On April 6, 2020, the Ministry of Industry and Trade issued Decision No. 1079 / QD-BCT investigating anti-dumping for long fibers made from polyester (also known as PFY or filament yarn) under HS codes: 5402.33. 00, 5402.46.00, 5402.47.00 are from the People’s Republic of China (China), the Republic of India, the Republic of Indonesia and Malaysia.
The case was investigated based on a request from a representative of the domestic manufacturing industry (output accounted for 67.4% of total domestic production) submitted on November 7, 2019. According to the Request for Record, the dumping of PFY yarn from these countries has increased sharply in recent years and is a major cause of significant damage to Vietnam’s PFY fiber industry.
According to data from the General Department of Customs, the amount of PFY yarn imported into Vietnam increased from 154 thousand tons in 2017 to 185 thousand tons in 2019. PFY yarn is used to weave fabrics used in the garment industry. Currently, the textile used in the garment industry is mainly made from three types of yarn: filament yarn (PFY yarn), short fiber yarn (PSF) and natural fiber (mainly cotton), in which filament yarn accounts for about 30% of consumption. The design capacity of domestic PFY fiber manufacturers is estimated at 350,000 tons / year, sufficient to meet domestic demand (about 270,000 tons / year).
During the investigation of the case, the Ministry of Industry and Trade will continue to assess the socio-economic impacts to ensure the legitimate rights and interests of the importers, users of PFY yarn and yarn industry. Domestic PFY, support the textile industry to develop, effectively exploit the signed free trade agreements, especially to meet the requirements of rules of origin.
According to the law, after initiating an investigation, the Ministry of Industry and Trade will send the questionnaire to related parties to collect information for analysis and evaluation: (i) the level of dumping; (ii) the loss of Vietnam’s filament yarn industry; and (iii) the causal relationship between dumping behavior and losses of domestic manufacturing industry.
The Ministry of Industry and Trade will carry out the verification and re-verification of information provided by the related parties before completing the official investigation conclusion on the case. At the same time, the Ministry of Industry and Trade will also organize public consultations for stakeholders to directly exchange, provide information, and express views about the case before making a final conclusion on the case.
In accordance with the Law on Foreign Trade Management, in case of necessity, based on the preliminary investigation results, the Ministry of Industry and Trade may apply anti-dumping measures temporarily. In addition, anti-dumping duties may be imposed within 90 days prior to the imposition of provisional anti-dumping duties. Therefore, the Ministry of Industry and Trade recommends that all organizations and individuals that are exporting, importing, distributing, trading and using investigated goods register as stakeholders and provide necessary information to the Ministry. Industry and Trade to ensure their rights and interests in accordance with the law. At the same time, organizations and individuals in the process of signing contracts for import, distribution, trading and use of investigated goods should pay attention to the possibility of applying provisional anti-dumping duties and countervailing duties. dumping effect retroactively.
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