Decision No. 1230/QD-BCT dated May 13, 2019 application of measures against evasion of trade remedies

DECISION

APPLICATION OF MEASURES AGAINST EVASION OF TRADE REMEDIES

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Law on foreign trade management No. 05/2017/QH14 dated June 12, 2017;

Pursuant to the Government’s Decree No. 10/2018/ND-CP dated January 15, 2018 on guidelines for the law on foreign trade management with respect to trade remedies;

Pursuant to the Government’s Decree No.98/2017/ND-CP dated August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Circular No/ 06/2018/TT-BCT dated April 20, 2018 of the Minister of Industry and Trade providing detailed regulations on trade remedies;

Pursuant to the Decision No. 3752/QD-BCT dated October 02, 2017 of the Minister of Industry and Trade defining functions, tasks, powers and organizational structure of the Trade Remedies Authority of Vietnam;

Pursuant to the Decision No. 2622/QD-BCT dated July 26, 2018 of the Minister of Industry and Trade on investigations into evasion of trade remedies;

At the request of the Director of the Trade Remedies Authority of Vietnam;

HEREBY DECIDES:

Article 1.Measures for preventing and countering evasion of trade remedies applied to steel coil and steel wire products bearing the following HS codes: 7213.91.90, 7217.10.10, 7217.10.29, 7229.90.99, 9839.10.00, imported from different countries/territories into Vietnam. Details thereof are provided in the Announcement enclosed herewith.

Article 2.Procedures and formalities for adopting the abovementioned measures shall be governed by the Law on foreign trade management.

Article 3.This Decision comes into force after 15 days from the day on which it is signed.

Article 4.The Director of the Trade Remedies Authority of Vietnam, Chief of the Ministry’s Office, and heads of relevant agencies/ units and relevant individuals shall be responsible for implementing this Decision./.

ANNOUNCEMENT

APPLICATION OF MEASURES AGAINST EVASION OF TRADE REMEDIES
(Enclosed with the Decision No. 1230/QD-BCT dated May 13, 2019 of the Minister of Industry and Trade)

Pursuant to the Law on foreign trade management No. 05/2017/QH14 dated June 12, 2017, the Government’s Decree No.10/2018/ND-CP dated January 15, 2018, and the Circular No. 06/2018/TT-BCT dated April 20, 2018 of the Minister of Industry and Trade, the Ministry of Industry and Trade hereby announces the application of measures for preventing and countering evasion of trade remedies applied to steel coil and steel wire products bearing the following HS codes: 7213.91.90, 7217.10.10, 7217.10.29, 7229.90.99, 9839.10.00, imported into Vietnam (Case AC01.SG04) as follows:

1. Basic information

On July 18, 2016, the Ministry of Industry and Trade has promulgated the Decision No. 2968/QD-BCT on application of official safeguard measures to steel slabs and long steels imported into Vietnam.

According to the plaintiff’s petition, the Ministry of Industry and Trade has promulgated the Decision No. 2622/QD-BCT dated July 26, 2018 on investigation into evasion of trade remedies applied to steel coil and steel wire products bearing the following HS codes: 7213.91.90, 7213.99.90, 7217.10.10, 7217.10.29, 7229.90.99, 9839.10.00, 9839.20.00, imported into Vietnam. On January 25, 2019, the Ministry of Industry and Trade has promulgated the Decision No. 171/QD-BCT giving the first extension of time limit for investigation into evasion of trade remedies applied to steel coil and steel wire products imported into Vietnam.

On February 26, 2019, the Ministry of Industry and Trade has promulgated the Decision No. 410/QD-BCT giving the second extension of time limit for investigation into evasion of trade remedies applied to steel coil and steel wire products imported into Vietnam.

2. Imports to which measures against evasion of trade remedies are applied

Measures for preventing and countering evasion of trade remedies are applied to steel coil and steel wire products bearing the following HS codes: 7213.91.90, 7217.10.10, 7217.10.29, 7229.90.99, 9839.10.00, imported from different countries/ territories into Vietnam. Steel coil and steel wire products that have one of the following specifications shall be excluded from the application of measures against evasion of trade remedies:

(i) Steel products containing one of the following elements in the proportions by weight as given: C > 0.37%; Si > 0.60%; Cr > 0.60%; Ni > 0.60%; Cu > 0.60%.

(ii) Steel products simultaneously containing the following elements in the proportions by weight as given: Mn of 0.70% - 1.15%; S of 0.24% - 0.35%.

(iii) Steel products of circular cross-section of ≥ 14 mm in diameter.

(iv) Steel products which cannot be manufactured domestically.

For being granted exclusion from measures against evasion of trade remedies, importers of steel products specified in (i), (ii) and (iii) shall provide the customs authority where customs procedures are carried out with documents proving that their imports are eligible for exemption from measures against evasion of trade remedies as mentioned above.

For being granted exclusion from measures against trade remedies, importers of steel products specified in (iv) shall provide the customs authority where customs procedures are carried out with the Decision on exemption from trade remedies issued by the Ministry of Industry and Trade. Procedures and formalities for such exemption shall conform to the Decree No. 10/2018/ND-CP and Circular No. 06/2018/TT-BCT. Importers of steel products in (iv) may refer to procedures for exemption provided in the Appendix enclosed herewith.

3. Duties imposed for preventing evasion of trade remedies

Measures against evasion of trade remedies shall be applied to the imports specified in Section 2 of this Announcement by means of charging additional duties on those imports (trade remedy duties) at the rate of 10.9% for the period from the effective date of the Decision on application of measures against evasion of trade remedies applied to steel coil and steel wire products to March 21, 2020 inclusively (if the application of initial safeguard measures is not extended). The Ministry of Industry and Trade shall give specific announcements in case of extension of application of safeguard measures.

Procedures and formalities for declaration, payment, refund and exemption from trade remedy duties shall conform to the Law on import and export No. 107/2016/QH13 dated April 06, 2016 and prevailing regulations.

4. Complaints

If there are the grounds that this Decision on application of measures against trade remedies breaks applicable laws, organizations/individuals are entitled to make complaints against this Decision in accordance with the Law on complaints No. 02/2011/QH13 dated November 11, 2011.

5. Contact information

Information about the Decision on application of measures against evasion of trade remedies applied to steel coil and steel wire products can be found by visiting the websites of the Ministry of Industry and Trade (http://www.moit.gov.vn) and the Trade Remedies Authority of Vietnam (http://www.pvtm.gov.vn).

Any questions, inquiries or opinions about the application of measures against evasion of trade remedies should be sent to:

Injury and Safeguard Investigation Division - The Trade Remedies Authority of Vietnam affiliated to the Ministry of Industry and Trade

Address: 25 Ngo Quyen Street, Hoan Kiem District, Hanoi City, Vietnam

Telephone: (+84 24) 7303 7898 (Ext. 112) (Ms. Phan Mai Quynh); Email: [email protected]; [email protected]. 

ANNEX I

PROCEDURES FOR EXEMPTION FROM MEASURES AGAINST EVASION OF TRADE REMEDIES

1. Applicants for exemption from trade remedies

The entities specified in Article 10 of the Circular No. 06/2018/TT-BCT.

2. Application for exemption from trade remedies

Applications shall be prepared in accordance with Article 12 of the Circular No. 06/2018/TT-BCT.

3. Procedures for exemption from trade remedies

Procedures for exemption from trade remedies shall conform to Article 7 of Decree No. 10/2018/ND-CP and Article 13 of Circular No. 06/2018/TT-BCT. To be specific:

Step 1: The Ministry of Industry and Trade (the Trade Remedies Authority of Vietnam) shall make notification of receipt of exemption applications. Such notification shall be published on the websites of the Ministry of Industry and Trade (http://www.moit.gov.vn) and the Trade Remedies Authority of Vietnam (http://www.pvtm.gov.vn).

Step 2: Applications may be submitted to the Trade Remedies Authority of Vietnam in one of the following forms:

- Through public services portal: (https://dichvucong.moit.gov.vn/HomePage.aspx)

- Directly at the office of the Trade Remedies Authority of Vietnam; or

- By post;

Step 3: The Trade Remedies Authority of Vietnam shall examine and notify the adequacy and legitimacy of received exemption applications. Enterprises shall consider completing their applications if necessary (as prescribed in Clause 3 Article 7 of Decree No. 10/2018/ND-CP and Clause 5 Article 13 of Circular No. 06/2018/TT-BCT).

Step 4: Appraisal of exemption applications and issuance of exemption decisions (as prescribed in Clause 4 Article 7 of Decree No. 10/2018/ND-CP and Article 11, Article 14 of Circular No. 06/2018/TT-BCT):

- Within 30 days from the receipt of an adequate and valid exemption application, the Trade Remedies Authority of Vietnam shall play the leading role and cooperate with relevant authorities to appraise the received application and request the Minister to grant or refuse to grant exemption from trade remedies. The time limit for considering an exemption application may be extended if necessary provided it shall not be longer than the one specified in Clause 4 Article 7 of Decree No. 10/2018/ND-CP. If an exemption application is refused, the Trade Remedies Authority of Vietnam shall provide reasons thereof.

- Refund of trade remedy duties: In case imports are granted exemption from trade remedies, trade remedy duties charged on the shipments for which customs declarations have been submitted within the exemption period will be refunded.

Procedures for refund of trade remedy duties shall be carried out in accordance with applicable lawsoft.

Step 5: Periodical reports Importers granted exemption from trade remedies shall submit periodical reports on imports exempt from trade remedies and their fulfillment of exemption conditions and obligations to the Trade Remedies Authority of Vietnam (as prescribed in Article 16 of Circular No. 06/2018/TT-BCT).

Step 6: Post-exemption inspection The Trade Remedies Authority of Vietnam shall carry out post-exemption inspection for appraising the fulfillment of exemption conditions and compliance with relevant regulations on exemption by the entities granted exemption from trade remedies. If an entity is found to fail exemption conditions and relevant regulations, the Ministry of Industry and Trade is entitled to revoke the exemption decision and notify relevant customs authority to take actions against this case in accordance with applicable laws.

ANNEX II

SUMMARY OF INVESTIGATION DETERMINATIONS

Clause 3 Article 73 of Decree No. 10/2018/ND-CP and Clause 4 Article 81 of Decree No. 10/2018/ND-CP provide regulations on expansion of the scope of application of trade remedies and investigation into evasion of trade remedies. To be specific:

(i) there is no remarkable difference between the subject merchandise and the imports subject to trade remedies;

(ii) there is a remarkable increase in the import volume of the subject merchandise compared to the imports subject to trade remedies. Such remarkable increase in the import volume occurs before or from the date of issuance of the decision on investigation into application of trade remedies;

(iii) domestic production suffers injury or there is a reduced effectiveness of applicable trade remedies.

Based on the analysis of the subject merchandise, trade flows and current production and business status of domestic manufacturers of steel coil and steel wire products, the Ministry of Industry and Trade (the Trade Remedies Authority of Vietnam – the investigating authority) determines that:

1. With regard to the subject merchandise

- There is no remarkable difference between the imported steel coil and steel wire products bearing the following HS codes: 7213.91.90, 7217.10.10, 7217.10.29, 7229.90.99, 9839.10.00, which are subject to the investigation into application of measures against evasion of trade remedies, and the ones to which trade remedies (safeguard measures) are applied.

- With regard to imports bearing HS codes of 7213.99.90, 9839.20.00: The investigating authority determines that the technical characteristics of the imports bearing these HS codes are different from those of the imports to which the safeguard measures are applied and domestically manufactured products because these steel products have a circular cross-section of ≥ 14 mm in diameter. Thus, the Ministry of Industry and Trade decides to exclude the steel products bearing these HS codes from the application of measures against evasion of trade remedies.

The investigating authority determines that the steel coil and steel wire products subject to the investigation into evasion of trade remedies are like to and competitive directly with domestically manufactured steel coil and steel wire products. However, the investigating authority determines that some of the imports subject to the investigation into evasion of trade remedies cannot be produced domestically (including but not limited to high-quality steel products and rolled or drawn steel products for use in supporting industries, automotive industry and motorcycle industry) and thus they should be excluded from the application of measures against evasion of trade remedies. Details about such exclusion are provided in Section 2 of this Announcement.

2. With regard to remarkable import volume

There is a remarkable increase in the import volume of the steel coil and steel wire products, which are subject to the investigation into evasion of trade remedies, compared to the import volume of the steel coil and steel wire products to which safeguard measures are applied. Such increase in the import volume occurs after the Minister of Industry and Trade decides to conduct the investigation into the application of safeguard measures to steel coil and steel wire products imported into Vietnam (case SG04). Especially, the import volume of these steel products rapidly and obviously increased immediately after the application of safeguard measures. Hence, the investigating authority determines that some imported steel coil and steel wire products are found to evade trade remedies through their insignificant changes.

3. With regard to impacts of evasion of trade remedies

In order to evaluate impacts of the abovementioned evasion of trade remedies on the domestic production of steel coil and steel wire products, the investigating authority has sent the questionnaires to manufacturers of steel coil and steel wire products in Vietnam. Investigation determinations indicate that the imports subject to the investigation into evasion of trade remedies reduce effectiveness of applicable safeguard measures (in terms of prices and quantities) in the 2016-2018 period.

The investigating authority shall provide investigation determinations (disclosure) for relevant parties of the case.