnam?
According to Clause 1, Article 86 of the 2017 Law on Foreign Trade Management in Vietnam on the conditions for the imposition of countervailing measures as follows:
Conditions for the imposition of countervailing measures
1. A countervailing measure will be imposed on imports if all following conditions are satisfied:
a) Products are subsidized as prescribed in Articles 84 and 85 of this Law and the rate of subsidy is specific, except for the cases prescribed in Clause 2 of this Article;
b) There is material injury or threat of material injury to the domestic industry or the material retardation of establishment of the domestic industry;
c) There is the existence of a causal link between the import of subsidized products prescribed in Point a of this Clause and the injury to the domestic industry prescribed in Point b of this Clause.
Thus, according to regulations, countervailing measures will be imposed on imports if all mentioned-above conditions are satisfied.
What are the conditions for the imposition of countervailing measures in Vietnam? What countervailing measures are currently in place? (Image from the Internet)
What countervailing measures are currently in place?
Pursuant to Article 10 of the Agreement No. 217/WTO-VB on subsidies and countervailing measures in 1994 stipulating the application of Article VI of GATT 1994 as follows:
Application of Article VI of GATT 1994[35]
Members shall take all necessary measures to ensure that countervailing duties [36] on any product of any Member imported into the territory of another Member are in accordance with the provisions of Article VI of GATT 1994 and in accordance with the provisions of this Agreement. Countervailing duties shall be imposed only on the basis of an investigation which has been initiated and carried out [37] in accordance with the provisions of this Agreement and the Agreement on Agriculture.
At the same time, according to Article 83 of the 2017 Law on Foreign Trade Management in Vietnam on the countervailing measures as follows:
Countervailing measures
1. Countervailing measure imposed on imports of Vietnam (hereinafter referred to as “countervailing measure”) is a measure imposed on products that are subsidized when being imported to Vietnam, which causes the material injury or threat of material injury to the domestic industry or retards the establishment of the domestic industry.
2. Countervailing measures include:
a) The imposition of countervailing duties
b) The undertakings between the producer or exporter or the Government thereof and the competent authority of Vietnam on the voluntary removal or reduction of subsidies or price undertakings;
c) Other countervailing measures.
Thus, according to the above regulations, countervailing measures include:
- The imposition of countervailing duties
- The undertakings between the producer or exporter or the Government thereof and the competent authority of Vietnam on the voluntary removal or reduction of subsidies or price undertakings;
- Other countervailing measures.
What are the provisions on the imposition of retroactive countervailing measures in Vietnam?
Pursuant to the provisions of Article 45 of Decree No. 10/2018/ND-CP on the imposition of retroactive anti-dumping and countervailing tax as follows:
Imposition of retroactive anti-dumping tax and countervailing tax
1. The imposition of retroactive anti-dumping tax, countervailing tax shall comply with the regulations specified in Clause 4 Article 81 and Clause 4 Article 89 of the Law on foreign trade management.
2. The imposition of retroactive anti-dumping tax, countervailing tax shall be reviewed at the request of the requesting party on the sudden increase in the volume and quantity of goods under consideration imported into Vietnam during the period from the date of issuance of the investigation decision to the imposition of temporary anti-dumping tax and countervailing tax which may cause damages that are hard to recover from to the domestic industry.
3. If the official anti-dumping, countervailing tax rates are higher than the temporary anti-dumping, countervailing tax rates, the retroactive tax rates shall be equal to the temporary anti-dumping, countervailing tax rates.
4. If the official anti-dumping, countervailing tax rates are lower than the temporary anti-dumping, countervailing tax rates, the retroactive tax rates shall be equal to the official anti-dumping, countervailing tax rates.
Thus, the imposition of anti-dumping and countervailing tax in effect retroactively is regulated as above.
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