On 26th August 2019, Indonesian Anti-dumping Committee (KADI) announced an anti-dumping investigation on Aluminum coated steel import from Vietnam and China.
The plaintiff requested an investigation identified as PT NS Bluescope Indonesia.
Accordingly, the item under investigation is Galvalume steel with the following HS codes: 7210.61.11, 7212.50.23, 7212.50.24, 7212.50.29, 7225.99.90, 7226.99.19 and 7226.99.99.
It is expected that on August 26, 2020, 1 year after the initiation of the investigation, KADI will issue an official notice of the results of the investigation. A decision on whether to impose tariffs on Galvalume steel will be based on that official notice.
However, the Covid epidemic around the world in general and in Indonesia in particular continues to deteriorate as the number of patients and deaths continues to increase, even more seriously. Due to this situation, daily activities as well as work handling were also affected and delayed.
Therefore, on August 24, 2020, KADI announced to extend the time limit for investigating the case by 6 months. KADI explained that the agency needs more time to conduct investigative procedures.
Previously, on July 30, 2020, KADI announced the draft investigation conclusion of the case. Accordingly, KADI believes that Vietnam’s cold steel sheet is dumping and has caused damage to Indonesian cold sheet companies.
On August 13, 2020, Trade Remedies Authority of Vietnam (TRAV) sent a letter protesting some unreasonable contents in the draft conclusion of KADI. Specifically, some conclusions are inconsistent, do not reflect the actual situation of Vietnamese enterprises such as value added tax, duplication in calculations … These inaccuracies have led to a high margin of dumping and is detrimental to Vietnamese enterprises.
In addition, on August 18, the TRAV coordinated with the Vietnam Trade Office in Indonesia to prepare documents and attend a public consultation session in the case. The Department also coordinates with relevant businesses to express their views in a private consultation session with KADI.
There is a high possibility that the Indonesian will impose anti-dumping duties on Vietnam’s Galvalume steel as Indonesia has no longer protective barriers for domestic market about this product. However, it is not excluded that Indonesia will conclude that Vietnam is not dumping after careful deliberation and consideration of Vietnam’s protest letter and standpoint in its private consultation session with KADI. Therefore, enterprises should be prepared to the fact that KADI will impose anti-dumping tariff. At this time, steel enterprises should step up looking for many other markets, avoiding too much dependence on one market. At the same time, the consideration of rebuilding the price bracket, avoiding selling at too low prices in this market is also an issue that businesses should pay more attention to.
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Ms. Gracie – Juridical Executive of MRS Steel
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