US officially initiates anti-tax evasion investigation on plywood imported from Vietnam

The Department of Trade Defense (Ministry of Industry and Trade) said today (June 11), the Ministry of Industry and Trade has just received information about the US Department of Commerce (DOC) initiating an investigation to apply anti-tax evasion measures on Vietnamese plywood products.

According to statistics, plywood product exports from Vietnam to the US in 2019 reached 309 million USD. Currently, this product from China is also subject to anti-dumping tax of 183.36% and anti-subsidy tax from 22.98% to 194.9%.

This is also the product that the Ministry of Industry and Trade has warned about since July 2019 in the List of products at risk of being sued for trade defense within the framework of the Project "Strengthening State management of anti-evasion of trade defense measures and origin fraud" approved by the Prime Minister in Decision No. 824/QD-TTg (Project 824).

Based on the warning from the Ministry of Industry and Trade, ministries, branches and localities have proactively implemented measures to strengthen supervision and inspection of plywood production, trading and export activities.

In addition, the Ministry of Industry and Trade has also issued Circular No. 22/2019/TT-BCT on the temporary suspension of transit business and temporary import of plywood into Vietnam for re-export to the US.

Immediately after the plaintiff filed a lawsuit in February 2020, the Ministry of Industry and Trade has implemented measures to handle the case, including exchanging, discussing, consulting and guiding businesses and related associations on the US investigation process and procedures so that businesses can proactively plan to handle the matter and have officially discussed with the US side on this issue.

The Ministry of Industry and Trade has also had exchanges with the US at both technical and high levels on coordination between agencies in reviewing, monitoring and exchanging information on goods at risk of being investigated for trade defense, including investigations against evasion and illegal transshipment.

To effectively handle this issue, the Ministry of Industry and Trade recommends that relevant Vietnamese plywood exporting enterprises fully cooperate with the US Department of Commerce throughout the investigation process.

According to US regulations, if enterprises can prove that the raw materials used to produce plywood products exported to the US are of Vietnamese origin or from other countries (not China), they may not be considered to have engaged in evasion.

The Ministry of Industry and Trade will continue to closely coordinate with relevant enterprises and associations to jointly handle the case with the goal of ensuring the legitimate rights and interests of enterprises.

In addition, the Ministry of Industry and Trade will also coordinate with ministries and branches to implement the tasks assigned by the Prime Minister in the above-mentioned Project 824 to handle illegal evasion acts. Source: Economics & Consumption

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