Trade Remedies in Vietnam

When participating in the process of international economic integration, every country voluntarily cut off the trade barriers for goods to easily circulate among each other. However, in the legal framework of World Trade Organization (WTO), the countries are allowed to impose trade remedies if satisfying certain conditions. Vietnam has officially become a member of WTO since July 11 2007 and the imposing of these trade remedies are regulated in Law on foreign trade management 2018.

 

Anti-dumping Law Firm in Vietnam

According to Law on foreign trade management 2018, trade remedies includes anti-dumping measure, countervailing measure and safeguard measure. Specifically, (i) Anti-dumping measure imposed on imports into Vietnam 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; (ii) Countervailing measure imposed on imports into Vietnam is a measure imposed on products that are subsidized when being imported to Vietnam, which causes the material injury or threat of material injury to the domestic industry or retards the establishment of the domestic industry; (iii) Safeguard measure imposed on foreign products imported into Vietnam is measure imposed on increased imports of particular products to Vietnam, which causes the serious injury or threat of serious injury to the domestic industry.

The domestic industry mentioned above refers to the producers as a whole of the like products within the territory of Vietnam or those whose collective output of the like products constitutes a major proportion of domestic production of those products. Besides, the injury to domestic industry shall be determined on each level: (i) Material injury to domestic industry; (ii) threat of material injury to domestic industry; (iii) material retardation of establishment of a domestic industry; (iv)serious injury to domestic industry; (v) threat of serious injury to domestic industry.

Due to the imposing of these remedies directly affecting to foreign producer/exporter as well as domestic industry, thus, it is required to comply to six following rules when imposing these remedies:

Firstly, impose measures within the reasonable scope and level for a certain period of time to protect domestic industry, prevent or limit the injury to it;

Secondly, only impose measures after the investigation is carried out transparently and fairly in accordance with regulations of law and based on determinations of the investigation;

Thirdly, decisions on the investigation and the imposition of trade remedies shall be published;

Fourthly, if the duty rate of an official trade remedy is higher than those of a provisional trade remedy, the difference of duty will not be collected;

Fifthly, if the duty rate of an official trade remedy is lower than those of the provisional trade remedy, the difference of duty will be returned;

Sixthly, if the Minister of Industry and Trade does not impose an official trade remedy, the duty of provisional trade remedy that has been collected or the amount for ensuring the payment of temporary trade remedy duties shall be returned.

If Client needs any more information or request for legal advice regarding trade remedies measures including: anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, Our international trade and tax lawyers, and antitrust lawyers in Vietnam at ANT Lawyers, a Anti-dumping law firm in Vietnam have always followed the development of situation and update the clients on relevant matters.

 

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Trade Remedies in Vietnam

When participating in the process of international economic integration, every country voluntarily cut off the trade barriers for goods to easily circulate among each other. However, in the legal framework of World Trade Organization (WTO), the countries are allowed to impose trade remedies if satisfying certain conditions. Vietnam has officially become a member of WTO since July 11 2007 and the imposing of these trade remedies are regulated in Law on foreign trade management 2018.

 

Anti-dumping Law Firm in Vietnam

According to Law on foreign trade management 2018, trade remedies includes anti-dumping measure, countervailing measure and safeguard measure. Specifically, (i) Anti-dumping measure imposed on imports into Vietnam 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; (ii) Countervailing measure imposed on imports into Vietnam is a measure imposed on products that are subsidized when being imported to Vietnam, which causes the material injury or threat of material injury to the domestic industry or retards the establishment of the domestic industry; (iii) Safeguard measure imposed on foreign products imported into Vietnam is measure imposed on increased imports of particular products to Vietnam, which causes the serious injury or threat of serious injury to the domestic industry.

The domestic industry mentioned above refers to the producers as a whole of the like products within the territory of Vietnam or those whose collective output of the like products constitutes a major proportion of domestic production of those products. Besides, the injury to domestic industry shall be determined on each level: (i) Material injury to domestic industry; (ii) threat of material injury to domestic industry; (iii) material retardation of establishment of a domestic industry; (iv)serious injury to domestic industry; (v) threat of serious injury to domestic industry.

Due to the imposing of these remedies directly affecting to foreign producer/exporter as well as domestic industry, thus, it is required to comply to six following rules when imposing these remedies:

Firstly, impose measures within the reasonable scope and level for a certain period of time to protect domestic industry, prevent or limit the injury to it;

Secondly, only impose measures after the investigation is carried out transparently and fairly in accordance with regulations of law and based on determinations of the investigation;

Thirdly, decisions on the investigation and the imposition of trade remedies shall be published;

Fourthly, if the duty rate of an official trade remedy is higher than those of a provisional trade remedy, the difference of duty will not be collected;

Fifthly, if the duty rate of an official trade remedy is lower than those of the provisional trade remedy, the difference of duty will be returned;

Sixthly, if the Minister of Industry and Trade does not impose an official trade remedy, the duty of provisional trade remedy that has been collected or the amount for ensuring the payment of temporary trade remedy duties shall be returned.

If Client needs any more information or request for legal advice regarding trade remedies measures including: anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, Our international trade and tax lawyers, and antitrust lawyers in Vietnam at ANT Lawyers, a Anti-dumping law firm in Vietnam have always followed the development of situation and update the clients on relevant matters.

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Development of anti-dumping request on PFY originating from China, India, Indonesia and Malaysia

On Nov 07^th, 2019, Trade Remedies Authority of Vietnam (TRAV), the investigating authority  received dossier of request for investigation of the application ofanti-dumping measures on long-fiber products made from polyester (PFY)originating from China, India, Indonesia and Malaysia from companies representing the domestic industry (Requesting Party).

On Nov 22^th, 2019, the investigating authority issued official dispatch No. 1056/PVTM-P1 requesting the Requesting Party to supplement, adjust to clarify some contents of the investigated goods, methods and basis for determining dumping margins and losses of the domestic industry.

Antitrust lawyer in vietnam

On Dec 31^st, 2019, the Requesting Party fully submitted all additional information as requested.

On January 09^th, 2020, the Requesting Party provided additional documents to clarify additional information on the method of calculation, determination dumping margins.

On January 21^th, 2020, Investigating Body confirmed that the dossier is complete, valid in accordance with the law on trade remedies.

According to Law on foreign trade management 2017 and guiding or related documents, next steps of anti-dumping case as follows:

Investigating authority shall examine the Dossier to submit to the Minister of Industry and Trade for consideration whether to conduct or not to conduct an investigation: 45 days from the date of receiving a complete, valid dossier, which means January 21^th, 2020. Contents of Dossier examination include: (i) Determine the legal representative status of the domestic industry of organizations, individuals that submit the Dossier; (ii) Determine evidence on the dumping of imported goods that cause or threaten to cause significant injury to a domestic industry or significantly prevent the formation of a domestic industry.

In order to prepare the examination, as well as to ensure the legitimate rights and interests of the enterprise, the investigation authority suggests that the domestic enterprises producing/trading in the same goods mentioned above provide with the following information: (i) Information about the enterprises; (ii) Design capacity and production of long fiber products made from polyester (PFY) in 2016, 2017, 2018 and 2019; (iii) The company’s opinion on the case (agree, disagree, no opinion); (iv) Any other documents/evidence that the company thinks it is related to the case. The time limit for providing the above information is before 17:00 on February 14^th, 2020 (Hanoi time).

The companies could authorize an international trade law firm in Vietnam that has experience in anti-dumping to assist with the procedures at the state authorities to cooperate.

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