Final Antidumping Determination on Galvanized Steel From Vietnam
On February 24th, 2023, the Ministry of Economy published the Final Antidumping Determination in the investigation on coated flat steel from Vietnam. In its determination, the authority established the existence of dumping and material injury to the domestic production of galvanized steel in Mexico. Therefore, the Ministry of Economy imposed the following:
Beginning of the Antidumping Investigation
On August 30th, 2021, the Ministry of Economy initiated an anti-dumping investigation on galvanized steel from Vietnam, which was published in the Mexican Official Gazette. This is the first anti-dumping investigation against Vietnamese goods in Mexico.
Final Antidumping Determination
Definitive Antidumping Duties
As it can be seen, the definitive antidumping duties are lower than those imposed in the Preliminary Determination. Unlike the Preliminary Determination, the Ministry of Economy discounted the expenses related to scrap in the calculation of the production costs. That is why the Ministry determined the existence of a lower dumping margin for imports of galvanized steel.
VTZ Participation in the Antidumping Investigation on Coated Flat Steel from Vietnam
Thanks to our strong and experience team, VTZ represented numerous exporters and importers from Vietnam.
Vietnamese exporters of Coated Flat Steel
In this investigation, VTZ represented the exporting companies:
- Hoa Phat Steel Sheet.
- Hoa Sen Group.
- Nam Kim Steel.
- Ton Dong A Corporation.
The collaborative work between VTZ and these companies allowed the Ministry of Economy to determine a specific dumping margin for each of them.
The Vietnam Steel Association
Furthermore, VTZ was in charge of representing the Vietnam Steel Association in this investigation.
Mexican importers of Coated Flat Steel
VTZ also represented the following importing companies:
- Aceros y Overollings de México, S.A. de C.V.,
- Dufmex, S. de R.L. de C.V.,
- Hanwa Steel Service Mexicana, S.A. de C.V.,
- Mitsui de México, S. de R.L. de C.V., and
- Operadora de Pytsa Industrial, S.A. de C.V.
VTZ work and results
Throughout the investigation, VTZ prepared the information from the exporters and presented arguments on normal value, export price, price adjustments, and costs of production. For instance, our firm was in charge of the scrap discount argument that derived into lower definitive antidumping duties. In addition, VTZ submitted numerous arguments regarding injury, as well as its causal relationship with the investigated imports.
Even though the Ministry of Economy did impose antidumping duties, this result allows Vietnamese exporters to continue exporting to the Mexican market. This is because Vietnam’s exports have a 0% preferential tariff under the CPTPP, while imports of coated flat steel from other origins are subject to the 15% general tariff. Consequently, Vietnamese coated flat steel continues to be more competitive than that of other countries in terms of prices.
……………………………………………………………………………………………………………………………………….
Preliminary Antidumping Determination on Coated Flat Steel from Vietnam
On September 14th, 2022, the Ministry of Economy published the Preliminary Antidumping Determination on galvanized steel. In this determination, the Ministry of Economy preliminarily determined the existence of dumping and injury to the domestic production of galvanized steel in Mexico. Consequently, the Ministry imposed the following provisional antidumping duties:
Provisional Antidumping Duties
……………………………………………………………………………………………………………………………………….
Initiation of Antidumping Investigation
Product Description of the Investigated Product
Flat steel products, carbon or alloyed, resistant to corrosion with steel or non-steel coating. Commonly known as “flat-rolled steel products coated with corrosion-resistant metal or painted”, “hot hipped galvanized”, “certain corrosion-resistant steel products”, “steel sheet metallic coated and prepainted”, “galvanized sheet” or “galvanneal”.
Investigated Galvanized Steel Tariff Items
Accordingly, the investigated galvanized steel is imported under the following Mexican Tariff Items:
7210.30.02, 7210.41.01, 7210.41.99, 7210.49.99, 7210.61.01, 7210.70.02, 7212.20.03, 7212.30.03, 7212.40.04, 7225.91.01, 7225.92.01, and 7226.99.99.
Period of Investigation (Dumping)
The Ministry of Economy determined that the Period of Investigation (POI) is January 1, 2020, to December 31, 2020.
Period of Analysis (Injury)
The Ministry of Economy determined that the Period of Analysis (POI) is January 1, 2018, to December 31, 2020.
The Normal Value in Vietnam
Petitioners submitted a price list as a reference for the Vietnamese market or normal value. In addition, petitioners considered that the galvanized steel sold in the Vietnamese market is not subject to the ordinary course of trade. The Ministry of Economy agreed with petitioners and, thus, agreed with the constructed normal value methodology submitted.
Listed Exporters of Galvanized Steel from Vietnam
Bach Dang Const.268 Trn Nguyên HãnNim Ngha, Lê Chân, Hi PhòngZIP Code 04713, VietnamChina Steel Sumikin VietnamMy Xuan A2 IZ, My Xuan WardPhu My TownZIP Code 78707, BR-VT Province, VietnamHoa Sen GroupFloor 3, 183 Nguyen Van Troi St, Ward 10Phu Nhuan DistrictZIP Code 72218, Ho Chi Minh City, VietnamLilama124 Minh Khai StreetHai Ba Trung District HanoiZIP Code 11619, VietnamMaruichi Sun Steel Co (Sunsco)DT743 Road, Dong Tac QuarterTan Dong Hiep Ward Di An CountyZIP Code 75311, Binh Duong Province, VietnamMaruvienaLong Binh Ward, Dist.9ZIP Code 71217, Ho Chi Minh City, VietnamTon Nam Kim – Nam Kim Steel Joint Stock CompanyLot A1, Ð2 Street, Ð?ng An 2Industrial Park, Thu Dau Mot CityZIP Code 75115, Binh Duong, VietnamNS Bluescope Coated Products9th Floor Vincom Center, 72 Le Thanh Ton StreetDistrict 1ZIP Code 71006, Ho Chi Minh City, VietnamPerstimaNo 15, VSIP Street 6Vietnam Singapore Industrial Park (VSIP)Thuan An CityZIP Code 75208, Binh Duong Province, VietnamPosvina Co Ltd232, Group 11, Quarter 2Do Xuan Hop Street, Phuoc Long A Ward, District 9ZIP Code 71210, Ho Chi Minh City, VietnamSouthern Steel Sheet Co (SSSC)Road No. 9Bien Hoa I Industrial Park, Bien Hoa, Dong NaiZIP Code 76150, Ward An Binh City, VietnamTon Dong A Corp.No. 5, Road No. 5Song Than 1 Industrial Park, Di An Ward, Di An TownZIP Code 75355, Binh Duong Province, Vietnam
Petitioners
Ternium and Tenigal.
Do You Need More Information on the Antidumping Investigation on Galvanized Steel from Vietnam?
VTZ is a Mexican Law Firm specialized in International Trade with a strong focus on trade remedies, contact our key members today:
Adrian Vázquez
Managing Partner
Emilio Arteaga
Jr. Partner
Vero Vazquez
Partner
More information on Trade Remedies in Mexico?
Check out our international trade guide in Thomson Reuters Practical Law.
International Trade in Mexico: A Guide by VTZ in Thomson Reuters
International Trade in Mexico: A Guide by VTZ in Thomson Reuters Vazquez Tercero & Zepeda (VTZ) has contributed for the fifth time with Thomson Reuters Practical Law in the International Trade and Commercial Transactions Global Guide. Thomson Reuters’ guide on international trade matters is a compilation of guides in which local
