Vietnam's cold-rolled stainless steel investigated for dumping and tax evasion

Production line of cold rolled steel products of Hoa Sen Nghe An Company Limited, Dong Hoi Industrial Park (Nghe An)

The Department of Trade Remedies (Ministry of Industry and Trade) said it has just received information about the European Commission (EC) issuing a Notice to initiate two anti-dumping and anti-subsidy tax evasion investigations on cold-rolled stainless steel products from Vietnam, Taiwan (China) and Türkiye.

Accordingly, the investigated goods are flat-rolled stainless steel products, not over-processed cold-rolled, originating from Indonesia, classified under HS codes 7219 31 00, 7219 32 10, 7219 32 90, 7219 33 10, 7219 33 90, 7219 34 10, 7219 34 90, 7219 35 10, 7219 35 90, 7219 9 0 20, 7219 90 80, 7220 20 21, 7220 20 29, 7220 20 41, 7220 20 49, 7220 20 81, 7220 20 89, 7220 90 20 and 7220 90 80. The plaintiff is the European Steel Association (EUROFER).

The announcement stated that the specific basis for initiating the investigation was that after goods from Indonesia were subject to anti-dumping and anti-subsidy measures by the EC, there was a change in trade flows, with goods being transferred from Indonesia to Vietnam, Taiwan (China) and Türkiye, and then exported to the European Union (EU).

Furthermore, there is evidence that the assembly and finishing activities of stainless steel bars/sheets and/or hot-rolled steel products would constitute circumvention because these activities only appeared or increased after the investigation with Indonesia was initiated.

Notably, the import value of components from Indonesia accounts for over 60% of the total value of the goods after assembly/completion and the value added of this activity accounts for less than 25% of the production cost. The above mentioned transshipment process has weakened the protective effect of the original measure on Indonesia in terms of quantity and price. The amount of goods allegedly circumvented has increased significantly in the EU market and is being dumped/subsidized, which may cause damage to the domestic industry.

Therefore, the case will be concluded within 9 months from the effective date of the notice. The parties concerned must appear before the investigating agency within 15 days from the effective date of the notice.

In addition, interested parties or their legal representatives must submit written responses to questions, comments, requests for consideration of exemptions or other necessary information within 37 days from the date of publication in the EU Official Journal.

On the other hand, interested parties may request the EC to consult within 37 days. For consultations on initiation, interested parties must submit a request to the EC within 15 days from the effective date of the notification. The EC has provided guidance on submitting written comments, sending questionnaires and answers; collecting information and organizing consultations; requesting exemptions, etc.

To ensure legitimate interests, the Trade Defense Department recommends that enterprises manufacturing and exporting cold-rolled stainless steel products need to study and master the regulations and procedures for anti-tax evasion investigations of the EU as well as related notifications, ensuring compliance with the regulations on time limits, forms and contents as instructed by the EC.

On the other hand, properly and fully comply with the requirements of the EC investigation agency, including registering to participate, fully cooperating with the EC throughout the case; closely coordinating with the Trade Defense Department to receive timely information and support.

According to VNA