Zinc-coated steel – Australia Anti-Dumping Commission issued Statement of Essential Fact
On May 31, 2017, Australia Anti-Dumping Commission issued Statement of Essential Fact (“SEF”) in the countervailing and anti-dumping investigation of imports of zinc-coated steels from Vietnam, India and Malaysia. The SEF is basis for the Commission making the final determination. Interested parties have 20 days to comment on the SEF before the Commission issues the final report. Until issuing the final determination, anti-dumping and countervailing duties in the SEF are interim duties that shall be posted by Australian importers.
Regarding Vietnam, the Commission found that subsidy margin granted by Vietnamese Government to producers of zinc-coated steel is negligible (0 – 0.7%) and thus proposing termination of the countervailing investigation to all Vietnamese exporters.
We summarize the content of SEF as follows:
The Commission found subsidy margins of zinc-coated steels imported from Vietnam as follows:
- Hoa Sen Group: 0%
- China Steel Sumikin Vietnam JSC: 0%
- Nam Kim Steel JSC: 0.7%
- Other exporters (including uncooperative exporters): 0.7%
Accordingly, the Commission found that subsidy margin of zinc-coated steel imported from Vietnam is negligible and proposing termination of the investigation.
In this investigation, Vietnam was alleged having 19 subsidy programs granting to zinc-coated steel exporters, including: (i) preferential import tariffs contingent upon localization ratios; (ii) support for the implementation of projects manufacturing priority industrial products; (iii) investment incentives upon export performance; (iv) other investment incentives for domestic businesses; (v) investment incentives upon export performance for foreign invested enterprises; (vi) other investment incentives for foreign invested enterprises; (vii) preferential investment credit for development upon export criteria; (viii) preferential investment credit for development upon localization ratios; (ix) other preferential investment credit for development; (x) export promotion; (xi) trade promotion; (xii) support for mechanical products; (xiii) support for shipbuilding industry; (xiv) assistance for commercial development in mountainous, island and ethnic minority areas; (xv) assistance to enterprises facing difficulties due to objective reasons; (xvi) incentives for investment projects in science and technology; (xvii) preferential import tariff rates for enterprises investing in regions or sectors entitled to investment incentives; (xviii) Incentives on corporate income tax for enterprises operating in regions or sectors entitled to incentives; incentives on non-agricultural land use tax.
Regarding to India, the Commission found that subsidy margins for India from 3.6 – 5.9%
According to the SEF, dumping margins of Vietnamese exporters as follows:
- China Steel Sumikin Vietnam JSC: 8.4%
- Hoa Sen Group: -0.7%
- Nam Kim Steel JSC: -8.4%
- Other exporters (including uncooperative exporters): 14.2%