US Anti-Dumping and Countervailing Duty Petitions of Tire Products From Vietnam

On May 13, 2020, The United States Department of Commerce (“DOC”) has received an investigation request for anti-dumping and countervailing measures against passenger and light truck tires (“PVLT tires”) originating from Korea, Taiwan-China, Thailand and Vietnam. The madatory respondents being US importers have also consulted with anti-dumping and countervailing duty lawyers in Vietnam and US to prepare for the investigation cooperation.

In this case, the plaintiff alleges that the tires under investigation were dumped and subsidized into the United States market, causing significant damage to the domestic manufacturing industry. In 2015, the same petitioner succeeded in securing anti-dumping and countervailing duties on PVLT tires from China.

The scope of these investigations is passenger vehicle and light truck tires. Passenger vehicle and light truck tires are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. Tires covered by these orders may be tube-type, tubeless, radial, or nonradial, and they may be intended for sale to original equipment manufacturers or the replacement market. The products covered by the investigations are currently classified under the following Harmonized Tariff Schedule of the United States (“HTSUS”) subheadings: 4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10.  The scope could also include tires entering under HTSUS subheadings 4011.90.10.10, 4011.90.10.50, 4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.80, 8708.70.60.30, 8708.70.60.45, and 8708.70.60.60.

Petitioner alleges the following dumping margins: 45.95% to 195.20% for South Korea, 21% to 102% for Taiwan, 106.4% to 217.5% for Thailand, and 14.73% to 33.06% for Vietnam. The petitions also detail numerous government subsidies benefitting Vietnamese tire producers, including loans, tax breaks, and grants. PVLT tire imports from these four countries shot up nearly 20% from 2017 to 2019, reaching 85.3 million tires, valued at 4.4 billion dollars, last year.

According to data from the United States International Trade Commission (“USITC”), the export value of Vietnam’s investigated products to the United States market reached 12.1 million dollars in 2019, accounting for about 6.7% of total United States imports of this product.

In Vietnam, the product under investigation is a product that has been warned by the Ministry of Industry and Trade of risks of foreign investigation by applying trade remedies measures from July 2019 with a high level of warning. Therefore, in the past time, the Ministry of Industry and Trade has actively coordinated and worked with associations and exporters to the United States to actively capture information and respond in case of initiating an investigation. Under United States regulations, the DOC will consider initiating an investigation of the case within 20 days of receiving it. In the event that the DOC decides to initiate an investigation, the Ministry of Industry and Trade of Vietnam will closely coordinate with export associations and enterprises in investigating the case and have timely support and treatment measures to protect the legitimate rights and interests of Vietnamese enterprises.

Vietnam international trade lawyers in competition, and anti-dumping practice will need to be involved with the process including data collection and possibly initial drafting of questionnaire responses in cooperation with US anti-dumping and countervailing duty lawyers to defend the case.

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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. 

Anti-dumping Law Firm in Vietnam

The case has been initiated based on request by representative of domestic manufacturing industry on August 19th, 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 04th, 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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What Are Responsibilities of the Seller for Inadequate Delivery of Goods?

Delivering and receiving goods are basic obligations of the parties when performing the Contract for purchase and sale of goods. Specifically, in accordance with the law, when buying and selling goods, the seller must deliver goods and relevant documents, as agreed in contracts on quantity, quality, packing and preservation modes and other contractual terms.

 

In cases where there is no specific agreement, the seller is obliged to deliver goods and relevant documents according to the provisions of the Law on Commerce. At the same time, the Buyer is obliged to receive the goods as agreed and perform reasonable actions to help the seller deliver the goods.

If the Seller fails to deliver insufficient goods, they must deliver the goods in accordance with the contract. In case the Seller fails to deliver the goods as agreed, the Buyer has the right to purchase the goods from another person for replacement according to the goods specified in the contract and the Seller must pay the difference and relevant expenses, if any; reserves the right to repair the defect of the goods by itself and the Seller shall pay actual and reasonable expenses for the rectification.

The Buyer has the right to request to apply for penalty if agreed in the contract. The penalty for a breach of a contractual obligation or the aggregate fine level for more than one breach shall be agreed upon in the contract by the parties but must not exceed 8% of the value of the breached contractual obligation portion.

In the contract, where a contract-breaching party delays making payment for goods or payment of service charges and other reasonable fees, the aggrieved party may claim an interest on such delayed payment at the average interest rate applicable to overdue debts in the market at the time of payment for the delayed period, unless otherwise agreed or provided for by law.

Thus, when the Seller fails to comply with the commitments as in the contract, the Buyer has the right to initiate a lawsuit requesting a court to force the Seller to return the received amount of goods equivalent for the goods not yet delivered, interest due to late payment, contract fines, compensation for damage as required. In case the parties do not agree to penalty for violation, the Buyer only has the right to claim damages. In case the parties agree to fine for violation, the Buyer has the right to apply both the sanction of the violation and the forced compensation for damage, unless otherwise provided by law.

For the determination of civil liability when violating the sale and purchase contract, according to law, each juridical person must bear civil liability for the civil rights and obligations established and performed in the name of the juridical person by its representative. Each juridical person must bear civil liability by recourse to its property; shall not bear civil liability for its members with respect to civil obligations established and performed by such members not in the name of the juridical person, unless otherwise prescribed by law. A member of a juridical person shall not bear civil liability of the juridical person for the civil obligations established and performed by such juridical person, unless otherwise prescribed by law. Therefore, if the Seller breaches the contract, the legal entity being the Seller is responsible to pay the Buyer and the legal person is not responsible for that legal entity.

It is important to engage lawyers at an early stage of the dispute for consultation on effective dispute resolution. It is also advised, when entering into the Contract for purchase and sale of goods, the Seller needs to understand the basic legal provisions on its rights and obligations. The Buyer also needs to know clearly about the obligations of the Seller in order to be able to prevent the risk that arises when one of the parties breaches a fundamental contractual obligation.

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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Anti-dumping measures under Vietnam laws

Vietnam joined the WTO, signed various types of trade agreements, and step by step eliminated tariff and non-tariff barriers, and accelerated the process of integration and development of Vietnam. The Foreign Trade Administration Act of 2017, which regulates trade remedies, has also terminated the effect of the Ordinance on Anti-dumping of Imported Goods in 2004.

 

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According to the Law on Foreign Trade Management, Decree 10/2018 / ND-CP, anti-dumping measures against goods imported into Vietnam is a measure applied in cases where the goods are identified dumping when imported into Vietnam causes substantial injury or threatens to cause material injury to a domestic industry or prevents the formation of a domestic manufacturing industry. A commodity is determined to be dumping when it is compared to the following conditions: the selling price in Vietnam is lower than the normal price. The usual price determination is regulated by the Law on Foreign Trade Management in three ways: the price of the like goods at exporter, the price of the like goods in the third country under normal commercial conditions or the price determined by the investigating agency by the method of self-calculation.

For the application of anti-dumping measures, the “sale price” factor is not sufficient, but must fully satisfy the conditions prescribed by law. Accordingly, the dumping measure is applied when the dumping margin is over 2%; the domestic industry suffered material injury or threatened to cause material injury; there is a fruitful relationship between the importation of goods selling prices and the domestic production. With the margin of dumping below 2%, anti-dumping measures are not applicable.

The application of anti-dumping measures is considered as a way of healthy competition of enterprises. Domestic enterprises may request the competent agencies to apply this measure when they find that they fully satisfy the conditions on quantity and volume of goods related to their selling prices and the proportion of goods that they sell on the market devaluation (at least 25%). On the basis of the conclusions of the investigation, the anti-dumping tax shall be applied for not more than 5 years or the measures for elimination of dumping at the request of the domestic enterprises if they are approved by Vietnam Competition Authority, the investigation bodies.

An anti-dumping duty shall apply retroactively prior to the decision of the Minister of Industry and Trade. Anti-dumping duty shall be retroactively applied to imported goods for a period of 90 days before the imposition of provisional anti-dumping duty if the imported goods are found to be dumped.

Therefore, anti-dumping measures are a way to protect the domestic industry and at the same time create a healthy competition between foreign enterprises and Vietnamese enterprises. At the same time, respect for international commitments, trade agreements that Vietnam signed when joining the WTO.

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. 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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Regulation On Imposing Anti-Dumping Duty under Vietnam Laws

Imposition of anti-dumping measure includes imposition of provisional anti-dumping duty and official anti-dumping duty. According to Law on export and import duties 2016, anti-dumping duty means an additional import duty imposed upon dumped imports in Vietnam that cause or threaten to cause considerable damage to domestic manufacturing or prevent the formation of domestic manufacturing.

 

Anti-dumping Law firm in Vietnam 

The imposition of provisional anti-dumping duty is decided by the Minister of Industry and Trade according to the preliminary determination provided by the investigating authority. The rate of provisional anti-dumping duty shall not exceed the dumping margin defined in the preliminary determination. The maximum duration of imposition of provisional anti-dumping duty is 120 days from the days on which the decision on imposition of anti-dumping duty comes into force. In case of the request of an exporter of like products exported to Vietnam, the Minister of Industry and Trade may give an extension of provisional anti-dumping duty up to 60 days. The provisional anti-dumping duty shall be imposed after 60 days since the issuance of the decision on investigation of the Minister of Industry and Trade. The amount of anti-dumping duty paid under decision on imposition provisional anti-dumping duty issued by the Minister of Industry and Trade that is in excess of the payable amount after the official decision of Minister of Industry and Trade shall be refunded to the taxpayer.

The imposition official anti-dumping duty is decided by the Minister of Industry and Trade according to the final determination provided by the investigating authority. The rate of anti-dumping duty shall not exceed the dumping margin defined in the final determination. The maximum duration of anti-dumping duty is five years from the day on which the decision on imposition of anti-dumping duty comes into force, unless it is extended as prescribed in the law.

Two conditions for applying anti-dumping duties are the imports being dumped in Vietnam and the dumping margin must be determined and the dumping causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing. Rules for applying anti-dumping duties include: (1) Anti-dumping duty may only be applied to a reasonable extent to prevent or minimize damage to domestic manufacturing; (2) The anti-dumping duties shall be applied after an investigation is carried out and conform to the investigation conclusion as prescribed by law; (3) Anti-dumping duty shall be imposed upon dumped imports in Vietnam; (4) The application of anti-dumping duties must not cause damage to domestic socio-economic interest.

We are a law firm in Vietnam with international standard, local expertise and strong international network. We focus on customers’ needs and provide clients with a high quality legal advice and services. 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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TRAV Receiving Review Application of Products of Chinese and Korean origins (case No. AD04)

TRAV Receiving Review Application of Anti-Dumping Measures for flat-rolledalloy/non-alloy steel products, varnish painted or scanned or coated with plastics or other covers from China and Korea (AD04).

On August 20^th, 2020, Trade Remedies Authority of Vietnam (TRAV) – Ministry of Industry and Trade notified on receiving the dossier for reviewing flat-rolled alloy/non-alloy steel products, varnish painted or scanned or coated with plastics or other covers from China and Korea imported into Vietnam.

Specifically, on November 24^th 2019, Minister of Industry and Trade issued the Decision 3198/QĐ-BCT on imposing the official decision to some of the flat-rolled alloy/non-alloy steel products, varnish painted or scanned or coated with plastics or other covers from China and Korea.

According to Article 82.1.a Law on foreign management 2017: “After 1 year from the day on which the decision on imposition of anti-dumping measures is issued, the 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.”

Regarding the right to submit request dossiers regulated in Article 58.1 Decree 10/2018/NĐ-CP: “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 and countervailing measures or the latest decision on the results of the review of anti-dumping measures, countervailing measures, the concerned parties as prescribed in Article 59 hereof may submit the dossiers for review, except for cases where the submission deadline is less than 09 months before the time limit for the Minister of Industry and Trade to decide whether to carry out the final review of anti-dumping or countervailing measures”.

Accordingly, the scope of review request of the interested parties regulated in Article 74  includes but not limited to the following contents:

-The product scope subject to anti-dumping measures;

-The anti-dumping margin imposing to some specific foreign enterprises;

-The damage of domestic industry.

After finishing the reviewing period, based on the investigating result, TRAV will propose Minister of Industry and Trade one of the following options:

-Continue to impose the anti-dumping measure in accordance with the current law; and/or

-Adjust the anti-dumping measure in accordance with the reviewing result; or

-Bring the anti-dumping measure to an end.

The performing of the procedures related to the reviewing period will not affect to the effective anti-dumping measures imposed currently.

The reviewing dossiers must be filed sufficiently and timely to TRAV before 5 p.m on October 24^th 2020 (Hanoi time)

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Vietnam Authority Received Request to Investigate Anti-Dumping Case of H-shaped Steel Product from Malaysia

On April 29^th, 2020, Trade Remedies Authority of Vietnam (TRAV) acknowledged the Dossier on request of investigation to impose the anti-dumping measures to H-shaped steel product originated from Malaysia from the companies representing the domestic industry (Requester).

On July 10^th, 2020, TRAV had confirmed the sufficiency of the dossiers according the the laws on trade remedies.

Within 45 days from the date of receiving sufficient and lawful dossier, TRAV will assess dossier to submit Minister of Ministry of Industry and Trade for consideration whether to process the investigation.

The assessment’s contents includes:

-Identify the legal representative status of the domestic industry of organizations and individuals who submit dossier in accordance with the Law on Foreign Trade Management;

-Define evidence on the dumping of imported goods that cause or threaten to cause significant losses to a domestic manufacturing industry or substantially prevent the formation of a domestic manufacturing industry.

In order to serve the assessment process, as well as to ensure the legitimate rights and interests of the enterprise, TRAV recommends that the domestic enterprises manufacturing / trading in the same goods mentioned above provide the following information:

-Enterprise’s information;

-Manufacturing production of H-shaped steel product;

-Enterprise’s opinion on the case (to agree, oppose, have no opinion);

-Any document/evidence which company considers to be related to the case

The due date to provide the above information is before 5p.m August 3^rd, 2020.

Competition, anti-dumping, and countervailing duty lawyers 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 Authority Received Request to Investigate Anti-Dumping Case of High Fructose Corn Sweetener Products (HFCS) from China and Korea

On May 21^st, 2020, Trade Remedies Authority of Vietnam (TRAV) acknowledged the Dossier on request of investigation to impose the anti-dumpingmeasures to some High Fructose Corn Sweetener products (HFCS) originated from People’s Republic of China and Republic of Korea from the companies representing the domestic industry (Requester). If there is anti-dumping actions, the anti-dumping investigation will be initiated and related parties would cooperate with TRAV to provide data as required.

On the basis of assessing the Dossier, on June 2^nd, 2020, TRAV had confirmed the sufficiency of the dossiers according the the laws on trade remedy.

Within 45 days from the date of receiving sufficient and lawful dossier, TRAV will assess dossier to submit Minister of Ministry of Industry and Trade for consideration whether to process the investigation.

The assessment’s contents includes:

-Identify the legal representative status of the domestic industry of organizations and individuals who submit dossier in accordance with the Law on Foreign Trade Management;

-Define evidence on the dumping of imported goods that cause or threaten to cause significant losses to a domestic manufacturing industry or substantially prevent the formation of a domestic manufacturing industry.

In order to serve the assessment process, as well as to ensure the legitimate rights and interests of the enterprise, TRAV recommends that the domestic enterprises manufacturing/trading in the same goods mentioned above provide the following information.

-Enterprise’s information;

-Manufacturing production of HFCS and/or refined sugar;

-Enterprise’s opinion on the case (to agree, oppose, have no opinion);

-Any document/evidence which company considers to be related to the case

The due date to provide the above information is before 5p.m June 19^th, 2020.

Competition, anti-dumping, and countervailing duty lawyers of International trade and tax  in Vietnam 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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US Anti-Dumping and Countervailing Duty Petitions of Tire Products From Vietnam

On May 13, 2020, The United States Department of Commerce (“DOC”) has received an investigation request for anti-dumping and countervailing measures against passenger and light truck tires (“PVLT tires”) originating from Korea, Taiwan-China, Thailand and Vietnam. The madatory respondents being US importers have also consulted with anti-dumping and countervailing duty lawyers in Vietnam and US to prepare for the investigation cooperation.

In this case, the plaintiff alleges that the tires under investigation were dumped and subsidized into the United States market, causing significant damage to the domestic manufacturing industry. In 2015, the same petitioner succeeded in securing anti-dumping and countervailing duties on PVLT tires from China.

The scope of these investigations is passenger vehicle and light truck tires. Passenger vehicle and light truck tires are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. Tires covered by these orders may be tube-type, tubeless, radial, or nonradial, and they may be intended for sale to original equipment manufacturers or the replacement market. The products covered by the investigations are currently classified under the following Harmonized Tariff Schedule of the United States (“HTSUS”) subheadings: 4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10.  The scope could also include tires entering under HTSUS subheadings 4011.90.10.10, 4011.90.10.50, 4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.80, 8708.70.60.30, 8708.70.60.45, and 8708.70.60.60.

Petitioner alleges the following dumping margins: 45.95% to 195.20% for South Korea, 21% to 102% for Taiwan, 106.4% to 217.5% for Thailand, and 14.73% to 33.06% for Vietnam. The petitions also detail numerous government subsidies benefitting Vietnamese tire producers, including loans, tax breaks, and grants. PVLT tire imports from these four countries shot up nearly 20% from 2017 to 2019, reaching 85.3 million tires, valued at 4.4 billion dollars, last year.

According to data from the United States International Trade Commission (“USITC”), the export value of Vietnam’s investigated products to the United States market reached 12.1 million dollars in 2019, accounting for about 6.7% of total United States imports of this product.

In Vietnam, the product under investigation is a product that has been warned by the Ministry of Industry and Trade of risks of foreign investigation by applying trade remedies measures from July 2019 with a high level of warning. Therefore, in the past time, the Ministry of Industry and Trade has actively coordinated and worked with associations and exporters to the United States to actively capture information and respond in case of initiating an investigation. Under United States regulations, the DOC will consider initiating an investigation of the case within 20 days of receiving it. In the event that the DOC decides to initiate an investigation, the Ministry of Industry and Trade of Vietnam will closely coordinate with export associations and enterprises in investigating the case and have timely support and treatment measures to protect the legitimate rights and interests of Vietnamese enterprises.

Vietnaminternational trade lawyers in competition, and anti-dumping practice will need to be involved with the process including data collection and possibly initial drafting of questionnaire responses in cooperation with US anti-dumping and countervailing duty lawyers to defend the case.

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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.

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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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Anti-dumping Case AD06 Relating to Fiberboard of Wood Products Ended

Requesting Party of Anti-dumping case AD06 comprises of 04 companies representing the domestic industry: (i) VRG Kien Giang MDF Joint Stock Company; (ii) VRG Dongwha MDF Joint Stock Company; (iii) MDF VRG – Quang Tri Wood Joint Stock Company and (iv) Kim Tin MDF Joint Stock Company. Requesting Party accused fiberboard of wood imported from Thailand and Malaysia of having been dumped into Vietnam market with dumping margins from 18,59% to 50,6% and this dumping is the main cause of significant injury to manufacturing of industrial wooden planks of Products under investigation: some fiberboard of wood or other ligneous materials, Vietnam.

whether or not assembled with glue or other organic adhesives, uncoated and unwrought, with the HS codes 4411.12.00, 4411.13.00, 4411.14.00, 4411.92.00, 4411.93.00, 4411.94.00 originated from Thailand and Malaysia.

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The investigating period: (1) The investigating period to determine dumping activities: from Jan 01^st, 2018 to Dec 31^st, 2018; (2) The investigating period to determine the damages of the domestic industry: from Jan 01^st, 2015 to Dec 31^st, 2018.

On Oct 23^th, 2018,  Trade Remedies Authority of Vietnam (TRAV) received Dossier of request for investigation, application of anti-dumping measures.

TRAV has issued official dispatch No. 963/PVTM-P1 dated Nov 6^th, 2018 and official dispatch No. 48/PVTM-P1 dated Jan 16^th, 2019, requiring the Requesting Party to supplement the dossier.

On Jan 27^th, 2019, Requesting Party fully supplemented the required information.

On Feb 01^st, 2019, Investigating authority issued official dispatch No. 105/PVTM-P1 confirming that Dossier is valid, complete and send letter to Royal Thai Embassy and Embassy of Malaysia in Vietnam, informing about the receipt of complete and valid dossier.

On Mar 18^th, 2019, the Ministry of Industry and Trade issued Decision No. 623/QD-BCT on the extension of the decision of investigation for another 30 days.

On Apr 18^th, 2019, the Ministry of Industry and Trade issued Decision No. 940/QĐ-BCT on investigation of the application of anti-dumping measures on fiberboard of wood products or other ligneous materials, whether or not assembled with glue or other organic adhesives, uncoated and unwrought, originated from Thailand and Malaysia (case number AD06).

On May 02^nd, 2019, Investigation Questionnaire is issued for domestic importers, producers and foreign exporters, producers in AD06 case. The time limit to answer Investigation Questionnaire is 17h00, Jun 10^th, 2019 (Hanoi time).

To ensure relevant enterprises’ rights and interests, the Investigation authority asks that all of relevant domestic importers, producers should participate to fully cooperate throughout the investigation of the case. The contents’ Investigation Questionnaire shall be basis for the Investigation Body to consider the conclusion.

On Jan 14^th, 2020, Minister of Industry and Trade signed the decision of termination the investigation and no application anti-dumping measures on some fiberboard of wood products (fiberboard of wood MDF) imported from Thailand and Malaysia.

Over 7 months of investigation according to regulations of World Trade Organization, Law on foreign trade management 2017 and other relevant regulations, Ministry of Industry and Trade has examined and carefully evaluated the losses of domestic industry, level of dumping of producers from Thailand and Malaysia, as well as considered and calculated the impact on the industry and consumers of fiberboard of wood products. The results of investigation show that the domestic industry has not been significantly damaged or threatened to be significantly damaged because of imported goods from Thailand and Malaysia.

Therefore, according to regulations of Vietnam law relating to trade remedies and Anti-Dumping Agreement of World Trade Organization, Ministry of Industry and Trade decided not to apply anti-dumping measures on fiberboard of wood products imported from Thailand and Malaysia. Ministry of Industry and Trade will coordinate with the relevant authorities to watch closely the import situation, sign of dumping of foreign producers/exporters as well as operation, production and trading reality of domestic fiberboard of wood industry to recommend the necessary measures according to regulations.

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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Regulation On Imposing Anti-Dumping Duty under Vietnam Laws

Imposition of anti-dumping measure includes imposition of provisional anti-dumping duty and official anti-dumping duty. According to Law on export and import duties 2016, anti-dumping duty means an additional import duty imposed upon dumped imports in Vietnam that cause or threaten to cause considerable damage to domestic manufacturing or prevent the formation of domestic manufacturing.

Anti-dumping Law firm in Vietnam 

The imposition of provisional anti-dumping duty is decided by the Minister of Industry and Trade according to the preliminary determination provided by the investigating authority. The rate of provisional anti-dumping duty shall not exceed the dumping margin defined in the preliminary determination. The maximum duration of imposition of provisional anti-dumping duty is 120 days from the days on which the decision on imposition of anti-dumping duty comes into force. In case of the request of an exporter of like products exported to Vietnam, the Minister of Industry and Trade may give an extension of provisional anti-dumping duty up to 60 days. The provisional anti-dumping duty shall be imposed after 60 days since the issuance of the decision on investigation of the Minister of Industry and Trade. The amount of anti-dumping duty paid under decision on imposition provisional anti-dumping duty issued by the Minister of Industry and Trade that is in excess of the payable amount after the official decision of Minister of Industry and Trade shall be refunded to the taxpayer.

The imposition official anti-dumping duty is decided by the Minister of Industry and Trade according to the final determination provided by the investigating authority. The rate of anti-dumping duty shall not exceed the dumping margin defined in the final determination. The maximum duration of anti-dumping duty is five years from the day on which the decision on imposition of anti-dumping duty comes into force, unless it is extended as prescribed in the law.

Two conditions for applying anti-dumping duties are the imports being dumped in Vietnam and the dumping margin must be determined and the dumping causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing. Rules for applying anti-dumping duties include: (1) Anti-dumping duty may only be applied to a reasonable extent to prevent or minimize damage to domestic manufacturing; (2) The anti-dumping duties shall be applied after an investigation is carried out and conform to the investigation conclusion as prescribed by law; (3) Anti-dumping duty shall be imposed upon dumped imports in Vietnam; (4) The application of anti-dumping duties must not cause damage to domestic socio-economic interest.

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