Process of Anti-dumping Review in Vietnam

After 12 month from the day on which the decision on imposition of anti-dumping measures is issued, the Vietnam Minister of Industry and Trade may decide to review anti-dumping measures at the request of one or multiple interested parties and evidence provided by them.

The time limit for the review is 06 months from the day on which the decision on review is issued, with a possible extension up to 3 months if necessary.

 

Within 60 days before the end of one year from the date of issuance of the decision on the imposition of official anti-dumping measures, the related parties may submit the application dossiers for review of anti-dumping measures.

1. Subject of the application:

The following related parties shall have right to submit the application for review of the anti-dumping measures imposition:

-Domestic producers;

-Foreign producers and exporters may submit dossiers for review of the imposition of official anti-dumping measures against themselves;

-Importers of goods subject to anti-dumping measures;

-Governments of foreign producers and exporters which may submit dossiers for review of the imposition of official anti-dumping measures of such foreign producers and exporters.

2. Contents of the application

Contents of the review at the request of related parties

-The dumping margin, the level of subsidy of one, some or all of the foreign producers and exporters;

-Commitments to eliminate dumping and subsidies of one, some or all of the foreign producers and exporters who commit;

-Damages of the domestic industry and the causal relationship between the dumping on goods/ good subsidies of relevant foreign producers and exporters and the damage to domestic industry;

-Scope of imposition of anti-dumping measure and countervailing measure.

ANT Lawyers in a 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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Receipt of Application for Anti-dumping Measures on Welding Materials From China, Thailand and Malaysia

On January 21th, 2021, Trade Remedies Authority of Vietnam (Investigating Authority) received Dossier from a company which is the representative of the domestic manufacturing (Requesting Party) requesting for the application of the anti-dumping measures on some types of welding materials originating from People’s Republic of China, Kingdom of Thailand and Malaysia.

On February 01st, 2021, Investigating Authority confirmed that Dossier was complete, valid according to regulations of law on trade remedies.

 

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Within 45 days of the receipt of a complete, valid Dossier, the Investigating Authority shall examine the Dossier to submit to the Minister of Industry and Trade for consideration for conducting an investigation.

Contents of Dossier examination include: (i) Determine qualification of the legal representative of the domestic manufacturing of organization, individual that submitted the Dossier according to regulation of Law on Foreign Trade Management; (ii) Determine evidence on the dumping of imported goods that caused or threatened to cause significant injury to a domestic manufacturing or significantly prevent the formation of a domestic manufacturing.

Our international trade and competition lawyers in Vietnam at ANT Lawyers will always follow the development from authorities to provide update to our clients.

 

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Anti-dumping Law: The Basic Concepts

1. What is dumping?

In international trade, dumping is a phenomenon occurs when a commodity is exported at a price lower than the selling price of that item in the domestic market of the exporting country. Therefore, it is simple to understand that if the export price of a commodity is lower than its domestic prices, the product may be considered to be dumped.

 

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2. Why is dumping?

There are many causes of dumping in international trade. In fact, there are many cases that seller deliberately dumping in order to achieve certain benefits such as: Dumping to eliminate competitors in the import market to become monopoly and gain market share; Selling at low price to acquire foreign currency… Sometimes, the dumping is reluctant because the manufacturer and exporter cannot sell product, the production is stalled then the long-term storage products could be corrupted… Hence, they have to sell off to recover capital.

In international trade, the anti-dumping tax may be imposed without regarding to the reason why the manufacturers dumping. Dumped into foreign markets is often perceived as a negative phenomenon because it reduces the competitiveness of prices and the market share of domestic products of importing countries.

However, dumping can have positive impacts on the economy: consumers benefit from low price goods; if dumped goods are inputs of other manufacturing sector then the low raw material prices can make certain growth of that industry… Therefore, not all acts of dumping will be applying the anti-dumping measures.

As regulated by the World Trade Organization (WTO), the anti-dumping measures can only be applied in certain circumstances and must meet certain conditions. Specifically, the anti-dumping measures are applied only when the following three conditions are met: The imported goods are dumped; the manufacturing sector of similar products of the importing countries is significantly affected; there is a causal relationship between the dumping of imports goods and losses mentioned above

3. The anti-dumping tax?

The anti-dumping tax is the additional taxes besides the normal import tax, which is imposed on foreign products that are dumped into the importing country. This type of tax is to prevent dumping and eliminate the damages caused by the dumping of imported goods. In fact, the anti-dumping tax is used in many countries as a form of “legal protection” for its domestic production. In order to prevent the abuse of this measure, the WTO member countries have together agreed on the provisions required to comply regarding the investigation and imposition of anti-dumping tax, concentrated in an Agreement of the WTO on anti-dumping, which is the ADA Agreement.

ANT Lawyers in a 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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How to Distinguish between Deposit and Advance Payment

In commercial transactions, it is very common for one party to give the other party an amount of money before the contract being performed. Should this amount be considered as deposit or advance payment?

 

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Deposit is one of security measures for the performance of contract obligations. According to regulation of Civil Code 2015, deposit is an act whereby one party (hereinafter referred to as the depositor) gives to other party (hereinafter referred to as the depositary) a sum of money or precious metals, gemstones or other valuable things (hereinafter referred to as the deposited property) for a period of time as security for the entering into or performance of a contract.

Upon a contract being entered into or performed, any deposited property shall be returned to the depositor, or deducted from the amount of payment obligation. If the depositor refuses to enter into or perform the contract, the deposited property shall belong to the depositary. In case the depositary refuses to enter into or perform the contract, the depositary must return the deposited property and pay an amount equivalent to the value of the deposited property to the depositor, unless otherwise agreed.

It can be seen that the purpose of deposit is to ensure the entering into or performance of a contract. Due to the fact that its nature is a security measure for the performance of contract obligations, sanction is set in regulation of deposit in case one party refuses to perform the agreement.

In practice, the advance payment can be understood that the obligor pays the obligee a sum of money in advance and this amount is regarded as in-advance performance of a payment obligation. As the nature of the advance is not a security measure for the performance of contract obligations, there is no fine rising from the advance if one party refuses to perform the agreement. Further, when a contracting party gives to the other party a sum of money, which is not clearly identified by the parties as a deposit or an advance, such amount shall be considered an advance payment.

It is important to distinguish the difference between deposit and advance payment to avoid potential disputes in performance the contract or consult with dispute resolution lawyers in Vietnam at early stage of the dispute for proper actions.

 

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Vietnam to Investigate Anti- dumping Measures on Some Monosodium Glutamate (MSG)

On October 31st, 2019 Ministry of Industry and Trade issued the Decision no. 3267/QD-BCT on carrying out investigation anti-dumping measures on some monosodium glutamate (MSG) HS code no. 2922.42.20 originating from the People’s Republic of China and Republic of Indonesia.

 

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The case has been initiated based on request by representative of domestic manufacturing industry on August 19^th, 2019. The requesting party and supporting party are three companies representing domestic manufacturing industry, including: Vedan Vietnam Joint Stock Limited Company, Ajinomoto Vietnam, and Miwon Vietnam Limited Company. Products under investigation are Monosodium Glutamate products (MSG Products).

After having the investigation decision, within 15 days, investigating agency shall send the questionnaire to the relevant parties. The relevant parties shall submit written response to all questions in the questionnaire within 30 days from the date of receiving the investigation questionnaires. The date of receiving the investigation questionnaires shall be set at seventh days after the investigation questionnaires are sent by investigating authority.

Investigating agency has issued official dispatch no. 760/PVTM-P1 on September 04^th, 2019 which requires requesting party to supplement, adjust to clarify contents, methods and basis of determining dumping margins amplitude and damages of domestic manufacturing industry. 

The relevant parties shall register participation in investigation within 30 days from the date of issuance of Decision No.3267/QD-BCT. The Vietnam Ministry of Industry and Trade recommends that all organizations and individuals who are manufacturer of products under investigation should register as a relevant party and provide necessary information to the Ministry of Industry and Trade to ensure their rights and interests in accordance with the law of Vietnam.

ANT Lawyers in a 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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Japanese Companies Invest in The Environmental Sector in Vietnam

With the partnership with Biwase, JFE Engineering hopes to gain more orders, including projects to expand Biwase’s existing plants and construct waste treatment plants.

 

JFE Engineering Japan has just spent 900 million yen (8.6 million USD) to invest in Vietnam. The Company purchase 3.87% stake in Binh Duong Water and Environment Joint Stock Company (Biwase).

This is one of the steps of JFE Engineering to tap into the demand for water treatment facilities in Vietnam.

JFE Engineering has participated in a tender to build two wastewater treatment plants in Vietnam. Both factories use Japan’s official development assistance (ODA) capital.

According to Nikkei Asia, with the cooperation with Biwase – the unit that are operating 8 water treatment plants and one waste treatment plant in Binh Duong province, JFE Engineering hopes to have more orders, including projects to expand Biwase’s existing factories and construct waste treatment and recycling plants.

JFE Engineering plans to recruit local engineers and salespeople to increase its staff in Vietnam by 10 more per year.

JFE Engineering hopes to increase annual sales in the Vietnamese market to 10 billion yen over the next 10 years from 2 billion yen in fiscal 2019.

ANT Lawyers in a 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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Update on Anti-dumping for Some Monosodium Glutamate (MSG) under Case AD09

From March 2016, MSG product imported into Vietnam has been imposed trade remedies according to petition of Vedan Vietnam Enterprise Corp.,Ltd. Safeguard duty adding to import tax rate is imposed on additional levels converted into 4.33 million dong/ton from the first year and descending only 3,2 million dong/ton by 2020. From March 25^th, 2020, imported MSG tax shall return 0 dong if plaintiff no longer extends the safeguard measure.

 

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On August 19^th, 2019, Trade Remedies Authority of Vietnam (TRAV), Ministry of Industry and Trade received request dossier for applying the anti-dumping measures (AD) on MSG product with HS code 2922.42.20 (“Goods under investigation”) originating from People's Republic of China (“China”) and Republic of Indonesia (“Indonesia”). Plaintiff accused MSG imported from above two countries of having been dumping into Vietnam market, causing considerable damage to domestic MSG manufacturing.

On September 4^th, 2019, TRAV issued official dispatch no. 760/PVTM-P1 on requiring the Requesting Party to supplement the dossier.

On September 23^rd, 2019, Requesting Party fully supplemented the required information.

On October 8^th, 2019, Investigating Body confirmed that Dossier is valid, complete according to regulations of law on trade remedies.

On October 31^st, 2019, Ministry of Industry and Trade promulgated Decision 3267/QD-BCT on conducting an investigation to apply anti dumping measure on some MSG products with HS code 2922.42.20 originating from China and Indonesia.

On November 15^th, 2019, TRAV issued investigation questionnaire for domestic producers and importers to collect information and data for the case.

Investigation results showed that although safeguard measures was imposed absolutely at VND 3,201,039/ton, the quantity of imported goods after the applying the safeguard duty shows signs of dumping in large quantities, from 2.88 million dong/ton to more than 6.3 million dong/ton on goods imported from China and Indonesia, corresponding to the highest dumping margin being over 28%. Such level of dumping illustrates that imported goods is continuing to threaten causing considerable damage to domestic MSG manufacturing. Since 2016,  MSG manufacturing of some countries has been oversupplying and inventory has been increasing dramatically which results in promoting heavily the export to other countries, including Vietnam. This export makes domestic manufacturing find it difficult and pressuring due to dramatic increase of goods under investigation imported into Vietnam for the past time. In addition, Vietnam is the second largest export market of China and the fourth largest export market of Indonesia. Therefore, when the safeguard duty expires, goods from these both countries will be enhanced to export into Vietnam market which threatens causing considerable damage to domestic manufacturing. Besides, MSG product from China and Indonesia also have been imposed anti dumping measures by USA, European Union. China exporters likely seek alternative markets, including Vietnam.

On March 18^th, 2020, Minister of Industry and Trade promulgated Decision No. 881/QD-BCT on applying temporary anti-dumping duty on some MSG products originating from China and Indonesia. Accordingly, MSG products originating from China and Indonesia shall be imposed absolutely in the range from 2,889,245 VND/ton to 6,385,289 VND/ton. Application duration of temporary anti dumping measure shall be 120 (one hundred and twenty) days from the effective date of temporary anti dumping duty (unless extended). Above Decision on temporary anti dumping shall take effect since March 25^th, 2020.

ANT Lawyers in a 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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