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.
Our international trade and competition
lawyers at ANT Lawyers will always follow the development from
authorities to provide update to our clients.
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