EC investigates suspected violations by Vietnam cold-rolled stainless steel producers

The European Commission suspects that after applying anti-dumping and anti-subsidy measures on Indonesian products, goods from that country were trans-shipped to Vietnam for exports to Europe.

The Trade Remedies Authority of Vietnam, under the Ministry of Industry and Trade, has received information about the European Commission (EC) issuing a notice of initiation of anti-dumping and anti-subsidy tax evasion investigations for cold-rolled stainless steel products from Vietnam.

Products from Taiwan, mainland China and Turkey will also be investigated. The products under investigation are flat-rolled stainless steel originating from Indonesia, including HS code 7219 31 00.

The plaintiff in the case is the European Steel Association (EUROFER).

The EC suspects that goods from Indonesia were transshipped to Vietnam, Taiwan and Turkey for exports to the EU.

"There is evidence that assembling and finishing activities involving stainless steel would constitute circumvention because these activities only appeared or increased following the EC’s measures in Indonesia," the commission said in a statement.

In particular, the import value of Indonesian components accounts for more than 60% of the entire value of items after completion, while the added value of this activity accounts for less than 25% of production costs. The volume of items suspected of evading anti-dumping measures has dramatically increased in the EU market, potentially harming domestic industry.

The investigation and follow up action will be completed in nine months, according to the notification. The EC emphasizes that interested parties must present themselves to the investigating body within 15 days of the notice's effective date. Respondents to inquiries, written comments, requests for consideration of exclusion and other essential material must be submitted within 37 days following publication in the EU Official Gazette.

The Trade Remedies Authority has advised firms to manufacture and export indigenous cold-rolled stainless steel products to protect their legal interests.

Vietnamese firms need to research and fully understand the EU's anti-tax evasion legislation and procedures; carefully analyze the necessary notices, ensuring compliance, the authority said.