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 to 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 brief
In-scope cane sugar imported from the above countries is 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.
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.
Source: CCIPV / Thanh Nguyen / Ngoc Trung Tran / Baker McKenzie's Ho Chi Minh City office