This is a very critical and sensitive factor because it is clear that being sued for dumping comes from price factors. Building a reasonable policy is not really simple, it must depend on the business situation and the circumstances of the exporter. However, basically, the reasonable price policy must meet some of the following criteria:
- Ensure the consistency of prices among different exporting markets, between exporting and domestic markets.
- Ensure the competitiveness of domestic companies in the importing countries with the exporting companies to avoid pushing prices down.
Firstly, we have to change ourselves, follow market rules and set export floor prices to bring higher export prices. But high prices must be reasonable because it also depends on the quality and value of products. To reduce the consequences of price competition, VASEP directs businesses to compete on quality. Instead of competing on price, the use of export floor pricing is one of the solutions. Previously, VASEP has repeatedly offered floor prices with the consent of enterprises but failed to do because of the lack of state support, as well as lack of sanctioning. If only VASEP entered, it will not be able to enforce the floor price because VASEP has no right to prohibit export enterprises.
However, if the Ministry of Agriculture and Rural Development has an official dispatch to coordinate with the customs and ask them not to clear customs clearance for export orders below the floor price, it is certain that the export floor price will be effective.
3.1.1.2. Diversify export market
When domestic producers' competitiveness is weakened and their market share is shrunk, they can use any ways possible to obstruct competing foreign imports.
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Antidumping is just one of the measures that domestic producers can resort to. Domestic producers usually have more advantages to foreign producers in the game of lobbying the legislative branch. Those advantages are (i) their knowledge of local politics, (ii) the
"local focus" characteristics of politics in big countries like the United States, (iii) their understanding and experience on public relations in the home country, and (iv) their network of connections. Therefore, there are more chances for domestic producers to obstruct foreign imports than vice versa. Diversifying export markets help Vietnamese enterprises to reduce bad effects when their exports to a certain market are obstructed.
3.1.1.3. Complete accounting and bookkeeping regimes according to international standards
Currently, our country has joined WTO, the issue of cost accounting and accounting process must follow international standards. The use of bookkeeping and accounting documents of Vietnamese enterprises is still unreasonable, not in line with international standards. If the accounting data of the enterprise is not clear, it will make the investigation agency not accept those costs. It leads to the difficulties and disadvantages of investigating the dumping margin of enterprises. Therefore, enterprises need to have the following solutions:
According to the current accounting system of Vietnam, enterprises do not have an item of attorneys' fees. When a dumping lawsuit occurs, most businesses have to hire lawyers abroad having a reputation for anti - dumping, so the cost of lawyers is very large. This is a valid cost item that businesses should apply, it is in line with international accounting standards. At the same time, enterprises must clearly account costs, voucher data must be accurate and transparent in accordance with international accounting standards.
Research and improve their knowledge about the international accounting process.
Vietnamese enterprises need to study and be trained accountants following international accounting standards. They also need to improve management skills, handle and record documents in accordance with international accounting procedures. At the same time, it is necessary to make clearly accounting data according to international standards.
Information about selling price, the quantity of sale, date of sale, shipping cost and price
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adjustment is the part that must have the clearest data. Information about production costs and other costs must be separated.
Build a transparent and appropriate international information system: a transparent information system that is independently verified according to international standards is the strongest evidence for self - protection. Therefore businesses need to seriously invest their information systems. This system will help them save time and cost in pursuing lawsuits, as well as improve efficiency in business management.
3.1.1.4. Strengthen the human resources of enterprises on anti - dumping
This solution can be implemented by promoting staff training activities for enterprises on that issue. Basically, the staff in charge of the strategy of the enterprise only needs to have common and accurate in nature knowledge about the conditions of use and requirements for the business are sufficient. Business training can be done directly by professional organizations, or through self - training (based on recordings, training videos provided by professional organizations).
3.1.1.5. Improve knowledge of WTO anti - dumping laws as well as US anti - dumping laws
Seafood processing enterprises must learn more to improve knowledge of WTO and US anti - dumping laws. They need to quickly nurture many experts proficient in international trade rules by inviting good experts, including foreign experts to provide professional training to managers of businesses and skilled lawyers. On that basis, organizations must be formed to respond to foreign trade disputes, including a team of lawyers, accountants, economists, and specialists capable of working on issues. This is enough to be able to advise businesses and support the government when an anti - dumping lawsuit takes place.
3.1.2. Recommendations when enterprises are sued
The current increase in trade defense lawsuits is an inevitable trend, not only for Vietnam but also for all other countries, especially for exporting countries. Therefore, businesses need to focus on preparing to cope and can succeed when there is a trade defense lawsuit initiated.
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3.1.2.1. Participate fully and cooperate under the advice of experts
During the investigation process, businesses must cooperate with the investigating agency and provide them the information they need. Because in case the foreign exporter refuses to participate in the investigation process and does not answer the questionnaire issued by the US International Trade Commission (USITC), the DOC has no choice but to use available information that they can access to calculate dumping rates. The use of this information by DOC will be detrimental to the defendant because this information does not reflect the situation and is often biased towards the plaintiff.
In addition, answering questions as well as providing information that DOC requires is not a simple matter. Therefore, the businesses need advice from experts to know how to answer detailed questions and know the ability to verify information of the DOC to what extent to avoid errors that can lead to being subject to anti - dumping duty.
3.1.2.2. Hire a lawyer
The US law does not force parties involving in an anti - dumping lawsuit to have attorneys represented in the proceedings of the lawsuit. The law does not require foreign businesses to have counsel to answer the questionnaires or fulfill other requirements of the investigating agency. In other words, legally, foreign exporters have the right to litigate themselves. However, an anti - dumping investigation in the United States is a process with many very complicated detailed legal procedures. The methods of economic calculation are equally complicated. Therefore, almost no foreign exporters can handle these issues effectively without consulting with lawyers or experts in this field.
3.1.2.3. Reach the victory in the initial investigation phase
One point is also very important to take every opportunity to win from the beginning.
For American producers, in order to win a dumping case, they must prove two things:
Prove the existence of a high dumping rate with DOC;
Proof of physical injury or material injury to USITC.
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Once American manufacturers have demonstrated the above two things and win the first stage of the preliminary investigation, the win will certainly belong to them. However, exporters have 3 ways to win the prize during the preliminary investigation:
Winning with the US ITC, ie declaring the sale at a price lower than the reasonable price does not cause damage or threaten to cause damage to the US manufacturing industry;
DOC found a low dumping price;
Reaching an agreement to suspend the US government (agreement to suspend is an agreement between the US government and the government of the exporting country, whereby DOC stops the dumping investigation and gives a quota with a floor price for items subject to investigation).
3.1.3. Recommendations when enterprises are lossed
Coordinate and unite enterprises under the general direction and coordination of commodity associations.
In the anti - dumping lawsuit, the most important and decisive issue is the evidence and technical analysis to confirm that the business is sued without dumping. Besides, businesses play a very important role, being a party in the lawsuit; they are obliged to prove not to dump and bear the risks in the lawsuit. Therefore, actively fighting lawsuits not only help enterprises protect themselves and claim justice in international trade relations but also protect the industry for all related businesses. The anti - dumping duty will impose on all businesses that have export products at different levels, so when being sued, it is necessary to have the participation and support of all businesses. If businesses stand outside, they will always be imposed the highest duty rate. Therefore, united unity to positive resistance is a consideration for Vietnamese enterprises.
How should businesses prepare resources for lawsuit resistance?
Preparing physical resources to sue an anti - dumping lawsuit in the United States is a long and very good process. Specifically, in order to effectively resist lawsuits, enterprises need expenses:
Expenses for consulting of lawyers. Counseling fees are too huge;
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Expenses for specific resistance events (especially for information gathering and information provision or translation, etc);
Expenses for travel, accommodation, participation in appeal processes in the United States, which are very expensive; If the enterprise does not prepare enough money (or does not dare to decide to spend a large sum of money) for lawsuit resistance, the possibility is that they will suffer adverse results (the level high duty rate).
Therefore, in order to avoid immediately spending a large amount of money, export enterprises should set up a separate fund for this from annual net profit. In addition, it should be noted that the amount for the incident may be very large but not mobilized at once. So businesses can calmly mobilize this resource with the ultimate goal of keeping the US market and maintaining competition in this important market.