13 Critical Steps To Respond to Thailand’s Tough Anti-Dumping Investigation on Cold Rolled Stainless Steel

On October 3, 2024, Thailand’s Department of Foreign Trade (DFT) had officially launched an anti-dumping investigation targeting Vietnam’s cold rolled stainless steel imports. The investigation stems from allegations made by a major player in the Thai stainless steel industry, which claims that Vietnamese cold rolled stainless steel is being sold in Thailand at unfairly low prices. As a result, the Vietnamese steel industry is now under intense scrutiny.

1. Background on Vietnam Cold Rolled Stainless Steel Anti-Dumping Investigation

The Vietnam cold rolled stainless steel anti-dumping investigation began after a major player in the Thai stainless steel industry filed a complaint, accusing Vietnamese manufacturers of selling cold-rolled stainless steel at unfair prices, which allegedly harms Thai producers.

The Vietnamese cold rolled stainless steel products under scrutiny fall under multiple HS codes, such as:

7219.32.00.020  7219.32.00.030  7219.32.00.040

7219.32.00.080  7219.32.00.090  7219.33.00.020

7219.33.00.030  7219.33.00.040  7219.33.00.080

7219.33.00.090  7219.34.00.020  7219.34.00.030

7219.34.00.040  7219.34.00.080  7219.34.00.090

7219.35.00.020  7219.35.00.030  7219.35.00.040

7219.35.00.080 7219.35.00.090  7219.90.00.000

7220.20.10.020  7220.20.10.030  7220.20.10.040

7220.20.10.080  7220.20.10.090  7220.20.90.020

7220.20.90.030 7220.20.90.040 7220.20.90.080 

7220.20.90.090   7220.90.10.000 7220.90.90.000.

The investigation spans a period from July 1, 2023, to June 30, 2024, with a pre-initiation period from July 1, 2022, to June 30, 2023. This long-term investigation aims to determine whether Vietnam cold rolled stainless steel is being dumped in the Thai market.

2. What is an Anti-Dumping Investigation and Why is Vietnam Affected?

An anti-dumping investigation occurs when a country suspects that imported goods are being sold at lower-than-market prices, harming local industries. Thailand’s claim against Vietnam cold rolled stainless steel exports is based on the assertion that these products are priced below fair value, putting Thai manufacturers at a disadvantage. If the investigation confirms this, anti-dumping duties could be imposed on Vietnamese cold rolled stainless steel imports.

3. The Investigation Process for Vietnam Cold Rolled Stainless Steel

The process of the Vietnam cold rolled stainless steel anti-dumping investigation is rigorous and follows specific steps laid out by the Thai Department of Foreign Trade:

• Distribution of Questionnaires: The DFT has sent questionnaires to Vietnamese exporters and producers of cold rolled stainless steel. These forms collect crucial data on pricing, production costs, and sales practices, which will be used in the final decision-making.
• Participation Window: Companies not directly contacted can still join the investigation by registering within 15 days of the announcement. Participation is vital for businesses wanting to present their case in the Vietnam cold rolled stainless steel anti-dumping investigation.
• Submissions of Evidence: Vietnamese companies can submit written evidence and engage with Thai investigators to ensure their voices are heard during this critical phase of the Vietnam cold rolled stainless steel anti-dumping investigation.

4. Implications for Vietnam Cold Rolled Stainless Steel Exporters

If the investigation concludes that dumping has occurred, the impact on Vietnam cold rolled stainless steel exporters could be severe:

• Higher Costs: Anti-dumping duties could raise the price of Vietnam cold rolled stainless steel in Thailand, potentially reducing its market share.
• Reputation Damage: Being involved in a dumping investigation may tarnish the reputation of Vietnamese exporters, impacting trade with Thailand and possibly other countries.
• Reduced Competitiveness: If higher tariffs are imposed, Vietnamese cold rolled stainless steel products may become less competitive in the Thai market.

5. Steps Vietnamese Businesses Should Take to Navigate the Investigation

Vietnamese businesses affected by the Vietnam cold rolled stainless steel anti-dumping investigation should take the following actions to mitigate risks:

1. Register with the Thai DFT: If not directly contacted, businesses should immediately register for participation in the Vietnam cold rolled stainless steel anti-dumping investigation.
2. Request Investigation Documents: Secure relevant documents from Thai authorities and understand the charges brought against your business.
3. Review the Initiation Notice Thoroughly: Understand all aspects of the investigation to avoid misunderstandings during the Vietnam cold rolled stainless steel anti-dumping investigation.
4. Engage Legal Experts: Seek professional advice from trade law specialists who are experienced in handling anti-dumping cases.
5. Cooperate Fully with Investigators: Ensure complete and accurate responses to the DFT’s questionnaires. Cooperation is key to a positive outcome.
6. Provide Comprehensive Sales Data: Ensure that your sales records, pricing policies, and production costs for Vietnam cold rolled stainless steel are fully transparent.
7. Document Everything: Keep detailed documentation and evidence that supports your case during the Vietnam cold rolled stainless steel anti-dumping investigation.
8. Monitor Developments Closely: Stay in touch with the Vietnam Trade Remedies Authority and other stakeholders to receive timely updates.
9. Prepare for Potential Outcomes: Anticipate different scenarios, such as the imposition of duties, and plan accordingly.
10. Engage with Industry Associations: The Vietnam Steel Association (VSA) can offer guidance and act as a collective voice for affected companies.
11. Diversify Markets: Start exploring new markets in case Vietnamese cold rolled stainless steel becomes less competitive in Thailand due to tariffs.
12. Strengthen Trade Relations: Maintain good relations with Thai importers by demonstrating transparency and cooperation throughout the investigation.
13. Consider Future Pricing Adjustments: Review your pricing strategies for Vietnam cold rolled stainless steel exports to ensure compliance with international trade laws.

6. Future of Vietnam Cold Rolled Stainless Steel Trade Relations

The outcome of this Vietnam cold rolled stainless steel anti-dumping investigation could set a precedent for future trade relations between Vietnam and Thailand. Both countries have substantial economic interests in the steel sector, and any disruption could have broader implications on bilateral trade.

Vietnamese exporters should use this experience to improve their compliance with international trade regulations. The Vietnam cold rolled stainless steel anti-dumping investigation highlights the importance of adhering to transparent and fair pricing policies to avoid similar investigations in the future.

Conclusion

The Vietnam cold rolled stainless steel anti-dumping investigation is a significant development for Vietnamese exporters. By taking proactive steps, cooperating with investigators, and seeking professional advice, businesses can minimize the potential negative outcomes.

The investigation not only affects trade relations between Vietnam and Thailand but also serves as a lesson for Vietnamese exporters to align with international trade rules to avoid future trade disputes.

As the investigation progresses, it is crucial for all stakeholders in the Vietnam cold rolled stainless steel industry to remain vigilant, united, and proactive to protect their interests and ensure continued success in the international market.

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