Update Developments of Request for Investigation of Anti-dumping PFY Originating From China, India, Indonesia and Malaysia

On Nov 07^th, 2019, Trade Remedies Authority of Vietnam (Investigating Body) received Dossier of request from companies representing the domestic industry (Requesting Party). The Dossier requests for investigation of the application of anti-dumping measures on long-fiberproducts made from polyester (PFY) originating from China, India, Indonesia andMalaysia from companies representing the domestic industry (Requesting Party).

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On Nov 22^th, 2019, Investigating Body issued official dispatch No. 1056/PVTM-P1 requiring the Requesting Party to supplement, adjust to clarify some contents of the investigated goods, methods and basis for determining dumping margins and losses of the domestic industry.

On Dec 31^st, 2019, the Requesting Party fully submitted all additional information as requested.

On January 09^th, 2020, the Requesting Party provided additional documents to clarify additional information on the method of calculation, determination dumping margins.

On January 21^th, 2020, Investigating Body confirmed that the dossier is complete, valid in accordance with laws on trade remedies.

According to Law on foreign trade management 2017 and guiding or related documents, next steps of anti-dumping case as follows:

Investigating Body shall examine the Dossier to submit to the Minister of Industry and Trade for consideration whether to conduct or not to conduct an investigation: 45 days from the date of receiving a complete, valid dossier, which means January 21^th, 2020. Contents of Dossier examination include: (i) Determine the legal representative status of the domestic industry of organizations, individuals that submit the Dossier; (ii) Determine evidence on the dumping of imported goods that cause or threaten to cause significant injury to a domestic industry or significantly prevent the formation of a domestic industry.

In order to prepare the examination, as well as to ensure the legitimate rights and interests of the enterprise, the Investigation Body suggests that the domestic enterprises producing/trading in the same goods mentioned above provide the following information: (i) Information about the enterprises; (ii) Design capacity and production of long fiber products made from polyester (PFY) in 2016, 2017, 2018 and 2019; (iii) The company’s opinion on the case (agree, disagree, no opinion); (iv) Any other documents/evidence that the company thinks it is related to the case. The time limit for providing the above information is before 17:00 on February 14^th, 2020 (Hanoi time).

To have more time to review the case file and relevant information, on March 05^th, 2020, Ministry of Industry and Trade has issued Decision no. 752/QD-BCT on extension of 30-day time limit for making a decision to investigate the case. Accordingly, the last time limit for issuing decision relating to this case is extended to April 06th, 2020.

The companies could authorize an international trade law firm in Vietnam that has experience in anti-dumping to assist with the procedures at the state authorities to cooperate.

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Withdrawal of request for investigating of anti-dumping on welding material products originating from China, Thailand and Malaysia

Welding material is one of the most important industrial auxiliary sector, which is indispensable to fields such as: shipbuilding, cars and motorbikes production, other electronic industries. In the first 7 months 2019, Ministry of Industry and Trade carried out examination dossiers of 3 cases, one of them is dossier requesting to investigate to apply anti-dumping measure on welding material.

On Jun 28^th, 2019, Trade Remedies Authority of Vietnam (Investigating Body) received the Dossier requesting for investigating to apply anti-dumping measure on welding material products originating from People’sRepublic of China, Kingdom of Thailand and Malaysia. This dossier is applied by companies representing the domestic industry (Requesting Party

Requesting Party includes 01 company: Kim Tin Group Joint Stock Company. Kim Tin Group Joint Stock Company is a large enterprise in manufacturing and trading of welding materials: welding rods, welding wire, welding flux, color metal, steel nails, ligature, machines, devices, board of MDF, mineral exploitation and logistics service in Vietnam.

On Oct 28^th, 2019, Requesting Party fully submitted additional information at request.

On Nov 07^th, 2019, Investigating Body confirmed that Dossier was complete, valid according to regulations of law on trade remedies.

On Jan 25^th, 2020, Trade Remedies Authority received official dispatch of Requesting Party on withdrawing dossier requesting for investigating to apply anti-dumping measure on welding material products.

Due to Requesting Party’ s request for withdrawing dossier, Trade Remedies Authority informed that no investigation to apply anti-dumping measure on welding material products originating from People’s Republic of China, Kingdom of Thailand and Malaysia is initiated.

Our international trade and tax lawyers, and antitrust lawyers at ANT Lawyers, a law firm in Vietnam have always followed the development of situation and update the clients on relevant matters.

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Decision No. 33/QD-BCT of anti-dumping investigation for some products of aluminum, alloy or non-alloy originated from China (AD05).

On Jan 10^th, 2019, Trade Remedies authority of Vietnam (Ministry of Industry and Trade) has promulgated Decision No. 33/QD-BCT on investigation into imposition of anti-dumping measures for some products of aluminum, alloy or non-alloy which are in bar, stick and shape form originated from China (Case number AD05).

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Summary of the case:

The requesting party is four (04) shaped aluminum manufacturers representing the domestic industry, including AUSTDOOR ALUMINUM JOINT STOCK COMPANY, TUNG YANG COMPANY LIMITED, SONG HONG ALUMINUM JOINT STOCK COMPANY (SHALUMI) and MIENHUA GROUP JOINT STOCK COMPANY. 

Scope of investigation:

The imported products are alleged of dumping are some products of aluminum, alloy or non-alloy which are in bar, stick and shape form, with the HS codes of: 7604.10.10; 7604.10.90; 7604.21.90; 7604.29.10; 7604.29.90 from China. The investigating period to determine dumping behaviour is from Jan 1^st to Dec 31^st, 2018. The investigating period to determine the damages of the domestic manufacturing industry is from Jan 1^st, 2015 to Dec 31^st, 2018.

The alleged dumping margin:

Imported products from China subject to anti-dumping measures imposition investigation are alleged with specified dumping margins rate of 35,58%.

Damages and causal relation

The products alleged of dumping are considered the main cause of significant losses in the domestic manufacturing industry, reflected in the decline in the indexes such as utilization capacity, inventory, profit, and dynamic price, price pressure…

Registration for interested party

According to regulation of Article 74 of the current Law on Foreign Trade Management of Vietnam, Interested parties include:

-Overseas organizations and individuals that produce and export products under consideration to Vietnam;

-Importers of products under consideration;

-Foreign associations whose majority of members are organizations and individuals producing and exporting products under consideration;

-The Government and competent authorities of the exporting country of product under consideration;

-Organizations and individuals that submit the application for the trade remedies;

-Domestic producers of like products;

-Domestic associations whose majority of members are producers of like products;

-Other organizations and individuals that obtain legal rights and interests related to the investigated cases or facilitate the investigation or representative organizations of protection of customer rights.

As such, an organization or individual shall register and be approved by the investigating authority to become an interested party.

The organizations, individuals can register to be recorded as the related parties in this case with the Investigation Authority by the way sending the application according to the application form for the related party provided in Appendix No. 1 attached the Circular No.06/2018/TT-BCT. Deadline for registration of the interested party is before 5p.m on Feb 28^th, 2019.

 The investigation questionnaire

Within 15 days after the issuance of the investigation decision of the Minister of Industry and Trade, the investigating authority shall send the investigation questionnaire to the following subjects:

-Producers of similar domestic goods;

-Foreign producers and exporters exporting goods subject to anti-dumping and countervailing investigation into Vietnam which the investigating authority knows;

-The representative in Vietnam of the government of the country producing and exporting goods subject to anti-dumping and countervailing investigations;

-Importers of goods subject to anti-dumping and countervailing investigations;

-Other related parties.

Within 30 days after receiving the investigation questionnaires, the interested parties must provide written replies to all questions in the questionnaire. In case of necessity or there are written requests for extension with reasonable reasons from the interested parties, the investigating authority may extend the time limit but not more than 30 days.

Please be informed that the time limit for the anti-dumping measures imposition investigation shall be within 12 months from the day on which the decision on investigation is issued, with a possible extension up to 6 months if necessary. Interested parties could authorise law firm in Vietnam with international trade and anti-dumping specialization to respond to authorities in Vietnam.

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Anti-dumping of Goods Imported to Vietnam

Recently, the Ministry of Industry and Trade of Vietnam has carried out investigations to apply anti-dumping measures against some commodities imported into Vietnam.

The law of Vietnam also has a number of law documents governing this matter in detail. Specifically, ordinance No. 20/2004/PL-UBTVQH11 issued on April 29^th, 2004 of the Standing Committee of the National Assembly and the Decree No. 90/2005/ND-CP issued on July 11^th, 2005 governs the anti-dumping matters and the regulations on the implementation of several articles of the ordinance on anti-dumping of goods imported to Vietnam.

In terms of content, ordinance 20/2004 regulating the anti-dumping measures; procedures, contents of investigation for application and the application of such measures against dumped goods imported into Vietnam. Decree 90/2005 regulating the implementation of some articles of the Ordinance 20/2004 on the anti-dumping investigation agency, the Council that handling anti-dumping cases; procedures, contents of investigation and the application of anti-dumping measures to goods imported into Vietnam.

On December 24th, 2015, Ministry of Industry and Trade of Vietnam has received written request from 4 Vietnam companies about applying anti-dumping measures to galvanized steel products imported into Vietnam from People’s Republic of China (including Hong Kong) and South Korea.

The requesting parties (4 Vietnam companies) believe that quantity and prices of the product under investigation and other factors have created negative impact their goods consumption, leaded to negative effects on production activities; for example, domestic goods’ market share has decreased, loss ratio has increased, price of domestic products has fell and inventory has risen… Moreover, increasing import products brings about damage to domestic industry. Hence, an investigation has been implemented by the investigation agency, which is the Vietnam Competition Authority (VCA), under the Ministry of Industry and Trade. The VCA will publicly hold a consultation with related parties before finishing the investigation stage. The Vietnam Ministry of Industry and Trade will apply anti-dumping tax which comes into effect retroactively in order to prevent the considerable increase of dumping goods in Vietnam that have caused damages to the domestic industry.

ANT Lawyers is a law firm in Vietnam having lawyers with specialization in international trade, and dispute especially WTO laws and anti-dumping laws to handle the anti-dumping matters on behalf of manufacturers and traders to achieve the best result.

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