Anti-dumping and trade remedy consulting services

As the international trade market is developing vibrantly, the pressure on the domestic production and business industry is also increasing. Dumping is one of the activities that greatly affects domestic production. Therefore, the application of trade remedy measures in general and anti-dumping measures in particular is extremely necessary. In this article, Viet An Law will provide you with anti-dumping and trade remedy consulting services performed by the company.

Legal basis

• Law on Commerce 2005;
• Law on Foreign Trade Management 2017.

Trade remedy measures

What is a trade remedy?

Currently, there is no document specifically regulating the term trade remedy. Industry and Trade Magazine once explained trade remedies as follows: “Trade remedies are tools that the International Trade Organization (WTO) allows members to use to protect the domestic industry of contracting members against the increased imports causing injury to manufacturing domestic industry”.

Therefore, it can be understood that trade remedy is a measure that countries use to restrict the import of one or several types of imported goods that cause injury or threaten to cause injury to the manufacturing domestic industry.

Statutory trade remedy measures

According to the provisions of the Law on Foreign Trade Management, trade remedy measures include:

• Anti-dumping measures ;
• Countervailing measures;
• Safeguard measures.

Principles of applying trade remedies

• Applicable within the necessary, reasonable, and time-limited scope to protect, prevent, or limit injury to the domestic industry;
• Can only be applied after an investigation has been conducted and must be based on the investigation conclusions;
• Publication of decisions on investigation and application of trade remedies;
• Do not collect the tax difference if the official trade remedy tax rate is higher than the temporary trade remedy tax rate;
• Refund of the tax difference if the official trade remedy tax rate is lower than the temporary trade remedy tax rate ;
• If the Minister of Industry and Trade decides not to apply official trade remedy measures, the collected temporary trade remedy tax or the temporary trade remedy tax payment guarantees must be refunded.

Anti-dumping measures

What is anti-dumping?

Anti-dumping is a measure applied in cases where goods are determined to be dumped when imported into Vietnam, causing material injury or threatening to cause material  injury to the domestic industry or preventing the formation of a domestic manufacturing industry.

The goods are determined as dumped if their price is imported into Vietnam lower than the comparable price of similar goods sold in the exporting country or a third country under common commercial conditions or the price that is self-calculated by the investigating authority.

Anti-dumping measures

Anti-dumping measures include :

• Imposition of anti-dumping tax;
• Undertakings to implement measures for removing the dumping carried out by organizations and individuals producing and exporting products subject to the anti-dumping measures with the investigating authority of Vietnam or domestic producers in case of the approval of the investigating authority.

Conditions for application of anti-dumping measures

Anti-dumping measures are applied to goods imported into Vietnam when the following conditions are satisfied:

• Imports of Vietnam are dumped with specific dumping margins;
• There is material injury or threat of material injury to the domestic industry or material retardation of the establishment of the domestic industry;
• There is the existence of a causal link between the dumping of imports and the injury to the domestic industry.

Note:

• Do not apply anti-dumping measures to imported goods with a dumping margin not exceeding 2% of the export price of goods to Vietnam ;
• If the imported goods originate from a country whose volume or quantity does not exceed 3% of the total volume or quantity of similar goods imported into Vietnam and the total production of goods originating from countries that meet the above conditions do not exceed 7% of the total volume or quantity of similar goods imported into Vietnam, these countries will be exempt from anti-dumping measures.

Why are anti-dumping and trade remedies necessary?

Trade remedies are measures to prevent and limit goods exported to Vietnam from foreign countries and are applied by Vietnam. Trade remedies are intended to protect domestic industries from foreign competitors. Anti-dumping is one of the trade remedy measures applied nowadays.

Currently, the increasing number of imported goods from abroad has caused an impact on the domestic manufacturing industry in Vietnam. Currently, Vietnam has successfully negotiated and signed many free trade agreements. This helps tariff barriers to be gradually eliminated. Facing pressure from the import market, general trade remedies and anti-dumping are useful tools to protect domestic production.

However, currently, many small and medium-sized enterprises still do not understand the relevant regulations and do not clearly understand the importance of trade remedies in general and anti-dumping in particular. Therefore, businesses need to prepare to equip themselves with legal knowledge related to trade remedies, to promptly coordinate with investigation agencies when cases of violation arise. Businesses may need to proactively contact for advice from lawyers as well as state management agencies.

Reasons to choose anti-dumping and trade remedy consulting services of Viet An Law

As stated above, lawyers will play an important role in providing legal knowledge related to trade remedy activities for businesses. With a team of professional lawyers with many years of experience in international business law, Viet An Law will provide customers with anti-dumping and trade remedy legal consulting services. When using services at Viet An Law, clients will have the following benefits:

• Get advice from experienced lawyers and legal experts on legal regulations related to trade remedy and anti-dumping;
• Limit risks in production and business activities and import of goods;
• Save time and effort when participating in anti-dumping and trade remedy investigations;…

Anti-dumping and trade remedy consulting services of Viet An Law

• Consulting on regulations related to trade remedy and anti-dumping;
• Representing clients in anti-dumping and trade remedy investigations;
• Support verification at investigation agencies;
• Support in collecting documents and evidence related to anti-dumping and trade remedy investigations;
• Legal services according to customer requirements.

Customers have related questions about anti-dumping and trade defense, please contact Viet An Law Firm for the best support from our team of lawyers !