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 competition, anti-dumping, and countervailing duty lawyers in Vietnam 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.
Source ANTLawyers: https://antlawyers.vn/library/what-are-the-conditions-for-initiating-an-anti-dumping-case.html
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