The US Commerce Department (DOC) has decided against imposing anti-dumping duty on Vietnam’s passenger vehicle and light truck tires.
| Tires testing at Bridgstone Tire Manufacturing Vietnam LLC. Photo: Bridgestone |
The DOC announced the decision following its release of an affirmative preliminary anti-dumping duty on such products from Vietnam, South Korea, Taiwan and Thailand in late 2020.
In contrast to the case of Vietnam, the report determined exporters from those countries have dumped passenger tires in the US at rates of 14.24 to 38.07% for South Korea, 52.42 to 98.44% for Taiwan, 13.25 to 22.21% for Thailand.
Major tires exporters/producers of Vietnam such as Sailun, Kenda Rubber, Bridgestone Tire Manufacturing Vietnam LLC, Kumho Tire and Yokohama Tyre Vietnam were determined of having not committed dumping act, while imposing rate for Vietnam-wide entity at 22.3%.
A statement from Vietnam’s Ministry of Industry and Trade (MoIT) said this is an encouraging news given the US status as Vietnam’s most important market for car tires, while the export turnover of those firms made up 95.5% of the country’s total tires exports to the US in 2019 at US$469.6 million.
“A 0% anti-dumping duty would help Vietnam’s major tires producers to continue their export activities to the US,” stated the MoIT, adding this is important as the domestic production of tires is facing fierce competition from imported products of Thailand and China.
“Vietnamese tires would gain considerable advantages against those from South Korea, Taiwan and Thailand that are subject to dumping rates from 13.25-98.44% in the US market,” noted the ministry.
Meanwhile, Vietnam’s rubber sector would also receive benefits from DOC’s conclusion, as a large proportion of rubber in Vietnam are used to make car tires, it added.
The DOC is scheduled to release its final conclusion on May 14, 2021.
The MoIT also welcomed recent decision from the office of the US Trade Representative (USTR) in not recommending import tariff on Vietnamese goods following its investigation into the latter’s currency practice.
“Along with the DOC’s conclusion on Vietnamese car tires, recent move from the USTR could be seen as considerable success of Vietnam in resolving trade issues between the two countries,” stated the MoIT.
The MoIT said it would continue to work with related parties during the trade dispute process to ensure the lawful rights and benefits of local firms.
