Mar 2020 Color steel sheet product importing into Vietnam Update on Cases SG05 and AD04

Relates to two cases which are application safeguard measure and application anti-dumping (AD) measure with respective case number of SG05 and AD04 which our anti competition lawyers at international trade practice of ANT Lawyers are following up.

Regarding application safeguard measure with case number of SG05, on May 31^st, 2017, Ministry of Industry and Trade promulgated Decision 1931/QD-BCT on application safeguard measure on color steel sheet product importing into Vietnam from many different countries/ territories.

On Sep 11^th, 2019, Ministry of Industry and Trade promulgated 03 Decision on exemption from application safeguard measure and application AD measure with total amount of 16.294,9 tons.

Pursuant to regulation of Circular 06/2018/TT-BCT, on Oct 07^th, 2019, Trade Remedies Authority of Vietnam (TRAV) posted a notice to receive the dossier requesting for exemption from application safeguard measure on high-quality color steel sheet product 2020.

On Dec 30^st, 2019, Ministry of Industry and Trade promulgated 18 Decision on exemption from application safeguard measure and application AD measure with total exempted amount of 82.019,7 tons for 2020.

Regarding application AD measure with case number of AD04, on Aug 02^nd, 2018, Ministry of Industry and Trade received dossier requesting to investigate on imposition AD measure on some flat-rolled alloy or non-alloy steel products, painted with varnish or coated with other types originating from People’s Republic of China and Republic of Korea.

On Oct 15^th, 2018, Minister of Industry and Trade promulgated Decision no. 3877/ QD-BCT on investigating on imposition AD measure for some steel product mentioned above.

On Jun 18^th, 2019, Ministry of Industry and Trade promulgated Decision no. 1711/QD-BCT on application provisional AD measure on some color coated steel (commonly known as color steel sheet) originating from China and Korea. Accordingly, the rate of provisional AD duty imposed on enterprises importing color coated steel of China is from 3,45% to 34,27% and of Korea is from 4,48% to 19,25% (specific rate is shown in attached Decision).

After nearly 8 months of initial investigation and complying with regulations of World Organization Trade, Law on foreign trade management and relevant regulations, Ministry of Industry and Trade has cooperated with relevant units to consider and carefully evaluate the impacts of AD activities of imported goods on operation in domestic manufacturing, dumping level of manufacturing, exporting enterprises of China and Korea as well as consider, calculate impacts on manufacturing and consumers of color coated steel product.

The results show that safeguard measures in the form of tariff quotas are being applied, but there are signs of dumping with a high margin from the quantity of imported goods within the quota, from 3,45% to 34,27% and this will continue to threaten and cause considerable damage to domestic color coated steel manufacturing.

Dumping activities mentioned above continues to cause considerable pressure on performance indicator of domestic manufacturing, shown in criteria such as: manufacturing quantity, sales volume, revenue, profit, market share, inventory which fluctuate during the investigation period, especially in the period of the last 7 months of 2018 until now, these indicators show the clear downtrend: many domestic enterprises was at a loss, many production line must stop working and large amount of labor had to quit their job.

When deciding to apply provisional AD measure, Ministry of Industry and Trade considered relevant parties and relevant state authorities’ opinions as well as based on practice of many other member states of WTO. Accordingly, goods imported within the quota of safeguard measures shall be imposed provisional AD duty. Regarding goods imported outside the quota, comparation between provisional AD duty and outside quotas safeguard duty needs to be carried out and higher duty shall be imposed. This application is to eliminate status of double imposition on importers.

Besides, special color coated steel product which domestic manufacturing has not produced yet such as PCM product, VCM used to manufacture refrigeration engineering and electronic appliances, PVDP products used for thermal power plants, and other special products… These are exempted from application scope of provisional AD measure. Under regulation, imported material to manufacture exported goods shall not be applied AD measure.

The rate of provisional AD duty fluctuateing from 3,45% to 34,27% and imposing on imported goods from China and Korea were issued in accordance with the regulations of World Organization Trade, Vietnamese laws and reflected true dumping activities of foreign manufacturer, exporter. Foreign manufacturer, exporter with correct product, quality and price being close to market rules are determined low dumping margin. Meanwhile, the low-quality floating dumping goods shall be prevented by higher provisional AD duty.

On Sep 11^th, 2019, Ministry of Industry and Trade promulgated 03 Decision on exemption from application safeguard measure and application AD measure with total amount of 16.294,9 tons.

On Oct 24^th, 2019, Ministry of Industry and Trade promulgated Decision no. 3198/QD-BCT on imposition of AD duty on color steel sheet originating from China and Korea.

On Nov 07^th, 2019 TRAV posted a notice to receive the dossier requesting for exemption from application AD measure on high-quality color steel sheet 2020.

On Dec 30^th, 2019, Ministry of Industry and Trade promulgated 18 Decision on exemption from application safeguard measure and application AD measure with total exempted amount of 82.019,7 tons for 2020.

On Mar 10^th, 2020, Ministry of Industry and Trade posted a notice to receive and guide the submission of the Dossier requesting for exemption from application AD measure and safeguard measure. Enterprise shall submit the Dossier requesting for exemption at public service Portal by website  https://dichvucong.moit.gov.vn or send to Trade Remedies Authority of Vietnam before 5pm on April 15^th, 2020. It should be noted that enterprises which were exempted for 2020 shall not submit the Dossier requesting for exemption in 2020 according to this notice. If the amount of exemption is going to end, above enterprises shall submit the Dossier supplementing for exemption according to Article 16.4 of Circular 37/2019/TT-BCT.

Our international trade lawyers at ANT Lawyers – a law firm in Vietnam will continue to follow up with development and update client.