The Hanoitimes - Customs officials have been ordered to collect cash deposits at rates as high as 456.23% on imports of the steel products produced in Vietnam using material from South Korea and Taiwan.
The US Commerce Department decided to imposed import duties of more than 400% on steel imports from Vietnam, accusing some businesses of shipping products from the Southeast Asian nation to evade the levies in a further escalation of tension between the two trading partners, Bloomberg reported.
In three preliminary circumvention rulings on Vietnamese steel, the Commerce Department said certain products produced in South Korea and Taiwan were shipped to Vietnam for minor processing before being exported to US as corrosion-resistant steel products and cold-rolled steel.
Customs officials have been ordered to collect cash deposits at rates as high as 456.23% on imports of the steel products produced in Vietnam using material from South Korea and Taiwan.
In the first five months of 2019, Vietnam exported 2.93 million tons of steel products worth US$1.89 billion, up 24.4% in quantity and 7.6% in value year-on-year, according to data from the General Department of Vietnam Customs (GDVC).
Meanwhile, Vietnam imported 6.12 million steels during the five-month period worth US$4.11 billion, up 8.1% in quantity and 1.4% in value. China was the largest steel importer of Vietnam with 2.59 million tons for US$1.63 billion, up 0.1% in quantity and down 12.5% in value during this period.
Meanwhile the US remained the fourth largest steel importer of Vietnam with 252,000 tons, down 31.2% year-on-year, behind Cambodia with 741,000 tons, Indonesia with 310,000 tons, and Malaysia 304,000 tons.
Vietnam takes measures to prevent trade fraud
Le Thi Thu Hang, spokeswoman of the Vietnamese Ministry of Foreign Affairs (MOFA), in a press briefing on June 20 said government agencies had taken drastic measures to prevent trade fraud activities, especially foreign goods from forging Vietnam’s origin and later being exported to a third country.
Previously, Director General of the GDVC Nguyen Van Can said the agency would tighten its monitoring and checking procedures to identify goods violating rules of origins, while goods prone to origin certificate fraud are mostly textile, fishery, agricultural products, steel, aluminum, processed wooden products, among others.
Starting on June 25, The Ministry of Industry and Trade (MoIT) imposed temporary anti-dumping duties on pre-painted galvanized steel sheet originated from China and South Korea.
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 from China’s will be subjected to duties 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 caused by importers who deliberately evade tax.