Rolled steel anti-dumping tariff could freeze imports

December 09, 2013 | 10:19

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Vietnam has levied anti-dumping tariffs on imported cold-rolled stainless steel from mainland China, Malaysia, Indonesia and Taiwan, ranging from 6.45 per cent to 30.73 per cent in an effort to protect local producers.

The Ministry of Industry and Trade’s Vietnam Competition Authority (VCA) last week released the preliminary results of a six month-long inspection at the request of petitioners including South Korea’s Posco VST Co. Ltd and local Hoa Binh Joint Stock Company.

Following the inspection, the VCA will levy an anti-dumping duty for 120 days on steel imports from mainland China, Malaysia, Indonesia, and Taiwan. The highest tariff, 30.73 per cent, has been imposed on Taiwan’s Yuan Long Stainless Steel Corporation.

The final result of the dumping investigation is scheduled for July 2014, twelve months since the launch of an anti-dumping investigation on the imports of cold-rolled stainless steel.

The petitioners, which account for 80 per cent of domestic stainless steel production, claim that cold rolled stainless steel imports have been sold in Vietnam at 20 to 40 per cent below domestic makers’ prices, causing damage to the domestic stainless steel manufacturing sector. They also accused foreign firms of importing secondary and low-grade products at as low as half the price of premium-grade products.

The investigation was carried out by the VCA on batches of products imported between April 1, 2012 and March 31, 2013.

However, domestic steel makers were hoping for higher duties, demanding that tariff levels should range from 20 per cent to 39.9 per cent over five years.

A representative of VCA said antidumping tariffs were a measure to rectify the distortions created by under-priced imports and such rates would re-establish fair trade. The use of anti-dumping measures as an instrument of fair competition is permitted by the World Trade Organization.

By By Phuong Thu

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