Recently, the United States has announced a change to the regulation on anti-circumvention of trade remedies. For the convenience of Vietnamese businesses as well as organizations and individuals interested in learning about these changes, the Trade Remedies Department has translated this document into Vietnamese.
The changes in the anti-circumvention investigation of trade remedies were introduced by the United States on September 20, 2021, effective November 4, 2021, and more recently, on May 16 In 2022, the US Department of Commerce hosted a Webinar to guide the stakeholders about these changes.
The changed regulations are introduced to strengthen the management and enforcement of anti-circumvention laws. Vietnamese businesses should note that these regulations codify most of the U.S. Department of Commerce’s anti-circumvention investigation practices and procedures that have not been specifically guided before.
Key information in the seminar
During the seminar, the following important issues were raised:
- Four types of circumvention are defined by law and factors the US Department of Commerce considers for each type of circumvention;
- Time and procedural requirements in the new circumvention investigation rule at 19 CFR 351.226;
- Defensive measures may be applied if it is concluded that evasive behavior exists;
- New regulatory assertions under 19 CFR 351.228 and how they apply in the event of a finding that circumvention exists;
- The difference between the original analysis considering the product range and the conclusion of circumvention through assembly or finishing in a third country;
- Methods for stakeholders to participate in the investigation of evasion.
Important information about the US anti-circumvention investigation regulations
According to current US law, “evasive behavior” includes the following 4 cases:
1. Merchandises completed or assembled in the United States
- Merchandises sold in the United States in the same class or kind as the Merchandises are subject to antidumping or countervailing duties;
- Merchandises finished or assembled from parts imported from a country subject to anti-dumping or countervailing duty;
- Assembly or finishing operations in the United States are small or insignificant; and
- The value of the parts and components under consideration accounts for a significant proportion of the total value of the merchandise.
2. Merchandises completed or assembled in other countries
- Merchandises imported into the United States of the same class or kind as the Merchandises are subject to anti-dumping or countervailing duties;
- Merchandises completed or assembled in a third country from parts or components imported from the country subject to anti-dumping or countervailing duty;
- Assembling or completing in a third country from parts imported from a country subject to anti-dumping or countervailing duty is small or insignificant;
- The value of the parts and components under consideration constitutes a significant proportion of the total value of the merchandise;
3. Minor alterations
- Merchandises subject to anti-dumping or countervailing duties have a slight change in shape or appearance;
4. New Version Merchandise
- New version Merchandise developed after the initiation of an anti-dumping/anti-subsidy investigation may be determined to remain within the scope of the anti-dumping/anti-subsidy duty. The U.S. Department of Commerce will consider the following factors to determine whether a new version of a product is covered by the tariffs:
- Whether the new version Merchandises have the same overall tangible characteristics as the Merchandise covered by the tariff;
- Customers’ expectations for the new version of the merchandise are the same as the previous ones;
- Whether the use purpose of the new version of the Merchandises is the same as that of the previous one;
- Whether the new version merchandise will be sold through the same distribution channels as the previous merchandise;
- Whether the new version of the merchandise will be advertised and displayed in the same manner as the previous merchandise;
The seminar documents (English) and reference translations (Vietnamese) 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.
***Other service of ASL LAW – full service Vietnam law firm *** |
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