Anti-dumping
measures as trade remedies are imposed to protect the domestic
market against the unfair penetration and competition from foreign goods. GATT
requires member countries to reduce tariffs as well as other non-tariff trade
barriers on goods in general and to impose trade remedies in accordance with
statutory conditions and procedures in particular.
What Are the
Conditions for Initiating an Anti-dumping Case
The investigating authority must verify the
satisfied conditions under regulations of the anti-dumping law and requests the
Minister of Industry and Trade to issue a decision on the initiation of
investigations. In order to comply with GATT and ADA, an anti-dumping
investigation are initiated if (i) there is obvious evidence that import of
dumped goods causes or threatens material injury to an established industry or
materially retards the establishment of a domestic industry and (ii)
organizations or individuals representing the domestic industry submit an application
for the anti-dumping measures.
How to determine dumping
actions and its consequences?
The dumping action is one of the conditions
required as imposing anti-dumping measures. A product is to be
considered as being dumped (i.e. introduced into the commerce of another
country at less than its normal value) if the export price of the product
exported from one country to another is less than the comparable price, in the
ordinary course of trade, for the like product when destined for consumption in
the exporting country. Besides, the anti-dumping measure shall not be imposed
on a product whose dumping margin is not more than 2% of its export price.
The investigating authority must determine
whether the domestic established industry is materially injured or threatened
material injury or establishment of a domestic industry is materially retarded
or not. The investigating authority of the importing country shall be liable
for proving these factors based on specific evidences.
A causal link between the dumped imports and
the alleged injury is required. The dumping of goods imported into Vietnam
causes or threatens material injury to an established industry or materially
retards the establishment of a domestic industry. Factors other than dumping of
goods imported into Vietnam such as trade restriction policy, development of
technology, export capacity and productivity of domestic manufacturing
industry, etc., will not be considered as effect caused by the dumping of
goods.
Whom could request for
imposing anti-dumping measures?
Investigation is conducted upon request of
imposing anti-dumping measures by organizations or individuals representing the
domestic industry. Organizations or individuals are deemed as representation of
domestic industry if: The total production of like products produced by the
applicant(s) and domestic producers supporting the application is greater than
those produced by domestic producers that opposite to the application; and the
total production of like products produced by the applicant(s) and domestic
producers supporting the application accounts for at least 25% of total
production of like products produced by the domestic industry.
Upon receiving a sufficient dossier as
prescribed by the laws, the investigating authority shall conduct the dossier
appraisal within a certain time limit and recommend the Minister of Industry
and Trade to decide whether the investigation is initiated or not.
If Client needs any more information or
request for legal advice or potential dispute regarding trade remedies measures
including, anti-dumping, countervailing
duty and safeguard measures or international trade dispute
matters, our international trade attorney at Hanoi Office and Ho Chi Minh City
of ANT Lawyers could be of help.
In order to seek further advice, please
contact us at ant@antlawyers.vn or call + 84 912 817 823. ANT
Lawyers, your law firm in Vietnam.
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