August, 2018, after a few month after 25% import duty under Section 232 that issued by USA, EU slapped Safeguard duty on 28 kind of steel product to protect its domestic factories. These actions made a strong wave for world steel market and there are a lot of market imposed new anti-dumping duty or safeguard duty and Trade defense become a best tools to ensure domestic production is not affected.
But in 27, September, 2019, the Official Journal of the European Union has issued a Commission implementing regulation that related to Safeguard measure against imports of certain steel products
The Commission has intended to change tax rate from 25% to 20%, but through this review investigation, they defined that there are more injuries are found and need to change some rules.
Under WTO Regulation, the if the import volume of developing countries smaller than 3%, the plaintiff can not apply Safeguard duty. But after this review investigation, there are some developing countries are subject to taxes, including Vietnam with 4 products: Non Alloy and Other Alloy cold Rolled Sheets, Metallic Coated Sheets, Stainless Cold Rolled Sheets and Strips, Other Seamless Tubes.
According to statistics in this Report, Quotas for Vietnam and Other Country to export to EU as below:
|STT||Product Category||From 2/2/2019 to 30/6/2019 (net tonnes)||From 1/7/2019 to 30/6/2020 (net tonnes)||From 1/7/2020 to 30/6/2021
|Additional duty rate|
|1||Non Alloy and Other Alloy cold Rolled Sheets||430.048,96||1.085.079,91||1.117.632,31||25%|
|2||Metallic Coated Sheets||887.116,98||2.238.333,07||2.305.482,97||25%|
|3||Stainless Cold Rolled Sheets and Strips (Only Vietnam)||16.832,28||42.470,43||43.744,55||25%|
|4||Other Seamless Tubes||55.345,57||93.100,78||95.893,81||25%|
Can see that the Volume of tariff-rate quote of product is increase about 2 to 3 time from the first to second period. But in the third period, there is not much change in this number.
Perhaps, through this review, the EU can only give Quota for the next period, and it is possible that the third Quota of the 3rd batch will change after the next Review.
To know more about this Commission Implementing Regulation, please access this link:
Through this review, the export volume to the EU market of Vietnam has increased significantly and reached the EU’s sights. Therefore, in the coming time, exporters in Vietnam need to be more careful about the quantity and price of products when importing into the EU market to avoid the risk of applying Quota for the remaining 26 types of steel were applied Safeguard Measure by EU.
To know more about Trade Defense please feel free to contact us at:
Ms Lan – Juridical Manager of MRS Steel