Wednesday, October 23 2019

VietNamNews

MoIT imposes highest tax on Chinese aluminium products

Update: October, 03/2019 - 08:53

 

Cheap Chinese aluminum products trouble the Vietnamese producers. — Photo vietnamplus.vn

HÀ NỘI — The Ministry of Industry and Trade (MoIT) decided to officially impose the highest rate of anti-dumping duties on aluminium products originating from 16 Chinese producers.

Accordingly, six Chinese aluminium exporters will face the highest rate of 35.58 per cent, eight others will face rates of between 18.16 and 35.39 per cent, two final exporters will face a rate of less than 10 per cent.

The products are used to make aluminium doors, wattle walls, storage cabinets and interior and exterior decorations, as well as in construction. In addition, they are also used to make industrial machines and structures.

In January, the MoIT conducted an investigation into aluminium imports from China according to regulations from the World Trade Organisation and Foreign Trade Management Law, as well as losses to domestic manufacturers.

It found that Chinese aluminium was dumped at a margin of 2.49 per cent to 35.58 per cent. In some cases, prices of Chinese products were much lower than the production cost of the product in Việt Nam. As a result, the domestic aluminium industry has suffered in recent years, causing losses to many businesses and forcing employees to quit their jobs.

On June 5, after a five-month investigation, the MoIT temporarily applied the lowest anti-dumping rate of 2.46 per cent on the Chinese aluminium products.

Last year, the amount of imported aluminium extruded bars from China to Việt Nam reached 62,000 tonnes, double that of 2017. The figure excluded a large amount of imports to processing zones. Imports from other countries fell to 5,000 tonnes in 2018.

Also in 2018, the US conducted a tax evasion investigation on some extruded aluminium products imported from Việt Nam. In mid-September, the US concluded some of them were evading anti-dumping duties the US has imposed on Chinese products. The US then announced a tax rate of up to 374.15 per cent for those Vietnamese products.

According to the MoIT, with some of the local products on which the US imposed anti-dumping duties, there were a number of products with the mentioned Chinese exporters.

The MoIT said the US move could seriously damage good aluminium manufacturers in Việt Nam in terms of profitability and reputation, giving them competition with both the cheap imported products from China in the local market and earning a reputation and position in the international market.

The MoIT thought the imposition of anti-dumping duties this time will help reduce such pressure on domestic manufacturing enterprises as well as avoid tax-evading products from China.

According to regulations, anti-dumping measures will take effect within five years from the effective date of September 28. — VNS

 

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