No basis to affirm that silicon steel is not subject to anti dumping duty

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VCN – According to Official Letter No. 136/PVTM-P1 dated February 25, 2019 of the Trade Remedies Authority of Vietnam (Ministry of Industry and Trade), the General Department of Vietnam Customs has no basis to confirm that silicon steel is not subject to anti-dumping duty.

ECO Vietnam Joint Stock Company said that it is facing problems related to the application of anti-dumping tax on goods declared as flat-rolled silicon steel with a width of 600mm or more, size 0.5x1200xC, label 50W1300. ECO Vietnam Joint Stock Company requested the Customs authority give specific guidance on regulations.

illustration image. Photo: Nguyễn Thanh
illustration image. Photo: Nguyễn Thanh

Regarding this issue, the General Department of Vietnam Customs said that on February 25, 2019, the Trade Remedies Authority (Ministry of Industry and Trade) sent Official Letter No. 136/PVTM-P1 to ECO Vietnam Joint Stock Company. Accordingly, in Section 3, it is stated that if the company’s imported product is a steel product using thermomechanical treatment to create a surface coating, this product is not subject to the application of anti-dumping duty as prescribed in Decision No. 1105/QD-BCT dated March 30, 2017 of the Ministry of Industry and Trade.

On that basis, on May 20, 2019, the General Department of Vietnam Customs issued Official Letter No. 3109/TCHQ-TXNK requesting ECO Vietnam Joint Stock Company follow the guidance of the Trade Remedies Authority in Official Dispatch No. 136/PVTM-P1 as mentioned above to explain, provide technical documents, manufacturer’s documents to prove whether or not the item uses thermomechanical treatment technology to create a surface coating.

Compared with the production documents provided by ECO Vietnam Joint Stock Company, the manufacturing process of the item is carried out through the following steps: step 1 is cold rolling (mechanical treatment), step 2 is annealing (heat treatment) and step 3 is coating.

According to the General Department of Vietnam Customs, the coating process is done after mechanical and heat treatment, not during thermomechanical treatment. Thus, compared with Section 3 of Official Dispatch No. 136/PVTM-P1, the Customs authority has no basis to confirm that the above item is not subject to anti-dumping tax.

By Nụ Bùi/Thanh Thuy

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