Stainless steel: anti-dumping tax increase, businesses say?

 

Seriously affected

"In fact, in recent times, the application of anti-dumping duty on stainless steel items have been partially protect domestic producers. For commercial companies, on their imports of stainless steel is no longer as before, but until now the Association has not received yet reflect commercial enterprises trading commodities on the continued imposition as well as losses, difficulties of enterprises. It is understandable that these enterprises have adjusted their business in a harmonized manner. If the opinion of the company, the Association will reflect on the State authorities to consider. The spirit of the Association is supporting the protection of domestic production. In the trade remedies, if protecting the interests of this group of enterprises, the other enterprise groups will be affected. However, if you know the tune, to work together in the distribution chain in the country, businesses still benefit. "

 

Mr. Ho Nghia Dung,

Chairman of the Vietnam Steel Association

According to Decision No. 1656 / QD-BCT on the results of the first review of the application of anti-dumping measures against certain products of stainless steel cold rolling newly issued MOIT, from 14-5, Vietnam will continued imposition of anti-dumping for stainless steel products imported into Vietnam from countries / regions including China, Indonesia, Malaysia and Taiwan ... This is the next evolution of trade defense cases Vietnam's first trade. Earlier, in May 9-2014, Ministry of Industry and Trade issued Decision No. 7896 / QD-BCT on the application of anti-dumping measures against certain products, cold-rolled stainless steel imports into Vietnam from countries / regions territory including China, Indonesia, Malaysia and Taiwan, after a petition by representatives of the domestic industry as Posco VST and JSC Inox Hoa Binh. May 9-2015, Ministry of Industry and Trade has received a valid record of 2 DN suggest reviewing the anti-dumping tariff on cold rolled stainless steel imports into Vietnam under the provisions of Article 24 of the Anti-Dumping Ordinance.

 

It is worth mentioning, if compared to the tax rate is applied from 9-2014 AD, the only stainless steel anti-dumping tariff reduced from Malaysia, Taiwan retained the anti-dumping tariffs from 13-37%, while duties stainless steel prices increased imports from China, from 17.47 to 25.35% up 4-7%, Indonesia from 3% to 13.03%.

In the opinion of many companies, the continued imposition of anti-dumping, even increase the tax rate applied to help protect upstream production, the opposite would have a negative impact, making it difficult for downstream manufacturing enterprises. Chamber business representatives and development of a steel enterprises in HCM City said, DN just received a quote of some suppliers, including items under import duty increases to 25%. As representatives of this company, the tax increase will affect these companies have orders from the previous quote. It will be very difficult to negotiate with partners, especially if they signed a contract. If partners do not consent to conduct businesses still manufacture and supply products in accordance with the contract and the loss is surely inevitable.

Pham Quoc Vu, Deputy General Director of JSC International Oceans said that high tariffs would seriously affect all downstream companies using stainless steel materials. Vu said, after the holiday season 30-4, 1-5 past, prices of raw materials and products of stainless steel pipe, pot, pots, trays, brass, furniture, household goods rose from 10-15% after the Ministry of Trade issued Decision No. 1656 / QD-BCT on the results of the first review of the application of anti-dumping measures against certain products include stainless steel cold rolled HS : 7219.32.00; 7219.33.00; 7219.34.00; 7219.35.00; 7219.90.00; 7220.20.10; 7220.20.90; 7220.90.10; 7220.90.90.

"We think the price of stainless steel products will continue to increase as new tariffs dated 14-5-2016 formally adopted. The price increase will be a burden for downstream manufacturers and consumers ", representing JSC International Ocean stressed.

At the same point of view, Mr. Dam Quang Hung, deputy general director of JSC International Son Ha said, the tax rate increases, the chance to adjust importing raw materials from these countries will be limited and potentially toxic rights sold in the country. This can lead to increased raw material prices and the impact on commodity price increases and a direct impact on consumers.

Should carefully review

In fact, stainless steel anti-dumping case of two companies including Posco VST and JSC Inox Hoa Binh from 2014 has received strong opposition of many domestic enterprises, especially the real DN downstream. The anti-dumping duties which cause less impact on the production and business of enterprises.

According to company representatives, Son Ha, the business results of the Son Ha unaffected for the imposition of anti-dumping duty on stainless steel products, cold-rolled from four markets, but has limited influence institutional buying power of companies use this product in the domestic value. The reason the Son Ha was not affected, according to the representative of this company, partly because besides the use of cold-rolled stainless steel is subject to anti-dumping tariff, the Son Ha also uses large amounts of hot-rolled stainless steel - not is liable to tax.

Conversation with Customs, a business specializing in the import, manufacture of stainless steel products, said the current domestic purchasing power of this company is still mainly the products of the Company, or POSCO imports from China taxable value by the AD. Representatives businesses also said, there are some items of high import prices, businesses dare not import the source leads to difficulty, with nothing to do businesses. This position also simile Photos "water on the dirt up," input increases, the output increased, while confirming "in the end people have to bear this high price."

Recommendations on this matter, Mr Pham Quoc Vu said that the Ministry of Industry and Trade should check to sync the proper tax for stainless steel. Under the current situation, Vietnam mainly imports from China from raw materials to products made from stainless steel. Pham Quoc Vu said that if the tax rate from 17.47% -25.35% applies only to roll stainless steel raw materials under HS 9 on the invisible medium enterprises will drive production downstream from the source this raw material fell into the loser at home. Cites the decorative tubes, stainless steel furniture and many other household products is the import duty to 0 when imports from China and Thailand, Vu said, easy to imagine the future market Vietnam will field flooded with imported products while the production plant, domestic processing stalled due to input costs high.

Stems from the difficulties that businesses downstream manufacturers will encounter as well as avoid the monopoly when anti-dumping tariff increases, Mr. Dam Quang Hung propose authorities should thoroughly check the output data that the domestic production units meet planning and monitoring of the unit price of domestic production to avoid oligopoly.

 

Hoai Anh

(According to Customs)