US Anti-Dumping and Countervailing Duty Petitions of Tire Products From Vietnam

On May 13, 2020, The United States Department of Commerce (“DOC'') received an investigation request for anti-dumping and countervailing measures against passenger and light truck tires (“PVLT tires”) originating from Korea, Taiwan-China, Thailand and Vietnam. The mandatory respondents being US importers have also consulted with anti-dumping and countervailing duty lawyers in Vietnam and US to prepare for the investigation cooperation.

In this case, the plaintiff alleges that the tires under investigation were dumped and subsidized into the United States market, causing significant damage to the domestic manufacturing industry. In 2015, the same petitioner succeeded in securing anti-dumping and countervailing duties on PVLT tires from China.

The scope of these investigations is passenger vehicle and light truck tires. Passenger vehicle and light truck tires are new pneumatic tires, of rubber, with a passenger vehicle or light truck size designation. Tires covered by these orders may be tube-type, tubeless, radial, or nonradial, and they may be intended for sale to original equipment manufacturers or the replacement market. The products covered by the investigations are currently classified under the following Harmonized Tariff Schedule of the United States (“HTSUS”) subheadings: 4011.10.10.10, 4011.10.10.20, 4011.10.10.30, 4011.10.10.40, 4011.10.10.50, 4011.10.10.60, 4011.10.10.70, 4011.10.50.00, 4011.20.10.05, and 4011.20.50.10. The scope could also include tires entering under HTSUS subheadings 4011.90.10.10, 4011.90.10.50, 4011.90.20.10, 4011.90.20.50, 4011.90.80.10, 4011.90.80.50, 8708.70.45.30, 8708.70.45.46, 8708.70.45.48, 8708.70.45.80, 8708.70.60.30, 8708.70.60.45, and 8708.70.60.60.

Petitioner alleges the following dumping margins: 45.95% to 195.20% for South Korea, 21% to 102% for Taiwan, 106.4% to 217.5% for Thailand, and 14.73% to 33.06% for Vietnam. The petitions also detail numerous government subsidies benefiting Vietnamese tire producers, including loans, tax breaks, and grants. PVLT tire imports from these four countries shot up nearly 20% from 2017 to 2019, reaching 85.3 million tires, valued at 4.4 billion dollars, last year.

According to data from the United States International Trade Commission (“USITC”), the export value of Vietnam’s investigated products to the United States market reached 12.1 million dollars in 2019, accounting for about 6.7% of total United States imports of this product.

In Vietnam, the product under investigation is a product that has been warned by the Ministry of Industry and Trade of risks of foreign investigation by applying trade remedies measures from July 2019 with a high level of warning. Therefore, in the past time, the Ministry of Industry and Trade has actively coordinated and worked with associations and exporters to the United States to actively capture information and respond in case of initiating an investigation. Under United States regulations, the DOC will consider initiating an investigation of the case within 20 days of receiving it. In the event that the DOC decides to initiate an investigation, the Ministry of Industry and Trade of Vietnam will closely coordinate with export associations and enterprises in investigating the case and have timely support and treatment measures to protect the legitimate rights and interests of Vietnamese enterprises.

Vietnam international trade lawyers in competition, and anti-dumping practice will need to be involved with the process including data collection and possibly initial drafting of questionnaire responses in cooperation with US anti-dumping and countervailing duty lawyers to defend the case.

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Questionnaire on Quantity and Value to Foreign Manufacturers and Exporters

On July 14th, 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 to 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 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 samples that limits the scope of the investigation. TRAV is entitled to consult with experts 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 cases, 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 31st, 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 experienced law firms in Vietnam on international trade to work with Trade Remedies Authority of Vietnam to cooperate.

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Investigation of Imposing Anti-dumping and Countervailing Measure to some sugar cane products from Thailand (AD13)

On September 21st 2020, the Minister of Ministry of Industry and Trade signed the Decision No. 2466/QD-BCT regarding the Investigation of imposing Anti-dumping and Countervailing measures to some sugar cane products from Thailand. Related parties may by themselves or authorize experienced law firms in Vietnam on international trade to work with Trade Remedies Authority of Vietnam (TRAV) to cooperate and respond.

1.Background

On August 08, 2020, Trade Remedies of authority of Vietnam (TRAV), Ministry of Industry and Trade received the dossiers on requesting the anti-dumping measure to some sugar cane from Thailand. The requester is 6 Companies representing for domestic industry being (i) Son La Sugar Joint Stock Company; (ii) Son Duong Sugar and Sugarcane Joint Stock Company; (iii) KCP VietNam Industries Limited; (iv) Can Tho sugar Joint stock Company; (v) The 333 Sugar Joint Stock Company; (vi) Soc Trang Sugar Corporation.

The requester provided the reasonable bases for calculation of dumping margin and acts of countervailing originated from Thailand. The requester provided the reasonable information to prove the significant damage of domestic industry. The requester’s dossier proved the existence of causal relationship between imported products and the significant damage of domestic industry.

Hence, TRAV determined the dossier of the requester satisfied the law of anti-dumping, countervailing and petition of the Minister of Ministry of Industry and Trade.

2.Investigation’s details

i) Products under investigation

Product’s name: Sugar cane

Scientific name: Sacarose sugar (sucrose)

Common name: include but not limited to sanding sugar, sugar cane, crystal sugar, raw sugar, white sugar, refined sugar.

Sugar cane products are classified under the following HS code: 1701.1300, 1701.1400, 1701.9910.

The Ministry of Industry and Trade may amend and supplement the list of HS codes of the product under investigation to be in accordance with the description of the product under investigation and other changes (if any).

ii) Originated of products under investigation: Thailand

iii) Period of investigation (POI)

-Period of investigation to determine the anti-dumping and countervailing action: from July 1st 2019 to June 30th 2020

-Period of investigation to determine the damage of domestic industry:

The first year: from July 1st 2017 to June 30th 2018

The second year: from July 1st 2017 to June 30th 2019

The third year: from July 1st 2017 to June 30th 2020

iv) Duty Levels Proposed by Requester:

The anti-dumping duty which is requested by the requester is 37,9%.

3.Register as related parties

Pursuant to Article 6 of Circular No. 37/2019/TT-BCT, organizations and individuals stipulated in Article 74 of Law on foreign trade management may register as related parties in this case with TRAV in order to access to publicly circulated information during the investigation process, send comments, information and evidence related to the investigation content within sixty (60) working days from the day on which the decision on investigation takes effect via post or email.

In order to ensure rights and interests, the investigating authority recommends that organizations and individuals which produce, import or use products under investigation register as related parties to carry out the right to access information, provide information and express opinions during the investigation process.

4.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 Related Parties, including:

-The applicant requests for application of Anti-dumping and Countervailing measures;

-Other domestic manufacturers which Investigating Authority knows;

-Parties requesting for application investigation of anti-dumping and countervailing measures which Investigating Authority knows;

-Importers of products under investigation;

-Diplomatic authorities of the country where the origin of products under investigation;

-Other related

5.Cooperating in the investigation process

Any related party refuses to participate in the case or does not provide necessary evidence or significantly ​obstructs the completion of the investigation, the investigation conclusion regarding such relevant party shall be based on available information.

Any related party provides false or misleading evidence, such evidence shall not be reviewed and investigation conclusions regarding such relevant party shall be based on available information.

TRAV recommends that related parties participate and cooperate fully in the process in order to ensure legitimate rights and interests and avoid potential disputes.

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Vietnam to Investigate Anti-Dumping Case of Sorbitol Chemical Products from China, India and Indonesia

On August 18th, 2020, Trade Remedies Authority of Vietnam (TRAV) acknowledged the Dossier on request of investigation to impose the anti-dumping measures to Sorbitol chemical products originated from China, India and Indonesia from the companies representing the domestic industry (Requester). If there are anti-dumping actions, the anti-dumping investigation will be initiated and related parties would cooperate with TRAV to provide data as required.

On the basis of assessing the Dossier, on September 30th, 2020, TRAV had confirmed the sufficiency of the dossiers according to the laws on trade remedy.

Within 45 days from the date of receiving sufficient and lawful dossier, TRAV will assess the dossier to submit to the Minister of Ministry of Industry and Trade for consideration whether to process the investigation.

The assessment’s contents includes:

-Identify the legal representative status of the domestic industry of organizations and individuals who submit dossier in accordance with the Law on Foreign Trade Management;

-Define evidence on the dumping of imported goods that cause or threaten to cause significant losses to a domestic manufacturing industry or substantially prevent the formation of a domestic manufacturing industry.

In order to serve the assessment process, as well as to ensure the legitimate rights and interests of the enterprise, TRAV recommends that the domestic enterprises manufacturing trading in the same goods mentioned above provide the following information.

-Enterprise’s information;

-Capacity/design and production of Sorbitol chemical products in 2017, 2018, 2019 and 2020;

-Enterprise’s opinion on the case (to agree, oppose, have no opinion);

-Any document/evidence which companies consider to be related to the case

-The due date to provide the above information is before 5p.m October 16th, 2020.

Our competition, anti-dumping, and countervailing duty lawyers of international trade and tax practice at ANT Lawyers, a law firms in Vietnam, always follow up trade remedy development to update clients on regular basis.

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