Vietnam's anti-corrosion steel is proposed for dual investigation in the United States

Vietnam's anti-corrosion steel is proposed for "dual" investigation in the United States

Of the 10 countries and territories proposed for investigation, only Canada, Mexico, Brazil and Vietnam were proposed for dual anti-dumping and anti-subsidy investigations.

Vietnam's anti-corrosion steel products are proposed for "dual" investigation in the United States.

The products under investigation in the case are corrosion-resistant steel with HS codes 7210.30, 7210.41, 7210.49, 7210.61, 7210.69, 7210.70, 7210.90, 7212.20, 7212.30, 7212.40, 7212.50, 7212.60, 7226.99.

The 10 countries and territories proposed for investigation include Canada, Mexico, Brazil, the Netherlands, Taiwan, Turkey, the United Arab Emirates, Vietnam, Australia and South Africa. These are all countries in the top 10 exporting investigated products to the United States, accounting for 75% of imports into the United States in 2023.

Of these, only Canada, Mexico, Brazil and Vietnam were proposed for dual anti-dumping and anti-subsidy investigations, the remaining countries were only proposed for anti-dumping investigations.

Proposed anti-dumping / anti-subsidy investigation period: 2023. Damage investigation period: 3 years (2021-2023)

The alleged anti-dumping margin for goods exported from Vietnam is 158.83% (the highest among the accused countries). In this case, the plaintiff proposed to use Morocco as a surrogate country because it believes that Morocco has a similar level of economic development to Vietnam and has a significant number of CORE steel producers (Morocco is on the latest list of surrogate countries issued by DOC for Vietnam).

Parties have 30 days to comment on the replacement country before DOC issues its preliminary findings in the case.

The Plaintiff does not allege the magnitude of the subsidy. The Plaintiff alleges that CORE Vietnam steel producers/exporters have received 26 subsidy programs from the Government, causing or threatening to cause material injury to the US domestic industry.

Specifically, the accused programs belong to the following groups: loan programs, corporate income tax incentive programs, import tax exemption and refund incentive programs, land incentive programs, funding programs, and utility provision programs at preferential prices.

According to data from the US International Trade Commission (ITC), in 2023, Vietnam exported 242 million USD of the accused products to the United States, accounting for about 7% of the total market share of CORE steel exports to the United States.

According to US regulations, the procedure for an anti-subsidy investigation is as follows:

  Step 1: The Government of the investigated country (Vietnam) consults with DOC on the Application for anti-subsidy investigation.

Step 2: DOC has 20 days to review the Request for Investigation and issue a decision to initiate/not initiate an investigation, expected on September 25, 2024. In some special cases, DOC may extend this period to a total of 40 days.

Step 3: The ITC has 45 days from the date of receipt of the Petition to issue a Preliminary Injury Determination. In the event that the ITC makes a preliminary finding of no injury, the case will be terminated in its entirety (although this is unlikely).

Step 4: DOC has 65 days from the date of initiation to issue a preliminary determination of subsidy.

Step 5: DOC has 75 days from the date of issuance of the Preliminary Determination to Issue a Final Determination on subsidies.

Step 6: The ITC has 45 days from the date of DOC's final determination of subsidy to make its final determination of injury.

Step 7: DOC has 07 days to issue a Subsidy Order (in case of finding of subsidy and injury). (Timelines may be extended).

To best protect the rights and interests of Vietnamese exporting enterprises, the Trade Defense Department recommends that industry associations support notification to enterprises exporting accused products to prepare response plans and handle the case in case the DOC initiates an investigation.

For enterprises producing and exporting related products, it is necessary to closely monitor the next developments of the case; proactively research and master the regulations, procedures, and processes of anti-dumping and anti-subsidy investigations of the United States and plan a suitable counter-suit strategy for the enterprise (in case the DOC initiates an investigation); diversify export markets and products.

Businesses are required to cooperate fully with the US Investigation Agency throughout the course of the case. Any failure to cooperate or insufficient cooperation may result in the US Investigation Agency using available evidence to the disadvantage of the business or imposing the highest alleged antidumping and countervailing duties on the business.

At the same time, proactively register for an IA ACCESS account at the DOC's electronic portal ( https://access.trade.gov/login.aspx ) to update information and submit documents and materials related to the US Investigation Agency.

Source: https://baodautu.vn/thep-chong-an-mon-cua-viet-nam-bi-de-nghi-dieu-tra-kep-tai-hoa-ky-d224727.html