What is countervailing duty? Conditions for applying countervailing duties in Vietnam 2023

What is countervailing duty? Conditions for applying countervailing duties in Vietnam 2023
Võ Ngọc Nhi

What is countervailing duty? What are the conditions for applying countervailing duties in Vietnam? - Thuy Chi (HCMC, Vietnam)

Thuế chống trợ cấp là gì? Điều kiện áp dụng thuế chống trợ cấp năm 2023
What is countervailing duty? Conditions for applying countervailing duties in Vietnam 2023 (Internet image)

1. What is countervailing duty?

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.

(Clause 6, Article 4 of the Law on Export and import duties 2016)

2. Conditions for applying countervailing duties in Vietnam

In Clause 1, Article 13 of the Law on Export and import duties 2016, the 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.

3. Rules for applying countervailing duties in Vietnam

According to Article 13 of the Law on Export and import duties 2016, the 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.

Note: 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.

4. Regulations on the application of countervailing duties in Vietnam

Pursuant to Article 15 of the Law on Export and import 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. The power to impose tariff schedules and duty rates in Vietnam

In Article 11 of the Law on Export and import duties 2016, the power to impose tariff schedules and duty rates in Vietnamis as follows:

-  Pursuant to Article 10 of the Law on Export and import duties 2016, the export duty schedule enclosed herewith, the Schedule of Concessions annexed to the Protocol of Accession to WTO approved by the National Assembly and other international treaties to which Socialist Republic of Vietnam is a signatory, the Government shall promulgate:

= Preferential export duty and special preferential export duty schedules;

= Preferential import duty and special preferential import duty schedules;

= Lists of goods and fixed duties, mixed duties, and out-quota import duties.

- Where necessary, the Government shall request Standing Committee of the National Assembly to amend the Export duty Schedule enclosed with the Law on Export and import duties 2016.

- The power to impose anti-dumping duties, countervailing duties, and safeguard duties is specified in Chapter III of the Law on Export and import duties 2016.

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