Vietnam’s Ministry of Industry and Trade (MoIT) has decided to impose anti-dumping duty on Chinese extruded aluminum bars at rates ranging from 2.49% to 35.58%.
Illustrative photo.
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In January, the MoIT initiated the probe into Chinese aluminum products, following complaints from local producers filed last October.
The investigation fully complied with regulations of the World Trade Organization (WTO), Vietnam’s Law on Foreign Trade Management and other related regulations.
According to the MoIT, the result showed the domestic aluminum manufacturing sector is facing severe consequences, including most local enterprises suffering losses, suspension of production chains and large number of employees losing their jobs.
The MoIT attributed the dire situation to Chinese aluminum products being sold in Vietnam at dumping rates ranging from 2.49% to 35.58%, in some cases at prices much lower than the production cost after being restricted in other markets through trade barriers, including anti-dumping duties.
As a result, the conclusion was made based on three factors: the dumping act of Chinese producers and exporters; considerable damages to local production; and the act of dumping being the main factor that lead to huge losses of local enterprises.
According to statistics, in 2018, Vietnam imported 62,000 tons of extruded aluminum bars from China, nearly double the figure recorded in the previous year. The figure, however, did not include the quantity of aluminum bars brought into manufacturing facilities for later export.
Meanwhile, the number of extruded aluminum bars imported from other countries has been on the decline over the last few years, and was less than 5,000 tons in 2018.
In 2018, the US initiated probes on tax evasion for Vietnam’s extruded aluminum bars. The preliminary conclusion from the probe indicated those products have been evading US anti-dumping duties and anti-subsidiary duties that US is imposing to Chinese products.
As such, the US announced the imposition of tax rate up to 374.15% to these aluminum bars from Vietnam.
Vietnamese law on foreign trade management stipulates that the Ministry of Industry and Trade could apply anti-dumping duty retrospectively to the imported products, which are determined to cause possible significant loss or serious injury to domestic industry.
Therefore, the ministry warned organizations and individuals to consider the possibility of being slapped anti-dumping duty when signing import, distribution and business contracts as well as using the investigated goods.
