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The United States has recently announced preliminary findings in its countervailing duty (CVD) investigation on molded fiber products imported from Vietnam.
The investigated products include molded fiber products (HS codes 4823.70.0020 and 4823.70.0040, among others). The petitioners in the case are Genera, Tellus Products, LLC, and the United Steelworkers (USW). Vietnam’s export value for these products in 2023 was approximately $23 million.
- Period of Investigation: Calendar year 2023
- Investigation Initiation Date: October 28, 2024
The USA Department of Commerce (DOC) issued Quantity & Value (Q&V) questionnaires to eight Vietnamese companies. Three companies failed to respond on time and were deemed non-cooperative. One company was selected as the mandatory respondent, and its investigation results will serve as the basis for determining duties on other companies.
DOC examined 26 subsidy programs, categorized into six groups: tax incentives, land-use benefits, loans, grants, and the provision of utilities at preferential rates. So far, DOC has sent three rounds of questionnaires to the Vietnamese government and the mandatory respondent.
Preliminary Findings:
- 18 out of 26 programs were determined to be subsidies.
- Preliminary duty rates:
- Mandatory respondent: 3.39%
- Three non-cooperative companies: 173.51% (based on adverse facts available)
- All other companies: 3.39%
Vietnam’s preliminary duty rate is lower than China’s (6.38%), providing a certain competitive advantage.
Due to a surge in imports after the investigation was initiated, DOC has applied retroactive duties covering 90 days before the preliminary determination date.
Although Vietnam’s preliminary duty rate is lower than China’s, Vietnamese businesses should remain cautious, as petitioners may introduce additional allegations that could impact the final determination.
To protect their legitimate interests, manufacturers and exporters should familiarize themselves with the procedure and actively contact Vietnamese law firms specializing in anti-dumping and trade remedy for timely assistance.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for Anti-dumping & countervailing. If you need any advice, please contact us for further information or collaboration.
