Vietnam's anti-corrosion steel is in danger of being investigated to avoid anti-dumping tax

The Trade Remedies Department (Ministry of Industry and Trade) recommends associations and related businesses to actively review the export activities of steel products under investigation to the US.

The Department of Trade Remedies (Ministry of Industry and Trade) said that the US Department of Commerce (DOC) has just announced that it has received an application from the domestic industry asking for an investigation into evasion of anti-dumping tax on steel products. Corrosion resistance (CORE) of Vietnam is manufactured from cold rolled steel (CRS) and hot rolled steel (HRS) imported from Japan.

The plaintiff of the case, Steel Dynamics Inc, made the allegation because after the US investigated and imposed anti-dumping duties on cold rolled steel (CRS) and hot rolled steel (HRS) from Japan in 2015, the amount of imports CRS-HRS imports from Japan to the US decreased significantly, while the volume of CORE imports from Vietnam increased rapidly.

American enterprises propose investigation against tax evasion with anti-corrosion steel in Vietnam. Photo: Industry and Trade Newspaper

The US side alleges that Vietnam imported CRS-HRS from Japan to produce the product under investigation and this production is not considered a "significant transformation" because the production process in Vietnam only adds a part. small in the total value of CORE steel products exported to the US. Currently, the US is maintaining an anti-dumping tax rate with CRS imported from Japan at 71.35% and HRS at 26.81%.

Previously, in 2018, the US investigated anti-dumping tax evasion with CORE steel imported from Vietnam due to suspicion of tax evasion from China, Korea, and Taiwan (China).

According to the Trade Remedies Department, if it is proved that the production materials are from Vietnam or other countries/territories outside of the three sources mentioned above, they will not be subject to anti-tax evasion measures (ie no tax must be paid). US regulations state that, the DOC will have 30 days to consider the petition and will issue a final decision within 300 days of its initiation.

The Trade Remedies Department recommends associations and related businesses to actively review the export activities of steel products under investigation to the US...

In addition, associations and businesses need to strictly comply with the deadlines for replying, providing information at the request of the DOC as well as regularly coordinating and exchanging information with the Department to get support in case of an emergency. necessary, needs.

NDH