“If a company exports a product at a price lower than the price it normally charges on its own home market, it is said to be “dumping” the product. Is this unfair competition? Opinions differ, but many governments take action against dumping in order to defend their domestic industries. The WTO agreement does not pass judgement. Its focus is on how governments can or cannot react to dumping — it disciplines anti-dumping actions, and it is often called the “Anti-Dumping Agreement”. (This focus only on the reaction to dumping contrasts with the approach of the Subsidies and Countervailing Measures Agreement.)

The legal definitions are more precise, but broadly speaking the WTO agreement allows governments to act against dumping where there is genuine (“material”) injury to the competing domestic industry. In order to do that the government has to be able to show that dumping is taking place, calculate the extent of dumping (how much lower the export price is compared to the exporter’s home market price), and show that the dumping is causing injury or threatening to do so.

GATT (Article 6) allows countries to take action against dumping. The Anti-Dumping Agreement clarifies and expands Article 6, and the two operate together. They allow countries to act in a way that would normally break the GATT principles of binding a tariff and not discriminating between trading partners — typically anti-dumping action means charging extra import duty on the particular product from the particular exporting country in order to bring its price closer to the “normal value” or to remove the injury to domestic industry in the importing country.” – Excerp from WTO

WTL  has a deep knowledge and experience in anti-dumping investigations. By taking advantage of this valuable asset WTL achieves the best possible outcome for the exporters/producers in trade remedies.

Safeguard measures (i.e., restrict imports of a product temporarily) aim to protect a specific domestic industry from a surge in imports of any product which is causing, or which is threatening to cause, serious injury to the industry.

On one hand, Vietnam is one of the most avid users of safeguards which affect imports from all sources. On the other hand, Vietnam exporters/producers may also face safeguard investigations initiated by other countries.

We assists clients in responding to the questionnaires, preparation of the written briefs, post-hearing briefs, participation in the hearings and verification if needed.

In light of the jurisprudence in the WTO, we carefully analyze the case by using our deep economic and analytical expertise and submit legal, economic view to the government of the investigating country.

Safeguard measures differ other trade remedies because of its nature. Safeguard is a trade remedy against fair trade practices not like other unfair trade practices such as dumped or subsidized imports. It aims to receive partial tariff concessions back given in the Uruguay Round. Because of this difference in nature of investigations are proceedings in which the authorities seek to impose emergency measures to limit imports temporarily, designed to “safeguard” domestic industries. The administering authorities analyze two key factors in safeguard investigations. These factors are whether or not a domestic industry is injured or threatened with injury and whether this injury is caused by a surge in imports.

In most instances authorities request detail financial, sales and cost data going back several years in these investigations.WTL’s consultants assist the company staff gather this data in a reconciled manner and suggest alternative methodologies in absence of certain required data. A wholesome verifiable approach in putting together the information is crucial as the submitted information may be subject to verification by the administering authority. WTL’s consultants accompany the company personnel in such verification, if conducted.

Our consultants perform a detailed review of the injury allegations made by the complainants and cross check the accuracy of these claims. If applicable, we develop factual support for alternative causes of the alleged injury and provide our own analysis of whether a surge has happened and whether a surge caused the alleged injury. In this process, WTL also performs a critical evaluation of the authority’s findings to identify any errors including the allocation of quotas, where applicable.

In essence, circumvention is any activity designed to avoid the payment of anti-dumping or countervailing duties imposed on a particular product manufactured in and/or exported from third countries.

These practices can best be understood through examples:

• slightly modifying a product so that it can be classified under a combined nomenclature (CN) or HS code that is not subject to duties,

• falsely declaring that a product originated in a country not subject to duties,

• exporting through a producer with a lower duty rate,

• exporting a product in parts and having it assembled in Vietnam, where the parts are not subject to duties,

• certain assembly operations made in third countries.

For a practice to qualify as circumvention, there must also be evidence that:

• Turkish industry is being harmed or the duty’s effects are being undermined in terms of prices and/or quantities of the product in question, and

• there is evidence that the imported product is being dumped, or

• evidence that the imported product and/or parts thereof still benefit from the subsidy.

Vietnam is now the main targets of anti-circumvention measures which are caused by anti-dumping measures on Chinese exports.  If circumvention is determined the highest anti-dumping margin applied in the original anti-dumping investigation will be imposed for those exporters/producers. The measure will be in force in line with the original measure. In addition to this, no expiry review investigation is initiated for anti-circumvention practices.

In this regard, it is crucial for exporters/producers not being subject to anti-circumvention measures.

WTL assists exporters/producers in anti-circumvention investigations by filling out the complex and complicated questionnaires and assisting exporters/producers before the verification and during the verification conducted by foreign investigating authorities.

Based on economic and analytical expertise in various industries, WTL deeply examines economic indicators of the domestic industry.  In light of the panel and Appellate Body findings in trade remedies, submit its legal view and counter arguments regarding injury to the investigating authority in due time.

WTL also examines other factors than alleged dumped imports that may cause injury on the domestic industry and potentially break the causal link between dumped imports and alleged injury on the domestic industry. We make a detailed comprehensive market research by contacting all stakeholders of the investigated product such as importers, traders, arms length users, retailers, distributors, wholesalers and end users on-site, provide all kind of evidence to support our analysis from different sources such as technical and academic experts and publications.

Defense:

• Represent PT Jindal Stainless Indonesia – a subsidiary of India’s largest cold-rolled stainless steel producer Jindal Stainless Ltd and Bahru Stainless Sdn.Bhd (Malaysia) during Vietnam first Anti-Dumping Investigation on stainless steel imports (AD01).
• Represent Fimex, Stapimex, Nha Trang Seafoods and the Vietnam Association of Seafood Exporters and Producers during US Anti Dumping Investigation on Frozen Warm-water shrimps originated from Vietnam.
• Represent Inox Hoa Binh International Jsc during Turkey Circumvention on cold-rolled stainless steel pipes.
• Represent East Asia Aluminum Co., Ltd during Australia Anti-Dumping Investigation on Aluminum Extrusions originated from Malaysia and Vietnam.
• Represent Hoa Sen Group during Malaysia Anti-Dumping Investigation on Galvanized steel originated from Vietnam.
• Represent Hoa Phat Steel Pipe Co., Ltd during Canada Anti-Dumping Investigation on carbon pipe steel originated from Vietnam.
• Represent Dongkuk Steel Mill Co., Ltd and Shandong Zhongtai Steel Co., Ltd during Vietnam Anti-Dumping Investigation on colour-coated steel imported from China and South Korea.
• Represent Metro MDF Group, S. Kjichai MDF and Green Fiber MDF during Vietnam Anti-Dumping Investigation on Medium Density Fiber boards imported from Thailand and Malaysia.
• Represent Ton Dong A corporation in various Anti-Dumping investigations on GI, GL steel products exported to Canada, Indonesia and India.

Filing Anti-Dumping Complaints:

• Represent Vietnam Steel Asociation, Hoa Phat Group in filing Safeguard Measure on Steel Imports (SG04) and Extension review on Safeguard Measure on Steel Imports in 2015 and 2019.
• Initiating Safeguard Measure on DAP sterilizer for Vietnamese petitioners
• Initiation of Anti-dumping measure of Instrusion Aluminium bar exported from China
• Initiation of Anti-dumping measure on BOPP plastic films exported from China, Thailand and Malaysia