Australia Terminated Investigation, Not Imposing Anti-Subsidy Tax on Galvanized Steel and Pressed Aluminum from Vietnam

According to Department of Trade Remedies (Ministry of Industry and Trade), 2 Vietnamese products exported to Australia which are pressed aluminum and galvanized steel have been terminated investigation and will not subject to anti-subsidy tax by the Australian anti-dumping commission (ADC).

In August and October 2016, ADC initiated 2 anti-dumping and anti-subsidy investigations on pressed aluminum and galvanized steel imported from Vietnam.

Following the investigation, in June and August 2017, ADC published the final reports of two cases in which ADC decided to terminate the investigation and not apply anti-subsidy tax on goods from Vietnam in both cases.

Specifically, in the case of pressed aluminum, Vietnam is accused of subsidizing businesses in 03 programs related to tax incentives.

After the investigation, ADC determined that: 01 of the 03 Vietnamese companies agreeing to cooperate with ADC did not receive any incentives from the above programs. The remaining 02 enterprises and other producers/exporters received subsidies but the margin of subsidies is negligible.

Therefore, ADC decided to terminate the investigation for Vietnam.

In the case of galvanized steel, Vietnam is alleged to subsidize businesses in 19 programs involving tax incentives, investment incentives, support programs and trade promotion programs.

After the investigation, ADC determined that: Vietnamese companies agreeing to cooperate with ADC only receive benefits from 03 of the 19 programs mentioned above, and the amount of these subsidies is negligible; the level of subsidy offered to other producers/exporters is also negligible. Therefore, ADC decided to terminate the investigation for Vietnam.

In terms of the anti-dumping investigations, in the galvanized steel case, the plaintiff alleged that the “special market conditions” is exsisted in the plated steel sector of Vietnam. The plaintiffs argue that Vietnam has to import most of its raw materials to produce galvanized steel, which is hot rolled coil (HRC). At the same time, the price of HRC in the exporting country, due to the subsidy, has been distorted (lower than it should have been).

Vietnam imports mainly this material, so galvanized steel prices in Vietnam are also deviated as a result, and this should be considered as a “special market condition” in Vietnam. However, after the investigation, Australia concluded that there was no special market condition in the plated steel industry of Vietnam.

According to the Ministry of Industry and Trade, the ADC’s conclusion to terminate the investigation, not apply anti-subsidy measures in two cases and the ADC concluded that no special market situation exists for the market of plated steel in Vietnam is positive and successful results for the Government and enterprises of Vietnam.

This final outcome is a positive precedent for future cases, as it is the first time Australia investigated anti-subsidy and “special market conditions” on Vietnam.