Vietnam Investigates and Applies Anti-Dumping Measures on Some Plastic Products from China, Thailand and Malaysia (AD07)

On April 26, 2019, the Department of Trade Protection (PVTM) – Ministry of Industry and Trade received a dossier requesting investigation and application of anti-dumping measures for some plastic products and products by Plastic is made from polymers and propylene (“Investigated Goods”) originating from the People’s Republic of China (China), Kingdom of Thailand (Thailand) and Malaysia. The requester in the case are representatives of the domestic manufacturing industry, including two companies: (i) Hung Nghiep Formosa Limited Liability Company; and (ii) Plastic Joint Stock Company Youl Chon Vina.

On August 5, 2019, the Ministry of Industry and Trade issued Decision No. 2334 / QD-BCT on conducting investigation and application of anti-dumping measures.

What is scope of investigation in anti-dumping case AD07?

The products alleged to be dumped are products made of plastic and plastic products made from propylene polymers (also called Biaxial Oriented Polypropylene film – BOPP) imported from the above countries and dumping on the Vietnam market which caused significant losses to Vietnam’s BOPP film industry under the following HS codes: 3920.20.10 and 3920.20.91.

The period of investigation to determine dumping behavior is from July 1, 2018 to June 30, 2019. The investigation period to determine the damage of domestic manufacturing industry is from July 1, 2016 until June 30, 2019.

How to determine damages and causal relation?

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

What the investigation agency require?

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:

– The applicant submits the application for anti-dumping measures;

– Other domestic manufacturers;

– The party proposed to investigate applies anti-dumping measures;

– Importers of goods subject to investigation;

– The diplomatic mission of the country where the goods originated is investigated;

– Other stakeholders that the investigating authority deems necessary.

Within 30 days after receiving the investigation question, interested parties must provide a written answer to all questions in the questionnaire. In case of necessity or a written request for extension with reasonable reasons from interested parties, the investigating agency may extend the time limit but must not more than 30 days.

How long does the investigation will take?

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 authorize law firm in Vietnam with international trade and anti-dumping specialization to respond to authorities in Vietnam.

Accordingly, after initiating the investigation, the Ministry of Industry and Trade will send the questionnaires to related parties to collect information to analyze and evaluate the alleged contents including the following acts:

+ Dumping behavior of BOPP film export enterprises of China, Thailand and Malaysia;

+ Damage of BOPP film manufacturing industry in Vietnam.

In case of necessity, from the preliminary investigation results, if found that the damage of dumping has a great impact on the domestic manufacturing industry, the Ministry of Industry and Trade may apply anti-dumping measures. The period includes import management for investigated goods, application of temporary anti-dumping duties, consultations and application of anti-dumping duties effective before.

The Ministry of Industry and Trade will conduct the verification and examine the information provided by the parties before completing the official investigation conclusion on the case. At the same time, the Ministry of Industry and Trade will also hold public consultations so that stakeholders can directly exchange, provide information and express their views on the case before making a final conclusion on the case.

Whom could respond the questionnaire and participate to cooperate?

The Ministry of Industry and Trade recommends that all organizations and individuals who are importing – exporting, distributing, trading and using goods subject to investigation be registered as a related party and provide necessary information to the Ministry of Industry and Trade to ensure their rights and interests in accordance with the law.

The Ministry of Industry and Trade may apply anti-dumping duty which is effective backward for goods subject to tax within 90 days before the application of temporary anti-dumping duty. Therefore, the Ministry of Industry and Trade recommends that organizations and individuals in the process of signing import contracts, distribution, business and use of investigated goods should pay attention to the possibility of applying anti-dumping tax. Temporary and anti-dumping taxes are effective backwards.

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