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VN imposes anti-dumping taxes on MSG imports from China, Indonesia

VGP – Monosodium glutamate (MSG) products originating from China and Indonesia will be subject to anti-dumping measures between VND 2,889,245 (US$ 123.8) per ton and VND 6,385,289 (US$ 273.59) per ton in Viet Nam.

03/23/2020 05:45

This is part of the Ministry of Industry and Trade’s Decision 881/QD-BCT on the imposition of provisional anti-dumping measures on some monosodium glutamate (MSG) products made in China and Indonesia.

The ministry has investigated the case since October 2019 on the basis of verification of a dossier requesting the application of anti-dumping measures, submitted by representatives of the domestic production sector.

Through a preliminary investigation in accordance with the provisions of the World Trade Organization (WTO), the Law on Foreign Trade Management and related regulations, the ministry evaluated the damage to the domestic production sector, the dumping level of Chinese and Indonesian producers and the impacts of MSG products.

The investigation found that, despite safeguard measures in the form of the absolute tax rate at VND 3,201,039 (US$ 137.16) per ton, after the application of safeguard tariffs, the MSG imports showed signs of being dumped in large volumes, from VND 2.88 million (US$ 123.4) per ton to over VND 6.3 million (US$ 269.94) per ton regarding imports from China and Indonesia, corresponding to a maximum dumping margin of up to over 28%.

In addition, such a level of dumping indicates that the imported goods are threatening to cause significant damage to the domestic MSG industry.

Therefore, when the safeguard tariffs expire, goods from these two markets will be exported to the Vietnamese market with a much higher volume, which could possibly damage the domestic production industry.

Besides, MSG products from China and Indonesia are also subject to anti-dumping measures from the US and EU, prompting Chinese exporters to seek alternative markets, including Viet Nam./.  

By Hoang Ha