When participating in the process of international economic
integration, every country voluntarily cut off the trade barriers for goods to
easily circulate among each other. However, in the legal framework of World Trade
Organization (WTO), the countries are
allowed to impose trade remedies if satisfying certain conditions. Vietnam has officially become a member of WTO since
July 11 2007 and the imposing of these trade remedies are regulated in Law on foreign trade management 2018.
According to Law on
foreign trade management 2018, trade remedies includes anti-dumping measure,
countervailing measure and safeguard measure. Specifically, (i) Anti-dumping measure imposed on imports into Vietnam is a measure imposed on products that are
dumped when being imported to Vietnam, which causes material injury or threaten
to cause material injury to domestic industry or retard the establishment of
the domestic industry; (ii) Countervailing measure imposed on imports into Vietnam is a measure imposed on products
that are subsidized when being imported to Vietnam, which causes the material
injury or threat of material injury to the domestic industry or retards the
establishment of the domestic industry; (iii) Safeguard measure imposed on
foreign products imported into Vietnam is measure imposed on increased imports of particular
products to Vietnam, which causes the serious injury or threat of serious
injury to the domestic industry.
The domestic industry
mentioned above refers to the producers as a whole of the like products within
the territory of Vietnam or those whose collective output of the like products
constitutes a major proportion of domestic production of those products.
Besides, the injury to domestic industry shall be determined on each level: (i)
Material injury to domestic industry; (ii) threat of material injury to
domestic industry; (iii) material retardation of establishment of a domestic
industry; (iv)serious injury to domestic industry; (v) threat of serious injury
to domestic industry.
Due to the imposing of
these remedies directly affecting to foreign producer/exporter as well as
domestic industry, thus, it is required to comply to six following rules when imposing these
remedies:
Firstly, impose measures within the reasonable scope and level for a
certain period of time to protect domestic industry, prevent or limit the
injury to it;
Secondly, only
impose measures after the investigation is carried out
transparently and fairly in accordance with regulations of law and based on
determinations of the investigation;
Thirdly, decisions on
the investigation and the imposition of trade remedies shall be published;
Fourthly, if the duty
rate of an official trade remedy is higher than those of a provisional trade
remedy, the difference of duty will not be collected;
Fifthly, if the duty
rate of an official trade remedy is lower than those of the provisional trade
remedy, the difference of duty will be returned;
Sixthly, if the Minister
of Industry and Trade does not impose an official trade remedy, the duty of
provisional trade remedy that has been collected or the amount for ensuring the
payment of temporary trade remedy duties shall be returned.
If Client needs any more
information or request for legal advice regarding trade remedies measures
including: anti-dumping, counterveiling duty and safeguard measures or international trade dispute matters, our international
trade lawyers at ANT Lawyers could be of help.
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