Antidumping issues in world trade organization and vietnamese law and practice

hanoi l ;:? y or law iuijd univet^ t ’-Twt i TI V; Ci>< ^T \\ * MASTER CF LAW THESIS LUND UNIVERSITY HANOI UNIVERSITY OF LAW FACULTY OF LAW ANTIDUMPING ISSUES IN WORLD TRADE ORGANIZATION AND VIETNAMESE LAW AND PRACTICE SPECIALTY: INTERNATIONAL AND COMPARATIVE LAW CODE: 60 38 60 MASTER OF LAW THESIS STUDENT: LE NHU PHONG _ TH U ’ V IE N TRUONG DAI HOC LUAT HA NOI SUPERVISORS: DR VU THI HONG MINH PHONG D O C / / P f ' DR.PROF CHRISTINA MOELL HANOI - 2004 TABLE OF CONTENTS Page T A BL E OF C O N T E N T S A B B R E V IA T IO N S ACKNOW LEDGEM ENTS IN T R O D U C T IO N C H A PT E R I: SO M E T H E O R IE S O F D U M P IN G A N D A N T I-D U M P IN G IN 10 G A T T /W T O I- D um ping in international trade 10 - W h a t is d u m p in g ? 10 2- 12 W h y d u m p a n d W h a t fo r ? - Im p a c ts o f d u m p in g in in t e r n a t io n a l tra d e II- A nti-dum ping law and practice o f W T O 14 15 - A n t i- d u m p in g u n d e r W T O 15 - N o rm a l V a lu e 16 E x p o r t P r ic e 17 3- - T h e m a r g in o f d u m p in g 20 - D e te r m in a t io n o f in ju r y 22 - C a u s a l r e la t io n s h ip b e tw e e n th e d u m p e d im p o r t s a n d th e in ju r y to th e 24 d o m e s tic in d u s t r y - D o m e s tic in d u s t r y 24 - P r o c e d u l P r o c e e d in g s 25 - I m p o s it io n a n d C o lle c t io n o f A n t i- D u m p in g T a x 27 10- A n t id u m p in g A c t io n o n B e h a lf o f a T h ir d C o u n t r y 28 1 1- C o m m it te e o n A n t i- D u m p in g P c tic e s 28 12- C o n s u lt a t io n a n d D is p u te S e ttle m e n t 28 C H A PT E R II A N T I-D U M P IN G LAW AND PR A C T IC E IN V IE T N A M 30 I- Socio-econom ic and political background in V ietnam 30 1- I n te r n a tio n a l e c o n o m ic in te g r a tio n p ro c e s s o f V ie t n a m 30 - O v e r v ie w o f th e le g a l s y s te m in g e n e l a n d tra d e la w in p a r t ic u la r 31 II- A nti-dum ping Law and Practice in Vietnam 31 - R e g u la tio n s o n A n t i- d u m p in g 2- 31 B a s ic c o n te n ts o f O r d in a n c e o n a n t i- d u m p in g o f im p o r ts in to V ie t n a m 3 - T h e re a l s itu a tio n o f In v e s tig a tio n a n d a p p lic a tio n o f a n ti- d u m p in g m e a s u re s fo r Im p o r ts to V ie tn a m and V ie tn a m e s e e x p o rts a p p lie d 39 a n ti- d u m p in g m e a s u re s 3.1- The real situation of Investigation and application o f anti- 39 dumping measures in Vietnam 3.2- The real situation o f imports and exports o f Vietnam being investigated and applied anti-dumping measures 39 in foreign markets C H A PTER III- R E C O M M E N D A T IO N S AND SO L U T IO N S TO PE R FE C T 42 ON T H E A N TI-D U M PIN G LAW IN V IE T N A M I- Point o f view on anti-dum ping law perfecting direction 42 II- Som e recom m endations to perfect the anti-dum ping law 43 I- P e r f e c t in g t h e V ie t n a m e s e la w s y s t e m in g e n e r a l a n d t r a d e la w a n d 43 a n t i - d u m p i n g l a w in p a r t ic u l a r 1.1- I m p r o v i n g th e t r a n s p a r e n c y , p u b l i c i t y o f th e t r a d e la w in g e n e r a l 43 a n d a n t i - d u m p i n g la w in p a r t ic u l a r 1.2- B u i l d i n g th e u n i t y a m o n g th e a n t i- d u m p i n g o r d in a n c e a n d o t h e r le g a l o r d in a n c e s 44 1.3- T h e G o v e r n m e n t s h o u ld s t r e n g t h e n o f th e C o m p e titio n D e p a rtm e n t, th e S ta te m a n a g e m e n t a b i l i t y M in is tr y o f T d e and 45 o th e r S ta te ’ s o rg a n s f o r a n ti- d u m p in g 2- P r o p a g a tin g , im p r o v in g a w a r e n e s s o f a u th o r itie s an d e n te r p r ise s 47 CONCLUSIONS 48 ANNEX 49 ANNEX 52 ANNEX 53 ANNEX 54 REFERENCES 56 LIST OF ANTI-DUMPING CASES 59 ABBREVIATIONS AD : A n t i D u m p in g AD A : T h e A g r e e m e n t o n I m p le m e n t a t io n o f A r t ic le V I o f th e G e n e r a l A g r e e m e n t o n T a r i f f a n d T d e 9 VAD : T h e O r d in a n c e o n a n t i- d u m p in g o f im p o r ts in t o V ie t n a m G ATT : G e n e l A g re e m e n t o n T a r if f s DOC : D e p a rtm e n t o f C o m m e rc e , EU : E u r o p e a n U n io n EC : E u ro p e a n C o m m u n ity NV : N o r m a l V a lu e EP : E x p o r t P r ic e LP : L ik e P ro d u c ts W TO : W o r l d T r a d e O r g a n iz a t io n a n d T d e t h e U n it e d S ta te s ACKNOWLEDGEMENTS First of all, I am grateful to Dr Vu Thi Hong Minh - lecturer o f the International Law Faculty, Hanoi Law University for her considerate and enthusiastic commentaries I am equal grateful to the lecturers of the Post-Graduate Faculty, Hanoi Law University, to the lecturer, Dr Hoang Phuoc Hiep - Chief o f International Law Department, Ministry of Justice, to Dr Christina Moell - lecturer of the Faculty of Law at the University o f Lund in Sweden and to the Faculty of Law at the University of Lund in Sweden for knowledge and experience as well as support along my way o f this long and hard study and completion of this thesis I go my gratitude to lecturer, lawyer Nguyen Van Thao and the Economic Law Faculty o f Hanoi University of Business and Management for encouragement and support I would like to extend my acknowledgement to sirs and madams working at Ministry of Justice, Ministry of Trade, National Assem bly’s Office, and Governmental Office for enthusiastic assistance for my completion o f this thesis Finally, I should give my thanks to SIDA project, colleagues, friends and family for their understanding and both material and spiritual support along my study IN T R O D U C T IO N 1- Background T h e W o r ld T r a d e O r g a n iz a tio n “ W T O ” is th e la rg e s t c o m m e r c ia l in s t it u t io n in th e w o r ld It has b e e n in s t it u t io n a liz in g a n d k e e p in g o rd e rs in th e m u lt ila t e r a l c o m m e r c ia l s y s te m in th e W o r ld T h a n k s to its m e m b e r c o u n tr ie s a n d t e r r it o r ie s , W T O ’ s c o m m e r c ia l tra n s a c tio n s a re a c c o u n tin g f o r o v e r % th e c o m m e r c ia l tra n s a c tio n s o v e r th e w o r ld U n d e r th e in c r e a s in g ly s tr o n g e r g lo b a liz a t io n , V ie t n a m has b e e n a c t iv e ly p r o m o tin g its in te r n a tio n a l c o m m e r c ia l in te g r a tio n w it h th e d ir e c t io n : m u lt ila t e r a liz in g , d iv e r s if y in g , t a k in g in it ia t iv e s o f in te g r a t in g in to in te r n a tio n a l e c o n o m y s u ita b le w it h V ie tn a m e s e c o n d itio n s a n d e n s u r in g th e u n d e r ta k in g s in b ila t e r a l a n d m u lt ila t e r a l r e la tio n s A f t e r a decade o f “ D o i M o i” ( In n o v a t io n ) ( ) , V ie t n a m has o b ta in e d m a n y r e m a rk a b le a c h ie v e m e n ts in s o c io - e c o n o m ic a s p e c ts , e s p e c ia lly , in c o m m e r c ia l V ie tn a m s e n te re d a lo t of r e g io n a l and in te r n a t io n a l e c o n o m ic o n e s e c o n o m ic - c o m m e r c ia l o r g a n iz a tio n s , m a d e c o m m e r c ia l p o lic ie s m e e tin g r e q u ir e m e n ts o f W T O p r o m p t ly in o r d e r to be a d m itte d as m e m b e r o f W T O in 0 T h e s e a c t iv itie s , i n it ia l ly , m a k e th e V ie tn a m e s e e c o n o m y b e c o m e a c o m p o n e n t o f th e r e g io n a l a n d g lo b a l e c o n o m y V ie tn a m s h o u ld o p e n its m a r k e t, in te g te in t o th e g lo b a l e c o n o m y a n d as w e ll as r e a liz e o p e n e d c o m m e r c ia l p o lic ie s a t th e s a m e tim e c r e a tin g c o n d itio n s to f o r e ig n in v e s to rs to e n te r th e m a r k e t W h ile r e a liz in g th e c o m m itm e n ts to c u t d o w n th e t a r if f s , e lim in a te g r a d u a lly n o n - t a r if f b a r r ie r s , V ie tn a m is f a c in g w it h tw o phenom enons th a t h a v e re m a rk a b le e ffe c ts o n e c o n o m ic d e v e lo p m e n t g r o w t h a n d d is t o r t in g th e h e a lth y tra d e c o m p e t it io n F ir s t, V ie tn a m e s e e x p o rts are s u e d f o r d u m p in g in f o r e ig n m a rk e ts S e c o n d , im p o r ts to V ie t n a m ( d e s p ite th e re w e re n o o f f i c ia l in v e s tig a tio n s ) a re h ig h ly p o s s ib le d u m p e d c a u s in g p o te n tia l th re a t o f s e rio u s in ju r y o n th e p r o d u c t io n o f lik e p ro d u c ts in V ie tn a m , a n d in lo n g - te r m , m a k in g c o n s u m e rs h e a v y in ju r ie s b y c o m p e t it io n k il le d T o p r o te c t th e h e a lth y c o m m e r c ia l c o m p e titio n , r ig h t in te re s ts o f h o m e p ro d u c e rs a n d lo n g te rm in te r e s t o f c o n s u m e rs , V ie t n a m s h o u ld h a v e n e w le g a l to o ls g o v e r n in g s o c ia lly a ris e n r e la tio n s t im e ly a n d e f f e c t iv e ly th a t are in a c c o rd a n c e w it h in te r n a t io n a l ru le s O n e o f th e se to o ls is le g a l r e g u la tio n o n a n ti- d u m p in g A s p ro v e d b y th e in te r n a t io n a l c o m m e r c ia l V ietnam ese G o v e rn m e n t: Draft A n ti-d u m p in g O rdinance for im ports to V ie tn a m ,2003 " See footnote N o r e a lity , it is q u ite com m on a n d e f f e c t iv e to o l to o v e r c o m e th e u n f a ir c o m p e t it io n re c o g n iz e d a n d a c c e p te d b y W T O V ie t n a m has been c o n s t r u c t iv e ly a m e n d in g , s u p p le m e n tin g and is s u in g new le g a l d o c u m e n ts in o r d e r to ta k e in it ia t iv e s o f in te g r a t in g in to th e g lo b a l e c o n o m y a n d in c o n f o r m it y w ith in t e r n a t io n a l s ta n d a rd s L e g a l r e g u la tio n s o n tra d e in c lu d in g r e g u la tio n s on a n t i- d u m p in g a re m o re p r e s s in g and p a id a tte n tio n to by e c o n o m is ts , la w y e r s , e n te rp ris e s a n d la b o u r e r s T h e a n ti d u m p in g la w o n im p o r ts to V ie t n a m is th e v e r y in fa n t issu e b o th in th e o r y a n d in p r a c tic e e tc A lt h o u g h , th e re h a v e b e e n s o m e o rg a n s a n d s c h o la rs a p p ro a c h in g th e o r ie s a n d p r a c tic e s r e la t in g to a n t i- d u m p in g as “ Scientific bases o f anti-dum ping tax application in V ietnam ” b y D e p a r tm e n t o f M u lt il a t e r a l C o m m e r c ia l P o lic y - M in i s t r y o f T r a d e ; th e b o o k policies on im p o rts9' b y D oan Van “D um pin g a n d A n ti-d u m p in g m easures and T ru o n g (1 9 ); book “ A nti-D um ping Law, necessaries” b y V ie t n a m C o m m e r c ia l a n d I n d u s t r ia l C h a m b e r ( 0 ) , th e s e s u b je c ts h a v e n o t a d d re s s e d c o m p r e h e n s iv e ly a r is in g a n t i- d u m p in g is s u e s , e s p e c ia lly th e a n t i- d u m p in g s tru c tu r e w it h r e s tr a in s o n s c o p e , ta rg e t, s p e c ia liz e d r e q u ir e m e n ts T h e r e fo r e , th e s tu d y “A nti-D um ping issues in W T O m o re p r o fo u n d c o n s id e r a tio n s a p p lic a tio n b y W T O and on V ietnam ese law and practice” w i l l g iv e r u le s and p r a c tic e s of a n t i- d u m p in g m e a s u re s a n d V ie t n a m , to m a k e r e fe re n c e a n d d r a w s o lu tio n s to p e r fe c t V ie tn a m e s e a n t i- d u m p in g r u le s T h is is a ls o th e re a s o n w h y I s e le c t t h is to p ic f o r m y m a s te r o f la w th e s is 2- R esearching m aterials and m ethods 2.1- R esearching m aterials T h e a n t i- d u m p in g is o n e o f fr e s h to p ic s in V ie t n a m u n d e r its in t e g r a t io n in t o th e r e g io n a l a n d g lo b a l e c o n o m y A lt h o u g h , V ie t n a m h a s p r o m u lg a te d le g a l d o c u m e n ts g o v e r n in g a n t i- d u m p in g is s u e s , th e re h a s n ’ t b e e n a n y c a s e r e la t in g to a n t i- d u m p in g , s o V ie tn a m has n o e x p e rie n c e s in p r a c t ic in g a n d th e o r y o n th is is s u e I ta k e a d v a n ta g e o f m a te r ia ls b o th in V ie tn a m e s e and in E n g lis h on my re s e a rc h as s p e c ia liz e d n e w s p a p e rs and boo ks, s c ie n t if ic re s e a rc h e s P a r t ic u la r ly , I fo c u s o n d a ta b a s e f r o m w e b s ite s : • W e b s ite o f W T O h ttp ://w w w w to o rg Outline o f A n ti-d u m p in g O rd in a n c e for im ports to V ietn am , M in istry o f T rade, M in istry o f Justice, p • W e b s ite o f E u ro p e a n U n io n h t :/ /w w w e u r o p a e u in t • W e b s ite o f D e p a r tm e n t o f C o m m e r c e , th e U n it e d S ta te h t t p : / / w w w u s a tra d e g o v • W e b s ite o f V ie tn a m e s e M in i s t r y o f T d e h ttp ://w w w m o t.g o v v n • W e b s ite a b o u t le g a l base s o f V ie tn a m e s e N a t io n a l A s s e m b ly h t t p : / / w w w v ie t la w g o v v n 2.2- R esearchin g m ethods T h e to p ic is b a s e d o n r e c o g n iz e d o p in io n s in s o m e im p o r t a n t d o c u m e n ts o f th e S ta te o f V ie tn a m f o r d e v e lo p m e n t o f la w m a k in g a n d g lo b a l e c o n o m ic in te g r a t io n I a p p ly s o m e m e th o d s o f le g a l a n a ly s is , la w e x p la n a tio n , ca se a n a ly s is , e s p e c ia lly , c o m p a r is o n w it h d if f e r e n t le g a l in s t it u t io n s to id e n t if y s im ila r it ie s a n d d iffe r e n c e s a m o n g a p p lic a tio n o f a n t i- d u m p in g m e a s u re s b y W T O a n d V ie tn a m A n d I a ls o c o n s u lt w it h c o m m e n ta rie s o f re s e a rc h e rs , e x p e rts o n th is to p ic Scope o f thesis T h e p u rp o s e o f th is th e s is is to a n a ly s is a n t i- d u m p in g la w u n d e r W T O w it h illu s tr a t io n s o f s o m e ca se s th a t w e r e a p p lie d c o n c re te a n t i- d u m p in g m e a s u re s in s o m e c o u n tr ie s in a im o f m a k in g le g a l in s t it u t io n s , th e re a l a p p lic a tio n o f le g a l to o ls c o n c e rn e d w it h a n t i- d u m p in g m o re c le a r in d a ta in W T O m e m b e r c o u n tr ie s T h e th e s is is c o n c e rn e d w it h th e a n t i­ d u m p in g la w a n d p r a c tic e s in th e g e n e l tra d e p o lic y in V ie t n a m u n d e r its g lo b a l e c o n o m ic in te g r a t io n The aim o f the thesis T o re a c h th e a b o v e m e n t io n a im , th e th e s is s h o u ld : • E x p la in in g c le a r ly th e c o n n o ta tio n o f th e d u m p in g c o n c e p t a n a n t i- d u m p in g c o n c e p t in in te r n a t io n a l tra d e • S tu d y in g le g a l r e g u la tio n s of W TO to im p le m e n t a n t i- d u m p in g m e a s u re s , illu s t r a t in g w it h la w s u its to m a k e th e a p p lic a tio n o f a n t i- d u m p in g la w m o re c le a r in W T O m e m b e r c o u n tr ie s LIST OF ANTI DUMPING CASES 1- C a se T - /9 S h a n g h a i B ic y c le C o r p v C o u n c il ( B ic y c le ) , J u d g m e n t o f th e C o u r t o f F ir s t In s ta n c e , S e p te m b e r 9 [ 9 ] E C R 1 -1 2- C a se T - l /9 T h a i B ic y c le I n d u s t r y C o L t d v C o u n c il, J u d g m e n t o f th e C o u r t o f F ir s t In s ta n c e , 17 J u ly 9 [ 9 ] E C R 1 -2 9 3- C a se T - l 8 /9 , E u r o a llia g e s v C o m m is s io n , In s ta n c e , Ju n e 0 4- O th e rs 59 J u d g m e n t o f th e C o u r t o f F ir s t ... UNIVERSITY OF LAW FACULTY OF LAW ANTIDUMPING ISSUES IN WORLD TRADE ORGANIZATION AND VIETNAMESE LAW AND PRACTICE SPECIALTY: INTERNATIONAL AND COMPARATIVE LAW CODE: 60 38 60 MASTER OF LAW THESIS STUDENT:... of dum ping and anti-dum ping in G A T T /W T O C hapter 2: A nti-dum ping Law and Practice in V ietnam C hapter 3: R ecom m en dation s and R esolutions to perfect on anti-dum ping law in Vietnam... equipment and machines; equipment of photography and cinema for identifying or examining; medical surgery machines and equipment; o''clock; music listerning equipment and their parts and accessories