VN garment hangers face 188% dumping duty in US

Jul 31st at 22:43

31-07-2012 22:43:21+07:00

Vietnamese-made garment hangers exported to the US may be subject to an anti-dumping tariff of as high as 188 percent, according to the preliminary conclusion from the US Department of Commerce (DOC).

The duty levied on Vietnamese steel wire garment hangers ranges between 135.81 – 187.51 percent, while the figures for similar products from Taiwan are only between 69.98 and 125.43 percent, according to the Competition Management Agency under the Vietnamese Ministry of Industry and Trade.

“The DOC will announce the final ruling this December,” the agency said.

It added that TJ Group and three Vietnamese exporters will be subject to a 135.81 percent tax, while Hamico and the remaining manufacturers will suffer the top duty, 187.51 percent.

The lawsuit against Vietnamese garment hangers started last December when the US-based VORYS law office, which represents US manufacturers, filed dossiers to call on the DOC, and the US International Trade Commission, to conduct anti-dumping and anti-subsidy inspections into steel wire garment hangers imported from Vietnam.

The US manufacturers charged the Vietnamese hangers coded HS 7326.20.0020 and 7323.99.9080 imported to the US with having dumping margins ranging between 82.87 percent and 159.20 percent.

They also demanded federal investigations into products imported from Taiwan for alleged dumping margins of 57.01 to 166.19 percent.

Figures from the US authorities show that China, Vietnam, and Mexico are the top three exporters of the hanger coded HS 7326.20.0020 to the US.

According to the Vietnam Chamber of Commerce and Industry, in 2010 the US also conducted an inspection on tax evasion in steel wire garment hangers imported from Vietnam.

This is not the first time Vietnamese exports have been challenged by anti-dumping and anti-subsidy lawsuits in the US.

On November 15, 2011 four American manufacturers asked the US Department of Commerce to conduct anti-dumping inspections on steel pipes imported from Vietnam, India, Oman and the United Arab Emirates.

In May 2010, the US imposed anti-subsidy taxes of 5.28 to 52.56 percent, and anti-dumping tariffs of 52.3 to 76.11 percent on PE bags imported from Vietnam.

This has raised concerns among industry insiders on many possible trade lawsuits local exporters may face in the future.