February 21, 2020, Thailand Foreign Trade Department initiated an anti-dumping investigation on galvanized steel imports from China. The Petition was lodged by POSCO Coated Steel (Thailand) Co., Ltd.
According to the normal anti-dumping investigation process, at the end of June or early July, after fully receiving and reviewing the Questionnaire Responses of the interest parties, the Anti-Dumping and Subsidies Investigation Committee will issue a result of preliminary investigation of anti-dumping acts. However, the significant increase in steel import volume stemming from the fact that China exporters is racing to bring its products to the Thai market before officially anti-dumping tax is issued.
Realizing this risk, on May 7, 2020, Posco Coated Steel (Thailand) Co., Ltd. sent an official letter to the Department of Foreign Trade to consider anti-dumping measures under Section 31 of the Anti-Dumping Act. Foreign Prices and Subsidies BE 1999 to protect domestic industry and minimize the effects of imports.
On July 15, 2020, the Anti-Dumping and Subsidies Investigation Committee held meeting No. 04/2020 reviewed the request of POSCO and made a decision that there is a reasonable basis to take urgent measures to prevent this behavior temporarily.
A notice issued with the content of Galvanized steel imported from China with the following HS code will be subject to the tax rate of 35.67% equivalent to the rate of dumping at CIF price of exporters:
7210.4912.021 7210.4912.022 7210.4912.023 7210.4912.024 7210.4912.031 7210.4912.032 7210.4912.033 7210.4912.034 7210.4912.090 7210.4913.021 7210.4913.031 7210.4913.090 7210.4919.09021 7210.4919.000.021 7212.3011.031 7212.3011.090 7212.3012.021 7212.3012.031 7212.3012.090 7212.3013.011 7212.3013.090 7212.3019.011 7212.3019.090 7225.9290.090.
This Notice is effective from August 3, 2020 until the announcement of the preliminary or final results on anti-dumping measures. However, not all Galvanized steel in the HS code above are subject to tax, those with specifications or for the following purposes will be excluded from the 35.67% tax rate:
(1) Hot-dip galvanized sheet in coils and without coils with a thickness greater than 2.3 mm.
(2) Imported for use in the manufacture of automobiles and auto parts.
(3) Imported for use in the manufacture of electrical and electronic equipment.
Steel products under sections (2) and (3) are excluded only where exporters comply with the methods and conditions announced by the Director of the General Department of Foreign Trade.
There is the fact that China’s Galvanized steels are subjected to such a high tax rate will create a reluctance for Chinese manufacturers to enter this market. However, the disadvantage of the Chinese factory is an extremely good opportunity for Vietnamese factories because Thailand is a country relatively close to Vietnam territory and previously, products from Vietnam find it difficult to export to Thailand because the price cannot compete with Chinese products.
In addition, the Thailand market is one of the markets with strict requirements on quality of goods through the requirement of TIS certificate for Galvanized steel imported into this market. Therefore, Vietnamese exporters need to be more proactive and cautious in setting the price and quality. And the only important way to enter the Thai market quickly and smoothly is to register for TIS certificate because it will take effect on 27 August, 2020.
To know more detail about Trade Defense and TIS Certificate, please feel free to contact us at:
Ms. Gracie – Juridical Executive of MRS Steel
Whatsapp: +84 833 407 559