Update Developments of Request for Investigation of Anti-dumping PFY Originating From China, India, Indonesia and Malaysia

On Nov 07^th, 2019, Trade Remedies Authority of Vietnam (Investigating Body) received Dossier of request from companies representing the domestic industry (Requesting Party). The Dossier requests for investigation of the application of anti-dumping measures on long-fiberproducts made from polyester (PFY) originating from China, India, Indonesia andMalaysia from companies representing the domestic industry (Requesting Party).

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On Nov 22^th, 2019, Investigating Body issued official dispatch No. 1056/PVTM-P1 requiring 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.

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 laws 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 Body 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 Body suggests that the domestic enterprises producing/trading in the same goods mentioned above provide 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).

To have more time to review the case file and relevant information, on March 05^th, 2020, Ministry of Industry and Trade has issued Decision no. 752/QD-BCT on extension of 30-day time limit for making a decision to investigate the case. Accordingly, the last time limit for issuing decision relating to this case is extended to April 06th, 2020.

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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Withdrawal of request for investigating of anti-dumping on welding material products originating from China, Thailand and Malaysia

Welding material is one of the most important industrial auxiliary sector, which is indispensable to fields such as: shipbuilding, cars and motorbikes production, other electronic industries. In the first 7 months 2019, Ministry of Industry and Trade carried out examination dossiers of 3 cases, one of them is dossier requesting to investigate to apply anti-dumping measure on welding material.

On Jun 28^th, 2019, Trade Remedies Authority of Vietnam (Investigating Body) received the Dossier requesting for investigating to apply anti-dumping measure on welding material products originating from People’sRepublic of China, Kingdom of Thailand and Malaysia. This dossier is applied by companies representing the domestic industry (Requesting Party

Requesting Party includes 01 company: Kim Tin Group Joint Stock Company. Kim Tin Group Joint Stock Company is a large enterprise in manufacturing and trading of welding materials: welding rods, welding wire, welding flux, color metal, steel nails, ligature, machines, devices, board of MDF, mineral exploitation and logistics service in Vietnam.

On Oct 28^th, 2019, Requesting Party fully submitted additional information at request.

On Nov 07^th, 2019, Investigating Body confirmed that Dossier was complete, valid according to regulations of law on trade remedies.

On Jan 25^th, 2020, Trade Remedies Authority received official dispatch of Requesting Party on withdrawing dossier requesting for investigating to apply anti-dumping measure on welding material products.

Due to Requesting Party’ s request for withdrawing dossier, Trade Remedies Authority informed that no investigation to apply anti-dumping measure on welding material products originating from People’s Republic of China, Kingdom of Thailand and Malaysia is initiated.

Our international trade and tax lawyers, and antitrust lawyers at ANT Lawyers, a law firm in Vietnam have always followed the development of situation and update the clients on relevant matters.

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Anti-dumping of Goods Imported to Vietnam

Recently, the Ministry of Industry and Trade of Vietnam has carried out investigations to apply anti-dumping measures against some commodities imported into Vietnam.

The law of Vietnam also has a number of law documents governing this matter in detail. Specifically, ordinance No. 20/2004/PL-UBTVQH11 issued on April 29^th, 2004 of the Standing Committee of the National Assembly and the Decree No. 90/2005/ND-CP issued on July 11^th, 2005 governs the anti-dumping matters and the regulations on the implementation of several articles of the ordinance on anti-dumping of goods imported to Vietnam.

In terms of content, ordinance 20/2004 regulating the anti-dumping measures; procedures, contents of investigation for application and the application of such measures against dumped goods imported into Vietnam. Decree 90/2005 regulating the implementation of some articles of the Ordinance 20/2004 on the anti-dumping investigation agency, the Council that handling anti-dumping cases; procedures, contents of investigation and the application of anti-dumping measures to goods imported into Vietnam.

On December 24th, 2015, Ministry of Industry and Trade of Vietnam has received written request from 4 Vietnam companies about applying anti-dumping measures to galvanized steel products imported into Vietnam from People’s Republic of China (including Hong Kong) and South Korea.

The requesting parties (4 Vietnam companies) believe that quantity and prices of the product under investigation and other factors have created negative impact their goods consumption, leaded to negative effects on production activities; for example, domestic goods’ market share has decreased, loss ratio has increased, price of domestic products has fell and inventory has risen… Moreover, increasing import products brings about damage to domestic industry. Hence, an investigation has been implemented by the investigation agency, which is the Vietnam Competition Authority (VCA), under the Ministry of Industry and Trade. The VCA will publicly hold a consultation with related parties before finishing the investigation stage. The Vietnam Ministry of Industry and Trade will apply anti-dumping tax which comes into effect retroactively in order to prevent the considerable increase of dumping goods in Vietnam that have caused damages to the domestic industry.

ANT Lawyers is a law firm in Vietnam having lawyers with specialization in international trade, and dispute especially WTO laws and anti-dumping laws to handle the anti-dumping matters on behalf of manufacturers and traders to achieve the best result.

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