Experts to exporters: Cope with anti-dumping lawsuits

Recently at an international furniture and home accessories fair in Ho Chi Minh City, Vietnam Association Seafood Exporters and Producers (VASEP) representatives shared experiences in dealing with lawsuits regarding anti-dumping.

Experiences from the seafood industry

Truong Dinh Hoe, VASEP General Secretary, said shrimp and tra fish- the nation’s major aquatic export items-make up over 50% of seafood export values each year. However, they have faced anti-dumping lawsuits in the US market.

In 2002, Vietnamese tra fish faced anti-dumping lawsuits and experienced several administrative reviews by the DOC.

Moreover, in the ninth administrative review, the DOC decided to set a hefty 25-45 fold tax increase on tra fish imports from Vietnam.

Although the US is expected to consider decreasing duties on shrimp imported from Vietnam, it has continued to impose an anti-dumping tax of 4.57% levied against Vietnamese shrimp products.

In 2012, DOC launched an anti-subsidy investigation into shrimp imports from Vietnam, which made export businesses face two lawsuits in the US market at the same time for dumping. The US finally dropped the case as Vietnamese exporters have struggled to protect their legitimate rights. Therefore, the seafood industry has always considered dealing with these lawsuits as a top priority.

Hoe said the tra fish industry began developing at a time when the US lodged anti-dumping lawsuits against the tra fish imports from Vietnam. This is also the first lawsuit and Vietnamese businesses have not had previous experience to cope or understand it. At that time, VASEP and businesses have failed to make proper assessments about the complexities of the lawsuits, opportunities and challenges when engaging in the next administrative reviews.

According to the results of the initial investigation, businesses have to undertake the burden of high import tax at some 12%, according to Mr. Hoe.

Commodities face risks of anti-dumping lawsuits

Although the US has not yet filed anti-dumping lawsuits on Vietnam’s wood exporters, China now incurs high anti-dumping duties.  Consequently, Vietnamese businesses should make thorough preparations for the likelihood of lawsuits in the future.

Huynh Van Hanh, Vice President of the Ho Chi Minh City Handicraft & Wood Industry (HAWA) said China has incurred high anti-dumping duties of some 40% in the US market. This has provided a huge opportunity for local businesses to boost exports in the US markets. However, businesses should guard against the risks of anti-dumping lawsuits.

HAWA plans to use materials from a nation to which businesses will export their products. For example, industries keen to export goods to US market will be encouraged to import raw materials from the lucrative market.

According experts, several Vietnamese export items face a high risk of anti-dumping lawsuits such as leather goods, footwear, rubber products, iron and steel. When the demands for imports in a foreign market have increased, logistical barriers will be tightened to protect domestic products. In this case, businesses should be aware that they are likely to face anti-dumping lawsuits.

Thus, businesses should select a qualified legal representative and offer products at a highly competitive price.  They and associations need to be prepared make full preparations to actively get involved in administrative reviews, proving that Vietnamese businesses have not dumped their products and offer a full defense.