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EU to impose anti-dumping taxes on Vietnamese bicycles for second time
The European Union (EU) is likely to impose CBPG tax or other sanctions on the Vietnamese bicycle industry if it fails to prevent illegal transport of bicycles from other countries to export to the EU and enjoy preferential treatment regarding the CBPG tax.
On July 15, the EU announced its decision to abolish anti-dumping taxes on Vietnamese bikes while continuing to impose them on other countries, particularly China (The average tax rate on Chinese bikes is 45 percent). This has helped Vietnamese bicycle businesses restore their exports to the EU.
However, the Competition Authority under the Ministry of Industry and Trade is greatly concerned that if the EU resumes imposing the CBPG tax on Vietnamese bikes, it will negatively affect the Vietnamese bicycle industry and damage Vietnam’s image in international trade.
According to department, there are three ways to illegally transport exports: Creating fake certificates of origin (C/O) to enjoy low import tax rates; importing fully-assembled bikes and then packaging them with the “Made in Vietnam” trademark and applying for a C/O and investing in a small-scale factory in Vietnam, then importing all spare parts from another country, assembling the product, then applying for C/O from Vietnam.
In the face of this situation, the Competition Authority and the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the General Department of Vietnam Customs have agreed to work out a number of solutions to stop CPBG tax evasion activities and avoid the EU’s re-imposition of CBPG tax on Vietnamese bikes.
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