On October 31st 2019, Ministry of Industry and Trade issued Decision No. 3267/QD-BCT about investigation and application of anti-dumping measures for some MSG products (HS code. 2922.42.20) from China and Indonesia (case code AD09).
Specifically, on August 4th 2019, the Ministry of Industry and Trade issued a decision so as to initiate an investigation about the case on the basis of a dossier requesting the application of anti-dumping measures. The investigation was conducted according to the provisions of the World Trade Organization (WTO) and Law on Foreign Trade Management accompanying regulations.
Within 45 days from the date of receiving a complete and valid dossier, the investigating agency will examine the dossier and submit it to the Ministry of Industry and Trade for consideration and investigation of the case.
The contents of appraisal of the dossier include: First, determine the legal representative status of the domestic manufacturing industry of organizations and individuals that submit dossiers in accordance with the Law on Foreign Trade Management.
Second, to identify evidence that dumping of imported goods that causes or threaten to cause substantial damage to the domestic industry or to significantly inhibit the information of the domestic industry.
Second, on March 18, the Ministry of Industry and Trade issued Decision No. 881/QD-BTC on the application of temporary anti-dumping tax on some MSG products.
During the preliminary investigation, the Ministry of Industry and Trade considered factors causing damage to the domestic manufacturing industry as well as the level of anti-dumping of export establishments in China, Indonesia. These might cause negative effects on other industries and, more importantly, human health.
According to HIS Markit information and data – the Company that collected the Purchasing Managers Index (PMI) survey results, in 2019, Vietnam is the largest export market of China.
Accordingly, the investigation agency has issued investigation questions for domestic manufacturers and importers to receive information and data for the case. The reply will be dued until December 23. And to ensure the interests of individuals and organizations, the Investigation Agency requires that all domestic and import manufacturers involved in answering investigation questions in a cooperative spirit to clarify the case. In addition, the authorities leading the above production facilities also need to actively communicate information to export partners in China and Indonesia to answer the investigation questions.
Previously, on August 19, the Trade Defense Department received the request for investigation from the requesting parties and the supporters of the case, including: Vedan Vietnam Limited Company and Ajinomoto Vietnam Company.
The absolute tax rate for MSG products imported from China and Indonesia will fluctuate in the range of 2,889,245 – 6,385,289 VND/ton.
The safeguard tax on MSG expires from March 25 and the application of the above anti-dumping tax is fully relevant to the market, and also minimizes the damaging impact on the domestic MSG industry.