Conditions and principles for applying anti-dumping duties, countervailing duties and safeguard duties in Vietnam

Conditions and principles for applying anti-dumping duties, countervailing duties and safeguard duties in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Conditions and principles for applying anti-dumping duties in Vietnam

Conditions and principles for applying anti-dumping tax according to Article 12 of the Law on Export and Import Duties 2016 are as follows:

- Conditions for applying anti-dumping duties:

+ 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.

- 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.

- 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.

2. Conditions and principles for applying countervailing duties in Vietnam

Conditions and principles for applying countervailing duties according to Article 13 of the Law on Export and Import Duties 2016 are as follows:

* Conditions for applying countervailing duties:

- It is determined that imports are subsidized as prescribed by law;

- The imports cause or threaten to cause considerable damage to domestic manufacturing or prevent the formation of domestic manufacturing.

* Rules for applying countervailing duties:

- 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.

* 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.

3. Conditions and principles for applying safeguard duties in Vietnam

Conditions and principles for applying safeguard duties according to Article 14 of the Law on Export and Import Duties 2016 are as follows:

* Conditions for applying safeguard duties:

- The volume, quantity or value of imports drastically increases compared to the volume, quantity, or value of like or directly competitive domestic goods;

- The increase of volume, quantity or value of imports mentioned in Point a of Clause 1, Article 14 of the Law on Export and Import Duties 2016 causes or threatens to cause considerable damage to domestic manufacturing of like or directly competitive goods or prevents the formation of domestic manufacturing.

* Rules for applying safeguard duties:

- Safeguard duties may only be applied to a reasonable extent to prevent or minimize serious damage to domestic manufacturing and facilitate the improvement of competitiveness of manufacturing;

- The application of safeguard duties shall take into account the investigation conclusion, unless temporary safeguard duties are applied;

- Safeguard duties are applied in a non-discriminatory manner and regardless of goods origins.

* Safeguard duties shall be applied for a period not exceeding 4 years, including the period of applying temporary safeguard duties. The period of application of safeguard duties may be extended for up to 06 more years if serious damage or the threat of serious damage to domestic manufacturing still remains and there is evidence that the manufacturing is improving its competitiveness.

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