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In brief

On 1 August 2022, the Ministry of Industry and Trade (MOIT) issued Decision No. 1514/QD-BCT (“Decision No. 1514“) to apply anti-circumvention measures on cane sugar imported from Cambodia, Indonesia, Laos, Malaysia and Myanmar under HS codes 1701.13.00, 1701.14.00, 1701.91.00, 1701.99.10, 1701.99.90, and 1702.90.91. This comes after Vietnam initiated the anti-circumvention investigation on 21 September 2021.

In-scope cane sugar imported from the above countries are subject to the anti-dumping margin of 42.99% and the anti-countervailing margin of 4.65%.

Decision 1514 takes effect from 9 August 2022 until 15 June 2026.


Contents

  1. In more detail
  2. Scope of products
  3. Dumping and countervailing margins
  4. Effective period
  5. Follow-up action

In more detail

Decision No. 1514 concluded that among enterprises from Cambodia, Indonesia, Laos, Malaysia and Burma, the use of sugar materials originating from Thailand to produce and export cane sugar to Vietnam circumvents Vietnam’s anti-dumping and anti-countervailing measures imposed on Thailand-originating cane sugar imported to Vietnam. Decision 1514 provides the following details:

Scope of products

  • Product name: Cane sugar
  • Scientific name: Sucrose
  • HS classification: 1701.13.00, 1701.14.00, 1701.91.00, 1701.99.10, 1701.99.90, and 1702.90.91
  • Origin: Products imported from Cambodia, Indonesia, Laos, Malaysia and Myanmar

Dumping and countervailing margins

All exporters and manufacturers from Cambodia, Indonesia, Laos, Malaysia and Myanmar are subject to the anti-dumping margin of 42.99% and the anti-countervailing margin of 4.65%.

Six manufacturing companies, including PT.Kebun Tebu Mas; Mitr Lao Sugar Company Limited; Savannakhet Sugar Corporation; TTC Attapeu Sugar Cane Sole Co., Ltd.; Than Daung OO Company Limited; and Ngwe Yi Pale Sugar Company Limited are exempted from the anti-circumvention measures above if the customs declarers can submit the relevant C/O, COA, etc.

Effective period

The anti-circumvention measures take effect from 9 August 2022 until 15 June 2026, unless Vietnam extends or changes the timeline.

Follow-up action

Related parties that are affected by this measure may submit a review request to the MOIT for a reconsideration of their eligibility for exemption from this measure.

Author

Thanh Vinh Nguyen is a partner in Baker McKenzie's Ho Chi Minh City office. Prior to joining the Firm, he practiced tax and consultancy work for two international accounting firms and worked as a compliance counsel for an international insurance company. He has co-written Business Operations in Vietnam, published by The Bureau of National Affairs, Inc.

Author

Ngoc Trung Tran is a Senior Regulatory Advisor in Baker McKenzie's Ho Chi Minh City office.