Decision No.7896/QD-BCT dated September 05, 2014, applying anti-dumping measures

DECISION

APPLYING ANTI-DUMPING MEASURES

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Ordinance No.20/2004/PL-UBTVQH11 dated April 29, 2004 of the Standing Committee of the National Assembly on taking anti-dumping measures on goods imported into Vietnam;

Pursuant to the Government’s Decree No.90/2005/ND-CP dated July 11, 2005 on detailing the implementation of a number of articles of the Ordinance on introducing antidumping measures on goods imported into Vietnam;

Pursuant to the Government’s Decree No.04/2006/ND-CP dated January 9, 2006 on establishing and regulating the function, task, power and organizational structure of the Council for handling of anti-dumping, anti-subsidy and safeguard cases;

Pursuant to the Government’s Decree No.95/2012/ND-CP dated November 12, 2012 on defining the function, task, power and organizational structure of The Ministry of Industry and Trade;

At the request of the Director of Vietnam Competition Authority and the President of the Council for handling of anti-dumping, anti-subsidy and safeguard cases,

HEREBY DECIDES:

Article 1. Applying anti-dumping measures on certain cold-rolled stainless steel coils or plates with less than or equal to 3.5-mm thickness, manufactured through tempering or different heating treatment processes and soaking or stain removal to clean all residues on the surface. These products can be treated further (such as cutting or sawing) provided that these processes do not change any technical features of products. These products are classified under HS codes such as 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, which are imported into Vietnam from countries/territories such as the People’s Republic of China, the Republic of Indonesia, Malaysia and the territory of Taiwan (Case: 13-KN-BPG-01). Detailed information is found in the Notification attached to this Decision.

Article 2. Procedural steps in applyingantidumping measures must abide by the Ordinance on antidumping in Vietnam and instructions on paying and collecting the antidumping duty, issued by the Ministry of Finance, with reference to the legal regulations on tax administration as well as other relevant laws.

Article 3. This Decision comes into effect after 30 days from the signing date.

Article 4. The Chief of the Ministry’s Office, the Director of Vietnam Competition Authority, the President of the Council for Handling of Anti-dumping, Anti-subsidy and Safeguard Cases, the Heads of agencies and interested parties take responsibility for the implementation of this Decision.

NOTIFICATION

APPLICATION OF ANTIDUMPING MEASURES
(attached to the Decision No.7896/QD-BCT dated September 05, 2014 of the Minister of Industry and Trade)

Pursuant to the Ordinance No.20/2004/PL-UBTVQH11 dated April 29, 2004 of the Standing Committee of the National Assembly on antidumping for goods imported into Vietnam (“the Ordinance 20”) and the Decree No.90/2005/ND-CP dated July 11, 2005 on detailing the implementation of certain provisions of the Ordinance on antidumping for goods imported into Vietnam (“the Decree 90”), the Ministry of Industry and Trade hereby notifies specific contents of the application of antidumping measures on certain cold-rolled stainless steel products imported into Vietnam from countries or territories such as the People’s Republic of China (“China”), the Republic of Indonesia (“Indonesia”), Malaysia and the territory of Taiwan (“Taiwan”), which are classified under HS codes such as 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 as follows:

1. Summary of investigation processes

On July 02, 2013, the Ministry of Industry and Trade promulgated the Decision No.4460/QD-BCT on conducting the investigation of the application of antidumping measures on certain cold-rolled stainless steel coils or plates classified under abovementioned HS codes, which are imported or originated from China, Indonesia, Malaysia and Taiwan (Case: 13-KN-BPG-01).

On December 25, 2013, the Ministry of Industry and Trade continued to promulgate the Decision No.9990/QD-BCT on the application of provisional antidumping measures, which lasted 120 days.

On August 01, 2014, the Investigation Agency (Vietnam Competition Authority) announced the conclusion on the investigated case and delivered the whole documentation regarding the case to the Council for Handling of Anti-dumping, Anti-subsidy and Safeguard Cases in which the Investigation Agency affirmed the presence of dumping acts of imports from countries or territories under investigation, considerable losses on the domestic manufacturing industry as well as cause-effect relationship between goods that have been sold through dumping acts and considerable losses incurred on the domestic manufacturing industry.

On August 13, 2014, pursuant to the provisions mentioned in Article 39 of the Decree 90, the Council for Handling of Anti-dumping, Anti-subsidy and Safeguard Cases held a discussion meeting and simultaneously carried out a poll on the conclusion announced by the Investigation Agency in which participants commonly agreed on the following points:

(1) The presence of dumping acts on goods imported into Vietnam;

(2) The presence of significant losses or likely threats to cause significant losses on the domestic manufacturing industry;

(3) The presence of a connection between the dumping of goods imported into Vietnam and significant losses or likely threats to cause significant losses on the domestic manufacturing industry.

2. Imports liable to the antidumping duty

Imports liable to the antidumping duty are cold-rolled stainless steel coils or plates with less than or equal to 3.5-mm thickness, manufactured through tempering or different heating treatment processes and soaking or stain removal to clean all residues on the surface. These products can be treated further (such as cutting or sawing) provided that these processes do not change any technical features of products.

These products are classified under HS codes such as 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.

Basic specifications: Stainless steel is mainly steel consisting of low carbon content (1.2% or lower, depending on the weight) in which the chrominium content accounts for 10.5% or higher, depending on the weight. The supplement of chrome content helps to create the stainless and anti-corrosive features. Amount of chrominium content available in steel is a key factor to form an extremely thin, almost invisible, layer of chromimum oxide with the stainless property firmly adhering to the steel surface. If there is any physical or chemical damage, oxidation resistance of stainless steel automatically heals these damages, corrosive effects and even minor scratches. The anti-corrosive property and other useful attributions of stainless steel are improved by increasing the chromium content and other factors such as nickel, molypden and nitrogen.

Main uses: Stainless steel products mentioned above are widely employed in the household appliance manufacturing industry (such as kitchen sink, pipe-shaped decoration furniture, water heating system, bathtub and other kits), car parts, building materials, kitchen utensils, tableware (saucepan, pot, knife and dish), wash basin, etc. Depending on the physical property of each stainless steel, it can serve different purposes.

Following product categories exempted from the application of antidumping measures: (1) cold-rolled stainless steel coils or plates, manufactured without carrying out tempering and heat treatment processes (Full hard); (2) cold-rolled stainless steel coils or plates with more than 3.5-mm thickness.

Current duty rate: ranging from 0% to 10%.

Origin of imports: Goods liable to the antidumping duty are imported or originated from the People’s Republic of China, the Republic of Indonesia, Malaysia and the territory of Taiwan.

3. Antidumping duty

3.1. Final antidumping duty rate

According to the decisive conclusion of the Investigation Agency and petitions of the Council for Handling of Anti-dumping, Anti-subsidy and Safeguard Cases, the Ministry of Industry and Trade decides to impose the antidumping duty on foreign manufacturers/exporters as described below:

Antidumping duty rate imposed on other manufacturers/exporters from China, Indonesia, Malaysia and Taiwan is the duty rate applicable to manufacturers/exporters who are not listed above. Name of manufacturers/exporters are defined on the basis of submitted documentation and certificate of quality assurance as well as other relevant documents published by manufacturers.

Given this Decision, the antidumping duty shall be imposed on manufacturers/exporters specified in the above-mentioned list of countries/territories who carry out direct or indirect exportation of goods under investigation through commercial enterprises into Vietnam.

3.2. Deadline for the imposition of antidumping duty

The antidumping duty shall stay effective within 05 years from the effective date of the Decision on applying antidumping measures.

After one year from the date on which the Decision on applying antidumping measures is made, interested parties have the right to call for the review of antidumping duty policies under the regulations specified in Article 24 of the Ordinance 20.

Deadline for the imposition of antidumping duty is likely to be extended in compliance with the regulations stated in Chapter IV of the Ordinance 20.

3.3. Differential rate of antidumping duty

Pursuant to the Article 23 of the Ordinance 20:

- If differential rate of antidumping duty at the column (3) is lower than zero, manufacturers/importers will be refunded an excess amount in proportion to the differential rate of antidumping duty that they have paid.

- If differential rate of antidumping duty at the column (3) is higher than zero, manufacturers/importers will not have to pay any amount for the differential rate of antidumping duty.

4. Next procedural steps

After antidumping measures are put into effect, the General Department of Customs shall impose the antidumping duty on goods under investigation imported by manufacturers/exporters located in countries/territories under investigation.

If any importer confirms that imported products that are arranged into HS codes mentioned in Section 2 but are not goods that need to be investigated, they are advised to contact the Vietnam Competition Authority affiliated to the Ministry of Industry and Trade for clarification.

Information about the application of antidumping measures on goods under investigation can be found by visiting the website of the Ministry of Industry and Trade (http://www.moit.gov.vn) and Vietnam Competition Authority (http://www.vca.gov.vn or http://www.qlct.gov.vn).

If interested parties have any enquiry or any petition for the case, please contact us at:

Investigation Division for Lawsuits of Trade Defence of Domestic Enterprises – Vietnam Competition Authority - the Ministry of Industry and Trade

Address: 25 Ngo Quyen, Hoan Kiem, Hanoi, S.R.Vietnam

Telephone: (+84 4) 2220.5002 (Extension: 1034, 1035)

Fax: (+84 4) 2220.5003

Email: [email protected]; [email protected]