Mar 2020 Color steel sheet product importing into Vietnam Update on Cases SG05 and AD04

Relates to two cases which are application safeguard measure and applicationanti-dumping (AD) measure with respective case number of SG05 and AD04 which our anti competition lawyers at international trade practice of ANT Lawyers are following up.

Regarding application safeguard measure with case number of SG05, on May 31st, 2017, Ministry of Industry and Trade promulgated Decision 1931/QD-BCT on application safeguard measure on color steel sheet product importing into Vietnam from many different countries/ territories. 

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On Sep 11th, 2019, Ministry of Industry and Trade promulgated 03 Decision on exemption from application safeguard measure and application AD measure with total amount of 16.294,9 tons.

Pursuant to regulation of Circular 06/2018/TT-BCT, on Oct 07th, 2019, Trade Remedies Authority of Vietnam (TRAV) posted a notice to receive the dossier requesting for exemption from application safeguard measure on high-quality color steel sheet product 2020.

On Dec 30st, 2019, Ministry of Industry and Trade promulgated 18 Decision on exemption from application safeguard measure and application AD measure with total exempted amount of 82.019,7 tons for 2020.

Regarding application AD measure with case number of AD04, on Aug 02nd, 2018, Ministry of Industry and Trade received dossier requesting to investigate on imposition AD measure on some flat-rolled alloy or non-alloy steel products, painted with varnish or coated with other types originating from People's Republic of China and Republic of Korea.

On Oct 15th, 2018, Minister of Industry and Trade promulgated Decision no. 3877/ QD-BCT on investigating on imposition AD measure for some steel product mentioned above.

On Jun 18th, 2019, Ministry of Industry and Trade promulgated Decision no. 1711/QD-BCT on application provisional AD measure on some color coated steel (commonly known as color steel sheet) originating from China and Korea. Accordingly, the rate of provisional AD duty imposed on enterprises importing color coated steel of China is from 3,45% to 34,27% and of Korea is from 4,48% to 19,25% (specific rate is shown in attached Decision).

After nearly 8 months of initial investigation and complying with regulations of World Organization Trade, Law on foreign trade management and relevant regulations, Ministry of Industry and Trade has cooperated with relevant units to consider and carefully evaluate the impacts of AD activities of imported goods on operation in domestic manufacturing, dumping level of manufacturing, exporting enterprises of China and Korea as well as consider, calculate impacts on manufacturing and consumers of color coated steel product.

The results show that safeguard measures in the form of tariff quotas are being applied, but there are signs of dumping with a high margin from the quantity of imported goods within the quota, from 3,45% to 34,27% and this will continue to threaten and cause considerable damage to domestic color coated steel manufacturing.

Dumping activities mentioned above continues to cause considerable pressure on performance indicator of domestic manufacturing, shown in criteria such as: manufacturing quantity, sales volume, revenue, profit, market share, inventory which fluctuate during the investigation period, especially in the period of the last 7 months of 2018 until now, these indicators show the clear downtrend: many domestic enterprises was at a loss, many production line must stop working and large amount of labor had to quit their job.

When deciding to apply provisional AD measure, Ministry of Industry and Trade considered relevant parties and relevant state authorities’ opinions as well as based on practice of many other member states of WTO. Accordingly, goods imported within the quota of safeguard measures shall be imposed provisional AD duty. Regarding goods imported outside the quota, comparation between provisional AD duty and outside quotas safeguard duty needs to be carried out and higher duty shall be imposed. This application is to eliminate status of double imposition on importers.

Besides, special color coated steel product which domestic manufacturing has not produced yet such as PCM product, VCM used to manufacture refrigeration engineering and electronic appliances, PVDP products used for thermal power plants, and other special products.... These are exempted from application scope of provisional AD measure. Under regulation, imported material to manufacture exported goods shall not be applied AD measure.

The rate of provisional AD duty fluctuating from 3,45% to 34,27% and imposing on imported goods from China and Korea were issued in accordance with the regulations of World Organization Trade, Vietnamese laws and reflected true dumping activities of foreign manufacturer, exporter. Foreign manufacturer, exporter with correct product, quality and price being close to market rules are determined low dumping margin. Meanwhile, the low-quality floating dumping goods shall be prevented by higher provisional AD duty.

On Sep 11th, 2019, Ministry of Industry and Trade promulgated 03 Decision on exemption from application safeguard measure and application AD measure with total amount of 16.294,9 tons.

On Oct 24th, 2019, Ministry of Industry and Trade promulgated Decision no. 3198/QD-BCT on imposition of AD duty on color steel sheet originating from China and Korea.

On Nov 07th, 2019 TRAV posted a notice to receive the dossier requesting for exemption from application AD measure on high-quality color steel sheet 2020.

On Dec 30th, 2019, Ministry of Industry and Trade promulgated 18 Decision on exemption from application safeguard measure and application AD measure with total exempted amount of 82.019,7 tons for 2020.

On Mar 10th, 2020, Ministry of Industry and Trade posted a notice to receive and guide the submission of the Dossier requesting for exemption from application AD measure and safeguard measure. Enterprise shall submit the Dossier requesting for exemption at public service Portal by website  https://dichvucong.moit.gov.vn or send to Trade Remedies Authority of Vietnam before 5pm on April 15th, 2020. It should be noted that enterprises which were exempted for 2020 shall not submit the Dossier requesting for exemption in 2020 according to this notice. If the amount of exemption is going to end, above enterprises shall submit the Dossier supplementing for exemption according to Article 16.4 of Circular 37/2019/TT-BCT.

Our international trade lawyers in Vietnam at ANT Lawyers will continue to follow up with development and update client.

 

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Questionnaire on Quantity and Value to Foreign Manufacturers and Exporters

On July 14^th, 2020, the Trade Remedies Authority of Vietnam (TRAV), Ministry of Industry and Trade issued an investigation questionnaire on quantity and value to foreign producers and exporters in the AD11 case.

Accordingly, TRAV recommends that the related parties who participate in responding the questionnaire, carefully study the guidelines in the questionnaire before responding and submitting.

In order to ensure the best rights and interests, TRAV recommends that all related producers/exporters to participate in full cooperation during the investigation process. The content of the response is one of the important grounds for TRAV to consider and select sample that limits the scope of the investigation. TRAV is entitled to consult with expert or to inspect, verify the authenticity of information and documents provided by related parties or collect additional information and necessary documents to resolve trade remedies case, including foreign onsite investigations.

In the event that TRAV does not receive the timely response or the information provided is inadequate or insufficient as required, TRAV will apply the relevant law provisions regarding the non-cooperation of the related party in trade remedies cases.

The response to the questionnaire must be sent in full, including 01 confidential copy and 01 public copy (hardcopy of the response) and 01 USB containing the full soft copy of the response and attached annexes. The response is considered to be submitted on time when the TRAV receives all hard and soft copies before 5p.m on July 31^st, 2020 (Hanoi time).

AD11 refers to the the anti-dumping investigation case under Decision No. 1715/QD-BCT regarding the Investigation of imposing Anti-dumping measure to some High Fructose Corn Sweetener Products with the HS Code of 1702.60.10 and 1702.60.20 from People’s Republic of China and Republic of Korea (Case AD11). Related parties may by themselves or authorize to experienced law firm in Vietnam on international trade to work with Trade Remedies Authority of Vietnam to cooperate.

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.

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Update on Anti-dumping for Some Monosodium Glutamate (MSG) under Case AD09

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 25^th, 2020, imported MSG tax shall return 0 dong if plaintiff no longer extends the safeguard measure.

Antitrust Lawyers in Vietnam

On August 19^th, 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 4^th, 2019, TRAV issued official dispatch no. 760/PVTM-P1 on requiring the Requesting Party to supplement the dossier.

On September 23^rd, 2019, Requesting Party fully supplemented the required information.

On October 8^th, 2019, Investigating Body confirmed that Dossier is valid, complete according to regulations of law on trade remedies.

On October 31^st, 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 15^th, 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 18^th, 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 25^th, 2020.

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

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Mar 2020 Color steel sheet product importing into Vietnam Update on Cases SG05 and AD04

Relates to two cases which are application safeguard measure and applicationanti-dumping (AD) measure with respective case number of SG05 and AD04 which our anti competition lawyers at international trade practice of ANT Lawyers are following up.

Regarding application safeguard measure with case number of SG05, on May 31^st, 2017, Ministry of Industry and Trade promulgated Decision 1931/QD-BCT on application safeguard measure on color steel sheet product importing into Vietnam from many different countries/ territories.

On Sep 11^th, 2019, Ministry of Industry and Trade promulgated 03 Decision on exemption from application safeguard measure and application AD measure with total amount of 16.294,9 tons.

Pursuant to regulation of Circular 06/2018/TT-BCT, on Oct 07^th, 2019, Trade Remedies Authority of Vietnam (TRAV) posted a notice to receive the dossier requesting for exemption from application safeguard measure on high-quality color steel sheet product 2020.

On Dec 30^st, 2019, Ministry of Industry and Trade promulgated 18 Decision on exemption from application safeguard measure and application AD measure with total exempted amount of 82.019,7 tons for 2020.

Regarding application AD measure with case number of AD04, on Aug 02^nd, 2018, Ministry of Industry and Trade received dossier requesting to investigate on imposition AD measure on some flat-rolled alloy or non-alloy steel products, painted with varnish or coated with other types originating from People's Republic of China and Republic of Korea.

On Oct 15^th, 2018, Minister of Industry and Trade promulgated Decision no. 3877/ QD-BCT on investigating on imposition AD measure for some steel product mentioned above.

On Jun 18^th, 2019, Ministry of Industry and Trade promulgated Decision no. 1711/QD-BCT on application provisional AD measure on some color coated steel (commonly known as color steel sheet) originating from China and Korea. Accordingly, the rate of provisional AD duty imposed on enterprises importing color coated steel of China is from 3,45% to 34,27% and of Korea is from 4,48% to 19,25% (specific rate is shown in attached Decision).

After nearly 8 months of initial investigation and complying with regulations of World Organization Trade, Law on foreign trade management and relevant regulations, Ministry of Industry and Trade has cooperated with relevant units to consider and carefully evaluate the impacts of AD activities of imported goods on operation in domestic manufacturing, dumping level of manufacturing, exporting enterprises of China and Korea as well as consider, calculate impacts on manufacturing and consumers of color coated steel product.

The results show that safeguard measures in the form of tariff quotas are being applied, but there are signs of dumping with a high margin from the quantity of imported goods within the quota, from 3,45% to 34,27% and this will continue to threaten and cause considerable damage to domestic color coated steel manufacturing.

Dumping activities mentioned above continues to cause considerable pressure on performance indicator of domestic manufacturing, shown in criteria such as: manufacturing quantity, sales volume, revenue, profit, market share, inventory which fluctuate during the investigation period, especially in the period of the last 7 months of 2018 until now, these indicators show the clear downtrend: many domestic enterprises was at a loss, many production line must stop working and large amount of labor had to quit their job.

When deciding to apply provisional AD measure, Ministry of Industry and Trade considered relevant parties and relevant state authorities’ opinions as well as based on practice of many other member states of WTO. Accordingly, goods imported within the quota of safeguard measures shall be imposed provisional AD duty. Regarding goods imported outside the quota, comparation between provisional AD duty and outside quotas safeguard duty needs to be carried out and higher duty shall be imposed. This application is to eliminate status of double imposition on importers.

Besides, special color coated steel product which domestic manufacturing has not produced yet such as PCM product, VCM used to manufacture refrigeration engineering and electronic appliances, PVDP products used for thermal power plants, and other special products .... These are exempted from application scope of provisional AD measure. Under regulation, imported material to manufacture exported goods shall not be applied AD measure.

The rate of provisional AD duty fluctuateing from 3,45% to 34,27% and imposing on imported goods from China and Korea were issued in accordance with the regulations of World Organization Trade, Vietnamese laws and reflected true dumping activities of foreign manufacturer, exporter. Foreign manufacturer, exporter with correct product, quality and price being close to market rules are determined low dumping margin. Meanwhile, the low-quality floating dumping goods shall be prevented by higher provisional AD duty.

On Sep 11^th, 2019, Ministry of Industry and Trade promulgated 03 Decision on exemption from application safeguard measure and application AD measure with total amount of 16.294,9 tons.

On Oct 24^th, 2019, Ministry of Industry and Trade promulgated Decision no. 3198/QD-BCT on imposition of AD duty on color steel sheet originating from China and Korea.

On Nov 07^th, 2019 TRAV posted a notice to receive the dossier requesting for exemption from application AD measure on high-quality color steel sheet 2020.

On Dec 30^th, 2019, Ministry of Industry and Trade promulgated 18 Decision on exemption from application safeguard measure and application AD measure with total exempted amount of 82.019,7 tons for 2020.

On Mar 10^th, 2020, Ministry of Industry and Trade posted a notice to receive and guide the submission of the Dossier requesting for exemption from application AD measure and safeguard measure. Enterprise shall submit the Dossier requesting for exemption at public service Portal by website  https://dichvucong.moit.gov.vn or send to Trade Remedies Authority of Vietnam before 5pm on April 15^th, 2020. It should be noted that enterprises which were exempted for 2020 shall not submit the Dossier requesting for exemption in 2020 according to this notice. If the amount of exemption is going to end, above enterprises shall submit the Dossier supplementing for exemption according to Article 16.4 of Circular 37/2019/TT-BCT.

Our international trade lawyers in Vietnam at ANT Lawyers will continue to follow up with development and update client.

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