C/O fraud prevention council to debut next week

HCMC – A council responsible for preventing certificate of origin (C/O) fraud will be launched in Hanoi on October 14, said an expert in the industry.  

Tran Thi Thu Huong, director of the trade documents attesting center of the Vietnam Chamber of Commerce and Industry (VCCI), told the Daily on the phone that the VCCI-affiliated council would issue early warnings about suspected C/O fraud.

The launch comes at a time when many experts are warning of rising C/O fraud in other countries where companies want to evade anti-dumping tariffs.  

“Enterprises should take caution when signing commercial and investment cooperation contracts with partners for products having high risk of being imposed anti-dumping tariffs,” she said, adding the council would work companies via industry associations.  

The forthcoming council will also work with the Ministry of Planning and Investment to provide advice for foreign companies before they set up shop in Vietnam if their products belong to the list of goods already subject to anti-dumping duties. It aims to prevent the possibility that their products don’t meet requirements for C/Os.

“An early warning will help investment licensing agencies that will in turn let investors know whether their products are eligible for certification of origin or not,” said Huong. “This procedure can prevent foreign investors from building factories without a single production line in Vietnam or with pro forma production facilities just to apply for C/Os.”

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C/O fraud prevention council to debut next week

HCMC – A council responsible for preventing certificate of origin (C/O) fraud will be launched in Hanoi on October 14, said an expert in the industry.  

Tran Thi Thu Huong, director of the trade documents attesting center of the Vietnam Chamber of Commerce and Industry (VCCI), told the Daily on the phone that the VCCI-affiliated council would issue early warnings about suspected C/O fraud.

The launch comes at a time when many experts are warning of rising C/O fraud in other countries where companies want to evade anti-dumping tariffs.  

“Enterprises should take caution when signing commercial and investment cooperation contracts with partners for products having high risk of being imposed anti-dumping tariffs,” she said, adding the council would work companies via industry associations.  

The forthcoming council will also work with the Ministry of Planning and Investment to provide advice for foreign companies before they set up shop in Vietnam if their products belong to the list of goods already subject to anti-dumping duties. It aims to prevent the possibility that their products don’t meet requirements for C/Os.

“An early warning will help investment licensing agencies that will in turn let investors know whether their products are eligible for certification of origin or not,” said Huong. “This procedure can prevent foreign investors from building factories without a single production line in Vietnam or with pro forma production facilities just to apply for C/Os.”

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US reduces dumping duties on shrimp

Farmers harvesting shrimp in southern Bac Lieu province's Vinh Trang Dong Commune_VNA/VNS photo Huynh Su

HA NOI — The US Department of Commerce has decided to cut anti-dumping tariffs it had imposed on 31 Vietnamese shrimp exporters by 0.01-0.69 percentage points.

The move followed feedback to the department's fourth administrative review conducted between February 2008 and January 2009 of shrimp imported into the US by Nha Trang Seafood Joint Stock Co, Minh Phu Seafood Co, and Minh Hai Seafood Co.

Under the revised tariffs, the duty on shrimps imported by Nha Trang will be reduced from a maximum on 5.58 per cent to 4.89 per cent. Minh Phu will see a reduction of 0.01 per cent to 2.95 per cent, while the others will be subject to a duty of 3.92 per cent, reduced from the previous 4.27 per cent.

Viet Nam urges US lower trade barriers GENEVA — The US needs to minimise trade barriers and participate more actively in the multilateral trade system, said Ambassador Vu Dung, head of Viet Nam's delegation to the World Trade Organisation (WTO) and other international agencies in Geneva, at a session at WTO headquarters last week to review US trade policies. Dung, leading a delegation of officials from the Vietnamese ministries of Foreign Affairs and Industry and Trade, voiced concerns over US trade barriers that have resulted in anti-dumping duties against frozen shrimp, tra (pangasius) fish, and plastic bags imported from Viet Nam. Viet Nam expected the US to re-examine its imposition of anti-subsidy and anti-dumping tariffs before making decisions affecting other WTO members, Dung said. The US became Viet Nam's leading export market in recent years, importing US$11.5 billion worth of goods in 2009 – a fifth of Viet Nam's total exports. — VNS

The Viet Nam Association of Seafood Exporters and Producers (VASEP) continued to complain, however, that Vietnamese companies were subject to higher duties than Indian exporters, which paid duties no higher than 4.44 per cent.

Last April, Viet Nam asked the World Trade Organisation (WTO) Dispute Settlement Body to set up a panel to review US anti-dumping measures imposed on frozen warm-water shrimp from Viet Nam. WTO general director Pascal Lamy recently appointed three members to the panel.

After six months, the panel was expected to make a final report, clearing the way for further legal action between the parties. If it proceeds, this would constitute Viet Nam's first trade lawsuit against a WTO member . — VNS

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Industry group protests US tariff on Vietnam tra fish

The Vietnam Association of Seafood Exporters and Producers said Thursday it opposed the preliminary anti-dumping tariffs which the US imposed on Vietnamese frozen tra fish fillets.

According to the association, the US Department of Commerce’s decision unreasonably based the tariffs on production prices in the Philippines--a country with an exceptionally small tra fish industry. The tariffs amount to more than 100 percent of the sales price.

Production prices in the Philippines are always higher than in Vietnam, which has the largest tra fish sector in the world with an output of more than 1.2 million tons a year, the seafood association said.

The association demanded that the US Department of Commerce consider lowering the tariffs and use Bengladeshi prices as a point of comparison.

Vietnamese tra fish products rank in the top ten favorite commodities in the US. Vietnam exported around 41,000 tons of tra fish worth US$134 million to the US last year. The sales accounted 6.75 percent of its total tra exports around the world.

Previously, the US Department of Commerce applied low anti-dumping tariffs of up to 0.52 percent on Vietnamese tra.

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Vietnam says to head off U.S. tra anti-dumping tariffs

Tra fish harvested at a farm in the Mekong Delta. Vietnam is trying to prevent the possible U.S. anti-dumping levy on tra imports from Vietnam, which might reach 136% - Photo: Le Toan

HCMC – The agriculture ministry has said the Government would take action if the U.S. imposes new anti-dumping tariffs on tra fish imports from Vietnam, which could amount to 136%.

Deputy Minister of Agriculture and Rural Development Luong Le Phuong told reporters in HCMC on Tuesaday that the Government would do something to prevent this; otherwise, it would affect tra exports to other markets.

“Though tra exporters are not totally dependent on America, the levy may set a negative precedent by encouraging other markets like the EU and Middle East to follow suit. That’s why we must make concerted effort to cope with the matter,” Phuong said.

The United States Department of Commerce (DOC) has said unofficially that the anti-dumping tariffs for products of certain Vietnamese seafood exporters might reach 136%. In a review of the tariffs, DOC used the Philippines as the third-country market to determine dumping margins for Vietnamese tra fish, instead of Bangladesh, thus leading the tariffs to rise.

If the new prohibitively high tariffs are imposed in March next year, many tra fish exporters will certainly leave this market.

Andrew B. Schroth, advocate of the Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP who has advised tra fish exporters on the anti-dumping case, said that if DOC took this decision, it could be seen punitive rather than variable from the last time.

“Though the final rates will not be released until six months later, related sides must work very hard in order to divert the decision,” Schroth told the press conference at the Vietnam Association of Seafood Exporters and Producers office in HCMC.

The possible measures which Vietnam should take, he said, include using all available channels in the Philippines, both legal and political, to prove that the choice of the Philippines as a third country to consider as the benchmark is not at all appropriate.

The Philippines is, in many aspects, far different from Vietnam. Labor, business management cost and even the raw material price are higher than in Vietnam, but they were used for the calculation of dumping margins of Vietnam’s tra fish.

A source from the agriculture ministry, who requested anonymity, said earlier that it was due to the growing popularity of the fish on the American market that had resulted in the Catfish Farmers of America (CFA) lobbying against Vietnamese tra fish.

Last week, John Connelly, president of the U.S. National Fisheries Institute, said during his visit to Vietnam that Vietnamese tra had for the first time become one of the most favorite fish in the U.S.

This explains why DOC suddenly shifted to the Philippines as a third country to calculate dumping margins, the ministry source said.

In the previous anti-dumping review, a majority of Vietnamese exporters enjoyed the lowest tariff of 0.52% and some were even recognized as not dumping the fish on the American market.

The anti-dumping tariffs for Vietnamese tra exports to the U.S. have impacted on the local industry since 2003. Last year tra exports to this market totaled US$134 million, about 10% of the total export.

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Vietnam says to head off U.S. tra anti-dumping tariffs

Tra fish harvested at a farm in the Mekong Delta. Vietnam is trying to prevent the possible U.S. anti-dumping levy on tra imports from Vietnam, which might reach 136% - Photo: Le Toan

HCMC – The agriculture ministry has said the Government would take action if the U.S. imposes new anti-dumping tariffs on tra fish imports from Vietnam, which could amount to 136%.

Deputy Minister of Agriculture and Rural Development Luong Le Phuong told reporters in HCMC on Tuesaday that the Government would do something to prevent this; otherwise, it would affect tra exports to other markets.

“Though tra exporters are not totally dependent on America, the levy may set a negative precedent by encouraging other markets like the EU and Middle East to follow suit. That’s why we must make concerted effort to cope with the matter,” Phuong said.

The United States Department of Commerce (DOC) has said unofficially that the anti-dumping tariffs for products of certain Vietnamese seafood exporters might reach 136%. In a review of the tariffs, DOC used the Philippines as the third-country market to determine dumping margins for Vietnamese tra fish, instead of Bangladesh, thus leading the tariffs to rise.

If the new prohibitively high tariffs are imposed in March next year, many tra fish exporters will certainly leave this market.

Andrew B. Schroth, advocate of the Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP who has advised tra fish exporters on the anti-dumping case, said that if DOC took this decision, it could be seen punitive rather than variable from the last time.

“Though the final rates will not be released until six months later, related sides must work very hard in order to divert the decision,” Schroth told the press conference at the Vietnam Association of Seafood Exporters and Producers office in HCMC.

The possible measures which Vietnam should take, he said, include using all available channels in the Philippines, both legal and political, to prove that the choice of the Philippines as a third country to consider as the benchmark is not at all appropriate.

The Philippines is, in many aspects, far different from Vietnam. Labor, business management cost and even the raw material price are higher than in Vietnam, but they were used for the calculation of dumping margins of Vietnam’s tra fish.

A source from the agriculture ministry, who requested anonymity, said earlier that it was due to the growing popularity of the fish on the American market that had resulted in the Catfish Farmers of America (CFA) lobbying against Vietnamese tra fish.

Last week, John Connelly, president of the U.S. National Fisheries Institute, said during his visit to Vietnam that Vietnamese tra had for the first time become one of the most favorite fish in the U.S.

This explains why DOC suddenly shifted to the Philippines as a third country to calculate dumping margins, the ministry source said.

In the previous anti-dumping review, a majority of Vietnamese exporters enjoyed the lowest tariff of 0.52% and some were even recognized as not dumping the fish on the American market.

The anti-dumping tariffs for Vietnamese tra exports to the U.S. have impacted on the local industry since 2003. Last year tra exports to this market totaled US$134 million, about 10% of the total export.

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VASEP decries tariffs on tra fish

Photo: Tuoi Tre

The anti-dumping tariffs imposed on tra fish exported from Vietnam to the American market from August 2008 to July 2009 were not reasonable, said the Vietnam Association of Seafood Exporters and Producers (VASEP).

In accordance with the US Department of Commerce (DOC)'s preliminary decision, Vietnamese businesses paid US$4.22 per kilo in taxes, while tra fish's market price in the US was lower than the Vietnamese product's after-tax prices, said Nguyen Huu Dung, VASEP vice chairman.

The domestic firms incurred huge losses due to high anti-dumping tariffs, Dung said. He said that the association was now coordinating with relevant agencies and businesses to ask the DOC to reconsider its anti-dumping taxes on tra fish imported from Vietnam.

The DOC makes an annual decision on whether to increase or reduce anti-dumping taxes on Vietnamese commodities.

Anti-dumping tariffs, which were between 0.1 and 0.52 percent, had been imposed on Vietnam's tra fish in the past, which helped to facilitate the flow of tra fish into the American market.

The US National Fisheries Institute (NFI) said there were untapped opportunities in the US market for Vietnamese seafood exporters because the fish was listed in the top 10 of the most consumed seafood products in the US in 2009.

Several Vietnamese fish farms have received Global GAP (Good Agricultural Practice) certifications, which has created a foundation for Vietnamese seafood exporters to expand their outlets.

The statement was made by an NFI representative during a meeting with the representatives from the Ministry of Agriculture and Rural Development in Ho Chi Minh City late last week.

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VASEP decries tariffs on tra fish

The anti-dumping tariffs imposed on tra fish exported from Vietnam to
the American market from August 2008 to July 2009 were not reasonable,
said the Vietnam Association of Seafood Exporters and Producers (VASEP)
vice chairman, Nguyen Huu Dung.

In accordance with the US Department of Commerce (DOC)'s preliminary
decision, Vietnamese businesses paid 4.22 USD per kilo in taxes, while
tra fish's market price in the US was lower than the Vietnamese
product's after-tax prices.

The domestic firms
incurred huge losses due to high anti-dumping tariffs, Dung said. He
said that the association was now co-ordinating with relevant agencies
and businesses to ask the DOC to reconsider its anti-dumping taxes on
tra fish imported from Vietnam.

The DOC makes an
annual decision on whether to increase or reduce anti-dumping taxes on
Vietnamese commodities. Anti-dumping tariffs, which were between 0.1 and
0.52 percent, had been imposed on Vietnam's tra fish in the past, which
helped to facilitate the flow of tra fish into the American market.

The US National Fisheries Institute (NFI) said there was untapped
opportunities in the US market for Vietnamese seafood exporters because
fish was listed in the top 10 of the most consumed seafood products in
the US in 2009.

Several Vietnamese fish farms have
received Global GAP (Good Agricultural Practice) certifications, which
has created a foundation for Vietnamese seafood exporters to expand
their outlets. The statement was made by an NFI representative during a
meeting with the representatives from the Ministry of Agriculture and
Rural Development in HCM City late last week./.

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Bikes crippled by anti-dumping legacy

HCM CITY — The EU has lifted the anti-dumping tax that broke the back of Vietnamese bicycle manufacturers after it was imposed five years ago, but this is unlikely to revive the fortunes of the once-successful industry.

In its heyday between 2000 and 2005, the Vietnamese bike manufacturing industry held 11.7 per cent of the European market, exporting up to 1.1 million bikes a year.

But in July 2005, the EU slapped a 34.5 per cent anti-dumping tax and things have been going downhill since. Last year, Vietnamese exports were down to a mere 21,000.

"To develop again, Viet Nam should get the 3.5 per cent import tax under the EU's Generalised System of Preferences (GSP)," Chau Vinh Chi, export director of Asama Yu Jiun International Viet Nam, said.

Even though the anti-dumping tax was lifted last month Vietnamese bicycle exporters still pay 10 per cent import tax plus other taxes.

In the past, Asama used to export 400,000 bicycles each year, employed 1,500 workers, and outsourced to 20 contract manufacturers. "Customers are discussing new contracts with us. If we get the GSP, we can return to past levels within three months," Chi said.

But there is a catch: only countries on which the EU has never imposed anti-dumping tariffs qualify for the GSP.

While enterprises worry about the GSP, the Ministry of Industry and Trade is anxious about a return of anti-dumping taxes because of the rampant fraud committed in the country by foreign manufacturers trying to take advantage of the lower taxes on Vietnamese bicycles.

Measures

"If we do not have strong and efficient measures to stop illegal bicycles from nations affected by anti-dumping tax entering the country, the EU might resurrect the tax within six months," Vu Ba Phu, head of the ministry's Competition Management Department, warned.

"Companies should not make bicycles for foreign partners to avoid tax fraud."

He urged relevant authorities to work closely with the Viet Nam Chamber of Commerce and Industry, which grants certificates of origin (C/O) to manufacturers, and organise workshops regularly to keep the companies informed.

The Department has written to all investment and planning departments to carefully check new cycle manufacturers to see if they meet C/O requirements, especially for manufacturing bodies.

The department said there could be three common ways in which fraud is committed.

The first could be by manufacturers from countries suffering anti-dumping tariffs who simply fake the origin as being Vietnamese.

Others could bring their products into Viet Nam and affix a "made in Viet Nam" label.

The third method could involve setting up a basic plant in Viet Nam, importing most parts from outside, and assembling in the country to get the C/O.

Phu said if the illegal projects were detected and eliminated, Viet Nam could avoid anti-dumping tariffs.

"It is the best way to protect our businesses' rights as well as Viet Nam's image," he said. — VNS