What is countervailing duty according to the law in Vietnam? Which body has the authority to decide the application of countervailing duties in Vietnam?

What is countervailing duty according to the law in Vietnam?

Pursuant to Article 4 of the Law on export and import duties in 2016:

Definitions

For the purpose of this Law, the terms below are construed as follows:

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4. Fixed duty means a fixed amount of tax imposed upon a unit of exports and imports.

5. Anti-dumping duty means an additional import duty imposed upon dumped imports in Vietnam that cause or threaten to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.

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.

7. Safeguard duty means an additional import duty that is imposed in case the quantity of goods imported into Vietnam is above the acceptable level and thus causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.

As regulated above, 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.

What is countervailing duty according to the law in Vietnam? Which body has the authority to decide the application of countervailing duties in Vietnam? - image from internet

What are rules for applying countervailing duties in Vietnam?

Pursuant to Clause 2 Article 13 of the Law on export and import duties in 2016 stipulating countervailing duties:

Countervailing duties

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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.

As regulated above, rules for applying countervailing duties are stipulated as follows:

- 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.

Which body has the authority to decide the application of countervailing duties in Vietnam?

Pursuant to Article 15 of the Law on export and import duties in 2016 stipulating application of anti-dumping duties, countervailing duties, safeguard duties:

Application of anti-dumping duties, countervailing duties, safeguard duties

1. The application, adjustment, removal of anti-dumping duties, countervailing duties, safeguard duties shall comply with this Law, regulations of law on anti-dumping, anti-subsidy, and safeguard measures.

2. In consideration of duty rates, quantity, or value of goods subject to anti-dumping duties, countervailing duties, or safeguard duties, the declarant shall declare and pay duties in accordance with regulations of law on tax administration.

3. The Ministry of Industry and Trade shall decide the application of anti-dumping duties, countervailing duties, safeguard duties.

4. The Ministry of Finance shall provide for the declaration, collection, payment, and refund of anti-dumping duties, countervailing duties and safeguard duties.

5. Where the interests of Socialist Republic of Vietnam are infringed or violated, pursuant to international treaties, the Government shall propose to the National Assembly other appropriate safeguard duty measures.

As regulated above, the Ministry of Industry and Trade shall decide the application of countervailing duties in Vietnam.

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