MOIT imposes provisional anti-dumping measures on MSG imports from China and Indonesia

Saturday, 2020-03-21 17:02:07
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MSG imports from China and Indonesia will be subject to an absolute tax rate between VND2,889,245 per tonne and VND6,385,289 per tonne.
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NDO – The Ministry of Industry and Trade (MOIT) has issued Decision No. 881/QD-BCT on the imposition of provisional anti-dumping measures on some monosodium glutamate (MSG) products originating from China and Indonesia.

Accordingly, the MSG imports from China and Indonesia will be subject to an absolute tax rate between VND2,889,245 (US$123.8) per tonne and VND6,385,289 (US$273.59) per tonne.

The MOIT has begun to investigate the case since October 2019 on the basis of the appraisal results 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 Organisation (WTO), the Law on Foreign Trade Management and related regulations, the ministry has thoroughly looked into and assessed the damage factors of the domestic production sector, the dumping level of Chinese and Indonesian producers as well as the impacts of MSG products on downstream industries and consumers.

The investigation found that, despite safeguard measures in the form of the absolute tax rate at VND3,201,039 (US$137.16) per tonne, after the application of safeguard tariffs, the MSG imports showed signs of being dumped in large volumes, from VND2.88 million (US$123.4) per tonne to over VND6.3 million (US$269.94) per tonne regarding imports from China and Indonesia, corresponding to a maximum dumping margin of up to over 28%.

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

According to the MOIT, since 2016, the MSG industry in some countries has started to experience excess supply, with increasing inventories resulting in the risk of boosting exports to other countries, including Vietnam. This has contributed to difficulties and has put pressure on the activities of the domestic production sector due to the sharp increase of goods imported into Vietnam over recent times. Furthermore, Vietnam is the second largest export market of China and the fourth largest of Indonesia.

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.

In addition, MSG products from China and Indonesia are also subject to anti-dumping measures from the United States and European Union. So, it is likely that Chinese exporters are seeking alternative markets, including Vietnam.

To reach a final conclusion on the case, in the near future, the MOIT will continue to work with stakeholders to verify statistics and will hold a public consultation session for all parties to raise their opinions. At the same time, the ministry will evaluate the overall impact of the case on the parties concerned, including the final consumer. The investigation into the case is expected to end in the fourth quarter of 2020.