At the seminar “Risks and Solutions to Limit the Investigation and Application of Anti-Circumvention Measures for Vietnamese Goods Exported to the United States,” Mr. Chu Thang Trung, deputy director of the Trade Protection Department of the Ministry of Industry and Commerce, said, that the United States has done so has increased the number of investigations and the application of trade defense measures around the world.

The United States is also one of the countries that conducts the most investigations and application of trade defense measures against Vietnamese exports.

INCREASE NEW Investigative Activities

So far, the US has initiated 51 investigations into Vietnamese goods, accounting for about a quarter of investigations into foreign trade remedies against Vietnamese exports. Of these, 22 cases are investigations into circumventing trade expedients.

In particular, the observation shows that the US cases of investigation and application of trade defense measures in the past mainly focused on anti-dumping investigations, such as pangasius, basa or shrimp-dumping investigative tools, they also use a new investigative activity to combat circumvention of commercial aids.

Anti-circumvention investigation means not only investigating trade fraud, but also investigating whether Vietnamese exports have added value in Vietnam.

Also in 2021, the United States will revise anti-circumvention investigation legislation and apply anti-circumvention measures to tighten the procedures and conditions and make the US Department of Commerce a more appropriate agency for investigative activities.

Ms. Tran Thi Thu Huong, director of the Center for Certification of Trade Documents at the Vietnam Trade and Industry Confederation (VCCI), said the US has made an application since the US-China trade war began on May, July 25, 2018 % duty on 818 Chinese products exported to this market.

This is also an opportunity for Vietnamese goods to increase exports to the US. If you compare the export sales for the first 9 months of 2022 to the United States, this number will increase by 23% compared to the same period last year. However, as export sales increase, so do the trade defense measures used by the US to limit and prevent imports of goods from abroad.

Mr. Do Ngoc Hung, Trade Advisor, Vietnam Trade Office in the US, also said that Vietnam’s exports to the US reached US$101.2 billion in the 11 months, accounting for almost 30% of the total.Vietnam’s exports to countries around the world .

Along with the opportunity to take advantage of the broken supply chain and the US applying trade defense measures against some countries, Vietnam is also taking this opportunity, expanding its market and exporting to the United States.

But opportunities also come with challenges. According to Mr. Hung, it is the number of cases of investigation and application of trade remedies, particularly the application of anti-tax evasion, anti-dumping and anti-subsidy measures on goods.Vietnam’s culture has increased recently.

It is worth noting that when a high tax rate is applied to products imported from China, similar products exported to the US from some other countries have increased, particularly from countries bordering the US with countries subject to trade defense measures.

This is also one of the reasons why the US will conduct investigative investigations and possibly initiate and impose trade measures against these countries, including Vietnam.

NEED TO CREATE GREAT VALUE FOR PRODUCTS

At the seminar, Mr. Do Ngoc Hung also emphasized the difference between ordinary trade defense cases and investigation cases related to tax evasion and anti-dumping and anti-subsidy evasion.

Mr Hung said the US trade law investigation cases were conducted by two independent agencies, including the US Department of Commerce (DOC), which determines the extent of violations, and the International Trade Commission. The United States determines the extent of the damage to the US domestic industry.

Only if the above two authorities come to the affirmative conclusion that there are violations and related actions that are causing harm to the US manufacturing industry will the relevant US authorities apply those actions.

“Because of this feature, participation in countering trade defense lawsuits is carried out through many different channels, at different levels and in different fields, and in some cases may bring opportunities for export companies, including Vietnamese companies,” Mr. Hanged said.

But it is very different with measures on tax evasion and anti-dumping and anti-subsidy evasion. According to Mr. Hung, the investigation and the issuance of conclusions are entirely conducted by the US Department of Commerce (DOC), and the criteria for determining avoidance behavior are completely different from the evaluation criteria in the case of general industrial property protection.

In addition, when anti-circumvention measures are applied, companies find it difficult or almost impossible to apply for a review and must rely entirely on the initial measures that the United States of America applies to other countries’ goods. Dumping and anti-subsidy evasion tax.

Therefore, Mr. Hung said that Vietnamese companies need to improve their understanding of commercial law through seminars and training programs organized by the Ministry of Industry and Commerce.

In the process of production and export, it is necessary to add value and added value to the product, and thereby also contribute to increasing the absolute value of exports, bring benefits to enterprises and limit the number of cases.

In addition, Mr. Trung said that when companies are involved in investigative cases, they need to be proactive and active and overcome fears. The information provided to the investigating authority must be consistent with each other.

At the same time, the capacity and management system of enterprises should be improved to help limit the risk of investigation and apply anti-circumvention measures.