Vietnam customs guiding on the expansion of Safeguard measure tax on high quality steel (steel billet products and long steel products )for industrial production

On 30 may 2019, General Department of Customs  issued letter no.3518/TCHQ-TXNK about  the expansion of Safeguard measure tax  on high quality steel for industrial production. 

The content is as below;

The General Department of Customs received the official letter DH-19028 of Daeho Vietnam Co., Ltd. for the expansion of Safeguard measure tax  on high quality steel for industrial production. In this regard, the General Department of Customs has the following opinions:

Recently, the Ministry of Industry and Trade issued Decisions related to the application of safeguard measures for steel billet products and long steel products including Decision No. 2968 / QD-BCT dated July 18, 2016 and Decision No. 538 / QD-BCT dated February 9, 2018.

Then,  on 26 July 2018, the Ministry of Industry and Trade of Vietnam issued Decision 2622/QD-BCT initiating an anti-circumvention investigation on certain steel products The products subject to investigation are classified under the following HS code subheadings: 7213.91.90, 7213.99.90, 7217.10.10, 7217.10.29, 7229.90.99, 9839.10.00 and 9839.20.00.Ministry of Industry and Trade evaluated steel products of 07 HS codes above not significantly different from goods being subject to safeguard measures, and had a significant increase in imports since the Minister of Industry and Trade issued Decisions to apply the above safeguard measures. Thereby, the Ministry of Industry and Trade evaluates that there are signs that there is a reduction in the effectiveness of the effective trade defense measures and signs of evading trade defense measures.

On May 13, 2019, the Ministry of Industry and Trade issued Decision No. 1230 / QD-BCT Measures for preventing and countering evasion of trade remedies applied to steel coil and steel wire products . Accordingly, anti-circumvention measures to prevent trade remedies for steel and wire products are applied 5 HS codes: 7213.91.90, 7217.10.10, 7217.10.29, 7229.90.99, 9839.10.00 imported from different countries/territories into Vietnam..

Measures against evasion of trade remedies shall be applied to the imports by means of charging additional duties on those imports (trade remedy duties) at the rate of 10.9% for the period from the effective date of the Decision on application of measures against evasion of trade remedies applied to steel coil and steel wire products to March 21, 2020 inclusively (if the application of initial safeguard measures is not extended).

The investigating agency concluded that investigated steel and wire steel applied measures against evasion of trade remedies are similar goods and directly compete with domestically produced steel coils and steel wires. However, the determination of among imported goods steel applying measures against evasion of trade remedies has some products currently has not produced in the country (including but not limited to high quality structural steel and rolled steel  for supporting industries, automobile and motorbike industries) and therefore  they should be excluded from the scope of application of anti-circumvention measures.

In case the Company believes that the imported goods of company are excluded from the scope of application of anti-circumvention measures, it is recommended to study and comply with the contents in Section 2 of the Notice issued together with Decision No. 1230 / QD-BCT and Appendix I issued together with the Notice.

The General Department of Customs informs the Company to know and implement.

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For more information:

Section 2 of the Notice issued together with Decision No. 1230 / QD-BCT

ANNOUNCEMENT

APPLICATION OF MEASURES AGAINST EVASION OF TRADE REMEDIES
(Enclosed with the Decision No. 1230/QD-BCT dated May 13, 2019 of the Minister of Industry and Trade)

  1. Imports to which measures against evasion of trade remedies are applied

Measures for preventing and countering evasion of trade remedies are applied to steel coil and steel wire products bearing the following HS codes: 7213.91.90, 7217.10.10, 7217.10.29, 7229.90.99, 9839.10.00, imported from different countries/ territories into Vietnam. Steel coil and steel wire products that have one of the following specifications shall be excluded from the application of measures against evasion of trade remedies:

(i) Steel products containing one of the following elements in the proportions by weight as given: C > 0.37%; Si > 0.60%; Cr > 0.60%; Ni > 0.60%; Cu > 0.60%.

(ii) Steel products simultaneously containing the following elements in the proportions by weight as given: Mn of 0.70% – 1.15%; S of 0.24% – 0.35%.

(iii) Steel products of circular cross-section of ≥ 14 mm in diameter.

(iv) Steel products which cannot be manufactured domestically.

For being granted exclusion from measures against evasion of trade remedies, importers of steel products specified in (i), (ii) and (iii) shall provide the customs authority where customs procedures are carried out with documents proving that their imports are eligible for exemption from measures against evasion of trade remedies as mentioned above.

For being granted exclusion from measures against trade remedies, importers of steel products specified in (iv) shall provide the customs authority where customs procedures are carried out with the Decision on exemption from trade remedies issued by the Ministry of Industry and Trade. Procedures and formalities for such exemption shall conform to the Decree No. 10/2018/ND-CP and Circular No. 06/2018/TT-BCT. Importers of steel products in (iv) may refer to procedures for exemption provided in the Appendix enclosed herewith.

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