The Hanoitimes - The tax rates in range of 3.45 – 34.27% applied to steel products originated from China and South Korea are in compliance with regulations of the WTO and Vietnamese laws, reflecting the current price practices of foreign producers.
The Ministry of Industry and Trade (MoIT) has decided to impose temporary anti-dumping duties on pre-painted galvanized steel sheet originated from China and South Korea, starting on June 25.
Following the decision, the tax rates applied on such products imported from South Korea would be in a range of 4.48 – 19.25%, while those of China’s are from 3.45 to 34.27%.
A total of 20 Chinese and three South Korean companies importing the pre-painted galvanized steel sheet on Vietnam are subject to the anti-dumping duties.
According to the MoIT, in spite of trade protection measures in place, the imported steel sheet at low prices have cause negative impacts on domestic production, as well as business performance of local companies from last July to present.
An expert at the Vietnam Steel Association said the decision would prevent potential losses from importers who deliberately evade tax.
Recently, Vietnam’s steel companies have not only faced stiff competition domestically, but also the pressure from foreign companies, including Chinese ones. Most products originated from China have cheap selling prices, leading to huge losses for local companies.
The MoIT noted that it has taken into consideration opinions of concerned parties, as well as common practices of WTO members.
The temporary anti-dumping duties, therefore, would be applied for imported products within quota. In case of those already exceeding the quota, the MoIT would compare the tax rates between the anti-dumping and the specialized tax rate subject to such cases and choose the higher one.
Besides, certain types of pre-painted galvanized steel sheet that Vietnam could not produce locally would be exempted from trade protection.
“The tax rates in range of 3.45 – 34.27% subject to steel products originated from China and South Korea are in compliance with regulations of the WTO and Vietnamese laws, reflecting the current price practices of foreign producers,” stated the MoIT.
In the coming time, the MoIT would continue the investigation process and expected to give the conclusion on the matter in the fourth quarter of 2019.