DECISION

APPLICATION OF MEASURES AGAINST EVASION OF TRADE REMEDIES ON CERTAIN CANE SUGAR PRODUCTS

THE MINISTER OF INDUSTRY AND TRADE OF VIETNAM

Pursuant to the Law on Foreign Trade Management No. 05/2017/QH14 dated June 12, 2017;

Pursuant to the Government’s Decree No. 10/2018/ND-CP dated January 15, 2018 providing guidelines for the Law on Foreign Trade Management regarding trade remedies;

Pursuant to the Government’s Decree No. 98/2017/ND-CP dated August 18, 2017 defining the Functions, Tasks, Powers and Organizational Structure of the Ministry of Industry and Trade of Vietnam;

Pursuant to the Circular No. 37/2019/TT-BCT dated November 29, 2019 of the Minister of Industry and Trade elaborating on trade remedies;

Pursuant to the Decision No. 3752/QD-BCT dated October 02, 2017 of the Minister of Industry and Trade defining functions, tasks, powers and organizational structure of the Trade Remedies Authority of Vietnam;

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Pursuant to the Decision No. 348/QD-BCT dated March 18, 2022 of the Minister of Industry and Trade of Vietnam on extension of the time limit for investigation into evasion of trade remedies on certain cane sugar products;

Pursuant to the Decision No. 943/QD-BCT dated May 16, 2022 of the Minister of Industry and Trade of Vietnam on second extension of the time limit for investigation into evasion of trade remedies on certain cane sugar products;

At the request of the Director of the Trade Remedies Authority of Vietnam;

HEREBY DECIDES:

Article 1. Measures for preventing and countering the evasion of trade remedies are imposed on certain cane sugar products which bear the following HS codes: 1701.13.00, 1701.14.00, 1701.91.00, 1701.99.10, 1701.99.90, and 1702.90.91, and are imported into Vietnam from the Kingdom of Cambodia, Republic of Indonesia, Lao People's Democratic Republic, Malaysia and the Republic of the Union of Myanmar. Further details are provided in the Announcement enclosed herewith.

Article 2. Procedures and formalities for adopting the abovementioned measures shall be governed by regulations of law on foreign trade management.

Article 3. This Decision comes into force 07 (seven) days after the date of its promulgation.

Article 4. Chief of the Ministry’s Office, Director of Trade Remedies Authority of Vietnam, and heads of relevant units and parties shall be responsible for the implementation of this Decision./.

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PP. MINISTER
DEPUTY MINISTER




Tran Quoc Khanh

ANNOUNCEMENT

APPLICATION OF MEASURES AGAINST EVASION OF TRADE REMEDIES ON CERTAIN CANE SUGAR PRODUCTS
(Enclosed with the Decision No. 1514/QD-BCT dated August 01, 2022 of the Minister of Industry and Trade of Vietnam)

1. Goods on which measures against evasion of trade remedies are imposed

a) Name and basic characteristics

- Scientific name: Sucrose.

- Common name: table sugar, cane sugar, refined sugar, raw sugar, white sugar, granulated sugar, RE sugar, RS sugar, etc.

b) HS codes and current import duties

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HS Code

Description

Preferential import duty
(MFN tariff rate)

Chapter 17

Sugars and sugar confectionery

1701

Cane or beet sugar and chemically pure sucrose, in solid form.

- Raw sugar not containing added flavouring or colouring matter:

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1701.1300

- - Cane sugar specified in Subheading Note 2 to this Chapter

In-quota tariff rate: 25%, out-of-quota tariff rate: 80%

1701.1400

- - Other cane sugar

In-quota tariff rate: 25%, out-of-quota tariff rate: 80%

- Other:

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- - Containing added flavouring or colouring matter

In-quota tariff rate: 40%, out-of-quota tariff rate: 100%

1701.99

- - Other:

1701.9910

- - - Refined sugar

In-quota tariff rate: 40%, out-of-quota tariff rate: 85%

1701.9990

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In-quota tariff rate: 40%, out-of-quota tariff rate: 85%

1702

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel.

1702.90

- Other, including invert sugar and other sugar and sugar syrup blends containing in the dry state 50% by weight of fructose:

- - Other

1702.9091

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15%

The Ministry of Industry and Trade of Vietnam may amend and supplement the list of HS codes of goods on which the measures against evasion of trade remedies are imposed in order to be conformable with the description of the goods in question and other changes (if any).

The goods on which the measures against evasion of trade remedies are imposed are those imported from the Kingdom of Cambodia, Republic of Indonesia, Lao People's Democratic Republic, Malaysia and the Republic of the Union of Myanmar.

2. Final determination

In the final determination, the investigating authority has concluded that:

- The use of cane sugar materials originating from Thailand for manufacturing of cane sugar products in question which are exported to Vietnam by enterprises of the Kingdom of Cambodia, Republic of Indonesia, Lao People's Democratic Republic, Malaysia and the Republic of the Union of Myanmar is considered an act of evading the anti-dumping and countervailing duties in force under the Decision No. 1578/QD-BCT dated June 15, 2021 of the Minister of Industry and Trade of Vietnam on imposition of official anti-dumping and countervailing duties on certain cane sugar products imported from Kingdom of Thailand (hereinafter referred to as “Decision No. 1578/QD-BCT”).

- The domestic production suffers injury due to a rapid and remarkable increase in the import volume of goods in question imported from the Kingdom of Cambodia, Republic of Indonesia, Lao People's Democratic Republic, Malaysia and the Republic of the Union of Myanmar. Moreover, economic indicators show that the effectiveness of the anti-dumping and countervailing duties imposed on cane sugar products imported from Thailand has been reduced as a result of the import of cane sugar products from the Kingdom of Cambodia, Republic of Indonesia, Lao People's Democratic Republic, Malaysia and the Republic of the Union of Myanmar.

3. Measures against evasion of trade remedies

3.1. The measures against evasion of trade remedies shall be imposed on the goods mentioned in Section 1 of this Announcement, except the cases specified in Section 3.2 of this Announcement, on the basis of the anti-dumping and countervailing duties prescribed in the Decision No. 1578/QD-BCT. To be specific:

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Measures against evasion of trade remedies

Anti-dumping duty rate

Countervailing duty rate

Kingdom of Cambodia

All manufacturers and exporters of Cambodia

42,99%

4,65%

 Republic of Indonesia

All manufacturers and exporters of Indonesia

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4,65%

Lao People's Democratic Republic

All manufacturers and exporters of Lao

42,99%

4,65%

Malaysia

All manufacturers and exporters of Malaysia

42,99%

4,65%

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All manufacturers and exporters of Myanmar

42,99%

4,65%

3.2. The goods mentioned in Section 1 of this Announcement shall be exempt from measures against evasion of trade remedies if they are manufactured by one of the following companies:

- PT. Kebun Tebu Mas;

- Mitr Lao Sugar Company Limited;

- Savannakhet Sugar Corporation;

- TTC Attapeu Sugar Cane Sole Co., LTD;

- Than Daung OO Company Limited;

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provided that the customs declarant may present the documents specified in Section 4 of this Announcement.

4. Determination of goods on which measures against evasion of trade remedies are imposed

In order to determine whether or not a good is subject to measures against evasion of trade remedies as prescribed in Section 3 of this Announcement, the customs authority shall follow the following steps:

Step 1: Examine the proof of origin according to guidelines in Section 5 of the Announcement enclosed with the Decision No. 1578/QD-BCT

If a proof of origin is issued by a competent authority of a country or territory other than the Kingdom of Cambodia, Republic of Indonesia, Lao People's Democratic Republic, Malaysia or the Republic of the Union of Myanmar is presented, the examination shall be continued according to the guidelines in Section 5 of the Announcement enclosed with the Decision No. 1578/QD-BCT.

If a proof of origin is issued by a competent authority of the Kingdom of Cambodia, Republic of Indonesia, Lao People's Democratic Republic, Malaysia or the Republic of the Union of Myanmar is presented, the guidelines in Step 2 shall be followed.

Step 2. Examine contents of the proof of origin

If the proof of origin shows that the imported goods are not wholly obtained or produced goods, the measures against evasion of trade remedies prescribed in Section 3.1 of this Announcement shall be imposed.

If the proof of origin shows that the imported goods are wholly obtained or produced goods, the guidelines in Step 3 shall be followed.

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If no manufacturer’s certificate is presented or a manufacturer’s certificate is presented but it does not contain the name of one of the manufacturers or exporters specified in Section 3.2 of this Announcement, the measures against evasion of trade remedies shall be imposed.

If a manufacturer’s certificate that contains the name of one of the manufacturers or exporters specified in Section 3.2 of this Announcement, the measures against evasion of trade remedies shall not be imposed. To be specific:

- PT. Kebun Tebu Mas;

- Mitr Lao Sugar Company Limited;

- Savannakhet Sugar Corporation;

- TTC Attapeu Sugar Cane Sole Co., LTD;

- Than Daung OO Company Limited;

- Ngwe Yi Pale Sugar Company Limited.

5. Validity period of measures against evasion of trade remedies

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6. Subsequent procedures

Relevant parties may submit applications for review of application of measures against evasion of trade remedies in accordance with the provisions of Article 82 and Article 90 of the Law on Foreign Trade Management and Chapter IV of the Decree No. 10/2018/ND-CP providing guidelines for the Law on Foreign Trade Management regarding trade remedies./.