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.

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 or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.   

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India To Investigate Anti-dumping of Vinyl Tiles from Vietnam

On January 24th, 2022, the Ministry of Commerce and Industry of India (Directorate General of Trade Remedies) has issued initiation of anti-dumping investigation of imports of “Vinyl Tiles other than in roll or sheet form” originating in or exported from China PR, Taiwan and Vietnam (Case No. AD (OI) -16/2021). Ministry of Commerce and Industry received the allegations that the dumping of the product under consideration from the mentioned countries above is materially retarding the establishment of the domestic industry in India.

India To Investigate Anti-dumping of Vinyl Tiles from Vietnam

According to the Initiation notification, the product under consideration for the present investigation is “Vinyl Tiles, other than in roll or sheet form” under the following HS codes: 39181090, 39181010, 39189010, 39189020 and 39189090. However, is only indicative and not binding on the scope of the product under consideration in the present investigation. The period of investigation will be applied for the duration from October 1^st, 2020 to September 30^th, 2021.

According to the affirmation, imported products originating in or exported from the mentioned countries has no significant differences in the products produced by the domestic industry. As per the practice of the authority, the PCN methodology would be decided post initiation after inviting comments from all the interested parties. The interested parties may provide their comments/suggestions for the finalization of PCNs for the purpose of this investigation within 15 days from the date of the initiation of this investigation.

Accordingly, on the basis of proving that the conditions about dumping of the product under consideration originating in or exported from the mentioned countries and prove the damages cause from the causality alleged dumping in accordance with regulations. The Authority initiates an investigation to determine the existence, degree and effect of any alleged dumping in respect of the product under consideration originating in or exported from the mentioned countries and to recommend the amount of anti-dumping duty.

Besides, the relevant parties can send the submission within “confidential” or “non-confidential” and make a mark at the top of each page. The Authority may accept or reject the request for confidentiality on examination of the nature of the information submitted. If the Authority is satisfied that the request for confidentiality is not warranted or if the supplier of the information is either unwilling to public, it may disregard such information.

Therefore, the relevant parties should submit the investigate information to Designated Authority in India 30 days from the date of receipt of the notice as per Rule 6(4) of the Anti-Dumping Rules.

The relevant parties could consult with international trade dispute lawyers in Vietnam whom work with Indian counterparts for assistance in responding to India authorities.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers in Vietnam of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.      

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Vietnam Promulgated Preferential Import-Export Tariff Schedule to Implement UKVFTA Agrement

On May 21, 2021, the Government of Vietnam issued Decree No. 53/2021/ND-CP on preferential export tariffs and special preferential import tariffs of Vietnam to implement the Free Trade Agreement between the Vietnam and the United Kingdom of Great Britain and Northern Ireland for the period 2021-2022 (“Decree No. 53/2021/ND-CP”).

Decree No.53/2021/ND-CP promulgating the Preferential Export Tariff and the Special Preferential Import Tariff of Vietnam to implement the Free Trade Agreement between the Socialist Republic of Vietnam and the Union United Kingdom and Northern Ireland (UKVFTA) period 2021 – 2022 and conditions to enjoy preferential export tax rates, special preferential import taxes under the UKVFTA. The specific tax rates for each year of each item are specified in the appendices of that Decree.

Accordingly, in order to enjoy the preferential export tax rate under the UKVFTA, goods exported from Vietnam that are eligible for the preferential export tax rate specified in Decree No.53/2021/ND-CP must meet the following conditions: (i) Being imported into the United Kingdom; (ii) Having a transport document (copy) showing that the destination is the United Kingdom; (iii) Having the import customs declaration of the export consignment of Vietnamese origin imported into the United Kingdom (copy and translation in English or Vietnamese in case the language is showed on the declaration is not in English).

In addition, imported goods eligible for special preferential import tax rates under the UKVFTA must fully satisfy the following conditions: (i) Belonging to the special preferential import tariff schedule specified in the Appendix II promulgated together with Decree No.53/2021/ND-CP; (ii) Being imported into Vietnam from: The United Kingdom or Vietnam (Goods imported from the free trade zone into the domestic market); (iii) Meeting the regulations on origin of goods and have proof of origin according to the provisions of the UKVFTA.

Information above are the provisions on the import and export tariff of goods under the UKVFTA, goods import and export enterprises need to pay attention to be able to apply the import preferential tariff, in order to bring new business highest benefit for the business.

ANT Lawyers in an international trade dispute law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. For advice or services request, please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529

       

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