Steel ordinance to aid overseas groups
Steel ordinance to aid overseas groups
The Ministry of Industry and Trade has lifted previously applied anti-dumping measures for colour-coated iron products with a total trade volume of 82,000 tonnes, thereby favouring large, mostly foreign, electronic manufacturers.
Last year, the Ministry of Industry and Trade (MoIT) imposed anti-dumping measures relating to flat-rolled alloy or non-alloy steel products, varnish painted, scanned or coated with plastics or other covers originating from China and South Korea.
Under the latest decision, the MoIT removed these safeguard measures from imports of colour-coated iron, affecting 18 manufacturers. Among those, Haiphong Steel Flower Electrical & Machinery Co., Ltd., LG Electronics, and Panasonic could profit the most.
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The common steel products are used in industrial construction and structures such as roofs, wall panels, and gutters, as well as in civil construction such as workshops, warehouses, fences, home appliances, oil drums, and interior decoration.
The MoIT said that the application of the former safeguard measures was to protect the colouring industry in the country before the sudden increase of imported colour goods.
The ministry considered the import tax exemptions since some high-quality goods are not yet produced domestically and therefore need to be imported.
Under Decision No.3198/QD-BCT dated October 24, 2019 on imposition of anti-dumping duty on flat-rolled, painted products of alloy or non-alloy steel imported from China and South Korea, some products were exempted from temporary anti-dumping measures, including high-quality pre-coated metal, vinyl-coated metal, and colour-coated steel products used in the electronics and household appliance industries. Most of these products cannot be produced domestically.
The MoIT explained that manufacturers of refrigerators and washing machines using high-quality colourants such as LG, Samsung, and Panasonic have submitted their safeguard measure exemption applications for colouring products.
“The exemptions for enterprises are conducted in accordance with the current law and thoroughly reviewed for each enterprise. All enterprises meet the conditions by the MoIT,” the ministry stated.
Previously, some large manufacturers like LG, Panasonic, and Daesun Vina were refunded tax for imported coated metal as well as exempted from application of safeguard measures for their products, with the explanation that their imports had no effect on the Vietnamese market.
