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Chinese billet suspected of fraud
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Vietnam Steel Association (VSA) said cheap billet from China to Vietnam is rising and trade frauds, the risk of millions of dollars losses for the budget.
According to documents submitted to the Ministry of Industry and Trade, Ministry of Finance and Ministry of Science and Technology on 13/10, VSA said cheap billet from China to Vietnam increased sharply recently, adversely affect the market in the country, especially the situation some now attempting to cheat, code misstated imported for tax arbitrage.
Specifically, in August and 9/2015, some companies have declared China billet alloy billet containing the element chromium to HS 7224.90.00 to enjoy 0% tax, instead of 9% for square billet. General Administration of Customs statistics show that steel imports from China under this code in the past two months more than 65,000 tons, worth more than $ 21 million, is 62,000 tons separately in September, up sharply compared to the previous month.
VSA calculates untruthful declarations commodity code will cause losses to the state budget nearly 1.9 million, equivalent to about 42 billion in just the past two months and can be increased in many times in the future.
"This if not promptly stop the alloy steel ingot from China will continue to increase in the future, the possibility of higher billet imports in 2015 was on average 200,000 tonnes a month and that budget losses revenue ", VSA warning.
In essence, billet contain very small amounts of chromium will be no different from normal embryos and is still used for construction steel. However, products containing these alloying elements when entering Vietnam are Chinese outside refunds also enjoy 0% tax rate should be priced low and seriously affect the domestic steel industry.
The report said the association's steel production capacity of 11 million tons of water reaching close but now only produces about 60% of capacity. The low-value scrap from China about our country and threaten the domestic steel mills, many mills have cut production, sell below cost in order to be competitive and maintain production, causing heavy losses.
"If this situation continued, the steel production enterprises and production units will be rolled unlikely to stand in the future, particularly in the context of China to strengthen export demand the country entered a period of decline, "association information.
Therefore, the agency should propose the government to strictly control imports of steel billet alloy containing elemental chromium alloy; simultaneously, the need to set up inspection and supervision of enterprises that import embryos as an alloy containing chromium in recent years. If billet steel used to build the proposed common tax arrears and impose heavy fines importer.
VSA also suggested the Ministry of Finance, General Administration of Customs to stop clearance for imported consignments containing chromium alloy billet to wait for checks and supervision. Vietnam now imported billet if chromium content of steel just to build, to apply the tax rate of 9% as normal embryos.
The defensive measures like trade safeguards, anti-dumping, construction and technical barriers, ... should be the State authorities to consider implementing in order to prevent frauds and competition unhealthy.
Phuong Linh
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18/8/2025
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