Anti-Dumping Tax: What Is It? What Are the Conditions for Applying Anti-Dumping Tax?

What is Anti-Dumping Duty?

Based on Article 4 of the Law on Export and Import Duties 2016, it is stipulated as follows:

Article 4. Interpretation of terms

In this Law, the following terms are understood as follows:

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3. The percentage-based tax calculation method is the determination of tax based on a percentage (%) of the taxable value of export and import goods.

4. The absolute tax calculation method is the determination of a specific amount of tax on a unit of export and import goods.

5. Anti-dumping duty is a supplementary import tax applied in the case where dumped goods are imported into Vietnam causing or threatening to cause significant damage to the domestic industry or preventing the establishment of a domestic industry.

6. Countervailing duty is a supplementary import tax applied in the case where subsidized goods are imported into Vietnam causing or threatening to cause significant damage to the domestic industry or preventing the establishment of a domestic industry.

7. Safeguard duty is a supplementary import tax applied in the case where importation of goods in excessive quantities into Vietnam causes serious damage or threatens to cause serious damage to the domestic industry or prevents the establishment of a domestic industry.

Thus, anti-dumping duty is a supplementary import tax applied in cases where dumped goods are imported into Vietnam causing or threatening to cause significant damage to the domestic industry or preventing the establishment of a domestic industry.

What is Anti-Dumping Duty? What are the conditions for applying anti-dumping duty? (Image from the Internet)

What are the conditions for applying anti-dumping duty?

Based on Article 12 of the Law on Export and Import Duties 2016, anti-dumping duty is stipulated as follows:

Article 12. Anti-dumping duty

1. Conditions for applying anti-dumping duty:

a) Imported goods are dumped in Vietnam and the dumping margin must be specifically determined;

b) The dumping of goods is the cause of or threatens to cause significant damage to the domestic industry or prevents the establishment of the domestic industry.

2. Principles of applying anti-dumping duty:

a) Anti-dumping duty is only applied to the extent necessary and reasonable to prevent or limit significant damage to the domestic industry;

b) The application of anti-dumping duty is carried out after an investigation and must be based on the investigation's conclusion as per legal regulations;

c) Anti-dumping duty is applied to dumped goods imported into Vietnam;

d) The application of anti-dumping duty must not damage the socio-economic interests within the country.

3. The duration of applying anti-dumping duty does not exceed 5 years from the effective date of the application decision. In necessary cases, the decision to apply anti-dumping duty may be extended.

Thus, the conditions for applying anti-dumping duty are stipulated as follows:

- Imported goods are dumped in Vietnam and the dumping margin must be specifically determined.

- The dumping of goods is the cause of or threatens to cause significant damage to the domestic industry or prevents the establishment of the domestic industry.

Which authority decides the application of anti-dumping duty?

Based on Article 15 of the Law on Export and Import Duties 2016, which regulates the application of anti-dumping duty, countervailing duty, and safeguard duty:

Article 15. Application of anti-dumping duty, countervailing duty, and safeguard duty

1. The application, modification, and removal of anti-dumping duty, countervailing duty, and safeguard duty are conducted according to the provisions of this Law and legal regulations on anti-dumping, countervailing, and safeguard laws.

2. Based on the tax rate, quantity, or value of goods subject to anti-dumping duty, countervailing duty, and safeguard duty, the customs declarant is responsible for declaring and paying taxes as per tax management regulations.

3. The Ministry of Industry and Trade decides the application of anti-dumping duty, countervailing duty, and safeguard duty.

4. The Ministry of Finance regulates the declaration, collection, payment, and refund of anti-dumping duty, countervailing duty, and safeguard duty.

5. In case the interests of the Socialist Republic of Vietnam are violated or compromised, based on international agreements, the Government of Vietnam reports to the National Assembly for deciding the application of appropriate safeguard tax measures.

According to the above stipulation, the Ministry of Industry and Trade is the authority with jurisdiction to decide the application of anti-dumping duty.