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The Australian Anti-Dumping Commission initiates an anti-dumping investigation on ammonium nitrate compounds imported from Vietnam

On June 8, 2022, the Australian Anti-Dumping Commission (ADC) announced the initiation of an anti-dumping investigation against ammonium nitrate compounds originating from Vietnam, Chile, and Lithuania.

Based on information from Trademap, in 2021, Australia imported a large amount of ammonium nitrate with a volume of about 71,251 tons, equivalent to a turnover of 23.36 million USD.

Among the 5 countries that export the largest amount of ammonium nitrate, Vietnam, Chile, and Lithuania are currently the 3 countries subject to investigation for the dumping of ammonium nitrate compounds.

On the Vietnamese side, according to Trademap information, this country started importing ammonium nitrate into Australia in 2019. In the past 3 to 4 years, the amount of ammonium nitrate exported to Australia has changed remarkably. Specifically, in 2019, Vietnam exported 6.7 thousand tons while exporting 38.6 thousand tons in 2020, equivalent to an increase of about 6 times in export volume in just 1 year.

However, in 2021, Vietnam reduced its exports to only 16.2 thousand tons.

In the three years from 2019 to 2021, Vietnam exported ammonium nitrate to Australia equivalent to an export turnover of 2.56 million USD; 12.13 million USD, and 5.07 million USD.

Anti-dumping investigation of ammonium nitrate imported into Australia

According to information from the Australian Anti-Dumping Commission, the goods investigated in this case are ammonium nitrate compounds in solid form, in the form of tablets or granules or other solid shapes, with or without additives and coatings, packed in bales of more than 10 kg.

In Australia, this compound is mainly used as a raw material for the preparation of explosives used in the mining and construction industries, in addition, it is also used to produce agricultural fertilizers (nitrogen fertilizers), and is partly used to produce special medical gas.

This is an explosive compound, classified as a group of dangerous goods in Australia and classified in the List of production with a plan to prevent and respond to chemical incidents in Vietnam.

The HS code classified by the Survey Questionnaire is 3102.30.00.

It is known that the investigation period for the dumping of ammonium nitrate imported from Vietnam into Australia will be in the period from April 1, 2021, to March 31, 2022. The damage investigation period will be from April 1, 2018.

The dumping margin estimated by ADC for Vietnam is 34.8%; Lithuania is 36.6% and Chile is 38.5%.

Enterprises producing and exporting ammonium nitrate from Vietnam to Australia will have until July 15, 2022, to submit the survey questionnaire.

As expected, key timelines in the anti-dumping investigation for ammonium nitrate compounds will include:

– Time for ADC to issue preliminary investigation conclusions: August 7, 2022 – 60 days from the date of initiation of the investigation. In the event that a preliminary finding is not issued by this date, ADC will issue a notice explaining the reasons and extending the deadline for notifying the conclusion.

– Time for ADC to issue the SEF (Statement of Essential Facts) – the basis for the Final Investigation Conclusion: September 26, 2022.

– Time limit for parties to submit comments on the SEF: within 20 days from the date the SEF is published.

– Time for ADC to issue the final investigation conclusion: November 10, 2022.

– The date the Australian Minister of Industry, Science, Energy, and Resources officially issues the Decision: within 30 days from the date of receiving the final investigation conclusion.

It should be noted that the timeframes above are estimates only. If there is a change in any of the milestones such as delaying the deadline for announcing the preliminary and final investigation conclusions, etc., the timeframes for the above items will be pushed back/upwards respectively.

Stakeholders can obtain relevant documents and the Inquiry Questionnaire at https://www.industry.gov.au/regulations-and-standards/anti-dumping-and-countervailing-system/anti-dumping-commission-current-cases/605.

The Initiation Notice, Request (Public Edition), and Survey Questionnaire can be downloaded here.

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.

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