Anti-dumping measures under Vietnam laws are an essential trade defense tool to protect domestic industries from the adverse impacts of dumping practices. These measures help maintain fair competition and stability in the domestic market. The following article presents the conditions and procedures for applying antidumping measures under Vietnam laws.
1. Definition of Anti-dumping measures?
Anti-dumping measures are actions applied when goods are determined to be dumped upon importation into Vietnam.
In other words, when goods imported into Vietnam are identified as being dumped and:
- Causes significant harm to domestic production.
- Threatens to reduce the growth potential of domestic production.
- Hinders the establishment of domestic production.
Anti-dumping measures will be implemented.
(According to Article 77 of the Law on Foreign Trade Management 2017)
2. What are antidumping measures in Vietnam?
When an enterprise exports goods to Vietnam and engages in dumping practices, Vietnam may apply anti-dumping measures as follows:
a. Imposition of Anti-dumping duties
The imposition of anti-dumping duties involves applying additional import taxes. This measure is enforced when imported goods are found to be dumped in Vietnam. Two types of duties are applied: provisional anti-dumping duties and definitive anti-dumping duties.
- Provisional anti-dumping Duties are imposed by the Minister of Industry and Trade based on the preliminary conclusions of the investigating authority. The rate of provisional anti-dumping duty cannot exceed the margin of dumping determined in the preliminary conclusion.
(According to Clause 1, Article 81 of the Law on Foreign Trade Management 2017)
- Definitive anti-dumping duties are imposed when a commitment to eliminate dumping practices from the producer or exporter cannot be obtained. The Minister of Industry and Trade will decide whether to impose definitive anti-dumping duties, which cannot exceed the dumping margin established in the final conclusion.
(According to Clause 1, Article 81 of the Law on Foreign Trade Management 2017)
- Duration of anti-dumping duties:
- For a specific period as regulated,
- Until it is determined that the imported goods no longer cause injury to domestic production.
(According to Article 81 of the Law on Foreign Trade Management 2017)
b. Commitments to eliminate dumping practices
A commitment to eliminate dumping practices is an agreement made by an organization or individual producing or exporting goods under investigation for dumping in Vietnam. Under this commitment, the company agrees to make the necessary price adjustments or reduce export volumes.
The investigating authority may accept, reject, or suggest modifications to the commitment after consulting with the domestic industry.
(According to Clause 2, Article 81 of the Law on Foreign Trade Management 2017)
3. Conditions and process for the application of antidumping measures in Vietnam.
a. Conditions for applying antidumping measures in Vietnam
The conditions for imposing anti-dumping duties are as follows:
- Evidence of dumping exists.
- Material injury has occurred to the domestic industry producing similar products.
- A causal link between the dumping and the injury is established.
b. Step-by-step procedures for requesting the imposition of antidumping measures in Vietnam
The process for implementing anti-dumping measures consists of the following four steps:
- Step 1: Imposing provisional anti-dumping duties.
The Ministry of Industry and Trade determines the provisional duty rate based on the preliminary findings and applies it for up to 120 days, with a possible extension of 60 days.
- Step 2: Applying commitment measures.
Before the investigation concludes, the producer or exporter may commit to adjust prices or limit exports. The investigating authority reviews and may accept or adjust this commitment.
- Step 3: Imposing definitive anti-dumping duties.
If no commitment is reached, the Ministry of Industry and Trade makes a final determination based on the final findings. Definitive anti-dumping duties can be applied for a maximum of 5 years, with possible extensions.
- Step 4: Applying retrospective anti-dumping duties.
If the final conclusion reveals significant injury to the domestic industry, retrospective anti-dumping duties can be applied for up to 90 days prior to the imposition of provisional duties, if the imported goods were dumped in sudden, harmful volumes that caused irreparable damage.
(According to Article 81 of the Law on Foreign Trade Management 2017)
4. Legal base:
- Agreement No. 261/WTO/VB on Anti-Dumping – Implementation of Article VI of the General Agreement on Tariffs and Trade (GATT) 1994.
- Law on Foreign Trade Management 2017.
5. Conclusion
Anti-dumping measures play a crucial role in protecting the interests and promoting the sustainable development of domestic industries. This is a challenge that import and export enterprises, both in Vietnam and abroad, need to proactively understand and comply with to mitigate risks in business operations.
We hope that UNI’s article will assist businesses in conducting effective and sustainable import-export activities.
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