|Workers of Cai Lan Vegetable Oil Company bottle products. A new anti-dumping tax on vegetable oil will be applied next month. — VNA/VNS Photo Danh Lam
HA NOI (VNS)— The Ministry of Industry and Trade is cracking down on imported vegetable oil, issuing a new decision last week to impose a new anti-dumping tax from September 7.
The new tax will apply to refined soybean and palm oil, coded HS 1507.90.90, 1511.90.91, 1511.90.92 and 1511.90.99.
The decision followed a proposal from the Viet Nam Vegetable Oil Company urging the ministry to apply temporary measures on imported vegetable oil.
An investigation that began on December 27 last year showed that domestic consumption of refined vegetable oil saw consistent increases during the 2009-12 period, jumping 28 per cent.
However, sales of locally manufactured oils declined during the same period with market share collapsing from 52 to 27 per cent. Domestic production dropped in 2012 to 64 per cent, while domestic capacity fell from 89 to 31 per cent.
Domestic producers reported falling revenues and profits, each decreasing 66 per cent and 197 per cent, respectively, while findings from the investigation showed importation of soybean and palm oil soared during the same three-year period.
The investigation concluded imports were causing damage to domestic producers affected by reductions in market share, output, profits and labour.
The roadmap for the reform indicates a 5 per cent anti-dumping tax to be applied until May 6, 2014, to be gradually decreased by 1 per cent every 12 months until May 6, 2017. — VNS