On 11th December 2020, the Ministry of International Trade and Industry (MITI) notice of affirmative final determination of an anti dumping duty investigation with regard to the imports of flat-rolled product of non-alloy steel-plated or coated with aluminium and zinc originating or exported from the People Republic of China, the Republic of Korea and The Socialist Republic of Vietnam.
This investigation was initiated on 13th March 2020 and the petition was lodged by NS Bluescope Malaysia, the only producer of this product in Malaysia.
The products under Investigation has HS Code as follow: 7210.61.11 00; 7210.61.12 00; 7210.61.19 00, 7210.61.91 00; 7210.61.92 00; 7210.61.99 00; 7212.50.23 00; 7212.50.24 90; 7212.50.29 10 and 7212.50.29 90.
After 8 months since the initiated day, based on the data and documents provided by related parties, Malaysia Investigating Authority concludes that:
- The export price of the subject merchandise is less than its normal value;
- The domestic industry in Malaysia producing the like product has suffered material injury that can be reasonably linked to the importation of the subject merchandise into Malaysia; and
- The dumping margin is found to exist through the dumping activities by the producers of exporters from China, Korea and Vietnam.
To prevent the injury as well as to protect the domestic industry in Malaysia producing the like product, MITI decides to impose anti dumping duty to the producer or exporter as the following table:
|NO||COUNTRY||PRODUCERS OR EXPORTERS||RATE OF DUTY [Percentage of CIF value]|
|1||The People’s Republic of China||Jiangyin Zongcheng Steel Co., Ltd||7.58%|
|Shandong Bofeng New Material Co., LTD||2.18%|
|2||The Republic of Korea||KG Dongbu Steel Co., Ltd||9.98%|
|3||The Socialist Republic of Vietnam||Hoa Phat Steel Sheet Company||3.06%|
|Hoa Sen Group||16.55%|
|Maruichi Sun Steel Joint Stock Company||4.53%|
|Nam Kim Steel Joint Stock Company||5.04%|
|Tan Phuoc Khanh Trading & Manufacturing Coil Steel JCS||4.22%|
|Tay Nam Steel Manufacturing & Trading Co., Ltd||5.48%|
|Ton Dong A Corporation||15.87%|
According to the announcement of MITI, all 12 exporters from 3 countries participated in the investigation. However, according to the conclusion of MITI, one Chinese exporter is Yieh Phui Technomaterial Co., Ltd. and a Vietnamese exporter Southern Steel Sheet Co., Ltd was removed from the list of exporters subject to anti dumping duties because dumping margins were at 0.6% and 1.56%, respectively, lower than the minimum dumping margin of 2%.
Comparing with the Preliminary conclusion of the Investigating Authority, most Vietnamese exporters enjoy a reduction in anti dumping duty (from 0.19% – 4.62%), while Korean exporters anti duping duties remain unchanged and there is an increase in the official anti dumping duty for Chinese exporters (increase from 0.01% – 1.07%).
At the time Malaysia initiated an investigation of this item, Malaysian end-users were confused and worried about Bluescope being the only producer in this market. Meanwhile, China, South Korea and Vietnam are three huge exporters, occupying a sizable market share in Malaysia’s domestic market. If the countries are subject to high anti dumping duty, Bluescope will hold a monopoly in this market. However, the tax is assessed as not too high for some manufacturers such as: Shandong Bofeng New Material Co., Ltd; Hoa Phat Steel Sheet Company; Tan Phuoc Khanh Trading & Manufacturing Coil Steel JSC;… Malaysia end-user can be rest assure and still have the opportunity to use products from these markets because the price including anti dumping duty will not be too high.
In the coming time, exporters need to adjust the selling price when they want to import goods to the Malaysian market to bring the price to normal value, able to compete fairly with domestic exporters. At the same time, exporters should also promote development in a variety of markets, avoiding hot growth in a certain market.
To know more about trade defense, please feel free to contact us at:
Ms. Gracie – Juridical Executive of MRS Steel
WhatsApp: 00 84 833 407 559