From March 2016, MSG product imported into Vietnam has been imposed trade remedies according to petition of Vedan Vietnam Enterprise Corp.,Ltd. Safeguard duty adding to import tax rate is imposed on additional levels converted into 4.33 million dong/ton from the first year and descending only 3,2 million dong/ton by 2020. From March 25th, 2020, imported MSG tax shall return 0 dong if plaintiff no longer extends the safeguard measure.
On August 19th, 2019,
Trade Remedies Authority of Vietnam (TRAV), Ministry of Industry and Trade
received request dossier for applying the anti-dumping measures (AD) on MSG
product with HS code 2922.42.20 (“Goods under investigation”) originating from
People's Republic of China (“China”) and Republic of Indonesia (“Indonesia”).
Plaintiff accused MSG imported from above two countries of having been dumping
into Vietnam market, causing considerable damage to domestic MSG manufacturing.
On September 4th, 2019,
TRAV issued official dispatch no. 760/PVTM-P1 on requiring the Requesting Party
to supplement the dossier.
On September 23rd,
2019, Requesting Party fully supplemented the required information.
On October 8th, 2019,
Investigating Body confirmed that Dossier is valid, complete according to regulations
of law on trade remedies.
On October 31st, 2019,
Ministry of Industry and Trade promulgated Decision 3267/QD-BCT on conducting
an investigation to apply anti dumping measure on some MSG products with HS
code 2922.42.20 originating from China and Indonesia.
On November 15th, 2019,
TRAV issued investigation questionnaire for domestic producers and importers to
collect information and data for the case.
Investigation results
showed that although safeguard measures was imposed absolutely at VND 3,201,039/ton,
the quantity of imported goods after the applying the safeguard duty shows
signs of dumping in large quantities, from 2.88 million dong/ton to more than
6.3 million dong/ton on goods imported from China and Indonesia, corresponding
to the highest dumping margin being over 28%. Such level of dumping illustrates
that imported goods is continuing to threaten causing considerable damage to
domestic MSG manufacturing. Since 2016,
MSG manufacturing of some countries has been oversupplying and inventory
has been increasing dramatically which results in promoting heavily the export
to other countries, including Vietnam. This export makes domestic manufacturing
find it difficult and pressuring due to dramatic increase of goods under
investigation imported into Vietnam for the past time. In addition, Vietnam is
the second largest export market of China and the fourth largest export market
of Indonesia. Therefore, when the safeguard duty expires, goods from these both
countries will be enhanced to export into Vietnam market which threatens
causing considerable damage to domestic manufacturing. Besides, MSG product
from China and Indonesia also have been imposed anti dumping measures by USA,
European Union. China exporters likely seek alternative markets, including
Vietnam.
On March 18th, 2020,
Minister of Industry and Trade promulgated Decision No. 881/QD-BCT on applying
temporary anti-dumping duty on some MSG products originating from China and
Indonesia. Accordingly, MSG products originating from China and Indonesia shall
be imposed absolutely in the range from 2,889,245 VND/ton to 6,385,289 VND/ton.
Application duration of temporary anti
dumping measure shall be 120 (one hundred and twenty) days from the
effective date of temporary anti dumping duty (unless extended). Above Decision
on temporary anti dumping shall take effect since March 25th, 2020.
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