Legal basis

• Law on Foreign Trade Management 2017

Dumping is an unfair business practice, seriously affecting fair competition in the market. This behavior not only damages domestic manufacturing enterprises but also threatens the sustainable development of the national economy. To protect a healthy business environment and ensure the rights of consumers and businesses, Vietnamese law has issued strict regulations on sanctioning dumping. Understanding the definition, scope and form of handling dumping acts is essential for businesses to operate legally and avoid legal risks.

1. Definition of anti-dumping measures 

Anti-dumping measures are a tool that countries use to protect domestic industries from the negative impacts of imported goods sold at prices lower than production prices or lower than retail prices. domestic market of the exporting country. In other words, this is the act of selling goods at prices too low compared to their real value, in order to dominate the market and cause damage to domestic manufacturing enterprises.

More specifically, Clause 1, Article 77 of the Law on Foreign Trade Management 2017 stipulates, bAnti-dumping measures for goods imported into Vietnam are measures applied in cases where goods are determined to be dumped when imported into Vietnam, causing significant damage or threatening to cause damage. significant damage to the domestic industry or preventing the formation of a domestic industry.

2. Anti-dumping measures 

In the Law on Foreign Trade Management 2017, anti-dumping measures include:

• Applying anti-dumping tax: This is the most common measure, applied by imposing taxes on imported goods determined to be dumped. Anti-dumping tax is an additional import tax applied in cases where dumped goods imported into Vietnam cause or threaten to cause significant damage to the domestic industry or prevent the formation of domestic manufacturing industry. This tax is equal to the difference between the actual selling price and the normal selling price. 
• Commitments on measures to eliminate dumping by organizations and individuals producing and exporting goods that are required to apply anti-dumping measures with the Vietnam Investigation Agency or with manufacturers in water if approved by the Investigation Agency.

3. Conditions for applying anti-dumping measures

Anti-dumping measures are applied to imported goods when the following conditions are met:

• Goods imported into Vietnam are dumped with a specifically determined dumping margin, unless otherwise specified;
• The domestic manufacturing industry is significantly damaged or threatened to cause significant damage or prevent the formation of a domestic manufacturing industry;
• There exists a cause and effect relationship between the import of dumped goods and the damage to the domestic industry.

In addition, anti-dumping measures are not applied to imported goods with a dumping margin not exceeding 2% of the export price of goods to Vietnam.

At the same time, in the case of imported goods originating from a country whose volume or quantity does not exceed 3% of the total volume or quantity of similar goods imported into Vietnam and the total volume or quantity of goods Goods originating from countries that meet the above conditions do not exceed 7% of the total volume or quantity of similar goods imported into Vietnam, then these countries are excluded from the scope of application of anti-dumping measures.

4. Regulations on penalties for dumping

According to Decree 75/2019/ND-CP regulating administrative penalties for selling goods and providing services below total cost, organizations that commit dumping to eliminate other businesses Trading in the same type of goods or services shall be fined from 800,000,000 VND to 1,000,000,000 VND. For violations committed in two or more provinces or centrally run cities, the fine is doubled, equivalent to from 1,600,000,000 VND to 2,000,000,000 VND. The above fine applies to organizations. In case an individual commits the same violation, the maximum fine is equal to half of the maximum fine for an organization.

In addition, organizations that commit acts of dumping will have their exhibits, means and profits confiscated from the act of dumping.

5. Conclude

Dumping behavior not only negatively affects the business environment but also threatens the sustainable development of the economy. Therefore, strict enforcement of legal regulations on sanctions and anti-dumping is a prerequisite to maintain a healthy competitive market and protect the interests of domestic enterprises. Businesses need to strictly comply with legal regulations and at the same time enhance their sense of responsibility in business activities to build a fair, transparent and sustainable market.

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