Conditions for applying anti-dumping duties in Vietnam

Conditions for applying anti-dumping duties in Vietnam (Internet image)

1. What is anti-dumping duty?

Pursuant to Clause 5, Article 4 of the Law on Import and Export Duties 2016, anti-dumping duty is prescribed as follows:

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.

2. Conditions for applying anti-dumping duties in Vietnam

In Clause 1, Article 12 of the Law on Import and Export Duties 2016, the conditions for applying anti-dumping duties are as follows

- The imports being dumped in Vietnam and the dumping margin must be determined;

- The dumping causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.

3. Rules for applying anti-dumping in Vietnam

In Clause 2, Article 12 of the Law on Import and Export Duties 2016, the rules for applying anti-dumping duties:

- Anti-dumping duty may only be applied to a reasonable extent to prevent or minimize damage to domestic manufacturing;

- The anti-dumping duties shall be applied after an investigation is carried out and conform to the investigation conclusion as prescribed by law;

- Anti-dumping duty shall be imposed upon dumped imports in Vietnam;

- The application of anti-dumping duties must not cause damage to domestic socio-economic interest.

Note: Anti-dumping 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.

4. Application of anti-dumping duties, countervailing duties, safeguard duties in Vietnam

Pursuant to Article 15 of the Law on Import and Export Duties 2016, the application of anti-dumping duties, countervailing duties, safeguard duties is as follows:

- 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.

- 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.

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

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

- 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.

5. Regulations on anti-dumping measure imposed on imports of Vietnam

Article 77 of the Law on Foreign Trade Management 2016 stipulates anti-dumping measures as follows:

- Anti-dumping measure imposed on imports of Vietnam (hereinafter referred to as “anti-dumping measure”) is a measure imposed on products that are dumped when being imported to Vietnam, which causes material injury or threaten to cause material injury to domestic industry or retard the establishment of the domestic industry.

- A product that is determined as dumped if price of this product imported to Vietnam is less than the comparable price of its like products sold in the exporting country or third country under the common commercial conditions or the price that is self-calculated by the investigating authority.

- Anti-dumping measures include:

+ Imposition of anti-dumping duty;

+ Undertakings to implement measures for removing the dumping carried out by organizations and individuals producing and exporting products subject to the anti-dumping measures with the investigating authority of Vietnam or domestic producers in case of the approval of the investigating authority.

Ngoc Nhi

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