The European Commission (EC) has decided to impose temporary safeguard duties in the form of an import quota on 28 categories of steel from 10 exporting countries, including Vietnam. However, not all Vietnamese exporters are subject to the duties.
Steel is stored at a local warehouse. The EC has decided to impose temporary safeguard duties in the form of an import quota on 28 categories of steel from 10 exporting countries, including Vietnam
Under the decision, to be applied from July 19, each category of steel exports to the European Union from the 10 countries has its own quota. Exports exceeding this quota will be charged a 25% tax.
The temporary safeguard measure is valid for 200 days.
The quota assigned to Vietnam’s steel is one million units per year, with a 15% tax. The three steel products of Vietnam that are subject to the duties are alloy and non-alloy cold-rolled steel sheets, metallic coated sheets and stainless cold-rolled sheets and strips.
The measure was imposed four months after the EC announced plans to initiate an investigation into the need to safeguard steelmakers in Europe, following a surge in imports to the market in the 2013-2016 period.
A public hearing, with 85 affected parties expected to attend, is planned for this September.
The safeguard duty has been slapped on some steel exporters of Vietnam, whereas Hoa Phat, a major domestic steelmaker, has not been included as it voluntarily took part in the EC’s investigation.
Hoa Phat did not export to the European Union market in the given years but did export to many large markets including Canada, the United States and Japan in the 2015-2017 period. Its voluntary participation in the probe will prove beneficial when it enters major markets in general, and the European Union in particular, in future.
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